|
|
|
|
|
|
|
|
(In thousands) | ||||
Assets:
|
||||
Revenue earning equipment
|
$ | 201,429 | ||
Operating property and equipment
|
18,780 | |||
Customer relationships and other intangibles
|
5,567 | |||
Other assets, primarily accounts receivable
|
60,988 | |||
|
||||
|
286,764 | |||
|
||||
Liabilities, primarily accrued liabilities
|
(35,269 | ) | ||
|
||||
Net assets acquired
|
$ | 251,495 | ||
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue — As reported
|
$ | 1,513,344 | 1,286,123 | $ | 2,938,720 | 2,506,061 | ||||||||||
Revenue — Pro forma
|
$ | 1,543,084 | 1,321,924 | $ | 3,006,290 | 2,578,223 | ||||||||||
|
||||||||||||||||
Net earnings — As reported
|
$ | 40,033 | 29,841 | $ | 65,158 | 42,214 | ||||||||||
Net earnings — Pro forma (1)
|
$ | 47,791 | 28,637 | $ | 77,773 | 42,433 | ||||||||||
|
||||||||||||||||
Net earnings per common share:
|
||||||||||||||||
Basic — As reported
|
$ | 0.78 | 0.57 | $ | 1.27 | 0.80 | ||||||||||
Basic — Pro forma
|
$ | 0.93 | 0.54 | $ | 1.51 | 0.80 | ||||||||||
|
||||||||||||||||
Diluted — As reported
|
$ | 0.77 | 0.56 | $ | 1.26 | 0.79 | ||||||||||
Diluted — Pro forma
|
$ | 0.92 | 0.54 | $ | 1.50 | 0.80 |
(1) | For the three and six months ended June 30, 2010, the pro forma net earnings include restructuring and integration-related transition and transaction costs of $5.1 million and $7.6 million, respectively. |
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Pre-tax loss from discontinued operations
|
$ | (969 | ) | (832 | ) | $ | (1,716 | ) | (1,337 | ) | ||||||
Income tax benefit
|
88 | 73 | 103 | 79 | ||||||||||||
|
||||||||||||||||
Loss from discontinued operations, net of tax
|
$ | (881 | ) | (759 | ) | $ | (1,613 | ) | (1,258 | ) | ||||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Assets:
|
||||||||
Total current assets, primarily other receivables
|
$ | 4,639 | 4,710 | |||||
Total assets
|
$ | 6,535 | 6,346 | |||||
|
||||||||
Liabilities:
|
||||||||
Total current liabilities, primarily other payables
|
$ | 5,119 | 4,018 | |||||
Total liabilities
|
$ | 9,012 | 7,882 |
|
Foreign | ||||||||||||||||||||
December 31, 2010 | Cash | Translation | June 30, 2011 | |||||||||||||||||
Balance | Additions | Payments | Adjustments | Balance | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Employee severance and benefits
|
$ | 234 | 405 | 243 | 9 | 405 | ||||||||||||||
Contract termination costs
|
3,813 | 375 | 995 | 127 | 3,320 | |||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 4,047 | 780 | 1,238 | 136 | 3,725 | ||||||||||||||
|
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Total minimum lease payments receivable
|
$ | 560,210 | 548,419 | |||||
Less: Executory costs
|
(170,452 | ) | (171,076 | ) | ||||
|
||||||||
Minimum lease payments receivable
|
389,758 | 377,343 | ||||||
Less: Allowance for uncollectibles
|
(696 | ) | (784 | ) | ||||
|
||||||||
Net minimum lease payments receivable
|
389,062 | 376,559 | ||||||
Unguaranteed residuals
|
62,556 | 57,898 | ||||||
Less: Unearned income
|
(97,175 | ) | (96,522 | ) | ||||
|
||||||||
Net investment in direct financing and sales-type leases
|
354,443 | 337,935 | ||||||
Current portion
|
(67,692 | ) | (63,304 | ) | ||||
|
||||||||
Non-current portion
|
$ | 286,751 | 274,631 | |||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Very low risk to low risk
|
$ | 112,284 | 91,993 | |||||
Moderate risk
|
215,413 | 218,547 | ||||||
Moderately high to high risk
|
62,061 | 66,803 | ||||||
|
||||||||
|
$ | 389,758 | 377,343 | |||||
|
(In thousands) | ||||
Balance at December 31, 2010
|
$ | 784 | ||
Charged to earnings
|
72 | |||
Deductions
|
(160 | ) | ||
|
||||
Balance at June 30, 2011
|
$ | 696 | ||
|
|
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accumulated | Net Book | Accumulated | Net Book | |||||||||||||||||||||
Cost | Depreciation | Value(1) | Cost | Depreciation | Value (1) | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Held for use:
