Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 1,613,285,990 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,111,819 | ||
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, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 61,435 | $ 28,557 |
Accounts receivable trade, net | 477,088 | 424,679 |
Other receivables | 22,021 | 5,704 |
Prepaid taxes | 616 | 12,088 |
Prepaid expenses and other current assets | 27,533 | 25,414 |
Current assets held for sale | 159,616 | |
TOTAL CURRENT ASSETS | 588,693 | 656,058 |
Restricted investments | 19,236 | 20,143 |
Property and equipment, net | 681,859 | 561,214 |
Other intangibles, net | 134,788 | 64,747 |
Goodwill, net | 483,584 | 319,272 |
Other assets | 16,738 | 5,491 |
Non-current assets held for sale | 44,016 | |
TOTAL ASSETS | 1,924,898 | 1,670,941 |
CURRENT LIABILITIES: | ||
Accounts payable trade | 272,859 | 238,230 |
Accounts payable other | 10,906 | 13,903 |
Accrued payroll | 55,535 | 26,674 |
Accrued other | 82,900 | 53,508 |
Current portion of capital lease | 2,845 | 2,777 |
Current portion of long-term debt | 101,713 | 77,266 |
Current liabilities held for sale | 107,185 | |
TOTAL CURRENT LIABILITIES | 526,758 | 519,543 |
Long-term debt | 229,071 | 214,808 |
Non-current liabilities | 29,619 | 33,599 |
Long-term portion of capital lease | 4,739 | 7,696 |
Deferred taxes | 153,877 | 121,095 |
Non-current liabilities held for sale | 4,328 | |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2018 and 2017 | ||
Additional paid-in capital | 172,220 | 173,011 |
Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458) | (15,458) |
Retained earnings | 1,072,456 | 870,716 |
Accumulated other comprehensive loss | (182) | (194) |
Treasury stock; at cost, 7,431,083 shares in 2018 and 7,777,722 shares in 2017 | (248,621) | (258,622) |
TOTAL STOCKHOLDERS' EQUITY | 980,834 | 769,872 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,924,898 | 1,670,941 |
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, 2018 | Dec. 31, 2017 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Purchase price in excess of predecessor basis, tax benefit | $ 10,306 | |
Treasury stock, shares | 7,431,083 | 7,777,722 |
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 | 33,793,709 | 33,447,070 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 3,683,593 | $ 3,123,063 | $ 2,750,449 |
Transportation costs | 3,237,992 | 2,785,433 | 2,419,130 |
Gross margin | 445,601 | 337,630 | 331,319 |
Costs and expenses: | |||
Salaries and benefits | 222,786 | 175,567 | 166,118 |
General and administrative | 81,272 | 77,239 | 60,932 |
Depreciation and amortization | 16,624 | 12,155 | 7,712 |
Total costs and expenses | 320,682 | 264,961 | 234,762 |
Operating income | 124,919 | 72,669 | 96,557 |
Other income (expense): | |||
Interest expense | (9,611) | (6,754) | (3,625) |
Interest income | 1,359 | 349 | 346 |
Other, net | 58 | 667 | 749 |
Total other income (expense) | (8,194) | (5,738) | (2,530) |
Income from continuing operations before income taxes | 116,725 | 66,931 | 94,027 |
Income tax expense (benefit) | 29,064 | (53,083) | 36,381 |
Income from continuing operations | 87,661 | 120,014 | 57,646 |
Income from discontinued operations, net of income taxes | 114,079 | 15,139 | 17,159 |
Net income | 201,740 | 135,153 | 74,805 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 12 | 79 | (95) |
Total comprehensive income | $ 201,752 | $ 135,232 | $ 74,710 |
Earnings per share from continuing operations | |||
Basic | $ 2.62 | $ 3.61 | $ 1.70 |
Diluted | 2.61 | 3.60 | 1.70 |
Earnings per share from discontinued operations | |||
Basic | 3.42 | 0.46 | 0.51 |
Diluted | 3.40 | 0.45 | 0.51 |
Earnings per share net income | |||
Basic | 6.04 | 4.07 | 2.21 |
Diluted | $ 6.01 | $ 4.05 | $ 2.20 |
Basic weighted average number of shares outstanding | 33,393 | 33,220 | 33,841 |
Diluted weighted average number of shares outstanding | 33,560 | 33,350 | 33,949 |
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, 2015 | $ 647,840 | $ 419 | $ 174,285 | $ (15,458) | $ 660,758 | $ (178) | $ (171,986) |
Beginning 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) | ||||||
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) | |||||
Stock tendered for payments of withholding taxes | (3,412) | $ (3,412) | |||||
Stock tendered for payments of withholding taxes (in shares) | (77,988) | ||||||
Issuance of restricted stock awards, net of forfeitures | (10,427) | $ 10,427 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 332,076 | ||||||
Share-based compensation expense | 9,873 | 9,873 | |||||
Net income | 135,153 | 135,153 | |||||
Foreign currency translation adjustment | 79 | 79 | |||||
Ending Balance at Dec. 31, 2017 | 769,872 | $ 419 | 173,011 | (15,458) | 870,716 | (194) | $ (258,622) |
Ending Balance (in shares) at Dec. 31, 2017 | 41,887,088 | (7,777,722) | |||||
Stock tendered for payments of withholding taxes | (4,270) | $ (4,270) | |||||
Stock tendered for payments of withholding taxes (in shares) | (87,381) | ||||||
Issuance of restricted stock awards, net of forfeitures | (14,271) | $ 14,271 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 434,020 | ||||||
Share-based compensation expense | 13,480 | 13,480 | |||||
Net income | 201,740 | 201,740 | |||||
Foreign currency translation adjustment | 12 | 12 | |||||
Ending Balance at Dec. 31, 2018 | $ 980,834 | $ 419 | $ 172,220 | $ (15,458) | $ 1,072,456 | $ (182) | $ (248,621) |
Ending Balance (in shares) at Dec. 31, 2018 | 41,887,088 | (7,431,083) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 201,740 | $ 135,153 | $ 74,805 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 83,910 | 62,173 | 44,712 |
Deferred taxes | 39,499 | (41,351) | 13,801 |
Compensation expense related to share-based compensation plans | 13,480 | 9,873 | 8,479 |
Contingent consideration adjustment | (4,703) | ||
(Gain) loss on sale of assets | (1,007) | 441 | (573) |
Excess tax benefits from share based compensation | (733) | ||
Gain on Disposition | (132,448) | ||
Transaction costs for Disposition | (5,798) | ||
Changes in operating assets and liabilities: | |||
Restricted investments | 827 | (3,304) | 231 |
Accounts receivable, net | (31,475) | (84,775) | (87,629) |
Prepaid taxes | 11,472 | (11,794) | 66 |
Prepaid expenses and other current assets | (1,750) | (7,543) | 1,099 |
Other assets | (8,029) | 56 | 570 |
Accounts payable | 5,521 | 59,037 | 35,709 |
Accrued expenses | 43,476 | (2,931) | 9,238 |
Non-current liabilities | (3,876) | 10,185 | 2,698 |
Net cash provided by operating activities | 210,839 | 125,220 | 102,473 |
Cash flows from investing activities: | |||
Proceeds from sale of equipment | 10,975 | 5,327 | 2,061 |
Purchases of property and equipment | (199,791) | (74,541) | (107,409) |
Acquisitions, net of cash acquired | (248,656) | (165,933) | |
Proceeds from the disposition of discontinued operations | 227,986 | ||
Net cash used in investing activities | (209,486) | (235,147) | (105,348) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 172,146 | 98,544 | 62,155 |
Repayments of long-term debt | (133,436) | (79,869) | (34,767) |
Stock tendered for payments of withholding taxes | (4,270) | (3,412) | (2,489) |
Purchase of treasury stock | (100,000) | ||
Capital lease payments | (2,889) | (2,800) | (2,634) |
Excess tax benefits from share based compensation | 372 | ||
Payment of debt issuance costs | (1,397) | ||
Net cash provided by (used in) financing activities | 31,551 | 11,066 | (77,363) |
Effect of exchange rate changes on cash and cash equivalents | (26) | 14 | (107) |
Net increase (decrease) in cash and cash equivalents | 32,878 | (98,847) | (80,345) |
Cash and cash equivalents beginning of the year | 28,557 | 127,404 | 207,749 |
Cash and cash equivalents end of the year | 61,435 | 28,557 | 127,404 |
Supplemental disclosures of cash paid for: | |||
Interest | 9,677 | 6,162 | 3,665 |
Income taxes | $ 13,606 | $ 13,149 | $ 33,233 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1. Description of Business and Summary of Significant Accounting Policies For all periods presented in our Consolidated Statements of Income and Comprehensive Income, all sales, costs, expenses, gains and income taxes attributable to Mode have been reported under the captions, “Income from Discontinued Operations, Net of Income Taxes.” Cash flows used in or provided by Mode have been reported in the Consolidated Statements of Cash Flows under operating and investing activities. Business : Hub Group, Inc. (“Hub”, “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 offer a dedicated fleet of equipment and drivers through Hub Group Dedicated. We also arrange for transportation of freight by truck and perform logistics services. On August 31, 2018, Hub Group, Inc. entered into the Purchase Agreement with Mode Transportation, LLC (“Mode”), a direct wholly-owned subsidiary of the Company, and Mode Purchaser, Inc., an affiliate of York Capital Management (“Purchaser”) pursuant to which the Company sold all of the issued and outstanding membership interests of Mode to Purchaser (the “Disposition”). Refer to Note 4 – Discontinued Operations for additional information regarding results from discontinued operations. On December 3, 2018, a subsidiary of Hub Group, Inc. closed on the Agreement and Plan of Merger (the “Merger Agreement”) to acquire CaseStack, Inc. (“CaseStack”). Refer to Note 5 – Acquisition for additional information regarding CaseStack. 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, 2018 and 2017, our cash and temporary investments were with high quality financial institutions in demand deposit accounts (“DDAs”), savings accounts and an interest bearing checking account. 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, including receivable adjustments charged through revenue for items such as disputes, and an evaluation based on current economic conditions. Specifically, 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 to determine 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 its 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 $6.7 million and $6.0 million as of December 31, 2018 and 2017, 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 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. Due to the Disposition, we only have one reporting unit. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the fair value of our reporting unit was less than its carrying value 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 2018 and 2017, we performed the qualitative assessment and determined it was not, more-likely-than-not, that the fair value of our reporting unit was less than its carrying value. 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, savings accounts and an interest bearing checking account. 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 2018, 2017 or 2016. 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 : On January 1, 2018 we adopted the Accounting Standards Codification (ASC) topic 606, Revenue from Contracts with Customers using the full retrospective method. Under this new standard our significant accounting policy for revenue is as follows: Revenue is recognized when we transfer services to our customer in an amount that reflects the consideration we expect to receive. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We enter into contracts that can include various combinations of services, which are capable of being distinct and accounted for as separate performance obligations. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from 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 forty-nine thousand dollars related to state tax net operating losses and $3.1 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 and is included in salaries and benefits. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. We adopted ASU 2016-09 in the first quarter of 2017 and the adoption did not have a material impact on our consolidated financial statements. New Pronouncements: In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. This ASU clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. This standard was adopted on January 1, 2018 and did not have a material impact to our accounting for the acquisition of CaseStack. 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize a right-of-use asset (“ROU”) and a lease obligation for all leases. We adopted the standard as of January 1, 2019, see Note 12 for the effect of the adoption. The standard also provides an additional transition method to assist entities with the implementation. Entities that elect this option would adopt the new standard using a modified retrospective transition method, but they would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We elected to apply a package of practical expedients and did not reassess at the date of initial adoption (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, or (3) initial direct costs for existing leases. Lessees can also make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less, which we elected. See Note 12 for more information. In January 2017, the FASB issued ASU No. 2017-04 Intangibles – Goodwill and other (Topic 350): simplifying the test for goodwill impairment. This ASU simplifies how all entities assess goodwill for impairment by eliminating step two from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We have evaluated the adopting of this new accounting guidance and do not believe it will have a material effect on our financial statements upon adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing (Hosting) Arrangement That Is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendment is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively. We early adopted the amendment in the fourth quarter of 2018 and applied prospectively to all implementation costs incurred after the date of adoption. In accordance with this ASU, capitalized implementation costs are classified as Other assets and related amortization of capitalized implementation costs are classified as general and administrative expense in the same line item as the expense for fees for the associated hosting arrangement. In addition, the cash flows from capitalized implementation costs are classified as a change in other assets in the same manner as the cash flows for the fees for the associated hosting arrangement. As a result of the early adoption of this ASU, capitalized implementation costs of $10.6 million incurred in our hosting arrangements for various corporate software services that were previously presented as part of property and equipment are included in Other assets in our consolidated balance sheet as of December 31, 2018. The corresponding cash flows from capitalized implementation costs incurred in our hosting arrangements of $7.1 million for the year ended December 31, 2018 is classified as a change in other assets in cash flows from operating activities. The capitalized implementation costs incurred in our hosting arrangements are amortized, once ready for intended use, over the term of the associated hosting arrangement of 3 to 10 years, representing the fixed non-cancelable term of each of the hosting arrangements plus the periods covered by the options to extend that the Company is reasonably certain to exercise. 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 policies and useful lives of assets. Actual results could differ from those estimates. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
