Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HUBG | ||
Entity Registrant Name | HUB GROUP, INC. | ||
Entity Central Index Key | 0000940942 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 1,370,432,860 | ||
Title of 12(b) Security | Class A Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 0-27754 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4007085 | ||
Entity Address, Address Line One | 2000 Clearwater Drive | ||
Entity Address, City or Town | Oak Brook | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60523 | ||
City Area Code | 630 | ||
Local Phone Number | 271-3600 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | The Registrant’s definitive Proxy Statement for the Annual Meeting of Stockholders to be held on May 20, 2020 (the “Proxy Statement”) is incorporated by reference in Part III of this Form 10-K to the extent stated herein. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as a part hereof. | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 33,587,372 | ||
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, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 168,729 | $ 61,435 |
Accounts receivable trade, net | 443,539 | 477,088 |
Other receivables | 3,237 | 22,021 |
Prepaid taxes | 630 | 616 |
Prepaid expenses and other current assets | 24,086 | 27,533 |
TOTAL CURRENT ASSETS | 640,221 | 588,693 |
Restricted investments | 22,601 | 19,236 |
Property and equipment, net | 663,165 | 681,859 |
Right-of-use assets - operating leases | 35,548 | |
Right-of-use assets - financing leases | 5,865 | |
Other intangibles, net | 120,967 | 134,788 |
Goodwill, net | 484,459 | 483,584 |
Other assets | 18,748 | 16,738 |
TOTAL ASSETS | 1,991,574 | 1,924,898 |
CURRENT LIABILITIES: | ||
Accounts payable trade | 257,247 | 272,859 |
Accounts payable other | 11,585 | 10,906 |
Accrued payroll | 45,540 | 55,535 |
Accrued other | 86,686 | 82,900 |
Lease liability - operating leases | 8,567 | |
Lease liability - financing leases | 3,048 | 2,845 |
Current portion of long-term debt | 94,691 | 101,713 |
TOTAL CURRENT LIABILITIES | 507,364 | 526,758 |
Long-term debt | 186,934 | 229,071 |
Non-current liabilities | 36,355 | 29,619 |
Lease liability - operating leases | 28,518 | |
Lease liability - financing leases | 1,820 | 4,739 |
Deferred taxes | 155,304 | 153,877 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2019 and 2018 | ||
Additional paid-in capital | 179,637 | 172,220 |
Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458) | (15,458) |
Retained earnings | 1,179,601 | 1,072,456 |
Accumulated other comprehensive loss | (186) | (182) |
Treasury stock; at cost, 7,870,888 shares in 2019 and 7,431,083 shares in 2018 | (268,734) | (248,621) |
TOTAL STOCKHOLDERS' EQUITY | 1,075,279 | 980,834 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,991,574 | 1,924,898 |
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, 2019 | Dec. 31, 2018 |
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 | 7,870,888 | 7,431,083 |
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 | 33,353,904 | 33,793,709 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 3,668,117 | $ 3,683,593 | $ 3,123,063 |
Transportation costs | 3,147,047 | 3,237,992 | 2,785,433 |
Gross margin | 521,070 | 445,601 | 337,630 |
Costs and expenses: | |||
Salaries and benefits | 235,963 | 222,786 | 175,567 |
General and administrative | 104,206 | 81,272 | 77,239 |
Depreciation and amortization | 28,481 | 16,624 | 12,155 |
Total costs and expenses | 368,650 | 320,682 | 264,961 |
Operating income | 152,420 | 124,919 | 72,669 |
Other income (expense): | |||
Interest expense | (10,994) | (9,611) | (6,754) |
Interest income | 2,103 | 1,359 | 349 |
Other, net | 341 | 58 | 667 |
Total other income (expense) | (8,550) | (8,194) | (5,738) |
Income from continuing operations before income taxes | 143,870 | 116,725 | 66,931 |
Income tax expense (benefit) | 36,699 | 29,064 | (53,083) |
Income from continuing operations | 107,171 | 87,661 | 120,014 |
Income from discontinued operations, net of income taxes | 114,079 | 15,139 | |
Net income | 107,171 | 201,740 | 135,153 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (4) | 12 | 79 |
Total comprehensive income | $ 107,167 | $ 201,752 | $ 135,232 |
Earnings per share from continuing operations | |||
Basic | $ 3.22 | $ 2.62 | $ 3.61 |
Diluted | 3.20 | 2.61 | 3.60 |
Earnings per share from discontinued operations | |||
Basic | 3.42 | 0.46 | |
Diluted | 3.40 | 0.45 | |
Earnings per share net income | |||
Basic | 3.22 | 6.04 | 4.07 |
Diluted | $ 3.20 | $ 6.01 | $ 4.05 |
Basic weighted average number of shares outstanding | 33,284 | 33,393 | 33,220 |
Diluted weighted average number of shares outstanding | 33,480 | 33,560 | 33,350 |
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, 2016 | $ 628,179 | $ 419 | $ 173,565 | $ (15,458) | $ 735,563 | $ (273) | $ (265,637) |
Beginning 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) | |||||
Purchase of treasury shares | $ (24,998) | $ (24,998) | |||||
Purchase of treasury shares (in shares) | (626,320) | (626,320) | |||||
Stock tendered for payments of withholding taxes | $ (3,984) | $ (3,984) | |||||
Stock tendered for payments of withholding taxes (in shares) | (98,260) | ||||||
Issuance of restricted stock awards, net of forfeitures | (8,869) | $ 8,869 | |||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 284,775 | ||||||
Share-based compensation expense | 16,286 | 16,286 | |||||
Net income | 107,171 | 107,171 | |||||
Adoption of ASC 842 | ASU No. 2016-02 [Member] | (26) | (26) | |||||
Foreign currency translation adjustment | (4) | (4) | |||||
Ending Balance at Dec. 31, 2019 | $ 1,075,279 | $ 419 | $ 179,637 | $ (15,458) | $ 1,179,601 | $ (186) | $ (268,734) |
Ending Balance (in shares) at Dec. 31, 2019 | 41,887,088 | (7,870,888) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 107,171 | $ 201,740 | $ 135,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 116,887 | 83,910 | 62,173 |
Deferred taxes | 1,821 | 39,499 | (41,351) |
Compensation expense related to share-based compensation plans | 16,286 | 13,480 | 9,873 |
Contingent consideration adjustment | (4,703) | ||
(Gain) loss on sale of assets | (745) | (1,007) | 441 |
Gain on Disposition | (132,448) | ||
Transaction costs for Disposition | (5,798) | ||
Changes in operating assets and liabilities: | |||
Restricted investments | (3,365) | 827 | (3,304) |
Accounts receivable, net | 32,732 | (31,475) | (84,775) |
Prepaid taxes | (14) | 11,472 | (11,794) |
Prepaid expenses and other current assets | 3,447 | (1,750) | (7,543) |
Other assets | (3,786) | (8,029) | 56 |
Accounts payable | (14,933) | 5,521 | 59,037 |
Accrued expenses | (122) | 43,476 | (2,931) |
Non-current liabilities | (870) | (3,876) | 10,185 |
Net cash provided by operating activities | 254,509 | 210,839 | 125,220 |
Cash flows from investing activities: | |||
Proceeds from sale of equipment | 10,025 | 10,975 | 5,327 |
Purchases of property and equipment | (94,847) | (199,791) | (74,541) |
Acquisitions, net of cash acquired | (734) | (248,656) | (165,933) |
Proceeds from the disposition of discontinued operations | 19,439 | 227,986 | |
Net cash used in investing activities | (66,117) | (209,486) | (235,147) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 56,494 | 172,146 | 98,544 |
Repayments of long-term debt | (105,653) | (133,436) | (79,869) |
Stock tendered for payments of withholding taxes | (3,984) | (4,270) | (3,412) |
Purchase of treasury stock | (24,998) | ||
Finance lease payments | (2,954) | (2,889) | (2,800) |
Payment of debt issuance costs | (1,397) | ||
Net cash (used in) provided by financing activities | (81,095) | 31,551 | 11,066 |
Effect of exchange rate changes on cash and cash equivalents | (3) | (26) | 14 |
Net increase (decrease) in cash and cash equivalents | 107,294 | 32,878 | (98,847) |
Cash and cash equivalents beginning of the year | 61,435 | 28,557 | 127,404 |
Cash and cash equivalents end of the year | 168,729 | 61,435 | 28,557 |
Supplemental disclosures of cash paid for: | |||
Interest | 11,262 | 9,677 | 6,162 |
Income taxes | $ 40,289 | $ 13,606 | $ 13,149 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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. sold Mode Transportation, LLC (“Mode”), a direct wholly-owned subsidiary of the Company (the “Disposition”). Refer to Note 4 “Discontinued Operations” for additional information regarding results from discontinued operations. On December 3, 2018, we acquired 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, 2019 and 2018, 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 that are not one year old and 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, those that are not 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. We reserve for accounts less than one year old based on specifically identified uncollectible balances and our historic collection percentage, including receivable adjustments charged through revenue for items such as billing disputes. 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 $6.9 million and $6.7 million as of December 31, 2019 and 2018, 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 16 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. Capitalized Internal Use Software and Cloud Computing Costs: We capitalize internal and external costs, which include costs related to the development of our cloud computing or hosting arrangements, incurred to develop internal use software per ASC Subtopic 350-40. Internal use software has both the of the following characteristics: the software is acquired, internally developed, or modified solely to meet our needs and during the development or modification, no substantive plan exists or is being developed to market the software externally. Only costs incurred during the application development stage and costs to develop or obtain software that allows for access to or conversion of old data by new systems are capitalized. Capitalization of costs begins when the preliminary project stage is complete, management has committed to funding the project and it is probable the project will be completed, and the software will be used to perform its intended function. The measurement of the costs to capitalize include fees paid to third parties, costs incurred to obtain software from third parties, travel expenses by employees in their duties associated with developing software, payroll related costs for employees who devote time spent directly on the project and interest costs incurred while developing internal-use software or implementing a hosting arrangement. Capitalization ceases no later than when the project is substantially complete and ready for its intended use, after all substantial testing is complete. 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 2019 and 2018, 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. Claims Accruals: We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular collisions, accidents, and cargo damage. Certain insurance arrangements include high self-insurance retention limits (deductible) applicable to each claim. We have umbrella policies to limit our exposure to catastrophic claim costs. Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature and severity of the claims and analyses provided by third-party claims administrators, as well as legal and regulatory factors. Our safety and claims personnel work directly with representatives from the insurance companies to continually update the estimated cost of each claim. The ultimate cost of a claim develops over time as additional information regarding the nature, timing, and extent of damages claimed becomes available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This process involves the use of loss-development factors based on our historical claims experience. In doing so, the recorded liability considers future claims growth and provides an allowance for incurred-but-not-reported claims. We do not discount our estimated losses. In addition, we record receivables for amounts expected to be reimbursed for payments made in excess of self-insurance levels on covered claims. At December 31, 2019 and 2018, we had an accrual of approximately $20.0 million and $15.1 million, respectively for estimated claims. We had no significant receivables recorded for payments in excess of our self-insured levels. Our claims accruals are classified in accrued other and non-current liabilities in the consolidated balance sheets, based on when the claim is estimated to be paid. 