|
||||||||||||||||||||||||
Full service lease
|
$ | 5,867,412 | (2,522,238 | ) | 3,345,174 | 5,639,410 | (2,408,126 | ) | 3,231,284 | |||||||||||||||
Commercial rental
|
2,075,181 | (670,141 | ) | 1,405,040 | 1,549,094 | (647,764 | ) | 901,330 | ||||||||||||||||
Held for sale
|
238,548 | (171,275 | ) | 67,273 | 260,114 | (191,510 | ) | 68,604 | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 8,181,141 | (3,363,654 | ) | 4,817,487 | 7,448,618 | (3,247,400 | ) | 4,201,218 | |||||||||||||||
|
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $25.4 million, less accumulated depreciation of $15.2 million, at June 30, 2011, and $29.2 million, less accumulated depreciation of $18.5 million, at December 31, 2010. |
|
Fleet | Supply | Dedicated | ||||||||||||||
Management | Chain | Contract | ||||||||||||||
Solutions | Solutions | Carriage | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1, 2011:
|
||||||||||||||||
Goodwill
|
$ | 202,941 | 177,222 | 4,900 | 385,063 | |||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
192,619 | 158,323 | 4,900 | 355,842 | ||||||||||||
Acquisitions
|
14,028 | — | 14,713 | 28,741 | ||||||||||||
Purchase accounting adjustments
|
592 | (4,319 | ) | 195 | (3,532 | ) | ||||||||||
Foreign currency translation adjustment
|
195 | 253 | — | 448 | ||||||||||||
|
||||||||||||||||
Balance at June 30, 2011:
|
||||||||||||||||
Goodwill
|
217,756 | 173,156 | 19,808 | 410,720 | ||||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
$ | 207,434 | 154,257 | 19,808 | 381,499 | |||||||||||
|
|
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accrued | Non-Current | Accrued | Non-Current | |||||||||||||||||||||
Expenses | Liabilities | Total | Expenses | Liabilities | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Salaries and wages
|
$ | 83,310 | — | 83,310 | 81,037 | — | 81,037 | |||||||||||||||||
Deferred compensation
|
1,430 | 21,767 | 23,197 | 1,965 | 21,258 | 23,223 | ||||||||||||||||||
Pension benefits
|
3,001 | 342,912 | 345,913 | 2,984 | 333,074 | 336,058 | ||||||||||||||||||
Other postretirement benefits
|
3,385 | 42,959 | 46,344 | 3,382 | 43,787 | 47,169 | ||||||||||||||||||
Employee benefits
|
6,592 | — | 6,592 | 2,251 | — | 2,251 | ||||||||||||||||||
Insurance obligations, primarily self-insurance
|
123,480 | 151,953 | 275,433 | 110,697 | 148,639 | 259,336 | ||||||||||||||||||
Residual value guarantees
|
2,841 | 1,821 | 4,662 | 2,301 | 2,196 | 4,497 | ||||||||||||||||||
Deferred rent
|
21,788 | 6,602 | 28,390 | 2,397 | 16,787 | 19,184 | ||||||||||||||||||
Deferred vehicle gains
|
473 | 1,134 | 1,607 | 473 | 1,374 | 1,847 | ||||||||||||||||||
Environmental liabilities
|
5,012 | 9,205 | 14,217 | 5,145 | 8,908 | 14,053 | ||||||||||||||||||
Asset retirement obligations
|
4,012 | 12,533 | 16,545 | 3,868 | 12,319 | 16,187 | ||||||||||||||||||
Operating taxes
|
77,434 | — | 77,434 | 73,095 | — | 73,095 | ||||||||||||||||||
Income taxes
|
10,719 | 76,607 | 87,326 | 2,559 | 73,849 | 76,408 | ||||||||||||||||||
Interest
|
32,087 | — | 32,087 | 30,478 | — | 30,478 | ||||||||||||||||||
Deposits, mainly from customers
|
36,698 | 7,542 | 44,240 | 31,755 | 7,538 | 39,293 | ||||||||||||||||||
Deferred revenue
|
18,994 | 2,004 | 20,998 | 15,956 | 4,646 | 20,602 | ||||||||||||||||||
Acquisition holdbacks
|
21,762 | — | 21,762 | 6,177 | — | 6,177 | ||||||||||||||||||
Other
|
42,790 | 15,527 | 58,317 | 40,495 | 6,433 | 46,928 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 495,808 | 692,566 | 1,188,374 | 417,015 | 680,808 | 1,097,823 | |||||||||||||||||
|
|
|
Weighted-Average | ||||||||||||||||||||
Interest Rate | ||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2011 | 2010 | Maturities | 2011 | 2010 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Short-term debt and current portion of long-term debt:
|
||||||||||||||||||||
Short-term debt
|