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, 2018 2017 2016 Net income from continuing operations for basic and diluted earnings per share $ 87,661 $ 120,014 $ 57,646 Net income from discontinued operations for basic and diluted earnings per share 114,079 15,139 17,159 Net income 201,740 135,153 74,805 Weighted average shares outstanding - basic 33,393 33,220 33,841 Dilutive effect of stock options and restricted stock 167 130 108 Weighted average shares outstanding - diluted 33,560 33,350 33,949 Earnings per share from continuing operations Basic $ 2.62 $ 3.61 $ 1.70 Diluted $ 2.61 $ 3.60 $ 1.70 Earnings per share from discontinued operations Basic $ 3.42 $ 0.46 $ 0.51 Diluted $ 3.40 $ 0.45 $ 0.51 Earnings per share net income Basic $ 6.04 $ 4.07 $ 2.21 Diluted $ 6.01 $ 4.05 $ 2.20 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 4. Discontinued Operations On August 31, 2018, Hub Group, Inc. entered into the Purchase Agreement with Mode, a direct wholly-owned subsidiary of the Company, and Mode Purchaser, Inc., an affiliate of York Capital Management (“Purchaser”) pursuant to which the Company sold all of the issued and outstanding membership interests of Mode to Purchaser (the “Disposition”). Total consideration received by the Company for the Disposition in the third quarter of 2018 was $238.5 million in cash, subject to customary purchase price adjustments. An additional $19.0 million consideration receivable was recorded in the fourth quarter of 2018 due to net working capital and other contractual adjustments. The receivable is recorded in other receivables in the Consolidated Balance Sheet and the additional gain is recorded as other income in discontinued operations. During the eight months we owned Mode in 2018, Mode had revenue of $42.2 million from Hub and Hub had revenue of $17.9 million from Mode LLC. For the twelve months ended December 31, 2017 and 2016, respectively, Mode had revenue of $50.6 million and $34.4 million from Hub and Hub had $51.0 million and $76.1 million from Mode. These sales were eliminated on our Consolidated Statements of Income. In connection with the Disposition, the Company and Mode have entered into a transition services agreement pursuant to which both the Company and Mode will provide certain immaterial transition services to the other party for a period of time following the closing. Results associated with Mode are classified as income from discontinued operations, net of income taxes, in our Consolidated Statements of Income. Prior year results have been adjusted to conform with the current presentation. Income from discontinued operations is comprised of the following: Years Ended December 31, 2018 2017 2016 Revenue $ 739,534 $ 908,870 $ 819,572 Transportation costs 648,986 788,982 696,107 Gross margin 90,548 119,888 123,465 Costs and expenses: Salaries and benefits 11,043 12,821 14,340 Agent fees and commissions 56,631 73,955 72,754 General and administrative 5,795 8,071 7,841 Depreciation and amortization 632 1,158 1,253 Total costs and expenses 74,101 96,005 96,188 Operating income from discontinued operations 16,447 23,883 27,277 Other income Interest income 22 67 47 Other, net (15 ) 56 70 Gain on Disposition 132,448 - - Total other income 132,455 123 117 Income from discontinued operations before income taxes 148,902 24,006 27,394 Provision for income taxes 34,823 8,867 10,235 Income from discontinued operations $ 114,079 $ 15,139 $ 17,159 Selling, general and administrative expenses recorded in discontinued operations include corporate costs incurred directly in support of Mode. See the table below for a reconciliation of the gain recorded on the sale of Mode: Net proceeds received from Disposition (1) $ 227,986 Consideration receivable due from Mode (2) 18,981 Adjusted proceeds from Disposition $ 246,967 Mode assets: Accounts receivable 173,669 Accounts receivable other 22 Prepaid expenses 260 Property and equipment 2,501 Restricted investments 4,467 Other intangibles, net 9,033 Goodwill, net 29,389 Other assets 209 Total Mode assets 219,550 Mode liabilities: Accounts payable (3) 97,536 Accrued payroll 3,072 Accrued other 6,285 Non-current liabilities 3,936 Total Mode liabilities 110,829 Transaction costs for Disposition (4) 5,798 Gain on sale of the Mode business before income taxes $ 132,448 (1) The proceeds received from the Disposition are net of working capital adjustments outlined in the Disposition agreement. (2) Additional consideration to be received as a result of post close contractual adjustments (3) Includes $2.3 million of bank overdrafts assumed by the Purchaser. (4) Costs include advisory fees, legal fees and professional fees. Due to the Disposition, the related assets and liabilities transferred to the Purchaser were reclassified as held for sale in the Consolidated Balance Sheet as of December 31, 2017 based on the nature of the asset or liability. Assets and liabilities classified as held for sale in our Consolidated Balance Sheet are comprised of the following: December 31, 2017 Accounts receivable, net $ 159,314 Accounts receivable, other 19 Prepaid expenses and other current assets 283 Total current assets held for sale 159,616 Restricted investments 4,038 Property and equipment, net 937 Other intangibles, net 9,601 Goodwill, net 29,389 Other assets 51 Total non-current assets held for sale 44,016 Total assets held for sale $ 203,632 Accounts payable $ 99,067 Accrued payroll 2,320 Accrued other 5,798 Total current liabilities held for sale 107,185 Non-current liabilities 4,328 Total liabilities held for sale $ 111,513 Proceeds from the sale of Mode have been presented in the Consolidated Statements of Cash Flows under investing activities for the twelve months ended December 31, 2018. Total operating and investing cash flows of discontinued operations for the twelve months ended December 31, 2018, 2017 and 2016 are comprised of the following, which exclude the effect of income taxes: (in thousands) 2018 2017 2016 Net cash (used in) provided by operating activities (4,318 ) 25,147 25,183 Net cash provided by (used in) investing activities 245,339 (823 ) (127 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 5 . Acquisitions Hub Group Trucking, Inc. (“HGT”), a wholly owned subsidiary of Hub Group, Inc., acquired all of the outstanding equity interests of Estenson Logistics, LLC (“Estenson”) on July 1, 2017 (the “Estenson Acquisition”). Estenson is now our wholly owned subsidiary, operating under the name Hub Group Dedicated (“Dedicated”). As a result of the Estenson Acquisition, HGT acquired substantially all of the assets of Estenson, which include tractors and trailers, as well as assumed certain liabilities, including equipment debt. Dedicated has an operating fleet of approximately 1,400 tractors and 4,500 trailers. Dedicated services have been requested by our customers and we believe Dedicated is an excellent service offering that we can provide to our customers. The base purchase price for Estenson was approximately $284.7 million, including contingent consideration related to an earn-out provision included in the Estenson Acquisition purchase agreement, which will not exceed $6.0 million and is based on Estenson’s EBITDA results through June 30, 2019. In accordance with the agreement, the base purchase price was adjusted by the assumed debt to arrive at the final consideration of $172.0 million. To facilitate the Estenson Acquisition, we assumed $112.7 million of Estenson debt and paid $165.9 million in cash, including $55.0 million of cash which was borrowed under our credit agreement. The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 165,945 Consideration payable 1,366 Contingent consideration, fair value 4,703 Total consideration 172,014 Equipment debt assumed 112,677 Total base purchase price $ 284,691 The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): July 1, 2017 Cash and cash equivalents $ 12 Accounts receivable trade 26,830 Other receivables 165 Prepaid expenses and other current assets 1,500 Property and equipment 128,477 Other intangibles 66,400 Goodwill 86,504 Other assets 64 Total assets acquired $ 309,952 Accounts payable trade $ 4,542 Accrued payroll 5,661 Accrued other 15,058 Equipment debt 112,677 Total liabilities assumed $ 137,938 Total consideration $ 172,014 The Estenson Acquisition was accounted for as a purchase business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying consolidated balance sheet at their estimated fair values as of July 1, 2017 with the excess of purchase price over fair value of net assets acquired recorded as goodwill. The goodwill recognized in the Estenson acquisition was primarily attributable to potential expansion and future development of the acquired business. The fair value assigned to the customer relationships identifiable intangible was determined using an income approach based on management’s estimates and assumptions. The fair value assigned to the property and equipment was determined based on a market approach. A probability weighted expected return model was used to estimate the value of the contingent consideration., see Note 9 for more information. Equipment debt was valued using a discounted cash flow analysis whereby future contractual principal repayments and interest payments for each instrument were discounted to the purchase date at a risk-adjusted discount rate. We incurred approximately $1.6 million of acquisition costs associated with this transaction prior to the closing date that are reflected in general and administrative expense in the accompanying Consolidated Statements of Income for the twelve months ended December 31, 2017. On December 3, 2018, a subsidiary of Hub Group, Inc. closed on the Agreement and Plan of Merger (the “Merger Agreement”) to acquire CaseStack, Inc. (“CaseStack”). Total consideration for the transaction was $252.1 million. To facilitate the acquisition we paid $248.7 million in cash and $3.5 million was a deferred purchase consideration. The deferred purchase consideration is included in Accrued Other and will be paid equally over twenty-four months. The acquisition of CaseStack expanded our logistics service offering to include transportation and warehousing consolidation solutions for consumer packaged goods companies selling into the North American retail channel. The acquisition also added scale to our truck brokerage service offering, particularly in the less-than-truckload segment of the market. The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 248,656 Deferred purchase consideration 3,469 Total consideration $ 252,125 The initial accounting for the acquisition of CaseStack is incomplete as we, with the support of our valuation specialist, are still in the process of finalizing the fair market value calculations of the acquired net assets. In addition, the Company is in the preparation and final review process of the applicable future cash flows used in determining the purchase accounting. Finally, certain post-closing activities outlined in the merger agreement need to be completed. As a result, the amounts recorded in the consolidated financial statements related to the CaseStack merger are preliminary the measurement period remains open. The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): December 3, 2018 Accounts receivable trade $ 32,057 Prepaid expenses and other current assets 694 Property and equipment 3,247 Deferred tax assets 6,433 Goodwill, net 164,976 Other intangibles 75,600 Other assets 120 Total assets acquired $ 283,127 Accounts payable trade $ 24,541 Accrued payroll 2,811 Accrued other 3,650 Total liabilities assumed $ 31,002 Total consideration $ 252,125 The CaseStack acquisition was accounted for as a purchase business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying consolidated balance sheet at their estimated fair values as of December 3, 2018 with the remaining unallocated purchase price recorded as goodwill. The goodwill recognized in the CaseStack acquisition was primarily attributable to potential expansion and future development of the acquired business. Tax history and attributes including net operating loss carryovers and other deferred tax assets are inherited in an equity purchase such as this, while goodwill is not tax deductible. We incurred approximately $1.4 million of transaction costs associated with this transaction prior to the closing date that are reflected in general and administrative expense in the accompanying Consolidated Statements of Income for the twelve months ended December 31, 2018. The components of “Other intangibles” listed in the above table as of the acquisition date are preliminarily estimated as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization December 31, 2018 Life Customer relationships - logistics services $ 65,600 $ 547 $ 65,053 10 years Customer relationships - transportation services $ 8,700 $ 145 $ 8,555 5 years Trade name $ 1,300 $ 72 $ 1,228 18 months The above intangible assets are amortized using the straight -line method. Amortization expense related to this acquisition for the twelve month period ended December 31, 2018 was $0.8 million. The intangible assets have a weighted average useful life of approximately 9 years. Amortization expense related to CaseStack for the next five years is as follows (in thousands): Total 2019 $ 9,167 2020 $ 8,661 2021 $ 8,300 2022 $ 8,300 2023 $ 8,155 From the date of the acquisition through December 31, 2018, CaseStack’s revenue was $20.8 million and operating income of $0.7 million. The following unaudited pro forma consolidated results of operations presents the effects of CaseStack as though it had been acquired as of January 1, 2017 and Dedicated as though it had been acquired as of January 1, 2016 (in thousands, except for per share amounts): Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Revenue $ 3,912,745 $ 3,449,373 $ 2,965,032 Income from continuing operations $ 133,310 $ 122,532 $ 64,825 Earnings per share (1) Basic $ 2.81 $ 3.69 $ 1.91 Diluted $ 2.79 $ 3.67 $ 1.90 (1) Earnings per share is from continuing operations. The unaudited pro forma consolidated results for the annual periods were prepared using the acquisition method of accounting and are based on the historical financial information of Hub, Dedicated and CaseStack. The historical financial information has been adjusted to give effect to the pro forma adjustments that are: (i) directly attributable to the acquisition, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition on January 1, 2017 and January 1, 2016, respectively. |
Revenue from Contract with Cust
Revenue from Contract with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 6. Revenue from Contracts with Customers On January 1, 2018, we adopted the Accounting Standards Codification (ASC) topic 606, Revenue from Contracts with Customers. See Note 1 – Description of Business and Summary of Significant Accounting Policies for significant accounting policy for revenue. The Company capitalizes commissions incurred in connection with obtaining a contract. The Company capitalized commissions associated with dedicated services of $0.2 million at December 31, 2018. Capitalized commission fees are amortized based on the transfer of services to which the assets relate and are included in selling, general and administrative expenses. In 2018, the amount of amortization was approximately $0.1 million. Costs incurred to obtain an intermodal, truck brokerage or logistics contract are expensed as incurred according to the practical expedient that allows contract acquisition costs to be recognized immediately if the deferral period is one year or less. The Company applied Topic 606 retrospectively using the practical expedient in paragraph 606-10-65-1(f)(3), under which the Company does not disclose the amount of consideration allocated to the remaining performance obligations or an explanation of when the Company expects to recognize that amount as revenue for all reporting periods presented before January 1, 2018. We do not generally have a remaining performance obligation due to revenue generally being recognized using relevant transit time. We only had one significant accounting policy change that is disclosed below. T axes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by Hub Group from a customer Hub offers comprehensive multimodal solutions including intermodal, truck brokerage, logistics and dedicated services. Hub has full time employees located throughout the United States, Canada and Mexico. Intermodal. As an intermodal provider, we arrange for the movement of our customers’ freight in containers and trailers, typically over long distances of 750 miles or more. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Local pickup and delivery services between origin or destination and rail terminals (referred to as “drayage”) are provided by our HGT subsidiary and third-party local trucking companies. Truck Brokerage. We operate one of the largest truck brokerage operations, providing customers with an over the road service option for their transportation needs. Our brokerage does not operate any trucks; instead we match customers’ needs with carriers’ capacity to provide the most effective service and price combination. We have contracts with a substantial base of carriers allowing us to meet the varied needs of our customers. Logistics . Hub’s logistics business operates under the names Unyson Logistics and CaseStack. Unyson Logistics is comprised of a network of logistics professionals dedicated to developing, implementing and operating customized logistics solutions for customers. Unyson Logistics offers a wide range of transportation management services and technology solutions including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution and web-based shipment visibility. Our multi-modal transportation capabilities include small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal, railcar and international shipping. Our CaseStack logistics business leverages proprietary technology along with collaborative partnerships with retailers and logistics providers to deliver cost savings and performance-enhancing supply chain services to consumer-packaged goods clients. CaseStack contracts with third-party warehouse providers in seven markets across North America to which its customers ship their goods to be stored and eventually consolidated, along with goods from other CaseStack customers, into full truckload shipments destined to major North American retailers. CaseStack offers its customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements. Dedicated Trucking. Our dedicated operation contracts with customers who seek to outsource a portion of their trucking transportation needs. We offer a dedicated fleet of equipment and drivers to each customer, as well as the management and infrastructure to operate according to the customer’s high service expectations. Contracts with customers generally include fixed and variable pricing arrangements and may include charges for early termination which serves to reduce the financial risk we bear with respect to the utilization of our equipment. The following table summarizes our disaggregated revenue by business line (in thousands) for the years ended December 31: 2018 2017 2016 Intermodal $ 2,195,316 $ 1,870,873 $ 1,803,974 Truck brokerage 497,282 481,635 389,700 Logistics 698,138 655,543 556,775 Dedicated 292,857 115,012 - Total revenue $ 3,683,593 $ 3,123,063 $ 2,750,449 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. 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 goodwill and determined it was not, more-likely-than-not, that the fair value of our reporting unit was less than its carrying value. 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): Total Balance at January 1, 2017 $ 262,376 Acquisition 86,504 Other (219 ) Balance at December 31, 2017 before adjustment to conform goodwill to current presentation 348,661 Goodwill associated with Disposition (29,389 ) Balance at December 31, 2017 319,272 Acquisition 164,976 Other (664 ) Balance at December 31, 2018 $ 483,584 The changes noted as “other” in the table above for both 2018 and 2017 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill and the changes in purchase accounting. The components of the “Other intangible assets” are as follows (in thousands): Net Gross Accumulated Carrying Amount Amortization Value Life As of December 31, 2018: Customer relationships $ 144,123 $ (10,563 ) $ 133,560 5-15 years Trade name $ 1,300 $ (72 ) $ 1,228 18 months Total $ 145,423 $ (10,635 ) $ 134,788 Net Gross Accumulated Carrying Amount Amortization Value Life As of December 31, 2017: Customer relationships $ 71,581 $ (6,834 ) $ 64,747 7-15 years The above intangible assets are amortized using the straight-line method. Amortization expense for year ended December 31, 2018 and 2017 was $5.7 million and $3.0 million, respectively. The remaining weighted average life of all definite lived intangible assets as of December 31, 2018 was 11.07 years. Amortization expense for the next five years is as follows (in thousands): Total 2019 $ 13,822 2020 13,316 2021 12,742 2022 12,700 2023 12,555 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. Income Taxes The Tax Cuts and Jobs Act (“The Act”) was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21% and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. The Act also contained provisions that include the repeal of the domestic production activity deduction, established a new tax on Global Intangible Low-Taxed Income (“GILTI”), new base erosion and anti-abuse tax provisions (“BEAT”), a new deduction for Foreign-Derived Intangible Income (“FDII”), and increased limitations on the deductibility of certain executive compensation. Due to the complexities involved in accounting for the enactment of the Act, the SEC Staff Accounting Bulletin No. 118 (“SAB 118”) allowed the Company to record provisional amounts in earnings for the year ended December 31, 2017. Where reasonable estimates could be made, the provisional accounting was based on such estimates. In situations where no reasonable estimate could be made, the provisional accounting could be based on the tax law in effect before the Act. The Company was required to complete its tax accounting for the Act within a one-year period, when it has obtained, prepared, and analyzed the information to complete the accounting. Throughout 2018, we continued to refine our calculations and we finalized our accounting for the Act during the fourth quarter of 2018 when we filed our U.S. tax returns for the period ended December 31, 2017. The changes to the tax positions for temporary differences compared to the provisional amounts used at December 31, 2017 resulted in a $0.5 million adjustment of the income tax expense recorded as of December 31, 2018. Despite the completion of our accounting for the Act under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments. Deferred tax assets and liabilities: In 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We recorded a provisional tax benefit related to the remeasurement of our deferred tax balance as of December 31, 2017 of $75.2 million. Transition tax: Under the Act, the Company was subject to a one-time transition tax on the untaxed foreign earnings of its foreign subsidiaries by deeming those earnings to be repatriated. Foreign earnings held in the form of cash and cash equivalents were taxed at a 15.5% rate and the remaining earnings were taxed at an 8.0% rate. In calculating the Transition Tax, we were required to calculate the cumulative earnings and profits of all non-U.S. subsidiaries back to 1987. We elected to pay the entire tax of thirty thousand dollars, in accordance with the Act, with our 2017 U.S. tax return. Global Intangible Low-Taxed Income (“GILTI”): We are required to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred or (2) factoring such amounts into our measurement of deferred taxes. We made an accounting policy election to account for GILTI as a component of tax expense in the period in which we are subject and therefore will not provide any deferred tax impacts of GILTI in our consolidated financial statements. The Company does not expect GILTI to be material or to be subject to the tax. Base erosion and anti-abuse provisions (“BEAT”): The ACT introduced BEAT for companies that meet certain thresholds by effectively excluding deductions on certain payments to foreign related entities. The BEAT provisions eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. Foreign-derived intangible income (“FDII”): The ACT introduced FDII which, through deductions, effectively creates a preferential tax rate for income derived by domestic corporations from serving foreign markets. The FDII rules are complex and while we are still interpreting them, the Company does not expect a significant benefit from FDII. The following is a reconciliation of our effective tax rate to the federal statutory tax rate: Years Ended December 31, 2018 2017 2016 U.S. federal statutory rate 21.0 % 34.9 % 35.0 % Federal tax law changes 0.5 (112.2 ) - State taxes, net of federal benefit 3.7 2.8 2.7 Federal and state incentives (0.9 ) (7.0 ) (0.4 ) State law changes - 2.0 0.4 Permanent differences 0.6 0.2 1.0 Net effective rate 24.9 % (79.3 ) % 38.7 % The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2018 2017 2016 Current Federal $ (13,750 ) $ (10,426 ) $ 21,527 State and local 1,740 1,542 3,053 Foreign (234 ) 59 108 (12,244 ) (8,825 ) 24,688 Deferred Federal 36,968 (46,922 ) 10,867 State and local 4,134 2,667 890 Foreign 206 (3 ) (64 ) 41,308 (44,258 ) 11,693 Total provision $ 29,064 $ (53,083 ) $ 36,381 The following is a summary of our deferred tax assets and liabilities (in thousands): December 31, 2018 2017 Accrued compensation 10,538 9,441 Other reserves 8,568 6,736 Tax credit carryforwards 5,062 3,411 Operating loss carryforwards 6,914 1,388 Total gross deferred income taxes 31,082 20,976 Valuation allowances (3,128 ) (1,681 ) Total deferred tax assets 27,954 19,295 Prepaids (5,409 ) (3,587 ) Other receivables (1,588 ) (2,462 ) Property and equipment (119,716 ) (79,224 ) Goodwill (55,118 ) (55,117 ) Total deferred tax liabilities (181,831 ) (140,390 ) Total deferred taxes $ (153,877 ) $ (121,095 ) 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. We do not permanently reinvest our foreign earnings, all amounts are accrued and accounted for, though not material. We acquired a federal net operating loss carryforward of $4.1 million through our acquisition of CaseStack. IRS loss limitation rules allowed us to utilize $0.1 million in 2018. The remaining net operating loss of $4.0 million has no expiration date. Our state tax net operating losses of $2.9 million includes $1.0 million from the acquisition of CaseStack. Those state net operating losses expire between December 31, 2019 and December 31, 2038. Management believes it is more likely than not that the loss carryforward deferred tax assets will be realized, except for forty-nine thousand dollars of state losses. A valuation allowance of forty-nine thousand dollars has been established. Our federal incentive tax credit carryforward of forty-five thousand dollars expires between December 31, 2025 and December 31, 2027. Our state incentive tax credit carryforwards of $5.0 million expire between December 31, 2019 and December 31, 2023. Management believes it is more likely than not that the incentive carryforward deferred tax assets will be realized, except for $3.1 million of state tax credits. A valuation allowance of $3.1 million has been established. As of December 31,2018 and December 31, 2017, the amount of unrecognized tax benefits was $3.9 million and $3.8 million, respectively. Of these amounts, our income tax provision would decrease $3.3 million and $2.8 million, respectively, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2018 2017 Gross unrecognized tax benefits - beginning of the year $ 3,827 $ 1,832 Gross (decreases) increases related to prior year tax positions (397 ) 1,830 Gross increases related to current year tax positions 959 290 Lapse of applicable statute of limitations (495 ) (125 ) Gross unrecognized tax benefits - end of year $ 3,894 $ 3,827 We estimate it is reasonably possible that our reserve could either increase or decrease by up to $1.0 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 2018 provision for income taxes, we recognized approximately $0.1 million dollars of interest income on tax refunds and approximately one thousand dollars of income tax penalty expense. In 2018, we were selected for examinations by Wisconsin for our 2014 through 2016 tax years, by Tennessee for our 2014 through 2016 tax years, and by Massachusetts for our 2016 and 2017 tax years. The Massachusetts and Wisconsin examinations are still ongoing. The Tennessee audit and audits by California for our 2012 and 2013 tax years and by Minnesota for our 2013 through 2015 tax years closed with no additional tax due. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 9. Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable, accounts payable and debt materially approximated fair value as of December 31, 2018 and 2017 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, 2018 and 2017, our cash and temporary investments were with high quality financial institutions in DDAs, savings accounts and an interest bearing checking account. Restricted investments included $19.2 million and $20.1 million as of December 31, 2018 and 2017, respectively, of mutual funds which are reported at fair value. These investments relate to the nonqualified deferred compensation plan that is described in Note 14. The fair value of the contingent consideration related to the 2017 acquisition of Estenson was reduced to zero during the third quarter of 2018. The fair value was based on significant inputs that are not observable in the market, which are referred to as Level 3 inputs. Key assumptions include the likelihood of the acquired business achieving target levels of EBITDA using a probability-weighted expected return method. The following table sets forth a reconciliation of changes in the fair value of the contingent consideration: Balance at December 31, 2017 $ 4,703 Change in fair value in the second quarter 2018 (1) (3,571 ) Change in fair value in the third quarter 2018 (1) (1,132 ) Balance at December 31, 2018 $ - (1) We recorded adjustments to the contingent consideration liability in the second and third quarters of 2018, resulting in an increase in income from operations. The income was recorded under “General and Administrative” in the Consolidated Statement of Income. The adjustment was the result of a change in the fair value of the contingent liability, which reflected two year EBITDA targets established prior to the close of the acquisition. 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), or unobservable inputs (Level 3). Cash and cash equivalents, accounts receivable and accounts payable are defined as “Level 1,” while long-term debt is defined as “Level 2”, and the Estenson contingent consideration is defined as “Level 3” 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, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 10. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2018 2017 Land $ 24,708 $ 24,708 Building and improvements 36,644 36,459 Leasehold improvements 7,252 6,232 Computer equipment and software 118,723 103,827 Furniture and equipment 14,421 14,180 Transportation equipment 787,187 620,951 Construction in process 1,499 1,460 990,434 807,817 Less: Accumulated depreciation and amortization (308,575 ) (246,603 ) Property and Equipment, net $ 681,859 $ 561,214 The increase in transportation equipment to $787.2 million in 2018 from $621.0 million in 2017 was due primarily to the purchase of containers, tractors and trailers. The increase in computer software and hardware to $118.7 million in 2018 from $103.8 million in 2017 was related to our transportation management 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, 2018 and 2017, net of accumulated amortization, were $7.7 million and $10.0 million, respectively. Depreciation and amortization expense related to property and equipment was $77.3 million, $57.8 million and $43.0 million for 2018, 2017 and 2016, respectively, which includes amortization expense associated with the capital lease of $2.2 million for both 2018 and 2017 and $2.3 million for 2016. The capital lease amortization expense and 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, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | NOTE 11. Long-Term Debt and Financing Arrangements On July 1, 2017, we entered into a $350 million unsecured credit agreement (the "Credit Agreement"). The Credit Agreement replaces the Amended and Restated Credit Agreement dated December 12, 2013 (“2013 Credit Agreement”). The Company used the Credit Agreement to finance, in part, the Estenson Acquisition. Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (i) LIBOR plus a specified margin based upon the Borrowers' total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin based upon the Total Net Leverage Ratio. The specified margin for Eurodollar loans varies from 100.0 to 200.0 basis points per annum. The specified margin for base rate loans varies from 0.0 to 100.0 basis points per annum. The Borrowers must also pay (1) a commitment fee ranging from 10.0 to 25.0 basis points per annum (based upon the Total Net Leverage Ratio) on the aggregate unused commitments and (2) a letter of credit fee ranging from 100.0 to 200.0 basis points per annum (based upon the Total Net Leverage Ratio) on the undrawn amount of letters of credit. We have standby letters of credit that expire in 2019. As of December 31, 2018, our letters of credit were $27.0 million. As of December 31, 2018, we had no borrowings under our bank revolving line of credit and our unused and available borrowings were $323.0 million. Our unused and available borrowings were $284.9 million as of December 31, 2017. We were in compliance with our debt covenants as of December 31, 2018. We have entered into various Equipment Notes (“Notes”) for the purchase of tractors, trailers and containers. The Notes are secured by the underlying equipment financed in the agreements. Our outstanding debt is as follows (in thousands): December 31, December 31, 2018 2017 (in thousands except principal and interest payments) Revolving line of credit $ - $ 45,000 Secured Equipment Notes due on various dates in 2024 with monthly principal and interest payments between $403 and $83,000 commencing on various dates in 2017; interest is paid monthly at a fixed annual rate between 2.85% and 3.41% 11,658 13,586 Secured Equipment Notes due on various dates in 2023 with monthly principal and interest payments between $669 and $341,341 commencing on various dates in 2016, 2017 and 2018; interest is paid monthly at a fixed annual rate between 2.23% and 4.08% 192,858 36,981 Secured Equipment Notes due on various dates in 2022 with monthly principal and interest payments between $3,030 and $254,190 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.87% 24,092 30,301 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $1,940 and $352,655 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 55,855 76,885 Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $3,614 and $398,496 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 32,904 50,737 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $3,243 and $322,780 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% 13,417 36,178 Secured Equipment Notes due on various dates in 2018 with monthly principal and interest payments between $6,480 and $163,428 commencing on various dates in 2013 and 2014; interest is paid monthly at a fixed annual rate between 2.05% and 2.7% - 2,406 330,784 292,074 Less current portion (101,713 ) (77,266 ) Total long-term debt $ 229,071 $ 214,808 Aggregate principal payments, in thousands, due subsequent to December 31, 2018, are as follows: 2019 $ 101,713 2020 83,589 2021 65,521 2022 49,327 2023 29,507 2024 and thereafter 1,127 $ 330,784 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 $0.4 million, $0.5 million and $0.6 million in 2018, 2017 and 2016, respectively, related to this capital lease. |