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 2019, 2018 or 2017. 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 generally recognize revenue over time because of continuous transfer of control to the customer. Since control is transferred over time, revenue and related transportation costs are recognized based on relative transit time, which is based on the extent of progress towards completion of the related performance obligation. 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. Further, in most cases, we report our revenue on a gross basis because we are the primary obligor as we are responsible for providing the service desired by the customer. Our customers view us as responsible for fulfillment including the acceptability of the service. Service requirements may include, for example, on-time delivery, handling freight loss and damage claims, setting up appointments for pick-up and delivery and tracing shipments in transit. We have discretion in setting sales prices and as a result, the amount we earn varies. In addition, we have the discretion to select our vendors from multiple suppliers for the services ordered by our customers. These factors, discretion in setting prices and discretion in selecting vendors, further support reporting revenue on a gross basis for most of our revenue. Provision for Income Taxes : Deferred income taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. We believe that it is more likely than not that our deferred tax assets will be realized based on future taxable income projections with two exceptions for which we have established valuation allowances. We have established valuation allowances of $0.1 million related to state tax net operating losses and $4.6 million related to state incentive tax credit carryforwards. In the event the probability of realizing the remaining deferred tax assets does 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 . New Pronouncements: I n June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. Under this new standard, companies will no longer be required to value non-employee awards differently from employee awards. This means that companies will value all equity classified awards at their grant-date and forgo revaluing the award after this date. The standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. This standard was adopted on January 1, 2019 and had no material impact on our consolidated financial statements. 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 adopted this standard on January 1, 2020, as required. The adoption of Topic 350 had no material effect on our financial statements. In February 2016, the FASB issued ASC 842, 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. 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. In 2016, the FASB issued ASC 326, Financial Instruments – Credit Losses, (“ASC 326”) that requires credit losses on financial instruments measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses . The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. We adopted this standard on January 1, 2020, as required. The adoption of ASC 326 had no material impact on our consolidated financial statements as the new guidance is consistent with our current accounting policy in determining expected credit losses on financial assets . 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 for claims 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, 2019 | |
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, 2019 | |
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, 2019 2018 2017 Net income from continuing operations for basic and diluted earnings per share $ 107,171 $ 87,661 $ 120,014 Net income from discontinued operations for basic and diluted earnings per share - 114,079 15,139 Net income 107,171 201,740 135,153 Weighted average shares outstanding - basic 33,284 33,393 33,220 Dilutive effect of stock options and restricted stock 196 167 130 Weighted average shares outstanding - diluted 33,480 33,560 33,350 Earnings per share from continuing operations Basic $ 3.22 $ 2.62 $ 3.61 Diluted $ 3.20 $ 2.61 $ 3.60 Earnings per share from discontinued operations Basic $ - $ 3.42 $ 0.46 Diluted $ - $ 3.40 $ 0.45 Earnings per share net income Basic $ 3.22 $ 6.04 $ 4.07 Diluted $ 3.20 $ 6.01 $ 4.05 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 4. Discontinued Operations On August 31, 2018, Hub sold Mode. 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 $19.4 million receivable resulting from a net working capital adjustment was recorded in other receivables in the Consolidated Balance Sheet in the fourth quarter of 2018 and was received in the first quarter of 2019. 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. For the twelve months ended December 31, 2017, Mode had revenue of $50.6 million from Hub and Hub had $51.0 million from Mode. These sales were eliminated on our Consolidated Statements of Income. In connection with the Disposition, the Company and Mode entered into a transition services agreement pursuant to which both the Company and Mode provided 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 Revenue $ 739,534 $ 908,870 Transportation costs 648,986 788,982 Gross margin 90,548 119,888 Costs and expenses: Salaries and benefits 11,043 12,821 Agent fees and commissions 56,631 73,955 General and administrative 5,795 8,071 Depreciation and amortization 632 1,158 Total costs and expenses 74,101 96,005 Operating income from discontinued operations 16,447 23,883 Other income Interest income 22 67 Other, net (15 ) 56 Gain on Disposition 132,448 - Total other income 132,455 123 Income from discontinued operations before income taxes 148,902 24,006 Provision for income taxes 34,823 8,867 Income from discontinued operations $ 114,079 $ 15,139 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. 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 and 2017 are comprised of the following, which exclude the effect of income taxes: Twelve months ended December 31, (in thousands) 2018 2017 Net cash (used in) provided by operating activities (4,318 ) 25,147 Net cash provided by (used in) investing activities 245,339 (823 ) |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 5. Acquisition On December 3, 2018, we acquired CaseStack. Total consideration for the transaction was $252.9 million, which included $249.4 million in cash, of which $248.7 million was paid in December 2018 and $0.7 million in April 2019. There was also a deferred purchase consideration of $3.5 million. The deferred purchase consideration is included in Accrued Other in our Consolidated Balance Sheet and is being 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 $ 249,389 Deferred purchase consideration 3,469 Total consideration $ 252,858 The following table summarizes the allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): Accounts receivable trade $ 31,896 Prepaid expenses and other current assets 694 Property and equipment 3,247 Deferred tax assets 6,433 Goodwill, net 166,070 Other intangibles 75,600 Other assets 120 Total assets acquired $ 284,060 Accounts payable trade $ 24,542 Accrued payroll 2,811 Accrued other 3,849 Total liabilities assumed $ 31,202 Total consideration $ 252,858 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 as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization December 31, 2019 Life Customer relationships - logistics services $ 65,600 $ 7,107 $ 58,493 10 years Customer relationships - transportation services $ 8,700 $ 1,885 $ 6,815 5 years Trade name $ 1,300 $ 939 $ 361 18 months The above intangible assets are amortized using the straight -line method. Amortization expense related to this acquisition was $9.2 million and $0.8 million for 2019 and 2018, respectively. The intangible assets have a weighted average useful life of approximately 8 years. Amortization expense related to CaseStack for the next five years is as follows (in thousands): Total Year 1 $ 8,661 Year 2 8,300 Year 3 8,300 Year 4 8,155 Year 5 6,560 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 and Dedicated as though it had been acquired as of January 1, 2017 (in thousands, except for per share amounts): Twelve Months Ended December 31, 2018 December 31, 2017 Revenue $ 3,912,745 $ 3,449,373 Income from continuing operations $ 133,310 $ 122,532 Earnings per share (1) Basic $ 2.81 $ 3.69 Diluted $ 2.79 $ 3.67 (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 acquisitions on January 1, 2017. |
Revenue from Contract with Cust
Revenue from Contract with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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 $0.1 million and $0.2 million at December 31, 2019 and 2018, respectively. 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. Amortization expense was approximately 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 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. Certain prior year revenue amounts by line of business have been reclassified to conform with current year presentation. The following table summarizes our disaggregated revenue by business line (in thousands) for the years ended December 31: 2019 2018 2017 Intermodal $ 2,166,382 $ 2,219,739 $ 1,891,499 Truck brokerage 433,793 497,282 481,635 Logistics 769,195 673,715 634,917 Dedicated 298,747 292,857 115,012 Total revenue $ 3,668,117 $ 3,683,593 $ 3,123,063 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 $ 319,272 Acquisition 164,976 Other (664 ) Balance at December 31, 2018 483,584 Acquisition 1,094 Other (219 ) Balance at December 31, 2019 $ 484,459 The changes noted as “other” in the table above for both 2019 and 2018 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, 2019: Customer relationships $ 144,123 $ (23,517 ) $ 120,606 5-15 years Trade name $ 1,300 $ (939 ) $ 361 18 months Total $ 145,423 $ (24,456 ) $ 120,967 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 The above intangible assets are amortized using the straight-line method. Amortization expense for year ended December 31, 2019 and 2018 was $13.8 million and $5.7 million, respectively. The remaining weighted average life of all definite lived intangible assets as of December 31, 2019 was 10.02 years. Amortization expense for the next five years is as follows (in thousands): Total Year 1 $ 13,316 Year 2 12,742 Year 3 12,700 Year 4 12,555 Year 5 10,960 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. Income Taxes The following is a reconciliation of our effective tax rate to the federal statutory tax rate: Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 34.9 % Federal tax law changes 0.0 0.5 (112.2 ) State taxes, net of federal benefit 3.5 3.7 2.8 Federal and state incentives (0.9 ) (0.9 ) (7.0 ) State law changes 0.7 - 2.0 Permanent differences 1.2 0.6 0.2 Net effective rate 25.5 % 24.9 % (79.3 ) % The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2019 2018 2017 Current Federal $ 31,209 $ (13,750 ) $ (10,426 ) State and local 3,979 1,740 1,542 Foreign 84 (234 ) 59 35,272 (12,244 ) (8,825 ) Deferred Federal (344 ) 36,968 (46,922 ) State and local 1,788 4,134 2,667 Foreign (17 ) 206 (3 ) 1,427 41,308 (44,258 ) Total provision $ 36,699 $ 29,064 $ (53,083 ) The following is a summary of our deferred tax assets and liabilities (in thousands): December 31, 2019 2018 Accrued compensation 13,153 10,538 Other reserves 10,297 8,568 Tax credit carryforwards 6,669 5,062 Operating loss carryforwards 4,879 6,914 Lease accounting liability 10,195 - Total gross deferred income taxes 45,193 31,082 Valuation allowances (4,713 ) (3,128 ) Total deferred tax assets 40,480 27,954 Prepaids (4,774 ) (5,409 ) Other receivables (656 ) (1,588 ) Property and equipment (124,964 ) (119,716 ) Goodwill (55,195 ) (55,118 ) Lease right-of-use asset (10,195 ) - Total deferred tax liabilities (195,784 ) (181,831 ) Total deferred taxes $ (155,304 ) $ (153,877 ) 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 in December 2018. IRS loss limitation rules allowed us to utilize $1.3 million in 2019. The remaining net operating loss of $2.8 million has no expiration date. Our state tax net operating losses total $2.1 million. Some of those state losses have no expiration date while others will expire between December 31, 2020 and December 31, 2038. Management believes it is more likely than not that the loss carryforward deferred tax assets will be realized, except for sixty-nine thousand dollars of state losses. A valuation allowance of sixty-nine thousand dollars has been established. Our federal incentive tax credit carryforward of eighty-eight thousand dollars expires between December 31, 2025 and December 31, 2028. Our state incentive tax credit carryforwards of $6.6 million expire between December 31, 2020 and December 31, 2024. Management believes it is more likely than not that the incentive carryforward deferred tax assets will be realized, except for $4.6 million of state tax credits. A valuation allowance of $4.6 million has been established. As of December 31, 2019 and December 31, 2018, the amount of unrecognized tax benefits was $4.1 million and $3.9 million, respectively. Of these amounts, our income tax provision would decrease $3.4 million and $3.3 million, respectively, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2019 2018 Gross unrecognized tax benefits - beginning of the year $ 3,894 $ 3,827 Gross increases (decreases) related to prior year tax positions 74 (397 ) Gross increases related to current year tax positions 506 959 Lapse of applicable statute of limitations (405 ) (495 ) Gross unrecognized tax benefits - end of year $ 4,069 $ 3,894 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. These amounts have been immaterial for the last three years. In 2019, CaseStack’s federal tax return for 2016, a pre-acquisition tax year, was selected for examination by the IRS. The audit closed with no additional tax due. In 2018, Massachusetts started an audit that closed in 2019 with a refund of one thousand dollars. The Wisconsin audit of our 2014 through 2016 tax years that started in 2018 is still ongoing. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 9. Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable and accounts payable materially approximated fair value as of December 31, 2019 and 2018. As of December 31, 2019 and 2018, the fair value of the Company’s fixed-rate borrowings was $3.8 million and $0.4 million more than the historical carrying value of $281.6 million and $330.8 million. The fair value of the fixed-rate borrowings was estimated using an income approach based on current interest rates available to the Company for borrowings on similar terms and maturities. We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of December 31, 2019 and 2018, our cash and temporary investments were with high quality financial institutions in DDAs, savings accounts and an interest-bearing checking account. Restricted investments included $22.6 million and $19.2 million as of December 31, 2019 and 2018, 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. 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, accounts payable and mutual funds and related liabilities are defined as “Level 1,” while long-term debt is defined as “Level 2” of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 10. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2019 2018 Land $ 24,708 $ 24,708 Building and improvements 36,602 36,644 Leasehold improvements 7,300 7,252 Computer equipment and software 132,413 118,723 Furniture and equipment 14,057 14,421 Transportation equipment 800,300 787,187 Construction in process 18,331 1,499 1,033,711 990,434 Less: Accumulated depreciation and amortization (370,546 ) (308,575 ) Property and Equipment, net $ 663,165 $ 681,859 Depreciation and amortization expense related to property and equipment was $89.5 million, $75.1 million and $55.6 million for 2019, 2018 and 2017, respectively. |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
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").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 2020. As of December 31, 2019, our letters of credit were $31.5 million. As of December 31, 2019, we had no borrowings under our bank revolving line of credit and our unused and available borrowings were $318.5 million. Our unused and available borrowings were $323.0 million as of December 31, 2018. We were in compliance with our debt covenants as of December 31, 2019. 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, 2019 2018 (in thousands except principal and interest payments) Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2018, 2019 and 2020; interest is paid monthly at a fixed annual rate between 2.49% and 3.59% $ 62,690 $ 11,658 Secured Equipment Notes due on various dates in 2023 commencing on various dates in 2018 and 2019; interest is paid monthly at a fixed annual rate between 2.23% and 4.16% 153,350 192,858 Secured Equipment Notes due on various dates in 2022 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.85% 16,892 24,092 Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2016 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 35,076 55,855 Secured Equipment Notes due on various dates in 2020 commencing on various dates from 2015 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 13,617 32,904 Secured Equipment Notes due on various dates in 2019 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% - 13,417 281,625 330,784 Less current portion (94,691 ) (101,713 ) Total long-term debt $ 186,934 $ 229,071 Aggregate principal payments, in thousands, due subsequent to December 31, 201 9 , are as follows: Year 1 $ 94,691 Year 2 76,028 Year 3 60,489 Year 4 41,208 Year 5 9,209 Thereafter - $ 281,625 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 12. Leases In February 2016, the FASB issued ASC 842, Leases, (“ASC 842”) which requires lessees to recognize a right-of-use asset (“ROU”) and a lease obligation for all leases. We adopted ASC 842 as of January 1, 2019, in accordance with the standard. ASC 842 provides an option to apply the transition provisions as of the effective date. We elected this option when we adopted the new standard using a modified retrospective transition method and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. In addition, we elected to apply a package of practical expedients and as such 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. As of December 31, 2019, Hub has recorded $41.4 million of ROU assets and $42.0 million of Lease liabilities on our consolidated balance sheet. The lease liabilities recognized are measured based upon the present value of minimum future payments. The ROU assets are equal to lease liabilities, adjusted for prepaid and accrued rent balances which are recorded in the Consolidated Balance Sheets. 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). Some leases have options to extend or terminate the agreement, which Management assesses in determining the estimated lease term. If any of the options to extend a lease are exercised, this change will be reflected as a remeasurement of the ROU asset and lease liability accordingly. As of December 31, 2019, the ROU asset and lease liabilities do not reflect any options to extend or terminate a lease 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 $0.6 million. As of December 31, 2019, Hub signed new property lease contracts which have not commenced. Based on the present value of the lease payments, the estimated ROU assets and lease liabilities related to these contracts will total approximately $10.7 million. Discount rates are not specified on the individual lease contracts at the commencement date. To determine the present value of the lease payments, Hub used its incremental borrowing rate which was determined based on Hub’s credit standing and factoring in the current 12-month LIBOR rate published at the time of the lease commencement. This incremental borrowing rate represents the rate of interest that Hub would have to pay to borrow on a collateralized basis over a similar term and amounts equal to the lease payments in a similar economic environment. The following table summarizes the lease costs for the twelve months ended December 31, 2019 (in thousands), which are included in general and administrative costs in the accompanying consolidated statement of income: Twelve Months Ended December 31, 2019 Amortization of finance right-of-use assets $ 2,326 Interest on finance lease liabilities 252 Finance lease cost 2,578 Operating lease cost 10,861 Short-term lease cost 289 Sublease income (507 ) Total lease cost $ 13,221 The table below summarizes the Company’s scheduled future minimum lease payments under operating and finance leases, recorded on the sheet, as of December 31, 2019 (in thousands): Operating Leases Finance Leases Year 1 $ 9,703 $ 3,183 Year 2 8,361 1,836 Year 3 7,029 8 Year 4 4,861 - Year 5 3,706 - Thereafter 7,190 - Minimum lease payments 40,850 5,027 Imputed interest 3,765 159 Present value of minimum lease payments 37,085 4,868 Less: current lease liabilities 8,567 3,048 Long-term lease liabilities $ 28,518 $ 1,820 Other information: Twelve Months Ended December 31, 2019 Operating cash flows from operating leases $ 9,702 Financing cash flows from finance leases 2,954 Operating cash flows from finance leases 252 Cash paid for lease liabilities $ 12,908 Right-of-use assets obtained in exchange for new financing lease liabilities $ 6 Rights-of-use assets obtained in exchange for new operating lease liabilities $ 13,242 The weighted average remaining lease term and discount rates as of December 31, 2019 (in thousands) are as follows: Weighted average remaining lease term — finance leases 1.59 years Weighted average remaining lease term — operating leases 5.38 years Discount rate — finance leases 3.88 % Discount rate — operating leases 3.44 % |
Internal-Use Software
Internal-Use Software | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Internal-use Software | NOTE 13. Internal-Use Software 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. We adopted the amendment in the fourth quarter of 2018 and applied prospectively to all implementation costs incurred after the date of adoption. Our hosting arrangements are primarily related to our new enterprise resource planning systems. We had total capitalized internal use software costs, which include costs related to the development of our cloud computing or hosting arrangements, net of accumulated amortization, of $64.8 million and $55.7 million as of December 31, 2019 and 2018, respectively. The 2019 balance consists of capitalized implementation costs of $14.4 million, net of accumulated amortization, related to our cloud hosting arrangements, which are classified in other assets in our consolidated balance sheet and capitalized internal-use software costs of $50.4 million, net of accumulated amortization, which are classified in property and equipment in our consolidated balance sheet. The 2018 balance consists of capitalized implementation costs of $10.1 million, net of accumulated amortization, related our cloud hosting arrangements, which are classified in other assets in our consolidated balance sheet and capitalized internal-use software costs of $45.6 million, net of accumulated amortization, which are classified in property and equipment in our consolidated balance sheet. We capitalized total implementation and internal-use software costs of $21.9 million and $22.4 million in 2019 and 2018, respectively. Implementation and internal-use software costs are amortized, once ready for intended use, over its expected useful life or the term of the associated hosting arrangements of generally up to 10 years. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | NOTE 14. 