4.02% | 4.56% | 2011 | $ | 167 | 42,968 | ||||||||||||||
Current portion of long-term debt, including capital leases
|
293,715 | 377,156 | ||||||||||||||||||
|
||||||||||||||||||||
Total short-term debt and current portion of long-term debt
|
293,882 | 420,124 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Long-term debt:
|
||||||||||||||||||||
U.S. commercial paper (1)
|
0.37% | 0.42% | 2016 | 531,908 | 367,880 | |||||||||||||||
Unsecured U.S. notes — Medium-term notes (1)
|
4.47% | 5.28% | 2011-2025 | 2,483,779 | 2,158,647 | |||||||||||||||
Unsecured U.S. obligations, principally bank term loans
|
1.49% | 1.54% | 2012-2013 | 106,900 | 105,600 | |||||||||||||||
Unsecured foreign obligations
|
4.83% | 5.14% | 2011-2012 | 91,310 | 45,109 | |||||||||||||||
Capital lease obligations
|
7.88% | 7.86% | 2011-2017 | 11,276 | 11,369 | |||||||||||||||
|
||||||||||||||||||||
Total before fair market value adjustment
|
3,225,173 | 2,688,605 | ||||||||||||||||||
Fair market value adjustment on notes subject to hedging(2)
|
16,441 | 15,429 | ||||||||||||||||||
|
||||||||||||||||||||
|
3,241,614 | 2,704,034 | ||||||||||||||||||
Current portion of long-term debt, including capital leases
|
(293,715 | ) | (377,156 | ) | ||||||||||||||||
|
||||||||||||||||||||
Long-term debt
|
2,947,899 | 2,326,878 | ||||||||||||||||||
|
||||||||||||||||||||
Total debt
|
$ | 3,241,781 | 2,747,002 | |||||||||||||||||
|
(1) | We had unamortized original issue discounts of $10.3 million and $10.5 million at June 30, 2011 and December 31, 2010, respectively. | |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $550 million and $250 million at June 30, 2011 and December 31, 2010, respectively. |
|
Fair Value Measurements | ||||||||||||||||||
At June 30, 2011 Using | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Assets:
|
||||||||||||||||||
Investments held in Rabbi Trusts:
|
||||||||||||||||||
Cash and cash equivalents
|
$ | 4,720 | — | — | 4,720 | |||||||||||||
U.S. equity mutual funds
|
9,022 | — | — | 9,022 | ||||||||||||||
Foreign equity mutual funds
|
2,623 | — | — | 2,623 | ||||||||||||||
Fixed income mutual funds
|
3,135 | — | — | 3,135 | ||||||||||||||
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 19,500 | — | — | 19,500 | |||||||||||||
Interest rate swaps
|
DFL and other assets | — | 16,654 | — | 16,654 | |||||||||||||
Foreign currency forward contract
|
Other current assets | — | 4,037 | — | 4,037 | |||||||||||||
|
||||||||||||||||||
Total assets at fair value
|
$ | 19,500 | 20,691 | — | 40,191 | |||||||||||||
|
||||||||||||||||||
Liabilities:
|
||||||||||||||||||
Contingent consideration
|
Accrued expenses | $ | — | — | 14,400 | 14,400 | ||||||||||||
Interest rate swaps
|
Other non-current liabilities | — | 213 | — | 213 | |||||||||||||
|
||||||||||||||||||
Total liabilities at fair value
|
$ | — | 213 | 14,400 | 14,613 | |||||||||||||
|
||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
At December 31, 2010 Using | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Assets:
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
||||||||||||||||||
Cash and cash equivalents
|
$ | 2,348 | — | — | 2,348 | |||||||||||||
U.S. equity mutual funds
|
8,409 | — | — | 8,409 | ||||||||||||||
Foreign equity mutual funds
|
5,188 | — | — | 5,188 | ||||||||||||||
Fixed income mutual funds
|
1,459 | — | — | 1,459 | ||||||||||||||
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 17,404 | — | — | 17,404 | |||||||||||||
Interest rate swap
|
DFL and other assets | — | 15,429 | — | 15,429 | |||||||||||||
|
||||||||||||||||||
Total assets at fair value
|
$ | 17,404 | 15,429 | — | 32,833 | |||||||||||||
|
Fair Value Measurements | ||||||||||||||||||||
At June 30, 2011 Using | Total Losses (2) | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets held for sale:
|
||||||||||||||||||||
Revenue earning equipment: (1)
|
||||||||||||||||||||
Trucks
|