Leases, User Charges and Commit
Leases, User Charges and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases, User Charges and Commitments | NOTE 12. Leases, User Charges and Commitments Minimum annual capital and operating lease payments, as of December 31, 2018, under non-cancelable leases, principally for 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 2019 $ 3,091 $ 14,942 $ 18,033 2020 3,099 11,879 14,978 2021 1,795 9,308 11,103 2022 - 8,350 8,350 2023 - 6,770 6,770 2024 and thereafter - 9,831 9,831 $ 7,985 $ 61,080 $ 69,065 Less: Imputed interest (401 ) Net capital lease liability $ 7,584 Total rental expense included in general and administrative expense, which relates primarily to real estate, was approximately $10.6 million in 2018, $9.5 million in 2017 and $8.1 million in 2016. 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 $10.7 million, $6.0 million, and $3.6 million for 2018, 2017 and 2016, 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 $80.4 million, $77.6 million and $73.7 million for 2018, 2017 and 2016, 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize a right-of-use asset (“ROU”) and a lease obligation for all leases. We adopted the standard as of January 1, 2019, as required. We anticipate the adoption of this standard will result in the recognition of approximately $29 million to $37 million of ROU assets and liabilities on our consolidated balance sheet. The lease liabilities to be recognized will be measured based upon the present value of minimum future payments and the ROU assets to be recognized will be equal to lease liabilities, adjusted for prepaid and accrued rent balances which are recorded in the Consolidated Balance Sheets as of December 31, 2018. Hub currently does not have any variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate). Additionally, some leases have options to extend or terminate, which Management will determine if exercised or not. If any of the options are exercised, this will be reflected in the ROU asset and lease liability accordingly. As of January 1, 2019, the ROU asset and lease liabilities do not reflect any options to extend or terminate any of the leases as management is not reasonably certain it will exercise any of these options. Also, current leases do not contain any restrictions or covenants imposed by the leases or residual value guarantees. Occasionally, Hub will sublease office space or parking spaces. The subleases do not relieve Hub of any of its primary obligations under the original agreement. Currently, Hub has subleases with an expected annual income totaling $0.5 million. Subsequent to January 1, 2019, Hub signed property lease contracts which have not commenced yet but that creates significant rights and obligations for Hub. Based on the present value of the lease payments, the estimated ROU assets and lease liabilities related to this contract will total approximately $6.7 million. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | NOTE 13. Stock-Based Compensation Plans The 2017 Long-Term Incentive Plan (the “2017 Incentive Plan”) was approved by the Board of Directors and subsequently approved by the Company’s stockholders at the 2017 annual meeting. The 2017 Incentive Plan authorizes a broad range of awards including stock options, stock appreciation rights, restricted stock and restricted stock units, performance shares or units, other stock-based awards, and cash incentive awards to all employees (including the Company’s executive officers), directors, consultants, independent contractors or agents of us or a related company. The 2017 Incentive Plan is effective as of March 15, 2017. The 2017 Incentive Plan replaced the Company’s 2002 Long-Term Incentive Plan, as amended (the “2002 Incentive Plan”). Under the 2002 Incentive Plan, stock options, stock appreciation rights, restricted stock, restricted stock units and performance units could be granted for the purpose of attracting and motivating our key employees and non-employee directors. As of the effective date of the 2017 Incentive Plan, there were a total of 707,273 shares of our Class A common stock (“Common Stock”) under the 2002 Incentive Plan available to be issued upon exercise or settlement of outstanding awards. As of December 31, 2018, 1,499,137 shares were available for future grant under the 2017 Incentive Plan. We have awarded time-based restricted stock to our employees and the Company’s non-employee Directors. This restricted stock vests over a three to five -year period for all recipients other than the Company’s non-employee Directors. The non-employee Directors restricted stock vests over a one to three-year period. In 2018, in addition to the time-based restricted stock we granted performance-based restricted stock to our Executive Officers. The performance-based restricted stock cliff vests after the third anniversary year if certain EBITDA targets are achieved. We have not granted any stock options since 2003 and have no stock options outstanding. Share-based compensation expense for 2018, 2017 and 2016 was $13.5 million, $8.6 million and $7.3 million or $10.1 million, $5.8 million and $4.4 million, net of taxes, respectively. Included in the 2018 share-based compensation expense is $1.8 million of performance-based share expenses or $1.3 million, net of taxes. The following table summarizes the non-vested restricted stock activity for the year ended December 31, 2018: Time-Based Performance-Based Restricted Stock Restricted Stock Weighted Weighted Time-Based Average Performance-Based Average Restricted Stock Grant Date Restricted Stock Grant Date Shares Fair Value Shares Fair Value Non-vested January 1, 2018 875,326 $ 38.88 - $ - Granted 500,943 $ 47.34 89,143 $ 49.20 Vested (272,877) $ 38.42 - $ - Forfeited (139,923) $ 41.91 (16,143) $ 49.20 Non-vested at December 31, 2018 963,469 $ 42.98 73,000 $ 49.20 The following table summarizes the restricted stock granted during the respective years: Time-based restricted stock grants 2018 2017 2016 Employees 463,818 396,708 394,243 Outside directors 37,125 31,625 26,125 Total 500,943 428,333 420,368 Weighted average grant date fair value $ 47.34 $ 43.31 $ 33.46 Vesting period 1-5 years 1-5 years 3-5 years In addition to the time-based restricted stock, we granted 89,143 shares of performance-based restricted stock to employees in 2018. The weighted average grant date fair value of these shares was $49.20 with a cliff vest after three 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, 2018, 2017 and 2016 was $13.3 million, $10.4 million and $7.5 million, respectively. As of December 31, 2018, there was $31.5 million of unrecognized compensation cost related to non-vested share-based compensation that is expected to be recognized over a weighted average period of 2.81 years. Additionally, as of December 31, 2018, there was $2.4 million of unrecognized compensation cost related to the non-vested performance-based restricted stock compensation that is expected to be recognized over a weighted average period of 2.00 years. During January 2019, we granted 388,843 shares of restricted stock, which includes 76,500 performance-based shares and 312,343 time-based shares, to certain employees and 32,262 shares of restricted stock to outside directors with a weighted average grant date fair value of $37.20. The stock vests over a three to five year period for employees and one year for outside directors, except for the performance-based shares that cliff vest after three years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 14. Employee Benefit Plans We have a profit-sharing plan as of December 31, 2018, 2017 and 2016, 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 $2.6 million related to this plan in 2018, $2.8 million in 2017 and $2.2 million in 2016. 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, which was amended in 2008, 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, 2018 and 2017. 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 2018, 2017 and 2016. The liabilities related to these plans as of December 31, 2018 and 2017 were $18.9 million and $20.4 million, respectively. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2018 | |
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 Hub Group Trucking, Inc (“HGT”). The action is brought on behalf of a class comprised of present and former California-based truck drivers for HGT who were classified as independent contractors, from January 2009 to August 2014. It alleges HGT has misclassified such drivers as independent contractors and that such drivers were employees. It asserts various violations of the California Labor Code and claims that HGT has engaged in unfair competition practices. The complaint seeks, among other things, declaratory and injunctive relief, monetary 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, HGT decided to make settlement offers to individual drivers with respect to the claims alleged in this lawsuit, without admitting liability. As of September 30, 2018, 96% of the California drivers have accepted the settlement offers. In late 2014, HGT decided to convert its model from independent contractors to employee drivers in California (the “Conversion”). In early 2016, HGT 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. On July 2, 2018, the Court denied the Plaintiffs’ Motion for Clarification or Reconsideration and stated that the dismissal of the claims of all purported class members who signed settlement agreements was with prejudice . Adame On August 5, 2015, the Plaintiffs’ law firm in the Robles case filed a lawsuit in state court in San Bernardino County, California on behalf of 63 named Plaintiffs against Hub Group Trucking and five Company employees. The lawsuit makes 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 previously accepted the settlement offers referenced above. On October 29, 2015, Defendants filed a notice of removal to move the case from state court in San Bernardino to federal court in the Central District of California. 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 because there is not complete diversity of citizenship between the parties and the amount in controversy threshold is not satisfied. The court granted Plaintiffs’ motion to remand to the state court in San Bernardino County on April 7, 2016. On July 11, 2016, Defendants filed dismissal papers in state court, asking the court to dismiss Plaintiffs’ suit for various reasons, including that the agreement between HGT and its former California owner operators requires that this action be brought in Memphis, Tennessee, or stay the action pending the outcome of Robles. Defendants also asked the court to dismiss the individual defendants because PAGA’s language does not allow for individual liability. During a hearing on October 5, 2016, the judge issued an oral tentative ruling stating that the choice of forum provision was unenforceable. On February 17, 2017, with the stipulation of the parties, the Court entered an order dismissing, without prejudice, all of the individual Defendants and accepting the parties’ agreement that jurisdiction and venue are proper in the San Bernardino Superior Court and that Defendants will not seek to remove the case to federal district court. On April 12, 2017, the Court denied Defendant’s motion to dismiss based on insufficiency of the PAGA letter notice. On October 19, 2017, Plaintiffs filed an amended complaint, dismissing the previously named individuals as Defendants. On December 4, 2017, Defendants filed an Answer to Plaintiffs’ First Amended Complaint and a Memorandum of Points and Authorities in Support of their Motion for Judgment on the Pleadings arguing that judgement should be entered for Defendants because Plaintiffs’ claims are preempted by the Federal Truth-In-Leasing regulations. On January 31, 2018, a hearing was held on the motion to dismiss, and on February 1, 2018, the motion was denied. On March 27, 2018, Defendants filed a petition for a writ of mandate with the Court of Appeals. On June 12, 2018, the Court of Appeals denied the petition. On June 21, 2018, Defendants filed a petition for review with the California Supreme Court. On August 8, 2018, the Supreme Court of California denied the petition for review. |
Stock Buy Back Plans
Stock Buy Back Plans | 12 Months Ended |
Dec. 31, 2018 | |