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, 2019, 1,252,112 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 period. In 2019 and 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 2019, 2018 and 2017 was $16.3 million, $13.5 million and $8.6 million or $12.1 million, $10.1 million and $5.8 million, net of taxes, respectively. Included in the 2019 share-based compensation expense is $3.4 million of performance-based share expenses or $2.6 million, net of taxes. The following table summarizes the non-vested restricted stock activity for the year ended December 31, 2019: 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, 2019 963,469 $ 42.98 73,000 $ 49.20 Granted 387,841 $ 38.02 76,500 $ 37.20 Vested (318,252 ) $ 42.32 - $ - Forfeited (157,566 ) $ 41.20 (22,000 ) $ 43.20 Non-vested at December 31, 2019 875,492 $ 41.34 127,500 $ 43.04 The following table summarizes the restricted stock granted during the respective years: Time-based restricted stock grants 2019 2018 2017 Employees 355,579 463,818 396,708 Outside directors 32,262 37,125 31,625 Total 387,841 500,943 428,333 Weighted average grant date fair value $ 38.02 $ 47.34 $ 43.31 Vesting period 1-5 years 1-5 years 1-5 years In addition to the time-based restricted stock, we granted 76,500 shares of performance-based restricted stock to employees in 2019. The weighted average grant date fair value of these shares was $37.20 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, 2019, 2018 and 2017 was $14.7 million, $13.3 million and $10.4 million, respectively. As of December 31, 2019, there was $35.6 million of unrecognized compensation cost related to non-vested share-based compensation that is expected to be recognized over a weighted average period of 2.91 years. Additionally, as of December 31, 2019, there was $4.2 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 1.5 years. During January 2020, we granted 283,498 shares of restricted stock, which includes 75,288 performance-based shares and 208,210 time-based shares, to certain employees and 22,866 shares of restricted stock to outside directors with a weighted average grant date fair value of $52.49. 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, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 15. Employee Benefit Plans We have a profit-sharing plan as of December 31, 2019, 2018 and 2017, 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 $3.3 million related to this plan in 2019, $2.6 million in 2018 and $2.8 million in 2017. 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, 2019 and 2018. 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 2019, 2018 and 2017. The liabilities related to these plans as of December 31, 2019 and 2018 were $22.6 million and $18.9 million, respectively. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | NOTE 16. 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 was brought on behalf of a class comprised of present and former California-based truck drivers for HGT who, from January 2009 to September 2014 were classified as independent contractors. It alleged that HGT misclassified these drivers as independent contractors and that such drivers were employees. It asserted various violations of the California Labor Code and claimed that HGT engaged in unfair competition practices. The complaint sought, 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 were only on behalf of Mr. Robles and not a putative class. Although the Company believes that the California drivers were properly classified as independent contractors at all times because litigation is 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. 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 . Adame On August 5, 2015, a suit was filed in state court in San Bernardino County, California on behalf of 63 . Plaintiffs’ counsel and Hub agreed in principle to settle all claims under both the Robles and Adame matters for $4.8 million, which has been recorded as Accrued other in the Consolidated Balance Sheet and General and administrative costs in the Consolidated Statement of Income and Comprehensive Income. The settlements are subject to final court approval. We are involved in certain other claims and pending litigation arising from the normal conduct of business, including putative class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for unpaid wages, failure to provide meal and rest periods, failure to reimburse incurred business expenses and other items. Based on management's present knowledge, management does not believe that loss contingencies arising from these pending matters are likely to have a material adverse effect on the Company's overall financial position, operating results, or cash flows after taking into account any existing accruals. However, actual outcomes could be material to the Company's financial position, operating results, or cash flows for any particular period. |
Stock Buy Back Plans
Stock Buy Back Plans | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Buy Back Plans | NOTE 17. Stock Buy Back Plans On May 28, 2019, our Board of Directors authorized the purchase of up to $100 million of our Class A Common Stock. Under the program, the shares may be repurchased in the open market or in privately negotiated transactions, from time to time subject to market and other conditions. We purchased 626,320 shares for $25.0 million under this authorization during the year ended December 31, 2019. The approved share repurchase program does not obligate us to repurchase any dollar amount or number of shares and the program may be extended, modified, suspended, or discontinued at any time. We purchased 98,260 shares for $4.0 million and 87,381 shares for $4.3 million during the years ended December 31, 2019 and 2018, respectively, related to employee withholding upon vesting of restricted stock. The following table displays the number of shares purchased during 2019 and the maximum value of shares that may yet be purchased under the plan: Maximum Value of Total Total Number of Shares that May Yet Number of Average Shares Purchased as Be Purchased Under Shares Price Paid Part of Publicly the Plan Purchased Per Share Announced Plan (in 000’s) January 1 to January 31 - $ - - $ 100,000 February 1 to February 28 - $ - - $ 100,000 March 1 to March 31 - $ - - $ 100,000 April 1 to April 30 - $ - - $ 100,000 May 1 to May 31 - $ - - $ 100,000 June 1 to June 30 181,811 $ 40.06 181,811 $ 92,717 July 1 to July 31 444,509 $ 39.85 444,509 $ 75,002 August 1 to August 31 - $ - - $ 75,002 September 1 to September 30 - $ - - $ 75,002 October 1 to October 31 - $ - - $ 75,002 November 1 to November 30 - $ - - $ 75,002 December 1 to December 31 - $ - - $ 75,002 Total 626,320 $ 39.91 626,320 $ 75,002 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | NOTE 18. Selected Quarterly Financial Data (Unaudited) The following table sets forth the selected quarterly financial data for each of the quarters in 2019 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 Year Ended December 31, 2019: Revenue $ 932,998 $ 921,163 $ 913,275 $ 900,681 Gross margin 127,289 132,703 135,218 125,860 Operating income 35,589 40,721 37,246 38,864 Income from continuing operations before provision for income taxes 32,866 38,596 35,135 37,273 Income from continuing operations 23,894 29,217 26,105 27,955 Net income 23,894 29,217 26,105 27,955 Earnings per share from continuing operations Basic $ 0.71 $ 0.87 $ 0.79 $ 0.85 Diluted $ 0.71 $ 0.87 $ 0.78 $ 0.84 Earnings per share from net income Basic $ 0.71 $ 0.87 $ 0.79 $ 0.85 Diluted $ 0.71 $ 0.87 $ 0.78 $ 0.84 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 On August 31, 2018, Hub sold all of the issued and outstanding membership interest of Mode. 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, 2019 | |
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 2019 $ 6,728,000 $ 180,000 $ 5,000 $ (3,000 ) $ 6,910,000 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 Deferred tax valuation allowance Balance at Charged to Balance at Year Ended Beginning of Costs & End of December 31: Year Expenses Year 2019 $ 3,128,000 $ 1,585,000 $ 4,713,000 2018 $ 1,681,000 $ 1,447,000 $ 3,128,000 2017 $ 456,000 $ 1,225,000 $ 1,681,000 (1) Expected customer account adjustments charged to revenue and write-offs, net of recoveries. (2) Represents bad debt recoveries. On August 31, 2018, Hub sold Mode. 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, 2019 | |
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. sold Mode Transportation, LLC (“Mode”), a direct wholly-owned subsidiary of the Company (the “Disposition”). Refer to Note 4 “Discontinued Operations” for additional information regarding results from discontinued operations. On December 3, 2018, we acquired 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, 2019 and 2018, 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 that are not one year old and 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, those that are not 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. We reserve for accounts less than one year old based on specifically identified uncollectible balances and our historic collection percentage, including receivable adjustments charged through revenue for items such as billing disputes. 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 $6.9 million and $6.7 million as of December 31, 2019 and 2018, 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 16 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. |
Capitalized Internal Use Software and Cloud Computing Costs | Capitalized Internal Use Software and Cloud Computing Costs: We capitalize internal and external costs, which include costs related to the development of our cloud computing or hosting arrangements, incurred to develop internal use software per ASC Subtopic 350-40. Internal use software has both the of the following characteristics: the software is acquired, internally developed, or modified solely to meet our needs and during the development or modification, no substantive plan exists or is being developed to market the software externally. Only costs incurred during the application development stage and costs to develop or obtain software that allows for access to or conversion of old data by new systems are capitalized. Capitalization of costs begins when the preliminary project stage is complete, management has committed to funding the project and it is probable the project will be completed, and the software will be used to perform its intended function. The measurement of the costs to capitalize include fees paid to third parties, costs incurred to obtain software from third parties, travel expenses by employees in their duties associated with developing software, payroll related costs for employees who devote time spent directly on the project and interest costs incurred while developing internal-use software or implementing a hosting arrangement. Capitalization ceases no later than when the project is substantially complete and ready for its intended use, after all substantial testing is complete. |
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 2019 and 2018, 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. |
Claims Accruals | Claims Accruals: We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular collisions, accidents, and cargo damage. Certain insurance arrangements include high self-insurance retention limits (deductible) applicable to each claim. We have umbrella policies to limit our exposure to catastrophic claim costs. Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature and severity of the claims and analyses provided by third-party claims administrators, as well as legal and regulatory factors. Our safety and claims personnel work directly with representatives from the insurance companies to continually update the estimated cost of each claim. The ultimate cost of a claim develops over time as additional information regarding the nature, timing, and extent of damages claimed becomes available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This process involves the use of loss-development factors based on our historical claims experience. In doing so, the recorded liability considers future claims growth and provides an allowance for incurred-but-not-reported claims. We do not discount our estimated losses. In addition, we record receivables for amounts expected to be reimbursed for payments made in excess of self-insurance levels on covered claims. At December 31, 2019 and 2018, we had an accrual of approximately $20.0 million and $15.1 million, respectively for estimated claims. We had no significant receivables recorded for payments in excess of our self-insured levels. Our claims accruals are classified in accrued other and non-current liabilities in the consolidated balance sheets, based on when the claim is estimated to be paid. |