$ | — | — | 8,090 | $ | 1,954 | $ | 3,643 | ||||||||||||
Tractors
|
— | — | 2,569 | 411 | 1,100 | |||||||||||||||
Trailers
|
— | — | 352 | 707 | 1,368 | |||||||||||||||
|
||||||||||||||||||||
Total assets at fair value
|
$ | — | — | 11,011 | $ | 3,072 | $ | 6,111 | ||||||||||||
|
Fair Value Measurements | ||||||||||||||||||||
At June 30, 2010 Using | Total Losses (2) | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets held for sale:
|
||||||||||||||||||||
Revenue earning equipment (1)
|
||||||||||||||||||||
Trucks
|
$ | — | — | 12,992 | $ | 3,513 | $ | 7,882 | ||||||||||||
Tractors
|
— | — | 20,992 | 2,682 | 6,492 | |||||||||||||||
Trailers
|
— | — | 2,535 | 680 | 2,231 | |||||||||||||||
|
||||||||||||||||||||
Total assets at fair value
|
$ | — | — | 36,519 | $ | 6,875 | $ | 16,605 | ||||||||||||
|
(1) | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. | |
(2) | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value. |
|
Location of Gain (Loss) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
Fair Value Hedging Relationship | Recognized in Income | 2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives: Interest rate swaps
|
Interest expense | $ | 2,161 | 2,098 | $ | 1,012 | 4,125 | |||||||||||
Hedged items: Fixed-rate debt
|
Interest expense | (2,161 | ) | (2,098 | ) | (1,012 | ) | (4,125 | ) | |||||||||
|
||||||||||||||||||
Total
|
$ | — | — | $ | — | — | ||||||||||||
|
Amount of Loss Recognized in | ||||||||||||
Accumulated Other Comprehensive | Amount of Gain Reclassified from | |||||||||||
Income (OCI) on Derivative | Accumulated OCI into Income | |||||||||||
Three and six months ended June 30, | Location of Gain Reclassified from | Three and six months ended June 30, | ||||||||||
Cash Flow Hedging Relationship | 2011 | Accumulated OCI into Income | 2011 | |||||||||
(In thousands) | (In thousands) | |||||||||||
Foreign currency forward
contract
|
$ | 136 | Miscellaneous income, net | $ | 4,173 |
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Net earnings
|
$ | 40,033 | 29,841 | $ | 65,158 | 42,214 | ||||||||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustments
|
1,645 | (28,724 | ) | 25,988 | (30,374 | ) | ||||||||||
Unrealized loss on derivative instruments
|
(136 | ) | — | (136 | ) | — | ||||||||||
Amortization of transition obligation (1)
|
(5 | ) | (5 | ) | (11 | ) | (9 | ) | ||||||||
Amortization of net actuarial loss (1)
|
3,245 | 3,062 | 6,613 | 6,219 | ||||||||||||
Amortization of prior service credit (1)
|
(408 | ) | (400 | ) | (814 | ) | (800 | ) | ||||||||
Change in net actuarial loss (1)
|
(1,520 | ) | (886 | ) | (1,520 | ) | (968 | ) | ||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 42,854 | 2,888 | $ | 95,278 | 16,282 | ||||||||||
|
(1) | Amounts pertain to our pension and/or postretirement benefit plans and are presented net of tax. See Note (R), “Employee Benefit Plans,” for additional information. |
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Pension Benefits
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
Service cost
|
$ | 3,616 | 3,063 | $ | 7,383 | 8,152 | ||||||||||
Interest cost
|
24,384 | 23,845 | 48,874 | 47,942 | ||||||||||||
Expected return on plan assets
|
(25,177 | ) | (23,120 | ) | (51,036 | ) | (46,421 | ) | ||||||||
Amortization of:
|
||||||||||||||||
Transition obligation
|
(7 | ) | (6 | ) | (15 | ) | (12 | ) | ||||||||
Net actuarial loss
|
5,002 | 4,767 | 10,131 | 9,499 | ||||||||||||
Prior service credit
|
(572 | ) | (563 | ) | (1,142 | ) | (1,126 | ) | ||||||||
|
||||||||||||||||
|
7,246 | 7,986 | 14,195 | 18,034 | ||||||||||||
Union-administered plans
|
1,455 | 1,316 | 2,796 | 2,591 | ||||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 8,701 | 9,302 | $ | 16,991 | 20,625 | ||||||||||
|
||||||||||||||||
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
U.S.
|
$ | 7,387 | 8,051 | $ | 14,487 | 16,867 | ||||||||||
Non-U.S.