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. There was no purchase authorized in 2018 and 2017. We purchased 87,381 shares for $4.3 million and 77,988 shares for $3.4 million during the years ended December 31, 2018 and 2017, respectively, related to employee withholding upon vesting of restricted stock. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Year Ended December 31, 2018: Revenue $ 837,342 $ 894,734 $ 933,224 $ 1,018,293 Gross margin 91,039 100,991 114,984 138,587 Operating income 16,535 25,406 34,734 48,244 Income from continuing operations before provision for income taxes 14,393 23,051 32,914 46,367 Income from continuing operations 11,069 17,154 25,764 33,674 Income from discontinued operations, net of income taxes 5,099 4,897 88,846 15,237 Net income 16,168 22,051 114,610 48,911 Earnings per share from continuing operations Basic $ 0.33 $ 0.51 $ 0.77 $ 1.01 Diluted $ 0.33 $ 0.51 $ 0.77 $ 1.01 Earnings per share from discontinued operations Basic $ 0.15 $ 0.15 $ 2.66 $ 0.45 Diluted $ 0.15 $ 0.15 $ 2.64 $ 0.45 Earnings per share from net income Basic $ 0.48 $ 0.66 $ 3.43 $ 1.46 Diluted $ 0.48 $ 0.66 $ 3.41 $ 1.46 The following table sets forth the selected quarterly financial data for each of the quarters in 2017 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Year Ended December 31, 2017: Revenue $ 680,443 $ 708,572 $ 824,809 $ 909,239 Gross margin 71,791 72,906 86,327 106,606 Operating income 11,313 10,465 15,824 35,067 Income from continuing operations before provision for income taxes 10,511 9,605 13,877 32,938 Income from continuing operations 6,543 5,724 11,665 96,082 Income from discontinued operations, net of income taxes 3,791 3,818 3,669 3,861 Net income 10,334 9,542 15,334 99,943 Earnings per share from continuing operations Basic $ 0.20 $ 0.17 $ 0.35 $ 2.89 Diluted $ 0.20 $ 0.17 $ 0.35 $ 2.87 Earnings per share from discontinued operations Basic $ 0.11 $ 0.12 $ 0.11 $ 0.12 Diluted $ 0.11 $ 0.12 $ 0.11 $ 0.12 Earnings per share from net income Basic $ 0.31 $ 0.29 $ 0.46 $ 3.01 Diluted $ 0.31 $ 0.29 $ 0.46 $ 2.99 On August 31, 2018, Hub entered into the Purchase Agreement with Mode, pursuant to which the Company sold all of the issued and outstanding membership interest of Mode to Purchaser. In 2018, we adjusted our consolidated financial statements to reflect Mode as a discontinued operation for that year and all prior periods presented. The selected financial data for 2018 and prior years reflect Mode as a discontinued operation. Refer to the Note 4 Discontinued Operations for additional information regarding the sale of Mode. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 $ 5,996,000 $ 54,000 $ 680,000 $ (2,000 ) $ 6,728,000 2017 $ 3,463,000 $ 457,000 $ 2,079,000 $ (3,000 ) $ 5,996,000 2016 $ 2,906,000 $ 46,000 $ (13,000 ) $ 524,000 $ 3,463,000 Deferred tax valuation allowance Balance at Charged to Balance at Year Ended Beginning of Costs & End of December 31: Year Expenses Year 2018 $ 1,681,000 $ 1,447,000 $ 3,128,000 2017 $ 456,000 $ 1,225,000 $ 1,681,000 2016 $ 108,000 $ 348,000 $ 456,000 (1) Expected customer account adjustments charged to revenue and write-offs, net of recoveries. (2) Represents bad debt recoveries. On August 31, 2018, Hub Group entered into the Purchase Agreement with Mode, pursuant to which the Company sold all of the issued and outstanding membership interest of Mode to Purchaser. In 2018, we adjusted our consolidated financial statements to reflect Mode as a discontinued operation for that year and all prior periods presented. The allowances shown above for 2018 and prior years reflect Mode as a discontinued operation. Refer to the Note 4 Discontinued Operations for additional information regarding the sale of Mode. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | For all periods presented in our Consolidated Statements of Income and Comprehensive Income, all sales, costs, expenses, gains and income taxes attributable to Mode have been reported under the captions, “Income from Discontinued Operations, Net of Income Taxes.” Cash flows used in or provided by Mode have been reported in the Consolidated Statements of Cash Flows under operating and investing activities. Business : Hub Group, Inc. (“Hub”, “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 offer a dedicated fleet of equipment and drivers through Hub Group Dedicated. We also arrange for transportation of freight by truck and perform logistics services. On August 31, 2018, Hub Group, Inc. entered into the Purchase Agreement with Mode Transportation, LLC (“Mode”), a direct wholly-owned subsidiary of the Company, and Mode Purchaser, Inc., an affiliate of York Capital Management (“Purchaser”) pursuant to which the Company sold all of the issued and outstanding membership interests of Mode to Purchaser (the “Disposition”). Refer to Note 4 – Discontinued Operations for additional information regarding results from discontinued operations. On December 3, 2018, a subsidiary of Hub Group, Inc. closed on the Agreement and Plan of Merger (the “Merger Agreement”) to acquire CaseStack, Inc. (“CaseStack”). Refer to Note 5 – Acquisition for additional information regarding CaseStack. |
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, 2018 and 2017, our cash and temporary investments were with high quality financial institutions in demand deposit accounts (“DDAs”), savings accounts and an interest bearing checking account. |
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, including receivable adjustments charged through revenue for items such as disputes, and an evaluation based on current economic conditions. Specifically, 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 to determine 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 its 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 $6.7 million and $6.0 million as of December 31, 2018 and 2017, 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 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. Due to the Disposition, we only have one reporting unit. We assess qualitative factors such as current company performance and overall economic factors to determine if it is more-likely-than-not that the fair value of our reporting unit was less than its carrying value 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 2018 and 2017, we performed the qualitative assessment and determined it was not, more-likely-than-not, that the fair value of our reporting unit was less than its carrying value. 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, savings accounts and an interest bearing checking account. 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 2018, 2017 or 2016. 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 : On January 1, 2018 we adopted the Accounting Standards Codification (ASC) topic 606, Revenue from Contracts with Customers using the full retrospective method. Under this new standard our significant accounting policy for revenue is as follows: Revenue is recognized when we transfer services to our customer in an amount that reflects the consideration we expect to receive. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We enter into contracts that can include various combinations of services, which are capable of being distinct and accounted for as separate performance obligations. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from 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 forty-nine thousand dollars related to state tax net operating losses and $3.1 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 and is included in salaries and benefits. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. We adopted ASU 2016-09 in the first quarter of 2017 and the adoption did not have a material impact on our consolidated financial statements. |
New Pronouncements | New Pronouncements: In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. This ASU clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. This standard was adopted on January 1, 2018 and did not have a material impact to our accounting for the acquisition of CaseStack. 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize a right-of-use asset (“ROU”) and a lease obligation for all leases. We adopted the standard as of January 1, 2019, see Note 12 for the effect of the adoption. The standard also provides an additional transition method to assist entities with the implementation. Entities that elect this option would adopt the new standard using a modified retrospective transition method, but they would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We elected to apply a package of practical expedients and did not reassess at the date of initial adoption (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, or (3) initial direct costs for existing leases. Lessees can also make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less, which we elected. See Note 12 for more information. In January 2017, the FASB issued ASU No. 2017-04 Intangibles – Goodwill and other (Topic 350): simplifying the test for goodwill impairment. This ASU simplifies how all entities assess goodwill for impairment by eliminating step two from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We have evaluated the adopting of this new accounting guidance and do not believe it will have a material effect on our financial statements upon adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing (Hosting) Arrangement That Is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendment is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively. We early adopted the amendment in the fourth quarter of 2018 and applied prospectively to all implementation costs incurred after the date of adoption. In accordance with this ASU, capitalized implementation costs are classified as Other assets and related amortization of capitalized implementation costs are classified as general and administrative expense in the same line item as the expense for fees for the associated hosting arrangement. In addition, the cash flows from capitalized implementation costs are classified as a change in other assets in the same manner as the cash flows for the fees for the associated hosting arrangement. As a result of the early adoption of this ASU, capitalized implementation costs of $10.6 million incurred in our hosting arrangements for various corporate software services that were previously presented as part of property and equipment are included in Other assets in our consolidated balance sheet as of December 31, 2018. The corresponding cash flows from capitalized implementation costs incurred in our hosting arrangements of $7.1 million for the year ended December 31, 2018 is classified as a change in other assets in cash flows from operating activities. The capitalized implementation costs incurred in our hosting arrangements are amortized, once ready for intended use, over the term of the associated hosting arrangement of 3 to 10 years, representing the fixed non-cancelable term of each of the hosting arrangements plus the periods covered by the options to extend that the Company is reasonably certain to exercise. |
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 policies and useful lives of assets. Actual results could differ from those estimates. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Net income from continuing operations for basic and diluted earnings per share $ 87,661 $ 120,014 $ 57,646 Net income from discontinued operations for basic and diluted earnings per share 114,079 15,139 17,159 Net income 201,740 135,153 74,805 Weighted average shares outstanding - basic 33,393 33,220 33,841 Dilutive effect of stock options and restricted stock 167 130 108 Weighted average shares outstanding - diluted 33,560 33,350 33,949 Earnings per share from continuing operations Basic $ 2.62 $ 3.61 $ 1.70 Diluted $ 2.61 $ 3.60 $ 1.70 Earnings per share from discontinued operations Basic $ 3.42 $ 0.46 $ 0.51 Diluted $ 3.40 $ 0.45 $ 0.51 Earnings per share net income Basic $ 6.04 $ 4.07 $ 2.21 Diluted $ 6.01 $ 4.05 $ 2.20 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Relating to Income Statement, Balance Sheet and Cash Flow Activities | Income from discontinued operations is comprised of the following: Years Ended December 31, 2018 2017 2016 Revenue $ 739,534 $ 908,870 $ 819,572 Transportation costs 648,986 788,982 696,107 Gross margin 90,548 119,888 123,465 Costs and expenses: Salaries and benefits 11,043 12,821 14,340 Agent fees and commissions 56,631 73,955 72,754 General and administrative 5,795 8,071 7,841 Depreciation and amortization 632 1,158 1,253 Total costs and expenses 74,101 96,005 96,188 Operating income from discontinued operations 16,447 23,883 27,277 Other income Interest income 22 67 47 Other, net (15 ) 56 70 Gain on Disposition 132,448 - - Total other income 132,455 123 117 Income from discontinued operations before income taxes 148,902 24,006 27,394 Provision for income taxes 34,823 8,867 10,235 Income from discontinued operations $ 114,079 $ 15,139 $ 17,159 See the table below for a reconciliation of the gain recorded on the sale of Mode: Net proceeds received from Disposition (1) $ 227,986 Consideration receivable due from Mode (2) 18,981 Adjusted proceeds from Disposition $ 246,967 Mode assets: Accounts receivable 173,669 Accounts receivable other 22 Prepaid expenses 260 Property and equipment 2,501 Restricted investments 4,467 Other intangibles, net 9,033 Goodwill, net 29,389 Other assets 209 Total Mode assets 219,550 Mode liabilities: Accounts payable (3) 97,536 Accrued payroll 3,072 Accrued other 6,285 Non-current liabilities 3,936 Total Mode liabilities 110,829 Transaction costs for Disposition (4) 5,798 Gain on sale of the Mode business before income taxes $ 132,448 (1) The proceeds received from the Disposition are net of working capital adjustments outlined in the Disposition agreement. (2) Additional consideration to be received as a result of post close contractual adjustments (3) Includes $2.3 million of bank overdrafts assumed by the Purchaser. (4) Costs include advisory fees, legal fees and professional fees. Assets and liabilities classified as held for sale in our Consolidated Balance Sheet are comprised of the following: December 31, 2017 Accounts receivable, net $ 159,314 Accounts receivable, other 19 Prepaid expenses and other current assets 283 Total current assets held for sale 159,616 Restricted investments 4,038 Property and equipment, net 937 Other intangibles, net 9,601 Goodwill, net 29,389 Other assets 51 Total non-current assets held for sale 44,016 Total assets held for sale $ 203,632 Accounts payable $ 99,067 Accrued payroll 2,320 Accrued other 5,798 Total current liabilities held for sale 107,185 Non-current liabilities 4,328 Total liabilities held for sale $ 111,513 (in thousands) 2018 2017 2016 Net cash (used in) provided by operating activities (4,318 ) 25,147 25,183 Net cash provided by (used in) investing activities 245,339 (823 ) (127 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Amortization Expense | Amortization expense for the next five years is as follows (in thousands): Total 2019 $ 13,822 2020 13,316 2021 12,742 2022 12,700 2023 12,555 |
Estenson Logistics, LLC [Member] | |
Summary of Total Purchase Price Allocated to Net Assets Acquired | The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 165,945 Consideration payable 1,366 Contingent consideration, fair value 4,703 Total consideration 172,014 Equipment debt assumed 112,677 Total base purchase price $ 284,691 |
Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): July 1, 2017 Cash and cash equivalents $ 12 Accounts receivable trade 26,830 Other receivables 165 Prepaid expenses and other current assets 1,500 Property and equipment 128,477 Other intangibles 66,400 Goodwill 86,504 Other assets 64 Total assets acquired $ 309,952 Accounts payable trade $ 4,542 Accrued payroll 5,661 Accrued other 15,058 Equipment debt 112,677 Total liabilities assumed $ 137,938 Total consideration $ 172,014 |
CaseStack, Inc. [Member] | |
Summary of Total Purchase Price Allocated to Net Assets Acquired | The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 248,656 Deferred purchase consideration 3,469 Total consideration $ 252,125 |
Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): December 3, 2018 Accounts receivable trade $ 32,057 Prepaid expenses and other current assets 694 Property and equipment 3,247 Deferred tax assets 6,433 Goodwill, net 164,976 Other intangibles 75,600 Other assets 120 Total assets acquired $ 283,127 Accounts payable trade $ 24,541 Accrued payroll 2,811 Accrued other 3,650 Total liabilities assumed $ 31,002 Total consideration $ 252,125 |
Components of Other Intangibles Acquired | The components of “Other intangibles” listed in the above table as of the acquisition date are preliminarily estimated as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization December 31, 2018 Life Customer relationships - logistics services $ 65,600 $ 547 $ 65,053 10 years Customer relationships - transportation services $ 8,700 $ 145 $ 8,555 5 years Trade name $ 1,300 $ 72 $ 1,228 18 months |
Amortization Expense | Amortization expense related to CaseStack for the next five years is as follows (in thousands): Total 2019 $ 9,167 2020 $ 8,661 2021 $ 8,300 2022 $ 8,300 2023 $ 8,155 |
CaseStack, Inc. and Hub Group Dedicated [Member] | |
Unaudited Pro forma Consolidated Results of Operations | The following unaudited pro forma consolidated results of operations presents the effects of CaseStack as though it had been acquired as of January 1, 2017 and Dedicated as though it had been acquired as of January 1, 2016 (in thousands, except for per share amounts): Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Revenue $ 3,912,745 $ 3,449,373 $ 2,965,032 Income from continuing operations $ 133,310 $ 122,532 $ 64,825 Earnings per share (1) Basic $ 2.81 $ 3.69 $ 1.91 Diluted $ 2.79 $ 3.67 $ 1.90 (1) Earnings per share is from continuing operations. |
Revenue from Contract with Cu_2
Revenue from Contract with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue by Business Line | The following table summarizes our disaggregated revenue by business line (in thousands) for the years ended December 31: 2018 2017 2016 Intermodal $ 2,195,316 $ 1,870,873 $ 1,803,974 Truck brokerage 497,282 481,635 389,700 Logistics 698,138 655,543 556,775 Dedicated 292,857 115,012 - Total revenue $ 3,683,593 $ 3,123,063 $ 2,750,449 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The following table presents the carrying amount of goodwill (in thousands): Total Balance at January 1, 2017 $ 262,376 Acquisition 86,504 Other (219 ) Balance at December 31, 2017 before adjustment to conform goodwill to current presentation 348,661 Goodwill associated with Disposition (29,389 ) Balance at December 31, 2017 319,272 Acquisition 164,976 Other (664 ) Balance at December 31, 2018 $ 483,584 |