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 2019, 2018 or 2017. 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 generally recognize revenue over time because of continuous transfer of control to the customer. Since control is transferred over time, revenue and related transportation costs are recognized based on relative transit time, which is based on the extent of progress towards completion of the related performance obligation. 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. Further, in most cases, we report our revenue on a gross basis because we are the primary obligor as we are responsible for providing the service desired by the customer. Our customers view us as responsible for fulfillment including the acceptability of the service. Service requirements may include, for example, on-time delivery, handling freight loss and damage claims, setting up appointments for pick-up and delivery and tracing shipments in transit. We have discretion in setting sales prices and as a result, the amount we earn varies. In addition, we have the discretion to select our vendors from multiple suppliers for the services ordered by our customers. These factors, discretion in setting prices and discretion in selecting vendors, further support reporting revenue on a gross basis for most of our revenue. |
Provision for Income Taxes | Provision for Income Taxes : Deferred income taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. We believe that it is more likely than not that our deferred tax assets will be realized based on future taxable income projections with two exceptions for which we have established valuation allowances. We have established valuation allowances of $0.1 million related to state tax net operating losses and $4.6 million related to state incentive tax credit carryforwards. In the event the probability of realizing the remaining deferred tax assets does 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 . |
New Pronouncements | New Pronouncements: I n June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. Under this new standard, companies will no longer be required to value non-employee awards differently from employee awards. This means that companies will value all equity classified awards at their grant-date and forgo revaluing the award after this date. The standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. This standard was adopted on January 1, 2019 and had no material impact on our consolidated financial statements. 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 adopted this standard on January 1, 2020, as required. The adoption of Topic 350 had no material effect on our financial statements. In February 2016, the FASB issued ASC 842, 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. 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. In 2016, the FASB issued ASC 326, Financial Instruments – Credit Losses, (“ASC 326”) that requires credit losses on financial instruments measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses . The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. We adopted this standard on January 1, 2020, as required. The adoption of ASC 326 had no material impact on our consolidated financial statements as the new guidance is consistent with our current accounting policy in determining expected credit losses on financial assets . |
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 for claims 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, 2019 | |
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, 2019 2018 2017 Net income from continuing operations for basic and diluted earnings per share $ 107,171 $ 87,661 $ 120,014 Net income from discontinued operations for basic and diluted earnings per share - 114,079 15,139 Net income 107,171 201,740 135,153 Weighted average shares outstanding - basic 33,284 33,393 33,220 Dilutive effect of stock options and restricted stock 196 167 130 Weighted average shares outstanding - diluted 33,480 33,560 33,350 Earnings per share from continuing operations Basic $ 3.22 $ 2.62 $ 3.61 Diluted $ 3.20 $ 2.61 $ 3.60 Earnings per share from discontinued operations Basic $ - $ 3.42 $ 0.46 Diluted $ - $ 3.40 $ 0.45 Earnings per share net income Basic $ 3.22 $ 6.04 $ 4.07 Diluted $ 3.20 $ 6.01 $ 4.05 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Revenue $ 739,534 $ 908,870 Transportation costs 648,986 788,982 Gross margin 90,548 119,888 Costs and expenses: Salaries and benefits 11,043 12,821 Agent fees and commissions 56,631 73,955 General and administrative 5,795 8,071 Depreciation and amortization 632 1,158 Total costs and expenses 74,101 96,005 Operating income from discontinued operations 16,447 23,883 Other income Interest income 22 67 Other, net (15 ) 56 Gain on Disposition 132,448 - Total other income 132,455 123 Income from discontinued operations before income taxes 148,902 24,006 Provision for income taxes 34,823 8,867 Income from discontinued operations $ 114,079 $ 15,139 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. Twelve months ended December 31, (in thousands) 2018 2017 Net cash (used in) provided by operating activities (4,318 ) 25,147 Net cash provided by (used in) investing activities 245,339 (823 ) |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Amortization Expense | Amortization expense for the next five years is as follows (in thousands): Total Year 1 $ 13,316 Year 2 12,742 Year 3 12,700 Year 4 12,555 Year 5 10,960 |
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 $ 249,389 Deferred purchase consideration 3,469 Total consideration $ 252,858 |
Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): Accounts receivable trade $ 31,896 Prepaid expenses and other current assets 694 Property and equipment 3,247 Deferred tax assets 6,433 Goodwill, net 166,070 Other intangibles 75,600 Other assets 120 Total assets acquired $ 284,060 Accounts payable trade $ 24,542 Accrued payroll 2,811 Accrued other 3,849 Total liabilities assumed $ 31,202 Total consideration $ 252,858 |
Components of Other Intangibles Acquired | The components of “Other intangibles” listed in the above table as of the acquisition date are as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization December 31, 2019 Life Customer relationships - logistics services $ 65,600 $ 7,107 $ 58,493 10 years Customer relationships - transportation services $ 8,700 $ 1,885 $ 6,815 5 years Trade name $ 1,300 $ 939 $ 361 18 months |
Amortization Expense | Amortization expense related to CaseStack for the next five years is as follows (in thousands): Total Year 1 $ 8,661 Year 2 8,300 Year 3 8,300 Year 4 8,155 Year 5 6,560 |
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 and Dedicated as though it had been acquired as of January 1, 2017 (in thousands, except for per share amounts): Twelve Months Ended December 31, 2018 December 31, 2017 Revenue $ 3,912,745 $ 3,449,373 Income from continuing operations $ 133,310 $ 122,532 Earnings per share (1) Basic $ 2.81 $ 3.69 Diluted $ 2.79 $ 3.67 (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, 2019 | |
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: 2019 2018 2017 Intermodal $ 2,166,382 $ 2,219,739 $ 1,891,499 Truck brokerage 433,793 497,282 481,635 Logistics 769,195 673,715 634,917 Dedicated 298,747 292,857 115,012 Total revenue $ 3,668,117 $ 3,683,593 $ 3,123,063 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 $ 319,272 Acquisition 164,976 Other (664 ) Balance at December 31, 2018 483,584 Acquisition 1,094 Other (219 ) Balance at December 31, 2019 $ 484,459 |
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, 2019: Customer relationships $ 144,123 $ (23,517 ) $ 120,606 5-15 years Trade name $ 1,300 $ (939 ) $ 361 18 months Total $ 145,423 $ (24,456 ) $ 120,967 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 |
Amortization Expense | Amortization expense for the next five years is as follows (in thousands): Total Year 1 $ 13,316 Year 2 12,742 Year 3 12,700 Year 4 12,555 Year 5 10,960 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 34.9 % Federal tax law changes 0.0 0.5 (112.2 ) State taxes, net of federal benefit 3.5 3.7 2.8 Federal and state incentives (0.9 ) (0.9 ) (7.0 ) State law changes 0.7 - 2.0 Permanent differences 1.2 0.6 0.2 Net effective rate 25.5 % 24.9 % (79.3 ) % |
Summary of Provision for Income Taxes | The following is a summary of our provision for income taxes (in thousands): Years Ended December 31, 2019 2018 2017 Current Federal $ 31,209 $ (13,750 ) $ (10,426 ) State and local 3,979 1,740 1,542 Foreign 84 (234 ) 59 35,272 (12,244 ) (8,825 ) Deferred Federal (344 ) 36,968 (46,922 ) State and local 1,788 4,134 2,667 Foreign (17 ) 206 (3 ) 1,427 41,308 (44,258 ) Total provision $ 36,699 $ 29,064 $ (53,083 ) |
Summary of Deferred Tax Assets and Liabilities | The following is a summary of our deferred tax assets and liabilities (in thousands) December 31, 2019 2018 Accrued compensation 13,153 10,538 Other reserves 10,297 8,568 Tax credit carryforwards 6,669 5,062 Operating loss carryforwards 4,879 6,914 Lease accounting liability 10,195 - Total gross deferred income taxes 45,193 31,082 Valuation allowances (4,713 ) (3,128 ) Total deferred tax assets 40,480 27,954 Prepaids (4,774 ) (5,409 ) Other receivables (656 ) (1,588 ) Property and equipment (124,964 ) (119,716 ) Goodwill (55,195 ) (55,118 ) Lease right-of-use asset (10,195 ) - Total deferred tax liabilities (195,784 ) (181,831 ) Total deferred taxes $ (155,304 ) $ (153,877 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2019 2018 Gross unrecognized tax benefits - beginning of the year $ 3,894 $ 3,827 Gross increases (decreases) related to prior year tax positions 74 (397 ) Gross increases related to current year tax positions 506 959 Lapse of applicable statute of limitations (405 ) (495 ) Gross unrecognized tax benefits - end of year $ 4,069 $ 3,894 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2019 2018 Land $ 24,708 $ 24,708 Building and improvements 36,602 36,644 Leasehold improvements 7,300 7,252 Computer equipment and software 132,413 118,723 Furniture and equipment 14,057 14,421 Transportation equipment 800,300 787,187 Construction in process 18,331 1,499 1,033,711 990,434 Less: Accumulated depreciation and amortization (370,546 ) (308,575 ) Property and Equipment, net $ 663,165 $ 681,859 |
Long-Term Debt and Financing _2
Long-Term Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Our outstanding debt is as follows (in thousands): December 31, December 31, 2019 2018 (in thousands except principal and interest payments) Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2018, 2019 and 2020; interest is paid monthly at a fixed annual rate between 2.49% and 3.59% $ 62,690 $ 11,658 Secured Equipment Notes due on various dates in 2023 commencing on various dates in 2018 and 2019; interest is paid monthly at a fixed annual rate between 2.23% and 4.16% 153,350 192,858 Secured Equipment Notes due on various dates in 2022 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.85% 16,892 24,092 Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2016 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 35,076 55,855 Secured Equipment Notes due on various dates in 2020 commencing on various dates from 2015 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 13,617 32,904 Secured Equipment Notes due on various dates in 2019 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% - 13,417 281,625 330,784 Less current portion (94,691 ) (101,713 ) Total long-term debt $ 186,934 $ 229,071 |