|
(141 | ) | (65 | ) | (292 | ) | 1,167 | |||||||||
|
||||||||||||||||
|
7,246 | 7,986 | 14,195 | 18,034 | ||||||||||||
Union-administered plans
|
1,455 | 1,316 | 2,796 | 2,591 | ||||||||||||
|
||||||||||||||||
|
$ | 8,701 | 9,302 | $ | 16,991 | 20,625 | ||||||||||
|
||||||||||||||||
|
||||||||||||||||
Postretirement Benefits
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
Service cost
|
$ | 303 | 259 | $ | 650 | 685 | ||||||||||
Interest cost
|
585 | 594 | 1,254 | 1,359 | ||||||||||||
Amortization of:
|
||||||||||||||||
Net
actuarial loss (gain)
|
31 | (3 | ) | 137 | 175 | |||||||||||
Prior service credit
|
(57 | ) | (57 | ) | (115 | ) | (115 | ) | ||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 862 | 793 | $ | 1,926 | 2,104 | ||||||||||
|
||||||||||||||||
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
U.S.
|
$ | 694 | 626 | $ | 1,577 | 1,567 | ||||||||||
Non-U.S.
|
168 | 167 | 349 | 537 | ||||||||||||
|
||||||||||||||||
|
$ | 862 | 793 | $ | 1,926 | 2,104 | ||||||||||
|
|
|
Six months ended June 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Interest paid
|
$ | 61,502 | 63,888 | |||||
Income taxes paid (refunded)
|
$ | 7,302 | (9,061 | ) | ||||
Changes in accounts payable related to purchases of revenue earning equipment
|
$ | 62,871 | 86,021 | |||||
Operating and revenue earning equipment acquired under capital leases
|
$ | 1,153 | 99 |
|
FMS | SCS | DCC | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the three months ended June 30, 2011
|
||||||||||||||||||||
Revenue from external customers
|
$ | 973,367 | 389,578 | 150,399 | — | 1,513,344 | ||||||||||||||
Inter-segment revenue
|
91,143 | — | — | (91,143 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 1,064,510 | 389,578 | 150,399 | (91,143 | ) | 1,513,344 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 67,504 | 17,231 | 9,761 | (6,529 | ) | 87,967 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(11,230 | ) | ||||||||||||||||||
Restructuring and other charges, net
|
(1,727 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 75,010 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 484,778 | 13,963 | 1,079 | — | 499,820 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
4,339 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 504,159 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
For the
three months ended June 30, 2010
|
||||||||||||||||||||
Revenue from external customers
|
$ | 853,020 | 310,079 | 123,024 | — | 1,286,123 | ||||||||||||||
Inter-segment revenue
|
78,153 | — | — | (78,153 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 931,173 | 310,079 | 123,024 | (78,153 | ) | 1,286,123 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 46,226 | 12,559 | 8,432 | (5,143 | ) | 62,074 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(9,867 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 52,207 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment
capital expenditures (1)
|
$ | 338,797 | 1,996 | 379 | — | 341,172 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
3,116 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 344,288 | ||||||||||||||||||
|
(1) | Excludes revenue earning equipment acquired under capital leases. | |
(2) | Excludes acquisition payments of $264.8 million during the three months ended June 30, 2011. |
FMS | SCS | DCC | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the six months ended June 30, 2011
|
||||||||||||||||||||
Revenue from external customers
|
$ | 1,862,983 | 790,616 | 285,121 | — | 2,938,720 | ||||||||||||||
Inter-segment revenue
|
181,643 | — | — | (181,643 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 2,044,626 | 790,616 | 285,121 | (181,643 | ) | 2,938,720 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 106,066 | 29,295 | 17,159 | (11,433 | ) | 141,087 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(19,972 | ) | ||||||||||||||||||
Restructuring and other charges, net
|
(2,495 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 118,620 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 786,750 | 20,103 | 2,038 | — | 808,891 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
8,486 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 817,377 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
For the six