Components of Other Intangible Assets | The components of the “Other intangible assets” are as follows (in thousands): Net Gross Accumulated Carrying Amount Amortization Value Life As of December 31, 2018: Customer relationships $ 144,123 $ (10,563 ) $ 133,560 5-15 years Trade name $ 1,300 $ (72 ) $ 1,228 18 months Total $ 145,423 $ (10,635 ) $ 134,788 Net Gross Accumulated Carrying Amount Amortization Value Life As of December 31, 2017: Customer relationships $ 71,581 $ (6,834 ) $ 64,747 7-15 years |
Amortization Expense | Amortization expense for the next five years is as follows (in thousands): Total 2019 $ 13,822 2020 13,316 2021 12,742 2022 12,700 2023 12,555 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 U.S. federal statutory rate 21.0 % 34.9 % 35.0 % Federal tax law changes 0.5 (112.2 ) - State taxes, net of federal benefit 3.7 2.8 2.7 Federal and state incentives (0.9 ) (7.0 ) (0.4 ) State law changes - 2.0 0.4 Permanent differences 0.6 0.2 1.0 Net effective rate 24.9 % (79.3 ) % 38.7 % |
Summary of Provision for Income Taxes | The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2018 2017 2016 Current Federal $ (13,750 ) $ (10,426 ) $ 21,527 State and local 1,740 1,542 3,053 Foreign (234 ) 59 108 (12,244 ) (8,825 ) 24,688 Deferred Federal 36,968 (46,922 ) 10,867 State and local 4,134 2,667 890 Foreign 206 (3 ) (64 ) 41,308 (44,258 ) 11,693 Total provision $ 29,064 $ (53,083 ) $ 36,381 |
Summary of Deferred Tax Assets and Liabilities | The following is a summary of our deferred tax assets and liabilities (in thousands) December 31, 2018 2017 Accrued compensation 10,538 9,441 Other reserves 8,568 6,736 Tax credit carryforwards 5,062 3,411 Operating loss carryforwards 6,914 1,388 Total gross deferred income taxes 31,082 20,976 Valuation allowances (3,128 ) (1,681 ) Total deferred tax assets 27,954 19,295 Prepaids (5,409 ) (3,587 ) Other receivables (1,588 ) (2,462 ) Property and equipment (119,716 ) (79,224 ) Goodwill (55,118 ) (55,117 ) Total deferred tax liabilities (181,831 ) (140,390 ) Total deferred taxes $ (153,877 ) $ (121,095 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2018 2017 Gross unrecognized tax benefits - beginning of the year $ 3,827 $ 1,832 Gross (decreases) increases related to prior year tax positions (397 ) 1,830 Gross increases related to current year tax positions 959 290 Lapse of applicable statute of limitations (495 ) (125 ) Gross unrecognized tax benefits - end of year $ 3,894 $ 3,827 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Reconciliation of Changes in Fair value of Contingent Consideration | The following table sets forth a reconciliation of changes in the fair value of the contingent consideration: Balance at December 31, 2017 $ 4,703 Change in fair value in the second quarter 2018 (1) (3,571 ) Change in fair value in the third quarter 2018 (1) (1,132 ) Balance at December 31, 2018 $ - (1) We recorded adjustments to the contingent consideration liability in the second and third quarters of 2018, resulting in an increase in income from operations. The income was recorded under “General and Administrative” in the Consolidated Statement of Income. The adjustment was the result of a change in the fair value of the contingent liability, which reflected two year EBITDA targets established prior to the close of the acquisition. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2018 2017 Land $ 24,708 $ 24,708 Building and improvements 36,644 36,459 Leasehold improvements 7,252 6,232 Computer equipment and software 118,723 103,827 Furniture and equipment 14,421 14,180 Transportation equipment 787,187 620,951 Construction in process 1,499 1,460 990,434 807,817 Less: Accumulated depreciation and amortization (308,575 ) (246,603 ) Property and Equipment, net $ 681,859 $ 561,214 |
Long-Term Debt and Financing _2
Long-Term Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Our outstanding debt is as follows (in thousands): December 31, December 31, 2018 2017 (in thousands except principal and interest payments) Revolving line of credit $ - $ 45,000 Secured Equipment Notes due on various dates in 2024 with monthly principal and interest payments between $403 and $83,000 commencing on various dates in 2017; interest is paid monthly at a fixed annual rate between 2.85% and 3.41% 11,658 13,586 Secured Equipment Notes due on various dates in 2023 with monthly principal and interest payments between $669 and $341,341 commencing on various dates in 2016, 2017 and 2018; interest is paid monthly at a fixed annual rate between 2.23% and 4.08% 192,858 36,981 Secured Equipment Notes due on various dates in 2022 with monthly principal and interest payments between $3,030 and $254,190 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.87% 24,092 30,301 Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $1,940 and $352,655 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 55,855 76,885 Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $3,614 and $398,496 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 32,904 50,737 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $3,243 and $322,780 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% 13,417 36,178 Secured Equipment Notes due on various dates in 2018 with monthly principal and interest payments between $6,480 and $163,428 commencing on various dates in 2013 and 2014; interest is paid monthly at a fixed annual rate between 2.05% and 2.7% - 2,406 330,784 292,074 Less current portion (101,713 ) (77,266 ) Total long-term debt $ 229,071 $ 214,808 |
Summary of Aggregate Principal Payments | Aggregate principal payments, in thousands, due subsequent to December 31, 2018, are as follows: 2019 $ 101,713 2020 83,589 2021 65,521 2022 49,327 2023 29,507 2024 and thereafter 1,127 $ 330,784 |
Leases, User Charges and Comm_2
Leases, User Charges and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Payments Due | Future Payments Due: Operating Leases and Capital Other Lease Commitments Total 2019 $ 3,091 $ 14,942 $ 18,033 2020 3,099 11,879 14,978 2021 1,795 9,308 11,103 2022 - 8,350 8,350 2023 - 6,770 6,770 2024 and thereafter - 9,831 9,831 $ 7,985 $ 61,080 $ 69,065 Less: Imputed interest (401 ) Net capital lease liability $ 7,584 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Time-Based Performance-Based Restricted Stock Restricted Stock Weighted Weighted Time-Based Average Performance-Based Average Restricted Stock Grant Date Restricted Stock Grant Date Shares Fair Value Shares Fair Value Non-vested January 1, 2018 875,326 $ 38.88 - $ - Granted 500,943 $ 47.34 89,143 $ 49.20 Vested (272,877) $ 38.42 - $ - Forfeited (139,923) $ 41.91 (16,143) $ 49.20 Non-vested at December 31, 2018 963,469 $ 42.98 73,000 $ 49.20 |
Schedule of Restricted Stock Granted | The following table summarizes the restricted stock granted during the respective years: Time-based restricted stock grants 2018 2017 2016 Employees 463,818 396,708 394,243 Outside directors 37,125 31,625 26,125 Total 500,943 428,333 420,368 Weighted average grant date fair value $ 47.34 $ 43.31 $ 33.46 Vesting period 1-5 years 1-5 years 3-5 years |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2018 2018 2018 2018 Year Ended December 31, 2018: Revenue $ 837,342 $ 894,734 $ 933,224 $ 1,018,293 Gross margin 91,039 100,991 114,984 138,587 Operating income 16,535 25,406 34,734 48,244 Income from continuing operations before provision for income taxes 14,393 23,051 32,914 46,367 Income from continuing operations 11,069 17,154 25,764 33,674 Income from discontinued operations, net of income taxes 5,099 4,897 88,846 15,237 Net income 16,168 22,051 114,610 48,911 Earnings per share from continuing operations Basic $ 0.33 $ 0.51 $ 0.77 $ 1.01 Diluted $ 0.33 $ 0.51 $ 0.77 $ 1.01 Earnings per share from discontinued operations Basic $ 0.15 $ 0.15 $ 2.66 $ 0.45 Diluted $ 0.15 $ 0.15 $ 2.64 $ 0.45 Earnings per share from net income Basic $ 0.48 $ 0.66 $ 3.43 $ 1.46 Diluted $ 0.48 $ 0.66 $ 3.41 $ 1.46 The following table sets forth the selected quarterly financial data for each of the quarters in 2017 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017 Year Ended December 31, 2017: Revenue $ 680,443 $ 708,572 $ 824,809 $ 909,239 Gross margin 71,791 72,906 86,327 106,606 Operating income 11,313 10,465 15,824 35,067 Income from continuing operations before provision for income taxes 10,511 9,605 13,877 32,938 Income from continuing operations 6,543 5,724 11,665 96,082 Income from discontinued operations, net of income taxes 3,791 3,818 3,669 3,861 Net income 10,334 9,542 15,334 99,943 Earnings per share from continuing operations Basic $ 0.20 $ 0.17 $ 0.35 $ 2.89 Diluted $ 0.20 $ 0.17 $ 0.35 $ 2.87 Earnings per share from discontinued operations Basic $ 0.11 $ 0.12 $ 0.11 $ 0.12 Diluted $ 0.11 $ 0.12 $ 0.11 $ 0.12 Earnings per share from net income Basic $ 0.31 $ 0.29 $ 0.46 $ 3.01 Diluted $ 0.31 $ 0.29 $ 0.46 $ 2.99 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Reserve for uncollectible accounts | $ 6,700 | $ 6,000 | |
State tax net operating losses, valuation allowance | 49 | ||
Hosting Arrangements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in other assets due to capitalization of software implementation cost | 7,100 | ||
Early Adoption ASU 2018-15 [Member] | Hosting Arrangements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized implementation costs of software services | 10,600 | ||
State [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Incentive tax credit carryforwards | $ 3,100 | ||
Transportation Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 15 years | ||
Software Development [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
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% | ||
Minimum [Member] | Hosting Arrangements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized implementation costs period | 3 years | ||
Maximum [Member] | Hosting Arrangements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized implementation costs period | 10 years | ||
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 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income from continuing operations for basic and diluted earnings per share | $ 33,674 | $ 25,764 | $ 17,154 | $ 11,069 | $ 96,082 | $ 11,665 | $ 5,724 | $ 6,543 | $ 87,661 | $ 120,014 | $ 57,646 |
Net income from discontinued operations for basic and diluted earnings per share | 15,237 | 88,846 | 4,897 | 5,099 | 3,861 | 3,669 | 3,818 | 3,791 | 114,079 | 15,139 | 17,159 |
Net income | $ 48,911 | $ 114,610 | $ 22,051 | $ 16,168 | $ 99,943 | $ 15,334 | $ 9,542 | $ 10,334 | $ 201,740 | $ 135,153 | $ 74,805 |
Weighted average shares outstanding - basic | 33,393 | 33,220 | 33,841 | ||||||||
Dilutive effect of stock options and restricted stock | 167 | 130 | 108 | ||||||||
Weighted average shares outstanding - diluted | 33,560 | 33,350 | 33,949 | ||||||||
Earnings per share from continuing operations | |||||||||||
Basic | $ 1.01 | $ 0.77 | $ 0.51 | $ 0.33 | $ 2.89 | $ 0.35 | $ 0.17 | $ 0.20 | $ 2.62 | $ 3.61 | $ 1.70 |
Diluted | 1.01 | 0.77 | 0.51 | 0.33 | 2.87 | 0.35 | 0.17 | 0.20 | 2.61 | 3.60 | 1.70 |
Earnings per share from discontinued operations | |||||||||||
Basic | 0.45 | 2.66 | 0.15 | 0.15 | 0.12 | 0.11 | 0.12 | 0.11 | 3.42 | 0.46 | 0.51 |
Diluted | 0.45 | 2.64 | 0.15 | 0.15 | 0.12 | 0.11 | 0.12 | 0.11 | 3.40 | 0.45 | 0.51 |
Earnings per share net income | |||||||||||
Basic | 1.46 | 3.43 | 0.66 | 0.48 | 3.01 | 0.46 | 0.29 | 0.31 | 6.04 | 4.07 | 2.21 |
Diluted | $ 1.46 | $ 3.41 | $ 0.66 | $ 0.48 | $ 2.99 | $ 0.46 | $ 0.29 | $ 0.31 | $ 6.01 | $ 4.05 | $ 2.20 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 909,239 | $ 824,809 | $ 708,572 | $ 680,443 | $ 3,683,593 | $ 3,123,063 | $ 2,750,449 | |
Hub Group , Inc [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | $ 17,900 | 51,000 | 76,100 | |||||||||
Mode [Member] | Consolidation, Eliminations [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | $ 42,200 | $ 50,600 | $ 34,400 | |||||||||
Mode [Member] | Purchase Agreement [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total consideration received | $ 238,500 | |||||||||||
Mode [Member] | Purchase Agreement [Member] | Other Receivables [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total consideration received | $ 19,000 | $ 19,000 |
Schedule of Income from Discont
Schedule of Income from Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other income | |||||||||||
Gain on Disposition | $ 132,448 | ||||||||||
Income from discontinued operations | $ 15,237 | $ 88,846 | $ 4,897 | $ 5,099 | $ 3,861 | $ 3,669 | $ 3,818 | $ 3,791 | 114,079 | $ 15,139 | $ 17,159 |
Mode [Member] | Discontinued Operations Disposed of By Sale [Member] | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Revenue | 739,534 | 908,870 | 819,572 | ||||||||
Transportation costs | 648,986 | 788,982 | 696,107 | ||||||||
Gross margin | 90,548 | 119,888 | 123,465 | ||||||||
Costs and expenses: | |||||||||||
Salaries and benefits | 11,043 | 12,821 | 14,340 | ||||||||
Agent fees and commissions | 56,631 | 73,955 | 72,754 | ||||||||
General and administrative | 5,795 | 8,071 | 7,841 | ||||||||
Depreciation and amortization | 632 | 1,158 | 1,253 | ||||||||
Total costs and expenses | 74,101 | 96,005 | 96,188 | ||||||||
Operating income from discontinued operations | 16,447 | 23,883 | 27,277 | ||||||||
Other income | |||||||||||
Interest income | 22 | 67 | 47 | ||||||||
Other, net | (15) | 56 | 70 | ||||||||
Gain on Disposition | 132,448 | ||||||||||
Total other income | 132,455 | 123 | 117 | ||||||||
Income from discontinued operations before income taxes | 148,902 | 24,006 | 27,394 | ||||||||
Provision for income taxes | 34,823 | 8,867 | 10,235 | ||||||||
Income from discontinued operations | $ 114,079 | $ 15,139 | $ 17,159 |
Schedule of Reconciliation of G
Schedule of Reconciliation of Gain Recorded on Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net proceeds received from Disposition | $ 227,986 | ||
Mode liabilities: | |||
Non-current liabilities | $ 4,328 | ||
Transaction costs for Disposition | (5,798) | ||
Gain on sale of the Mode business before income taxes | 132,448 | ||
Mode [Member] | Discontinued Operations Disposed of By Sale [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net proceeds received from Disposition | [1] | 227,986 | |
Consideration receivable due from Mode | [2] | 18,981 | |
Adjusted proceeds from Disposition | 246,967 | ||
Mode assets: | |||
Accounts receivable | 173,669 | ||
Accounts receivable other | 22 | ||
Prepaid expenses | 260 | ||
Property and equipment | 2,501 | ||
Restricted investments | 4,467 | ||
Other intangibles, net | 9,033 | ||
Goodwill, net | 29,389 | ||
Other assets | 209 | ||
Total Mode assets | 219,550 | ||
Mode liabilities: | |||
Accounts payable | [3] | 97,536 | |
Accrued payroll | 3,072 | ||
Accrued other | 6,285 | ||
Non-current liabilities | 3,936 | ||
Total Mode liabilities | 110,829 | ||
Transaction costs for Disposition | [4] | 5,798 | |
Gain on sale of the Mode business before income taxes | $ 132,448 | ||
[1] | The proceeds received from the Disposition are net of working capital adjustments outlined in the Disposition agreement. | ||
[2] | Additional consideration to be received as a result of post close contractual adjustments | ||
[3] | Includes $2.3 million of bank overdrafts assumed by the Purchaser. | ||
[4] | Costs include advisory fees, legal fees and professional fees. |
Schedule of Reconciliation of_2
Schedule of Reconciliation of Gain Recorded on Sale (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Mode [Member] | Discontinued Operations Disposed of By Sale [Member] | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Bank overdraft assumed by purchaser | $ 2.3 |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Classified as Held for Sale (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Total current assets held for sale | $ 159,616 |
Total non-current assets held for sale | 44,016 |
Total current liabilities held for sale | 107,185 |
Non-current liabilities held for sale | 4,328 |
Discontinued Operations, Held-For-Sale [Member] | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Accounts receivable, net | 159,314 |
Accounts receivable other | 19 |
Prepaid expenses and other current assets | 283 |
Total current assets held for sale | 159,616 |
Restricted investments | 4,038 |
Property and equipment, net | 937 |
Other intangibles, net | 9,601 |
Goodwill, net | 29,389 |
Other assets | 51 |
Total non-current assets held for sale | 44,016 |
Total assets held for sale | 203,632 |
Accounts payable | 99,067 |
Accrued payroll | 2,320 |
Accrued other | 5,798 |
Total current liabilities held for sale | 107,185 |
Non-current liabilities held for sale | 4,328 |
Total liabilities held for sale | $ 111,513 |