Summary of Aggregate Principal Payments | Aggregate principal payments, in thousands, due subsequent to December 31, 201 9 , are as follows: Year 1 $ 94,691 Year 2 76,028 Year 3 60,489 Year 4 41,208 Year 5 9,209 Thereafter - $ 281,625 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Costs | The following table summarizes the lease costs for the twelve months ended December 31, 2019 (in thousands), which are included in general and administrative costs in the accompanying consolidated statement of income: Twelve Months Ended December 31, 2019 Amortization of finance right-of-use assets $ 2,326 Interest on finance lease liabilities 252 Finance lease cost 2,578 Operating lease cost 10,861 Short-term lease cost 289 Sublease income (507 ) Total lease cost $ 13,221 |
Schedule of Future Minimum Lease Payments Under Operating and Finance Leases | The table below summarizes the Company’s scheduled future minimum lease payments under operating and finance leases, recorded on the sheet, as of December 31, 2019 (in thousands): Operating Leases Finance Leases Year 1 $ 9,703 $ 3,183 Year 2 8,361 1,836 Year 3 7,029 8 Year 4 4,861 - Year 5 3,706 - Thereafter 7,190 - Minimum lease payments 40,850 5,027 Imputed interest 3,765 159 Present value of minimum lease payments 37,085 4,868 Less: current lease liabilities 8,567 3,048 Long-term lease liabilities $ 28,518 $ 1,820 |
Summary of Other Information | Other information: Twelve Months Ended December 31, 2019 Operating cash flows from operating leases $ 9,702 Financing cash flows from finance leases 2,954 Operating cash flows from finance leases 252 Cash paid for lease liabilities $ 12,908 Right-of-use assets obtained in exchange for new financing lease liabilities $ 6 Rights-of-use assets obtained in exchange for new operating lease liabilities $ 13,242 |
Summary Of Weighted Average Remaining Lease Term and Discount Rates | The weighted average remaining lease term and discount rates as of December 31, 2019 (in thousands) are as follows: Weighted average remaining lease term — finance leases 1.59 years Weighted average remaining lease term — operating leases 5.38 years Discount rate — finance leases 3.88 % Discount rate — operating leases 3.44 % |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019: 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, 2019 963,469 $ 42.98 73,000 $ 49.20 Granted 387,841 $ 38.02 76,500 $ 37.20 Vested (318,252 ) $ 42.32 - $ - Forfeited (157,566 ) $ 41.20 (22,000 ) $ 43.20 Non-vested at December 31, 2019 875,492 $ 41.34 127,500 $ 43.04 |
Schedule of Restricted Stock Granted | The following table summarizes the restricted stock granted during the respective years: Time-based restricted stock grants 2019 2018 2017 Employees 355,579 463,818 396,708 Outside directors 32,262 37,125 31,625 Total 387,841 500,943 428,333 Weighted average grant date fair value $ 38.02 $ 47.34 $ 43.31 Vesting period 1-5 years 1-5 years 1-5 years |
Stock Buy Back Plans (Tables)
Stock Buy Back Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Number of Shares Purchased and Maximum Value of Shares that May Yet Be Purchased Under the Plan | The following table displays the number of shares purchased during 2019 and the maximum value of shares that may yet be purchased under the plan: Maximum Value of Total Total Number of Shares that May Yet Number of Average Shares Purchased as Be Purchased Under Shares Price Paid Part of Publicly the Plan Purchased Per Share Announced Plan (in 000’s) January 1 to January 31 - $ - - $ 100,000 February 1 to February 28 - $ - - $ 100,000 March 1 to March 31 - $ - - $ 100,000 April 1 to April 30 - $ - - $ 100,000 May 1 to May 31 - $ - - $ 100,000 June 1 to June 30 181,811 $ 40.06 181,811 $ 92,717 July 1 to July 31 444,509 $ 39.85 444,509 $ 75,002 August 1 to August 31 - $ - - $ 75,002 September 1 to September 30 - $ - - $ 75,002 October 1 to October 31 - $ - - $ 75,002 November 1 to November 30 - $ - - $ 75,002 December 1 to December 31 - $ - - $ 75,002 Total 626,320 $ 39.91 626,320 $ 75,002 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 (in thousands, except per share amounts): Quarter Ended March 31, June 30, September 30, December 31, 2019 2019 2019 2019 Year Ended December 31, 2019: Revenue $ 932,998 $ 921,163 $ 913,275 $ 900,681 Gross margin 127,289 132,703 135,218 125,860 Operating income 35,589 40,721 37,246 38,864 Income from continuing operations before provision for income taxes 32,866 38,596 35,135 37,273 Income from continuing operations 23,894 29,217 26,105 27,955 Net income 23,894 29,217 26,105 27,955 Earnings per share from continuing operations Basic $ 0.71 $ 0.87 $ 0.79 $ 0.85 Diluted $ 0.71 $ 0.87 $ 0.78 $ 0.84 Earnings per share from net income Basic $ 0.71 $ 0.87 $ 0.79 $ 0.85 Diluted $ 0.71 $ 0.87 $ 0.78 $ 0.84 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 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Reserve for uncollectible accounts | $ 6.9 | $ 6.7 | |
Accrual for estimated claims | 20 | $ 15.1 | |
State tax net operating losses, valuation allowance | 0.1 | ||
State [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Incentive tax credit carryforwards | $ 4.6 | ||
Transportation Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated life | 16 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% | ||
Maximum [Member] | Customer Concentration Risk [Member] | Revenue [Member] | Service [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, 2019 | Dec. 31, 2018 | |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income from continuing operations for basic and diluted earnings per share | $ 27,955 | $ 26,105 | $ 29,217 | $ 23,894 | $ 33,674 | $ 25,764 | $ 17,154 | $ 11,069 | $ 107,171 | $ 87,661 | $ 120,014 |
Net income from discontinued operations for basic and diluted earnings per share | 15,237 | 88,846 | 4,897 | 5,099 | 114,079 | 15,139 | |||||
Net income | $ 27,955 | $ 26,105 | $ 29,217 | $ 23,894 | $ 48,911 | $ 114,610 | $ 22,051 | $ 16,168 | $ 107,171 | $ 201,740 | $ 135,153 |
Weighted average shares outstanding - basic | 33,284 | 33,393 | 33,220 | ||||||||
Dilutive effect of stock options and restricted stock | 196 | 167 | 130 | ||||||||
Weighted average shares outstanding - diluted | 33,480 | 33,560 | 33,350 | ||||||||
Earnings per share from continuing operations | |||||||||||
Basic | $ 0.85 | $ 0.79 | $ 0.87 | $ 0.71 | $ 1.01 | $ 0.77 | $ 0.51 | $ 0.33 | $ 3.22 | $ 2.62 | $ 3.61 |
Diluted | 0.84 | 0.78 | 0.87 | 0.71 | 1.01 | 0.77 | 0.51 | 0.33 | 3.20 | 2.61 | 3.60 |
Earnings per share from discontinued operations | |||||||||||
Basic | 0.45 | 2.66 | 0.15 | 0.15 | 3.42 | 0.46 | |||||
Diluted | 0.45 | 2.64 | 0.15 | 0.15 | 3.40 | 0.45 | |||||
Earnings per share net income | |||||||||||
Basic | 0.85 | 0.79 | 0.87 | 0.71 | 1.46 | 3.43 | 0.66 | 0.48 | 3.22 | 6.04 | 4.07 |
Diluted | $ 0.84 | $ 0.78 | $ 0.87 | $ 0.71 | $ 1.46 | $ 3.41 | $ 0.66 | $ 0.48 | $ 3.20 | $ 6.01 | $ 4.05 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | $ 900,681 | $ 913,275 | $ 921,163 | $ 932,998 | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 3,668,117 | $ 3,683,593 | $ 3,123,063 | |
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 | ||||||||||
Mode [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total consideration received | $ 19,400 | $ 238,500 | ||||||||||
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 | ||||||||||
Mode [Member] | Other Receivables [Member] | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total consideration received | $ 19,400 | $ 19,400 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other income | |||||||
Gain on Disposition | $ 132,448 | ||||||
Income from discontinued operations | $ 15,237 | $ 88,846 | $ 4,897 | $ 5,099 | 114,079 | $ 15,139 | |
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 | |||||
Transportation costs | 648,986 | 788,982 | |||||
Gross margin | 90,548 | 119,888 | |||||
Costs and expenses: | |||||||
Salaries and benefits | 11,043 | 12,821 | |||||
Agent fees and commissions | 56,631 | 73,955 | |||||
General and administrative | 5,795 | 8,071 | |||||
Depreciation and amortization | 632 | 1,158 | |||||
Total costs and expenses | 74,101 | 96,005 | |||||
Operating income from discontinued operations | 16,447 | 23,883 | |||||
Other income | |||||||
Interest income | 22 | 67 | |||||
Other, net | (15) | 56 | |||||
Gain on Disposition | $ 132,448 | 132,448 | |||||
Total other income | 132,455 | 123 | |||||
Income from discontinued operations before income taxes | 148,902 | 24,006 | |||||
Provision for income taxes | 34,823 | 8,867 | |||||
Income from discontinued operations | $ 114,079 | $ 15,139 |
Schedule of Reconciliation of G
Schedule of Reconciliation of Gain Recorded on Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Sep. 30, 2018 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net proceeds received from Disposition | $ 19,439 | $ 227,986 | |||
Mode liabilities: | |||||
Transaction costs for Disposition | (5,798) | ||||
Gain on sale of the Mode business before income taxes | 132,448 | ||||
Mode [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Consideration receivable due from Mode | $ 19,400 | $ 238,500 | |||
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 | $ 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, 2019USD ($) |
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 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 | |
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 |
Net cash provided by (used in) investing activities | $ 245,339 | $ (823) |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 03, 2018 | Apr. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||||||
Amortization expense of intangible assets | $ 13,800 | $ 5,700 | ||||||||||||
Revenue | $ 900,681 | $ 913,275 | $ 921,163 | $ 932,998 | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | 3,668,117 | 3,683,593 | $ 3,123,063 | |||
Operating income | $ 38,864 | $ 37,246 | $ 40,721 | $ 35,589 | $ 48,244 | $ 34,734 | $ 25,406 | $ 16,535 | 152,420 | 124,919 | $ 72,669 | |||
CaseStack, Inc. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Consideration for transaction | $ 252,858 | |||||||||||||
Business acquisition, cash paid | 249,389 | $ 700 | $ 248,700 | |||||||||||
Deferred purchase consideration | $ 3,469 | |||||||||||||
Deferred purchase consideration payable term | 24 months | |||||||||||||
Transaction costs | 1,400 | |||||||||||||
Amortization expense of intangible assets | $ 9,200 | $ 800 | ||||||||||||
Intangible assets, weighted average useful life | 8 years | |||||||||||||
Revenue | $ 20,800 | |||||||||||||
Operating income | $ 700 |
Summary of Total Purchase Price
Summary of Total Purchase Price Allocated to Net Assets Acquired (Detail) - CaseStack, Inc. [Member] - USD ($) $ in Thousands | Dec. 03, 2018 | Apr. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Cash paid | $ 249,389 | $ 700 | $ 248,700 |
Deferred purchase consideration | 3,469 | ||
Total consideration | $ 252,858 |
Summarizes the Preliminary Allo
Summarizes the Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 03, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill, net | $ 484,459 | $ 483,584 | $ 483,584 | $ 319,272 |
CaseStack, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable trade | 31,896 | |||
Prepaid expenses and other current assets | 694 | |||
Property and equipment | 3,247 | |||
Deferred tax assets | 6,433 | |||
Goodwill, net | 166,070 | |||
Other intangibles | 75,600 | |||
Other assets | 120 | |||
Total assets acquired | 284,060 | |||
Accounts payable trade | 24,542 | |||
Accrued payroll | 2,811 | |||
Accrued other | 3,849 | |||
Total liabilities assumed | 31,202 | |||
Total consideration | $ 252,858 |
Components of Other Intangible
Components of Other Intangible Acquired (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 145,423 | $ 145,423 |
Finite-lived intangible assets, Accumulated Amortization | 24,456 | 10,635 |
Finite-lived intangible assets, Net Carrying Value | 120,967 | 134,788 |
Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 144,123 | 144,123 |
Finite-lived intangible assets, Accumulated Amortization | 23,517 | 10,563 |
Finite-lived intangible assets, Net Carrying Value | 120,606 | 133,560 |