months ended June 30, 2010
|
||||||||||||||||||||
Revenue from external customers
|
$ | 1,662,409 | 604,286 | 239,366 | — | 2,506,061 | ||||||||||||||
Inter-segment revenue
|
152,747 | — | — | (152,747 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 1,815,156 | 604,286 | 239,366 | (152,747 | ) | 2,506,061 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 67,921 | 19,585 | 15,818 | (9,876 | ) | 93,448 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(18,749 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 74,699 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 534,285 | 3,497 | 991 | — | 538,773 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
5,616 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 544,389 | ||||||||||||||||||
|
(1) | Excludes revenue earning equipment acquired under capital leases. | |
(2) | Excludes acquisition payments of $348.6 million and $2.4 million during the six months ended June 30, 2011 and 2010, respectively. |
|
(In thousands) | ||||
Assets:
|
||||
Revenue earning equipment
|
$ | 201,429 | ||
Operating property and equipment
|
18,780 | |||
Customer relationships and other intangibles
|
5,567 | |||
Other assets, primarily accounts receivable
|
60,988 | |||
|
||||
|
286,764 | |||
|
||||
Liabilities, primarily accrued liabilities
|
(35,269 | ) | ||
|
||||
Net assets acquired
|
$ | 251,495 | ||
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue — As reported
|
$ | 1,513,344 | 1,286,123 | $ | 2,938,720 | 2,506,061 | ||||||||||
Revenue — Pro forma
|
$ | 1,543,084 | 1,321,924 | $ | 3,006,290 | 2,578,223 | ||||||||||
|
||||||||||||||||
Net earnings — As reported
|
$ | 40,033 | 29,841 | $ | 65,158 | 42,214 | ||||||||||
Net earnings — Pro forma (1)
|
$ | 47,791 | 28,637 | $ | 77,773 | 42,433 | ||||||||||
|
||||||||||||||||
Net earnings per common share:
|
||||||||||||||||
Basic — As reported
|
$ | 0.78 | 0.57 | $ | 1.27 | 0.80 | ||||||||||
Basic — Pro forma
|
$ | 0.93 | 0.54 | $ | 1.51 | 0.80 | ||||||||||
|
||||||||||||||||
Diluted — As reported
|
$ | 0.77 | 0.56 | $ | 1.26 | 0.79 | ||||||||||
Diluted — Pro forma
|
$ | 0.92 | 0.54 | $ | 1.50 | 0.80 |
(1) | For the three and six months ended June 30, 2010, the pro forma net earnings include restructuring and integration-related transition and transaction costs of $5.1 million and $7.6 million, respectively. |
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Pre-tax loss from discontinued operations
|
$ | (969 | ) | (832 | ) | $ | (1,716 | ) | (1,337 | ) | ||||||
Income tax benefit
|
88 | 73 | 103 | 79 | ||||||||||||
|
||||||||||||||||
Loss from discontinued operations, net of tax
|
$ | (881 | ) | (759 | ) | $ | (1,613 | ) | (1,258 | ) | ||||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Assets:
|
||||||||
Total current assets, primarily other receivables
|
$ | 4,639 | 4,710 | |||||
Total assets
|
$ | 6,535 | 6,346 | |||||
|
||||||||
Liabilities:
|
||||||||
Total current liabilities, primarily other payables
|
$ | 5,119 | 4,018 | |||||
Total liabilities
|
$ | 9,012 | 7,882 |
|
Foreign | ||||||||||||||||||||
December 31, 2010 | Cash | Translation | June 30, 2011 | |||||||||||||||||
Balance | Additions | Payments | Adjustments | Balance | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Employee severance and benefits
|
$ | 234 | 405 | 243 | 9 | 405 | ||||||||||||||
Contract termination costs
|
3,813 | 375 | 995 | 127 | 3,320 | |||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 4,047 | 780 | 1,238 | 136 | 3,725 | ||||||||||||||
|
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Total minimum lease payments receivable
|
$ | 560,210 | 548,419 | |||||
Less: Executory costs
|
(170,452 | ) | (171,076 | ) | ||||
|
||||||||
Minimum lease payments receivable
|
389,758 | 377,343 | ||||||
Less: Allowance for uncollectibles
|
(696 | ) | (784 | ) | ||||
|
||||||||
Net minimum lease payments receivable
|
389,062 | 376,559 | ||||||
Unguaranteed residuals
|
62,556 | 57,898 | ||||||
Less: Unearned income
|
(97,175 | ) | (96,522 | ) | ||||
|
||||||||
Net investment in direct financing and sales-type leases
|
354,443 | 337,935 | ||||||
Current portion
|
(67,692 | ) | (63,304 | ) | ||||
|
||||||||
Non-current portion
|
$ | 286,751 | 274,631 | |||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Very low risk to low risk
|
$ | 112,284 | 91,993 | |||||