Schedule of Total Operating and
Schedule of Total Operating and Investing Cash Flows of Discontinued Operations (Detail) - Mode [Member] - Discontinued Operations Disposed of By Sale [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net cash (used in) provided by operating activities | $ (4,318) | $ 25,147 | $ 25,183 |
Net cash provided by (used in) investing activities | $ 245,339 | $ (823) | $ (127) |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ in Thousands | Dec. 03, 2018USD ($) | Jul. 01, 2017USD ($)TractorTrailer | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Amortization expense of intangible assets | $ 5,700 | $ 3,000 | ||||||||||||
Revenue | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 909,239 | $ 824,809 | $ 708,572 | $ 680,443 | 3,683,593 | 3,123,063 | $ 2,750,449 | |||
Operating income | $ 48,244 | $ 34,734 | $ 25,406 | $ 16,535 | $ 35,067 | $ 15,824 | $ 10,465 | $ 11,313 | $ 124,919 | 72,669 | $ 96,557 | |||
Hub Group Dedicated [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of tractors in operating fleet | Tractor | 1,400 | |||||||||||||
Number of trailers in operating fleet | Trailer | 4,500 | |||||||||||||
Estenson Logistics, LLC [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition date | Jul. 1, 2017 | |||||||||||||
Consideration for transaction | $ 284,691 | |||||||||||||
Contingent consideration related to an earn-out provision | 6,000 | |||||||||||||
Business acquisition, final consideration | 172,014 | |||||||||||||
Business acquisition, debt assumed | 112,677 | |||||||||||||
Business acquisition, cash paid | 165,945 | |||||||||||||
Amount of cash borrowed under credit agreement | $ 55,000 | |||||||||||||
Business acquisition costs | $ 1,600 | |||||||||||||
CaseStack, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Consideration for transaction | $ 252,125 | |||||||||||||
Business acquisition, cash paid | 248,656 | |||||||||||||
Deferred purchase consideration | $ 3,469 | |||||||||||||
Deferred purchase consideration payable term | 24 months | |||||||||||||
Transaction costs | $ 1,400 | |||||||||||||
Amortization expense of intangible assets | $ 800 | |||||||||||||
Intangible assets, weighted average useful life | 9 years | |||||||||||||
Revenue | $ 20,800 | |||||||||||||
Operating income | $ 700 |
Summary of Total Purchase Price
Summary of Total Purchase Price Allocated to Net Assets Acquired (Detail) - USD ($) $ in Thousands | Dec. 03, 2018 | Jul. 01, 2017 |
Estenson Logistics, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid | $ 165,945 | |
Consideration payable | 1,366 | |
Contingent consideration, fair value | 4,703 | |
Total consideration | 172,014 | |
Equipment debt assumed | 112,677 | |
Total base purchase price | $ 284,691 | |
CaseStack, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid | $ 248,656 | |
Deferred purchase consideration | 3,469 | |
Total base purchase price | $ 252,125 |
Summarizes the Preliminary Allo
Summarizes the Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 03, 2018 | Dec. 31, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill, net | $ 483,584 | $ 319,272 | $ 262,376 | ||
Estenson Logistics, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 12 | ||||
Accounts receivable trade | 26,830 | ||||
Other receivables | 165 | ||||
Prepaid expenses and other current assets | 1,500 | ||||
Property and equipment | 128,477 | ||||
Other intangibles | 66,400 | ||||
Goodwill, net | 86,504 | ||||
Other assets | 64 | ||||
Total assets acquired | 309,952 | ||||
Accounts payable trade | 4,542 | ||||
Accrued payroll | 5,661 | ||||
Accrued other | 15,058 | ||||
Equipment debt | 112,677 | ||||
Total liabilities assumed | 137,938 | ||||
Total consideration | $ 172,014 | ||||
CaseStack, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable trade | $ 32,057 | ||||
Prepaid expenses and other current assets | 694 | ||||
Property and equipment | 3,247 | ||||
Other intangibles | 75,600 | ||||
Deferred tax assets | 6,433 | ||||
Goodwill, net | 164,976 | ||||
Other assets | 120 | ||||
Total assets acquired | 283,127 | ||||
Accounts payable trade | 24,541 | ||||
Accrued payroll | 2,811 | ||||
Accrued other | 3,650 | ||||
Total liabilities assumed | 31,002 | ||||
Total consideration | $ 252,125 |
Components of Other Intangible
Components of Other Intangible Acquired (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 145,423 | |
Finite-lived intangible assets, Accumulated Amortization | 10,635 | |
Finite-lived intangible assets, Net Carrying Value | 134,788 | |
Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 144,123 | $ 71,581 |
Finite-lived intangible assets, Accumulated Amortization | 10,563 | 6,834 |
Finite-lived intangible assets, Net Carrying Value | 133,560 | $ 64,747 |
Trade Name [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 1,300 | |
Finite-lived intangible assets, Accumulated Amortization | 72 | |
Finite-lived intangible assets, Net Carrying Value | $ 1,228 | |
Intangible assets estimated useful life | 18 months | |
CaseStack, Inc. [Member] | Customer Relationships [Member] | Logistics [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 65,600 | |
Finite-lived intangible assets, Accumulated Amortization | 547 | |
Finite-lived intangible assets, Net Carrying Value | $ 65,053 | |
Intangible assets estimated useful life | 10 years | |
CaseStack, Inc. [Member] | Customer Relationships [Member] | Transportation [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 8,700 | |
Finite-lived intangible assets, Accumulated Amortization | 145 | |
Finite-lived intangible assets, Net Carrying Value | $ 8,555 | |
Intangible assets estimated useful life | 5 years | |
CaseStack, Inc. [Member] | Trade Name [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 1,300 | |
Finite-lived intangible assets, Accumulated Amortization | 72 | |
Finite-lived intangible assets, Net Carrying Value | $ 1,228 | |
Intangible assets estimated useful life | 18 months |
Amortization Expense of Intangi
Amortization Expense of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,019 | $ 13,822 |
2,020 | 13,316 |
2,021 | 12,742 |
2,022 | 12,700 |
2,023 | 12,555 |
CaseStack, Inc. [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2,019 | 9,167 |
2,020 | 8,661 |
2,021 | 8,300 |
2,022 | 8,300 |
2,023 | $ 8,155 |
Unaudited Pro forma Consolidate
Unaudited Pro forma Consolidated Results of Operations (Detail) - CaseStack, Inc. and Hub Group Dedicated [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Revenue | $ 3,912,745 | $ 3,449,373 | $ 2,965,032 |
Income from continuing operations | $ 133,310 | $ 122,532 | $ 64,825 |
Earnings per share | |||
Basic | $ 2.81 | $ 3.69 | $ 1.91 |
Diluted | $ 2.79 | $ 3.67 | $ 1.90 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue From Contracts With Customers [Line Items] | |||
Capitalized commission fees | $ 0.2 | ||
(ASC) topic 606 | Effect of Revenue Guidance Adoption [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Effective change on revenue and transportation costs | $ 3 | $ 2.8 | |
Selling, General and Administrative Expenses [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Amortization of capitalized commission fees | $ 0.1 |
Summary of Disaggregated Revenu
Summary of Disaggregated Revenue by Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 909,239 | $ 824,809 | $ 708,572 | $ 680,443 | $ 3,683,593 | $ 3,123,063 | $ 2,750,449 |
Intermodal [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 2,195,316 | 1,870,873 | 1,803,974 | ||||||||
Truck brokerage [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 497,282 | 481,635 | 389,700 | ||||||||
Logistics [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 698,138 | 655,543 | $ 556,775 | ||||||||
Dedicated [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 292,857 | $ 115,012 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets [Line Items] | ||
Goodwill accumulated impairment loss | $ 0 | |
Amortization expense of intangible assets | $ 5,700,000 | $ 3,000,000 |
Weighted Average | ||
Intangible Assets [Line Items] | ||
Weighted average life of definite lived intangible assets | 11 years 25 days |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning Balance | $ 319,272 | $ 262,376 |
Acquisition | 164,976 | 86,504 |
Other | (664) | (219) |
Balance at December 31, 2017 before adjustment to conform goodwill to current presentation | 348,661 | |
Goodwill associated with Disposition | (29,389) | |
Goodwill, Ending Balance | $ 483,584 | $ 319,272 |
Components of Other Intangibl_2
Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 145,423 | |
Finite-lived intangible assets, Accumulated Amortization | (10,635) | |
Finite-lived intangible assets, Net Carrying Value | 134,788 | |
Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 144,123 | $ 71,581 |
Finite-lived intangible assets, Accumulated Amortization | (10,563) | (6,834) |
Finite-lived intangible assets, Net Carrying Value | $ 133,560 | $ 64,747 |
Customer Relationships [Member] | Minimum [Member] | ||
Other Intangible Assets [Line Items] | ||
Intangible assets estimated useful life | 5 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Other Intangible Assets [Line Items] | ||
Intangible assets estimated useful life | 15 years | 15 years |
Trade Name [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 1,300 | |
Finite-lived intangible assets, Accumulated Amortization | (72) | |
Finite-lived intangible assets, Net Carrying Value | $ 1,228 | |
Intangible assets estimated useful life | 18 months |
Amortization Expense (Detail)
Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 13,822 |
2,020 | 13,316 |
2,021 | 12,742 |
2,022 | 12,700 |
2,023 | $ 12,555 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 34.90% | 35.00% |
Tax cuts and jobs act of 2017, accounting complete [true false] | true | ||
Adjustment of income tax expense | $ 500,000 | ||
Change in net deferred provisional tax expense (benefit) | $ (75,200,000) | ||
Effective tax rate of foreign earnings in the form of cash and cash equivalents | 15.50% | ||
Effective tax rate of remaining earnings | 8.00% | ||
Income tax expense in accordance with tax ACT of 2017 | $ 30,000 | ||
Operating loss carryforwards | 6,914,000 | 1,388,000 | |
Valuation allowances | 3,128,000 | 1,681,000 | |
Incentive tax credit carryforwards | 5,062,000 | 3,411,000 | |
Unrecognized tax benefits | 3,894,000 | 3,827,000 | $ 1,832,000 |
Potential increase (decrease) in income tax provision | 3,300,000 | $ 2,800,000 | |
Income tax interest income on tax refund regognized | 100,000 | ||
Income tax penalties expense | 1,000 | ||
CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 49,000 | ||
CaseStack, Inc. [Member] | Internal Revenue Service [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 100,000 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 4,000 | ||
Incentive tax credit carryforwards | 45,000 | ||
Federal [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 4,100,000 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 2,900,000 | ||
Incentive tax credit carryforwards | 5,000,000 | ||
State [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 1,000,000 | ||
State [Member] | Loss Carryforward [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 49,000 | ||
State [Member] | Tax Incentive Credit Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 3,100,000 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal corporate tax rate | 35.00% | ||
Possible increase in unrecognized tax benefits resulting from audit settlements | $ 1,000,000 | ||
Maximum [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2038 | ||
Maximum [Member] | Federal [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2027 | ||
Maximum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2023 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Possible reduction in unrecognized tax benefits resulting from audit settlements | $ 1,000,000 | ||
Minimum [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2019 | ||
Minimum [Member] | Federal [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2025 | ||
Minimum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2019 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate to Federal Statutory Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 34.90% | 35.00% |
Federal tax law changes | 0.50% | (112.20%) | |
State taxes, net of federal benefit | 3.70% | 2.80% | 2.70% |
Federal and state incentives | (0.90%) | (7.00%) | (0.40%) |
State law changes | 2.00% | 0.40% | |
Permanent differences | 0.60% | 0.20% | 1.00% |
Net effective rate | 24.90% | (79.30%) | 38.70% |
Summary of Provision for Income
Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ (13,750) | $ (10,426) | $ 21,527 |
State and local | 1,740 | 1,542 | 3,053 |
Foreign | (234) | 59 | 108 |
Current income tax expense, total | (12,244) | (8,825) | 24,688 |
Deferred | |||
Federal | 36,968 | (46,922) | 10,867 |
State and local | 4,134 | 2,667 | 890 |
Foreign | 206 | (3) | (64) |
Deferred income tax expense, total | 41,308 | (44,258) | 11,693 |
Total provision | $ 29,064 | $ (53,083) | $ 36,381 |
Summary of Deferred Tax Assets
Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued compensation | $ 10,538 | $ 9,441 |
Other reserves | 8,568 | 6,736 |
Tax credit carryforwards | 5,062 | 3,411 |
Operating loss carryforwards | 6,914 | 1,388 |
Total gross deferred income taxes | 31,082 | 20,976 |
Valuation allowances | (3,128) | (1,681) |
Total deferred tax assets | 27,954 | 19,295 |
Prepaids | (5,409) | (3,587) |
Other receivables | (1,588) | (2,462) |
Property and equipment | (119,716) | (79,224) |
Goodwill | (55,118) | (55,117) |
Total deferred tax liabilities | (181,831) | (140,390) |
Total deferred taxes | $ (153,877) | $ (121,095) |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits - beginning of the year | $ 3,827 | $ 1,832 |
Gross (decreases) related to prior year tax positions | (397) | |
Gross increases related to prior year tax positions | 1,830 | |
Gross increases related to current year tax positions | 959 | 290 |
Lapse of applicable statute of limitations | (495) | (125) |
Gross unrecognized tax benefits - end of year | $ 3,894 | $ 3,827 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Measurement [Line Items] | |||
Restricted investments | $ 19,200,000 | $ 20,100,000 | |
Estenson Logistics, LLC [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of contingent consideration | $ 0 |
Reconciliation of Changes in Fa
Reconciliation of Changes in Fair value of Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Fair Value Disclosures [Abstract] | ||||
Fair value, Beginning Balance | $ 4,703 | |||
Change in fair value | [1] | $ (1,132) | $ (3,571) | |
[1] | We recorded adjustments to the contingent consideration liability in the second and third quarters of 2018, resulting in an increase in income from operations. The income was recorded under “General and Administrative” in the Consolidated Statement of Income. The adjustment was the result of a change in the fair value of the contingent liability, which reflected two year EBITDA targets established prior to the close of the acquisition |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 990,434 | $ 807,817 |
Less: Accumulated depreciation and amortization | (308,575) | (246,603) |
Property and Equipment, net | 681,859 | 561,214 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 24,708 | 24,708 |
Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 36,644 | 36,459 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 7,252 | 6,232 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 118,723 | 103,827 |
Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 14,421 | 14,180 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 787,187 | 620,951 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 1,499 | $ 1,460 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 990,434 | $ 807,817 | ||
Equipment, capital lease obligation | $ 26,400 | |||
Equipment, capital lease obligation, net | 7,700 | 10,000 | ||
Depreciation and amortization expense related to property and equipment | 77,300 | 57,800 | $ 43,000 | |
Amortization expense under capital lease obligation | 2,200 | 2,200 | $ 2,300 | |
Transportation Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 787,187 | 620,951 | ||
Computer Software and Hardware [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 118,723 | $ 103,827 |
Long-Term Debt and Financing _3
Long-Term Debt and Financing Arrangements - Additional Information (Detail) | Jul. 01, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2011Chassis |
Line Of Credit Facility [Line Items] | |||||
Number of chassis leased | Chassis | 3,126 | ||||