Trade Name [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 1,300 | 1,300 |
Finite-lived intangible assets, Accumulated Amortization | 939 | 72 |
Finite-lived intangible assets, Net Carrying Value | $ 361 | $ 1,228 |
Intangible assets estimated useful life | 18 months | 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 | 7,107 | |
Finite-lived intangible assets, Net Carrying Value | $ 58,493 | |
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 | 1,885 | |
Finite-lived intangible assets, Net Carrying Value | $ 6,815 | |
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 | 939 | |
Finite-lived intangible assets, Net Carrying Value | $ 361 | |
Intangible assets estimated useful life | 18 months |
Amortization Expense of Intangi
Amortization Expense of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Year 1 | $ 13,316 |
Year 2 | 12,742 |
Year 3 | 12,700 |
Year 4 | 12,555 |
Year 5 | 10,960 |
CaseStack, Inc. [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Year 1 | 8,661 |
Year 2 | 8,300 |
Year 3 | 8,300 |
Year 4 | 8,155 |
Year 5 | $ 6,560 |
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 | |
Business Acquisition [Line Items] | ||
Revenue | $ 3,912,745 | $ 3,449,373 |
Income from continuing operations | $ 133,310 | $ 122,532 |
Earnings per share | ||
Basic | $ 2.81 | $ 3.69 |
Diluted | $ 2.79 | $ 3.67 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue From Contracts With Customers [Line Items] | |||
Capitalized commission fees | $ 0.1 | $ 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 | ||
Selling, General and Administrative Expenses [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Amortization expense of capitalized commission fees | $ 0.1 | $ 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 900,681 | $ 913,275 | $ 921,163 | $ 932,998 | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 3,668,117 | $ 3,683,593 | $ 3,123,063 |
Intermodal [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 2,166,382 | 2,219,739 | 1,891,499 | ||||||||
Truck brokerage [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 433,793 | 497,282 | 481,635 | ||||||||
Logistics [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 769,195 | 673,715 | 634,917 | ||||||||
Dedicated [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 298,747 | $ 292,857 | $ 115,012 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | ||
Goodwill accumulated impairment loss | $ 0 | |
Amortization expense of intangible assets | $ 13,800,000 | $ 5,700,000 |
Weighted Average [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average life of definite lived intangible assets | 10 years 7 days |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning Balance | $ 483,584 | $ 319,272 |
Acquisition | 1,094 | 164,976 |
Other | (219) | (664) |
Goodwill, Ending Balance | $ 484,459 | $ 483,584 |
Components of Other Intangibl_2
Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 145,423 | $ 145,423 |
Finite-lived intangible assets, Accumulated Amortization | (24,456) | (10,635) |
Finite-lived intangible assets, Net Carrying Value | 120,967 | 134,788 |
Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 144,123 | 144,123 |
Finite-lived intangible assets, Accumulated Amortization | (23,517) | (10,563) |
Finite-lived intangible assets, Net Carrying Value | $ 120,606 | $ 133,560 |
Customer Relationships [Member] | Minimum [Member] | ||
Other Intangible Assets [Line Items] | ||
Intangible assets estimated useful life | 5 years | 5 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 | $ 1,300 |
Finite-lived intangible assets, Accumulated Amortization | (939) | (72) |
Finite-lived intangible assets, Net Carrying Value | $ 361 | $ 1,228 |
Intangible assets estimated useful life | 18 months | 18 months |
Amortization Expense (Detail)
Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Year 1 | $ 13,316 |
Year 2 | 12,742 |
Year 3 | 12,700 |
Year 4 | 12,555 |
Year 5 | $ 10,960 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate to Federal Statutory Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 34.90% |
Federal tax law changes | (0.00%) | 0.50% | (112.20%) |
State taxes, net of federal benefit | 3.50% | 3.70% | 2.80% |
Federal and state incentives | (0.90%) | (0.90%) | (7.00%) |
State law changes | 0.70% | 2.00% | |
Permanent differences | 1.20% | 0.60% | 0.20% |
Net effective rate | 25.50% | 24.90% | (79.30%) |
Summary of Provision for Income
Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Federal | $ 31,209 | $ (13,750) | $ (10,426) |
State and local | 3,979 | 1,740 | 1,542 |
Foreign | 84 | (234) | 59 |
Current income tax expense, total | 35,272 | (12,244) | (8,825) |
Deferred | |||
Federal | (344) | 36,968 | (46,922) |
State and local | 1,788 | 4,134 | 2,667 |
Foreign | (17) | 206 | (3) |
Deferred income tax expense, total | 1,427 | 41,308 | (44,258) |
Total provision | $ 36,699 | $ 29,064 | $ (53,083) |
Summary of Deferred Tax Assets
Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Accrued compensation | $ 13,153 | $ 10,538 |
Other reserves | 10,297 | 8,568 |
Tax credit carryforwards | 6,669 | 5,062 |
Operating loss carryforwards | 4,879 | 6,914 |
Lease accounting liability | 10,195 | |
Total gross deferred income taxes | 45,193 | 31,082 |
Valuation allowances | (4,713) | (3,128) |
Total deferred tax assets | 40,480 | 27,954 |
Prepaids | (4,774) | (5,409) |
Other receivables | (656) | (1,588) |
Property and equipment | (124,964) | (119,716) |
Goodwill | (55,195) | (55,118) |
Lease right-of-use asset | (10,195) | |
Total deferred tax liabilities | (195,784) | (181,831) |
Total deferred taxes | $ (155,304) | $ (153,877) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 4,879 | $ 6,914 | |
Valuation allowances | 4,713 | 3,128 | |
Incentive tax credit carryforwards | 6,669 | 5,062 | |
Unrecognized tax benefits | 4,069 | 3,894 | $ 3,827 |
Potential increase (decrease) in income tax provision | 3,400 | 3,300 | |
Income tax, tax refund amount | 1 | ||
CaseStack, Inc. [Member] | Internal Revenue Service [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 1,300 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 2,800 | ||
Incentive tax credit carryforwards | 88 | ||
Federal [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 4,100 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 2,100 | ||
Incentive tax credit carryforwards | 6,600 | ||
State [Member] | Loss Carryforward [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 69 | ||
State [Member] | Tax Incentive Credit Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowances | 4,600 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Possible reduction in unrecognized tax benefits resulting from audit settlements | $ 1,000 | ||
Minimum [Member] | CaseStack, Inc. [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2020 | ||
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, 2020 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Possible increase in unrecognized tax benefits resulting from audit settlements | $ 1,000 | ||
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, 2028 | ||
Maximum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration date | Dec. 31, 2024 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits - beginning of the year | $ 3,894 | $ 3,827 |
Gross (decreases) related to prior year tax positions | (397) | |
Gross increases related to prior year tax positions | 74 | |
Gross increases related to current year tax positions | 506 | 959 |
Lapse of applicable statute of limitations | (405) | (495) |
Gross unrecognized tax benefits - end of year | $ 4,069 | $ 3,894 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement [Line Items] | ||
Carrying value of debt | $ 281,625 | $ 330,784 |
Restricted investments | 22,600 | 19,200 |
Fixed-rate Borrowings [Member] | ||
Fair Value Measurement [Line Items] | ||
Increase (decrease) in fair value of debt | 3,800 | 400 |
Carrying value of debt | $ 281,600 | $ 330,800 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 1,033,711 | $ 990,434 |
Less: Accumulated depreciation and amortization | (370,546) | (308,575) |
Property and Equipment, net | 663,165 | 681,859 |
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 | 36,602 | 36,644 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 7,300 | 7,252 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 132,413 | 118,723 |
Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 14,057 | 14,421 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 800,300 | 787,187 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 18,331 | $ 1,499 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense related to property and equipment | $ 89.5 | $ 75.1 | $ 55.6 |
Long-Term Debt and Financing _3
Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | Jul. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 2020 | ||
Outstanding letters of credit | $ 31,500,000 | ||
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 | $ 318,500,000 | $ 323,000,000 | |
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, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 281,625 | $ 330,784 |
Less current portion | (94,691) | (101,713) |
Total long-term debt | 186,934 | 229,071 |
Secured Equipment Notes due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 62,690 | 11,658 |
Secured Equipment Notes due in 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 153,350 | 192,858 |
Secured Equipment Notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 16,892 | 24,092 |
Secured Equipment Notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 35,076 | 55,855 |
Secured Equipment Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 13,617 | 32,904 |
Secured Equipment Notes due in 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 13,417 |
Schedule of Outstanding Debt (P
Schedule of Outstanding Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2024 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2019 |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2018 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2018 |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2020 |
Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2021 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2016 |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2017 |
Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2020 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2016 |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2015 |
Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2023 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2019 |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2018 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2018 |
Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2019 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2019 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2015 |
Secured Equipment Notes due in 2019 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2013 |
Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2022 |
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 | 2017 |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2015 |
Minimum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.49% |
Minimum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.04% |
Minimum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 1.72% |
Minimum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.23% |
Minimum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 1.87% |
Minimum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.16% |
Maximum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 3.59% |
Maximum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.96% |
Maximum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.78% |
Maximum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 4.16% |
Maximum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.62% |
Maximum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.85% |
Summary of Aggregate Principal
Summary of Aggregate Principal Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Year 1 | $ 94,691 | |
Year 2 | 76,028 | |
Year 3 | 60,489 | |