Chassis, lease agreement period (years) | 10 years | ||||
Capital lease interest paid | $ 400,000 | $ 500,000 | $ 600,000 | ||
Letter of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Commitment fee on unused commitments | 2.00% | ||||
Standby Letters of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Letters of credit expiration, year | 2,019 | ||||
Outstanding letters of credit | $ 27,000,000 | ||||
Revolving Line of Credit Facility [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Borrowings under bank revolving line of credit | 45,000,000 | ||||
Revolving Line of Credit Facility [Member] | Bank Revolving Line of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Borrowings under bank revolving line of credit | 0 | ||||
Unused and available borrowings under bank revolving line of credit and credit agreement | $ 323,000,000 | $ 284,900,000 | |||
Credit Agreement [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Amount of credit agreement | $ 350,000,000 | ||||
Credit agreement interest rate description | (i) LIBOR plus a specified margin based upon the Borrowers' total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin based upon the Total Net Leverage Ratio. | ||||
Commitment fee on unused commitments | 0.25% | ||||
Credit Agreement [Member] | Federal Funds Rate [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the credit agreement | 0.50% | ||||
Credit Agreement [Member] | LIBOR rate [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the credit agreement | 1.00% | ||||
Description of variable rate basis | one-month LIBOR | ||||
Credit Agreement [Member] | Eurodollar | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the credit agreement | 2.00% | ||||
Credit Agreement [Member] | Base Rate | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate under the credit agreement | 1.00% |
Schedule of Outstanding Debt (D
Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Revolving line of credit & Secured long-term debt | $ 330,784 | $ 292,074 |
Less current portion | (101,713) | (77,266) |
Total long-term debt | 229,071 | 214,808 |
Revolving Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 45,000 | |
Secured Equipment Notes due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 11,658 | 13,586 |
Secured Equipment Notes due in 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 192,858 | 36,981 |
Secured Equipment Notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 24,092 | 30,301 |
Secured Equipment Notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 55,855 | 76,885 |
Secured Equipment Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 32,904 | 50,737 |
Secured Equipment Notes due in 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 13,417 | 36,178 |
Secured Equipment Notes due in 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 2,406 |
Schedule of Outstanding Debt (P
Schedule of Outstanding Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,024 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
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 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2014 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,014 |
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 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
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 2023 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,023 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,016 |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2018 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,018 |
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 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
Secured Equipment Notes due in 2019 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,015 |
Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,022 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,015 |
Secured Equipment Notes due in 2018 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,018 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2018 [Member] | Commencing on 2014 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,014 |
Secured Equipment Notes due in 2018 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
Minimum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 403 |
Interest rate secured debt | 2.85% |
Minimum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 1,940 |
Interest rate secured debt | 2.04% |
Minimum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 3,614 |
Interest rate secured debt | 1.72% |
Minimum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 669 |
Interest rate secured debt | 2.23% |
Minimum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 3,243 |
Interest rate secured debt | 1.87% |
Minimum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 3,030 |
Interest rate secured debt | 2.16% |
Minimum [Member] | Secured Equipment Notes due in 2018 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 6,480 |
Interest rate secured debt | 2.05% |
Maximum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 83,000 |
Interest rate secured debt | 3.41% |
Maximum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 352,655 |
Interest rate secured debt | 2.96% |
Maximum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 398,496 |
Interest rate secured debt | 2.78% |
Maximum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 341,341 |
Interest rate secured debt | 4.08% |
Maximum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 322,780 |
Interest rate secured debt | 2.62% |
Maximum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 254,190 |
Interest rate secured debt | 2.87% |
Maximum [Member] | Secured Equipment Notes due in 2018 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 163,428 |
Interest rate secured debt | 2.70% |
Summary of Aggregate Principal
Summary of Aggregate Principal Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 101,713 | |
2,020 | 83,589 | |
2,021 | 65,521 | |
2,022 | 49,327 | |
2,023 | 29,507 | |
2024 and thereafter | 1,127 | |
Revolving line of credit & Secured long-term debt | $ 330,784 | $ 292,074 |
Leases, User Charges and Comm_3
Leases, User Charges and Commitments - Future Payments Due (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Future Payments Due, Capital Lease, 2019 | $ 3,091 |
Future Payments Due, Capital Lease, 2020 | 3,099 |
Future Payments Due, Capital Lease, 2021 | 1,795 |
Future Payments Due, Capital Lease, Total | 7,985 |
Less: Imputed interest | (401) |
Net capital lease liability | 7,584 |
Future Payments Due, Operating Leases and Other Commitments, 2019 | 14,942 |
Future Payments Due, Operating Leases and Other Commitments, 2020 | 11,879 |
Future Payments Due, Operating Leases and Other Commitments, 2021 | 9,308 |
Future Payments Due, Operating Leases and Other Commitments, 2022 | 8,350 |
Future Payments Due, Operating Leases and Other Commitments, 2023 | 6,770 |
Future Payments Due, Operating Leases and Other Commitments, 2024 and thereafter | 9,831 |
Future Payments Due, Operating Leases and Other Commitments, Total | 61,080 |
Future Payments Due, Total Leases, 2019 | 18,033 |
Future Payments Due, Total Leases, 2020 | 14,978 |
Future Payments Due, Total Leases, 2021 | 11,103 |
Future Payments Due, Total Leases, 2022 | 8,350 |
Future Payments Due, Total Leases, 2023 | 6,770 |
Future Payments Due, Total Leases, 2024 and thereafter | 9,831 |
Future Payments Due, Leases, Total | $ 69,065 |
Leases, User Charges and Comm_4
Leases, User Charges and Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Lease and Rental Expense [Line Items] | ||||
Rental expense | $ 10,600,000 | $ 9,500,000 | $ 8,100,000 | |
Rail transportation charges | 80,400,000 | 77,600,000 | 73,700,000 | |
Minimum commitments on rail owned chassis and containers | 0 | |||
Expected annual subleases income | 500,000 | |||
ASU No. 2016-02 [Member] | Subsequent Event [Member] | ||||
Lease and Rental Expense [Line Items] | ||||
Right-of-use asset | $ 29,000,000 | |||
Lease liability | 37,000,000 | |||
Estimated ROU assets and lease liabilities | $ 6,700 | |||
Transportation Costs [Member] | ||||
Lease and Rental Expense [Line Items] | ||||
Rental expense | $ 10,700,000 | $ 6,000,000 | $ 3,600,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options granted since 2003 | 0 | |||
Stock options outstanding | 0 | |||
Compensation expense related to share-based compensation plans | $ 13.5 | $ 8.6 | $ 7.3 | |
Compensation expense related to share-based compensation plans, net of tax | $ 10.1 | $ 5.8 | $ 4.4 | |
Unrecognized compensation cost weighted average period recognized (years) | 2 years 9 months 21 days | |||
Time Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 500,943 | 428,333 | 420,368 | |
Restricted stock grants, Weighted average grant date fair value | $ 47.34 | $ 43.31 | $ 33.46 | |
Unrecognized compensation cost related to non-vested share-based compensation | $ 2.4 | |||
Unrecognized compensation cost weighted average period recognized (years) | 2 years | |||
Time Based 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 | |
Time Based Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 1 year | 1 year | 3 years | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to share-based compensation plans | $ 1.8 | |||
Compensation expense related to share-based compensation plans, net of tax | $ 1.3 | |||
Performance Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 89,143 | |||
Restricted stock grants, Weighted average grant date fair value | $ 49.20 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of restricted shares vested | $ 13.3 | $ 10.4 | $ 7.5 | |
Unrecognized compensation cost related to non-vested share-based compensation | $ 31.5 | |||
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 | $ 37.20 | |||
Two Thousand Two Stock Incentive Plan [Member] | Class A Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized and available under long-term incentive plan | 707,273 | |||
Two Thousand Seventeen Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant | 1,499,137 | |||
Employees [Member] | Time Based Restricted Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 5 years | |||
Employees [Member] | Time Based Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
Employees [Member] | Performance Shares [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
Restricted stock grants | 76,500 | |||
Employees [Member] | Performance Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
Restricted stock grants | 89,143 | |||
Restricted stock grants, Weighted average grant date fair value | $ 49.20 | |||
Employees [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 388,843 | |||
Employees [Member] | Restricted Stock [Member] | Maximum [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 5 years | |||
Employees [Member] | Restricted Stock [Member] | Minimum [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
Employees [Member] | Time Based Shares | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 312,343 | |||
Non-employee Directors [Member] | Time Based Restricted Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
Non-employee Directors [Member] | Time Based Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 1 year | |||
Outside Directors [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 1 year | |||
Restricted stock grants | 32,262 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of Non-Vested Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Time Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value Non-vested, Beginning balance | $ 38.88 | ||
Weighted average grant date fair value, Granted | 47.34 | $ 43.31 | $ 33.46 |
Weighted average grant date fair value, Vested | 38.42 | ||
Weighted average grant date fair value, Forfeited | 41.91 | ||
Weighted average grant date fair value Non-vested, Ending balance | $ 42.98 | $ 38.88 | |
Shares Non-vested, Beginning balance | 875,326 | ||
Shares, Granted | 500,943 | 428,333 | 420,368 |
Shares, Vested | (272,877) | ||
Shares, Forfeited | (139,923) | ||
Shares Non-vested, Ending balance | 963,469 | 875,326 | |
Performance Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value Non-vested, Beginning balance | |||
Weighted average grant date fair value, Granted | $ 49.20 | ||
Weighted average grant date fair value, Forfeited | 49.20 | ||
Weighted average grant date fair value Non-vested, Ending balance | $ 49.20 | ||
Shares Non-vested, Beginning balance | |||
Shares, Granted | 89,143 | ||
Shares, Forfeited | (16,143) | ||
Shares Non-vested, Ending balance | 73,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Restricted Stock Granted (Detail) - Time Based Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 500,943 | 428,333 | 420,368 |
Restricted stock grants, Weighted average grant date fair value | $ 47.34 | $ 43.31 | $ 33.46 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 1 year | 1 year | 3 years |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 5 years | 5 years | 5 years |
Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 463,818 | 396,708 | 394,243 |
Outside Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 37,125 | 31,625 | 26,125 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Expenses related to employer contributions | $ 2.6 | $ 2.8 | $ 2.2 |
Expenses related to deferred compensation plan | 0.3 | 0.3 | $ 0.3 |
Deferred compensation liability | $ 18.9 | $ 20.4 | |
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, 2018 |
Loss Contingencies [Line Items] | |||
Percentage of California drivers who accepted settlement offers | 96.00% | ||
Number of new 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 ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 02, 2016 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Purchase of treasury shares | $ 100,000,000 | |||
Class A Common Stock [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||
Stock repurchase program expiration date | Dec. 31, 2016 | |||
Purchase of treasury shares (in shares) | 0 | 0 | 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) | 87,381 | 77,988 | ||
Purchase of treasury shares | $ 4,300,000 | $ 3,400,000 |
Selected Quarterly Financial _3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 909,239 | $ 824,809 | $ 708,572 | $ 680,443 | $ 3,683,593 | $ 3,123,063 | $ 2,750,449 |
Gross margin | 138,587 | 114,984 | 100,991 | 91,039 | 106,606 | 86,327 | 72,906 | 71,791 | 445,601 | 337,630 | 331,319 |
Operating income | 48,244 | 34,734 | 25,406 | 16,535 | 35,067 | 15,824 | 10,465 | 11,313 | 124,919 | 72,669 | 96,557 |
Income from continuing operations before provision for income taxes | 46,367 | 32,914 | 23,051 | 14,393 | 32,938 | 13,877 | 9,605 | 10,511 | 116,725 | 66,931 | 94,027 |
Income from continuing operations | 33,674 | 25,764 | 17,154 | 11,069 | 96,082 | 11,665 | 5,724 | 6,543 | 87,661 | 120,014 | 57,646 |
Income from discontinued operations, net of income taxes | 15,237 | 88,846 | 4,897 | 5,099 | 3,861 | 3,669 | 3,818 | 3,791 | 114,079 | 15,139 | 17,159 |
Net income | $ 48,911 | $ 114,610 | $ 22,051 | $ 16,168 | $ 99,943 | $ 15,334 | $ 9,542 | $ 10,334 | $ 201,740 | $ 135,153 | $ 74,805 |
Earnings per share from continuing operations | |||||||||||
Basic | $ 1.01 | $ 0.77 | $ 0.51 | $ 0.33 | $ 2.89 | $ 0.35 | $ 0.17 | $ 0.20 | $ 2.62 | $ 3.61 | $ 1.70 |
Diluted | 1.01 | 0.77 | 0.51 | 0.33 | 2.87 | 0.35 | 0.17 | 0.20 | 2.61 | 3.60 | 1.70 |
Earnings per share from discontinued operations | |||||||||||
Basic | 0.45 | 2.66 | 0.15 | 0.15 | 0.12 | 0.11 | 0.12 | 0.11 | 3.42 | 0.46 | 0.51 |
Diluted | 0.45 | 2.64 | 0.15 | 0.15 | 0.12 | 0.11 | 0.12 | 0.11 | 3.40 | 0.45 | 0.51 |
Earnings per share net income | |||||||||||
Basic | 1.46 | 3.43 | 0.66 | 0.48 | 3.01 | 0.46 | 0.29 | 0.31 | 6.04 | 4.07 | 2.21 |
Diluted | $ 1.46 | $ 3.41 | $ 0.66 | $ 0.48 | $ 2.99 | $ 0.46 | $ 0.29 | $ 0.31 | $ 6.01 | $ 4.05 | $ 2.20 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for Uncollectible Trade Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 5,996,000 | $ 3,463,000 | $ 2,906,000 | |
Charged to Costs & Expenses | 54,000 | 457,000 | 46,000 | |
Charged to Other Accounts | [1] | 680,000 | 2,079,000 | (13,000) |
Deductions | [2] | (2,000) | (3,000) | 524,000 |
Balance at End of Year | 6,728,000 | 5,996,000 | 3,463,000 | |
Deferred tax valuation allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 1,681,000 | 456,000 | 108,000 | |
Charged to Costs & Expenses | 1,447,000 | 1,225,000 | 348,000 | |
Balance at End of Year | $ 3,128,000 | $ 1,681,000 | $ 456,000 | |
[1] | Expected customer account adjustments charged to revenue and write-offs, net of recoveries | |||
[2] | Represents bad debt recoveries |