Year 4 | 41,208 | |
Year 5 | 9,209 | |
Secured long-term debt | $ 281,625 | $ 330,784 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease And Rental Expense [Line Items] | |
Right-of-use asset | $ 41.4 |
Lease liability | 42 |
Expected annual subleases income | 0.6 |
ASU No. 2016-02 [Member] | |
Lease And Rental Expense [Line Items] | |
Estimated ROU assets and lease liabilities | $ 10.7 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of finance right-of-use assets | $ 2,326 |
Interest on finance lease liabilities | 252 |
Finance lease cost | 2,578 |
Operating lease cost | 10,861 |
Short-term lease cost | 289 |
Sublease income | (507) |
Total lease cost | $ 13,221 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating Leases Liability, Year 1 | $ 9,703 | |
Operating Leases Liability, Year 2 | 8,361 | |
Operating Leases Liability, Year 3 | 7,029 | |
Operating Leases Liability, Year 4 | 4,861 | |
Operating Leases Liability, Year 5 | 3,706 | |
Operating Leases Liability, Thereafter | 7,190 | |
Operating Leases Liability, Minimum lease payments | 40,850 | |
Operating Leases Liability, Imputed interest | 3,765 | |
Operating Leases Liability, Present value of minimum lease payments | 37,085 | |
Less: Operating Leases Liability, Current lease liabilities | 8,567 | |
Operating Leases Liability, Long-term lease liabilities | 28,518 | |
Finance Lease Liability, Year 1 | 3,183 | |
Finance Lease Liability, Year 2 | 1,836 | |
Finance Lease Liability, Year 3 | 8 | |
Finance Leases Liability, Minimum lease payments | 5,027 | |
Finance Leases Liability, Imputed interest | 159 | |
Finance Leases Liability, Present value of minimum lease payments | 4,868 | |
Less: Finance Leases Liability, current lease liabilities | 3,048 | $ 2,845 |
Finance Leases Liability, Long-term lease liabilities | $ 1,820 | $ 4,739 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 9,702 | ||
Financing cash flows from finance leases | 2,954 | $ 2,889 | $ 2,800 |
Operating cash flows from finance leases | 252 | ||
Cash paid for lease liabilities | 12,908 | ||
Right-of-use assets obtained in exchange for new financing lease liabilities | 6 | ||
Rights-of-use assets obtained in exchange for new operating lease liabilities | $ 13,242 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rates (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term — finance leases | 1 year 7 months 2 days |
Weighted average remaining lease term — operating leases | 5 years 4 months 17 days |
Discount rate — finance leases | 3.88% |
Discount rate — operating leases | 3.44% |
Internal-Use Software - Additio
Internal-Use Software - Additional Information (Detail) - Early Adoption ASU 2018-15 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Capitalized internal use software costs and implementation costs net of accumulated amortizations | $ 64.8 | $ 55.7 |
Capitalized implementation and internal-use software costs during the period | $ 21.9 | 22.4 |
Minimum [Member] | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Capitalized implementation and internal-use software costs amortization period | 10 years | |
Property and Equipment, Net [Member] | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Capitalized internal use software costs and implementation costs net of accumulated amortizations | $ 50.4 | 45.6 |
Other Assets [Member] | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Capitalized internal use software costs and implementation costs net of accumulated amortizations | $ 14.4 | $ 10.1 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 16.3 | $ 13.5 | $ 8.6 | |
Compensation expense related to share-based compensation plans, net of tax | $ 12.1 | $ 10.1 | $ 5.8 | |
Unrecognized compensation cost weighted average period recognized (years) | 2 years 10 months 28 days | |||
Time Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 387,841 | 500,943 | 428,333 | |
Restricted stock grants, Weighted average grant date fair value | $ 38.02 | $ 47.34 | $ 43.31 | |
Unrecognized compensation cost related to non-vested share-based compensation | $ 4.2 | |||
Unrecognized compensation cost weighted average period recognized (years) | 1 year 6 months | |||
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 | 1 year | |
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 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to share-based compensation plans | $ 3.4 | |||
Compensation expense related to share-based compensation plans, net of tax | $ 2.6 | |||
Performance Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 76,500 | |||
Restricted stock grants, Weighted average grant date fair value | $ 37.20 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of restricted shares vested | $ 14.7 | $ 13.3 | $ 10.4 | |
Unrecognized compensation cost related to non-vested share-based compensation | $ 35.6 | |||
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 | $ 52.49 | |||
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 | 1,252,112 | |||
Non-employee Directors [Member] | Time Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 1 year | |||
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] | 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] | 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 | 75,288 | |||
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 | 76,500 | |||
Restricted stock grants, Weighted average grant date fair value | $ 37.20 | |||
Employees [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 283,498 | |||
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] | 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] | Time Based Shares | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants | 208,210 | |||
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 | 22,866 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of Non-Vested Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 42.98 | ||
Weighted average grant date fair value, Granted | 38.02 | $ 47.34 | $ 43.31 |
Weighted average grant date fair value, Vested | 42.32 | ||
Weighted average grant date fair value, Forfeited | 41.20 | ||
Weighted average grant date fair value Non-vested, Ending balance | $ 41.34 | $ 42.98 | |
Shares Non-vested, Beginning balance | 963,469 | ||
Shares, Granted | 387,841 | 500,943 | 428,333 |
Shares, Vested | (318,252) | ||
Shares, Forfeited | (157,566) | ||
Shares Non-vested, Ending balance | 875,492 | 963,469 | |
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 | $ 49.20 | ||
Weighted average grant date fair value, Granted | 37.20 | ||
Weighted average grant date fair value, Forfeited | 43.20 | ||
Weighted average grant date fair value Non-vested, Ending balance | $ 43.04 | $ 49.20 | |
Shares Non-vested, Beginning balance | 73,000 | ||
Shares, Granted | 76,500 | ||
Shares, Forfeited | (22,000) | ||
Shares Non-vested, Ending balance | 127,500 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 387,841 | 500,943 | 428,333 |
Restricted stock grants, Weighted average grant date fair value | $ 38.02 | $ 47.34 | $ 43.31 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 1 year | 1 year | 1 year |
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 | 355,579 | 463,818 | 396,708 |
Outside Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock grants | 32,262 | 37,125 | 31,625 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Expenses related to employer contributions | $ 3.3 | $ 2.6 | $ 2.8 |
Expenses related to deferred compensation plan | 0.3 | 0.3 | $ 0.3 |
Deferred compensation liability | $ 22.6 | $ 18.9 | |
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) $ in Millions | Aug. 05, 2015USD ($)PlaintiffEmployee |
Robles Lawsuits [Member] | |
Loss Contingencies [Line Items] | |
Number of plaintiffs against HGT | Plaintiff | 63 |
Number of employees filed lawsuit | Employee | 5 |
Robles and Adame Lawsuits | Accrued Other [Member] | |
Loss Contingencies [Line Items] | |
Claims settlement recorded in consolidated balance sheet | $ 4.8 |
Robles and Adame Lawsuits | General and Administrative Expense | |
Loss Contingencies [Line Items] | |
Claims settlement recorded in consolidated statement of income and comprehensive income | $ 4.8 |
Stock Buy Back Plans - Addition
Stock Buy Back Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | May 28, 2019 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Purchase of treasury shares (in shares) | 444,509 | 181,811 | 626,320 | ||
Purchase of treasury shares | $ 24,998,000 | ||||
Class A Common Stock [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Purchase of treasury shares (in shares) | 626,320 | ||||
Purchase of treasury shares | $ 25,000,000 | ||||
Class A Common Stock [Member] | Employee Restricted Stock Plan [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Purchase of treasury shares | $ 4,000,000 | $ 4,300,000 | |||
Stock tendered for payments of withholding taxes (in shares) | 98,260 | 87,381 |
Stock Buy Back Plans - Schedule
Stock Buy Back Plans - Schedule of Number of Shares Purchased and Maximum Value of Shares that May Yet Be Purchased Under the Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Jul. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||||||||||||
Total Number of Shares Purchased | 444,509 | 181,811 | 626,320 | |||||||||
Average Price Paid Per Share | $ 39.85 | $ 40.06 | $ 39.91 | |||||||||
Maximum Value of Shares that May Yet Be Purchased Under the Plan | $ 75,002 | $ 92,717 | $ 75,002 | $ 75,002 | $ 75,002 | $ 75,002 | $ 75,002 | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Publicly Announced Plan [Member] | ||||||||||||
Equity Class Of Treasury Stock [Line Items] | ||||||||||||
Total Number of Shares Purchased | 444,509 | 181,811 | 626,320 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 900,681 | $ 913,275 | $ 921,163 | $ 932,998 | $ 1,018,293 | $ 933,224 | $ 894,734 | $ 837,342 | $ 3,668,117 | $ 3,683,593 | $ 3,123,063 |
Gross margin | 125,860 | 135,218 | 132,703 | 127,289 | 138,587 | 114,984 | 100,991 | 91,039 | 521,070 | 445,601 | 337,630 |
Operating income | 38,864 | 37,246 | 40,721 | 35,589 | 48,244 | 34,734 | 25,406 | 16,535 | 152,420 | 124,919 | 72,669 |
Income from continuing operations before provision for income taxes | 37,273 | 35,135 | 38,596 | 32,866 | 46,367 | 32,914 | 23,051 | 14,393 | 143,870 | 116,725 | 66,931 |
Income from continuing operations | 27,955 | 26,105 | 29,217 | 23,894 | 33,674 | 25,764 | 17,154 | 11,069 | 107,171 | 87,661 | 120,014 |
Income from discontinued operations, net of income taxes | 15,237 | 88,846 | 4,897 | 5,099 | 114,079 | 15,139 | |||||
Net income | $ 27,955 | $ 26,105 | $ 29,217 | $ 23,894 | $ 48,911 | $ 114,610 | $ 22,051 | $ 16,168 | $ 107,171 | $ 201,740 | $ 135,153 |
Earnings per share from continuing operations | |||||||||||
Basic | $ 0.85 | $ 0.79 | $ 0.87 | $ 0.71 | $ 1.01 | $ 0.77 | $ 0.51 | $ 0.33 | $ 3.22 | $ 2.62 | $ 3.61 |
Diluted | 0.84 | 0.78 | 0.87 | 0.71 | 1.01 | 0.77 | 0.51 | 0.33 | 3.20 | 2.61 | 3.60 |
Earnings per share from discontinued operations | |||||||||||
Basic | 0.45 | 2.66 | 0.15 | 0.15 | 3.42 | 0.46 | |||||
Diluted | 0.45 | 2.64 | 0.15 | 0.15 | 3.40 | 0.45 | |||||
Earnings per share net income | |||||||||||
Basic | 0.85 | 0.79 | 0.87 | 0.71 | 1.46 | 3.43 | 0.66 | 0.48 | 3.22 | 6.04 | 4.07 |
Diluted | $ 0.84 | $ 0.78 | $ 0.87 | $ 0.71 | $ 1.46 | $ 3.41 | $ 0.66 | $ 0.48 | $ 3.20 | $ 6.01 | $ 4.05 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Allowance for Uncollectible Trade Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 6,728,000 | $ 5,996,000 | $ 3,463,000 | |
Charged to Costs & Expenses | 180,000 | 54,000 | 457,000 | |
Charged to Other Accounts | [1] | 5,000 | 680,000 | 2,079,000 |
Deductions | [2] | (3,000) | (2,000) | (3,000) |
Balance at End of Year | 6,910,000 | 6,728,000 | 5,996,000 | |
Deferred tax valuation allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 3,128,000 | 1,681,000 | 456,000 | |
Charged to Costs & Expenses | 1,585,000 | 1,447,000 | 1,225,000 | |
Balance at End of Year | $ 4,713,000 | $ 3,128,000 | $ 1,681,000 | |
[1] | Expected customer account adjustments charged to revenue and write-offs, net of recoveries | |||
[2] | Represents bad debt recoveries |