Moderate risk
|
215,413 | 218,547 | ||||||
Moderately high to high risk
|
62,061 | 66,803 | ||||||
|
||||||||
|
$ | 389,758 | 377,343 | |||||
|
(In thousands) | ||||
Balance at December 31, 2010
|
$ | 784 | ||
Charged to earnings
|
72 | |||
Deductions
|
(160 | ) | ||
|
||||
Balance at June 30, 2011
|
$ | 696 | ||
|
|
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accumulated | Net Book | Accumulated | Net Book | |||||||||||||||||||||
Cost | Depreciation | Value(1) | Cost | Depreciation | Value (1) | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Held for use:
|
||||||||||||||||||||||||
Full service lease
|
$ | 5,867,412 | (2,522,238 | ) | 3,345,174 | 5,639,410 | (2,408,126 | ) | 3,231,284 | |||||||||||||||
Commercial rental
|
2,075,181 | (670,141 | ) | 1,405,040 | 1,549,094 | (647,764 | ) | 901,330 | ||||||||||||||||
Held for sale
|
238,548 | (171,275 | ) | 67,273 | 260,114 | (191,510 | ) | 68,604 | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 8,181,141 | (3,363,654 | ) | 4,817,487 | 7,448,618 | (3,247,400 | ) | 4,201,218 | |||||||||||||||
|
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $25.4 million, less accumulated depreciation of $15.2 million, at June 30, 2011, and $29.2 million, less accumulated depreciation of $18.5 million, at December 31, 2010. |
|
Fleet | Supply | Dedicated | ||||||||||||||
Management | Chain | Contract | ||||||||||||||
Solutions | Solutions | Carriage | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1, 2011:
|
||||||||||||||||
Goodwill
|
$ | 202,941 | 177,222 | 4,900 | 385,063 | |||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
192,619 | 158,323 | 4,900 | 355,842 | ||||||||||||
Acquisitions
|
14,028 | — | 14,713 | 28,741 | ||||||||||||
Purchase accounting adjustments
|
592 | (4,319 | ) | 195 | (3,532 | ) | ||||||||||
Foreign currency translation adjustment
|
195 | 253 | — | 448 | ||||||||||||
|
||||||||||||||||
Balance at June 30, 2011:
|
||||||||||||||||
Goodwill
|
217,756 | 173,156 | 19,808 | 410,720 | ||||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
$ | 207,434 | 154,257 | 19,808 | 381,499 | |||||||||||
|
|
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accrued | Non-Current | Accrued | Non-Current | |||||||||||||||||||||
Expenses | Liabilities | Total | Expenses | Liabilities | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Salaries and wages
|
$ | 83,310 | — | 83,310 | 81,037 | — | 81,037 | |||||||||||||||||
Deferred compensation
|
1,430 | 21,767 | 23,197 | 1,965 | 21,258 | 23,223 | ||||||||||||||||||
Pension benefits
|
3,001 | 342,912 | 345,913 | 2,984 | 333,074 | 336,058 | ||||||||||||||||||
Other postretirement benefits
|
3,385 | 42,959 | 46,344 | 3,382 | 43,787 | 47,169 | ||||||||||||||||||
Employee benefits
|
6,592 | — | 6,592 | 2,251 | — | 2,251 | ||||||||||||||||||
Insurance obligations, primarily self-insurance
|
123,480 | 151,953 | 275,433 | 110,697 | 148,639 | 259,336 | ||||||||||||||||||
Residual value guarantees
|
2,841 | 1,821 | 4,662 | 2,301 | 2,196 | 4,497 | ||||||||||||||||||
Deferred rent
|
21,788 | 6,602 | 28,390 | 2,397 | 16,787 | 19,184 | ||||||||||||||||||
Deferred vehicle gains
|
473 | 1,134 | 1,607 | 473 | 1,374 | 1,847 | ||||||||||||||||||
Environmental liabilities
|
5,012 | 9,205 | 14,217 | 5,145 | 8,908 | 14,053 | ||||||||||||||||||
Asset retirement obligations
|
4,012 | 12,533 | 16,545 | 3,868 | 12,319 | 16,187 | ||||||||||||||||||
Operating taxes
|
77,434 | — | 77,434 | 73,095 | — | 73,095 | ||||||||||||||||||
Income taxes
|
10,719 | 76,607 | 87,326 | 2,559 | 73,849 | 76,408 | ||||||||||||||||||
Interest
|
32,087 | — | 32,087 | 30,478 | — | 30,478 | ||||||||||||||||||
Deposits, mainly from customers
|
36,698 | 7,542 | 44,240 | 31,755 | 7,538 | 39,293 | ||||||||||||||||||
Deferred revenue
|
18,994 | 2,004 | 20,998 | 15,956 | 4,646 | 20,602 | ||||||||||||||||||
Acquisition holdbacks
|
21,762 | — | 21,762 | 6,177 | — | 6,177 | ||||||||||||||||||
Other
|
42,790 | 15,527 | 58,317 | 40,495 | 6,433 | 46,928 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 495,808 | 692,566 | 1,188,374 | 417,015 | 680,808 | 1,097,823 | |||||||||||||||||
|
|
Weighted-Average | ||||||||||||||||||||
Interest Rate | ||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2011 | 2010 | Maturities | 2011 | 2010 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Short-term debt and current portion of long-term debt:
|
||||||||||||||||||||
Short-term debt
|
4.02% | 4.56% | 2011 | $ | 167 | 42,968 | ||||||||||||||
Current portion of long-term debt, including capital leases
|
293,715 | 377,156 | ||||||||||||||||||
|
||||||||||||||||||||
Total short-term debt and current portion of long-term debt
|
293,882 | 420,124 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Long-term debt:
|
||||||||||||||||||||
U.S. commercial paper (1)
|
0.37% | 0.42% | 2016 | 531,908 | 367,880 | |||||||||||||||
Unsecured U.S. notes — Medium-term notes (1)
|
4.47% | 5.28% | 2011-2025 | 2,483,779 | 2,158,647 | |||||||||||||||
Unsecured U.S. obligations, principally bank term loans
|
1.49% | 1.54% | 2012-2013 | 106,900 | 105,600 | |||||||||||||||
Unsecured foreign obligations
|
4.83% | 5.14% | 2011-2012 | 91,310 | 45,109 | |||||||||||||||
Capital lease obligations
|
7.88% | 7.86% | 2011-2017 | 11,276 | 11,369 | |||||||||||||||
|
||||||||||||||||||||
Total before fair market value adjustment
|
3,225,173 | 2,688,605 | ||||||||||||||||||
Fair market value adjustment on notes subject to hedging(2)
|
16,441 | 15,429 | ||||||||||||||||||
|
||||||||||||||||||||
|
3,241,614 | 2,704,034 | ||||||||||||||||||
Current portion of long-term debt, including capital leases
|
(293,715 | ) | (377,156 | ) | ||||||||||||||||
|
||||||||||||||||||||
Long-term debt
|
2,947,899 | 2,326,878 | ||||||||||||||||||
|
||||||||||||||||||||
Total debt
|
$ | 3,241,781 | 2,747,002 | |||||||||||||||||
|
(1) | We had unamortized original issue discounts of $10.3 million and $10.5 million at June 30, 2011 and December 31, 2010, respectively. | |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $550 million and $250 million at June 30, 2011 and December 31, 2010, respectively. |
|
Fair Value Measurements | ||||||||||||||||||
At June 30, 2011 Using | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Assets:
|
||||||||||||||||||
Investments held in Rabbi Trusts:
|
||||||||||||||||||
Cash and cash equivalents
|
$ | 4,720 | — | — | 4,720 | |||||||||||||
U.S. equity mutual funds
|
9,022 | — | — | 9,022 | ||||||||||||||
Foreign equity mutual funds
|
2,623 | — | — | 2,623 | ||||||||||||||
Fixed income mutual funds
|
3,135 | — | — | 3,135 | ||||||||||||||
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 19,500 | — | — | 19,500 | |||||||||||||
Interest rate swaps
|
DFL and other assets | — | 16,654 | — | 16,654 | |||||||||||||
Foreign currency forward contract
|
Other current assets | — | 4,037 | — | 4,037 | |||||||||||||
|
||||||||||||||||||
Total assets at fair value
|
$ | 19,500 | 20,691 | — | 40,191 | |||||||||||||
|
||||||||||||||||||
Liabilities:
|
||||||||||||||||||
Contingent consideration
|
Accrued expenses | $ | — | — | 14,400 | 14,400 | ||||||||||||
Interest rate swaps
|
Other non-current liabilities | — | 213 | — | 213 | |||||||||||||
|
||||||||||||||||||
Total liabilities at fair value
|
$ | — | 213 | 14,400 | 14,613 | |||||||||||||
|
||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
At December 31, 2010 Using | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In thousands) | ||||||||||||||||||
Assets:
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
||||||||||||||||||
Cash and cash equivalents
|
$ | 2,348 | — | — | 2,348 | |||||||||||||
U.S. equity mutual funds
|
8,409 | — | — | 8,409 | ||||||||||||||
Foreign equity mutual funds
|
5,188 | — | — | 5,188 | ||||||||||||||
Fixed income mutual funds
|
1,459 | — | — | 1,459 | ||||||||||||||
|
||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 17,404 | — | — | 17,404 | |||||||||||||
Interest rate swap
|
DFL and other assets | — | 15,429 | — | 15,429 | |||||||||||||
|
||||||||||||||||||
Total assets at fair value
|
$ | 17,404 | 15,429 | — | 32,833 | |||||||||||||
|
Fair Value Measurements | ||||||||||||||||||||
At June 30, 2011 Using | Total Losses (2) | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets held for sale:
|
||||||||||||||||||||
Revenue earning equipment: (1)
|
||||||||||||||||||||
Trucks
|
$ | — | — | 8,090 | $ | 1,954 | $ | 3,643 | ||||||||||||
Tractors
|
— | — | 2,569 | 411 | 1,100 | |||||||||||||||
Trailers
|
— | — | 352 | 707 | 1,368 | |||||||||||||||
|
||||||||||||||||||||
Total assets at fair value
|
$ | — | — | 11,011 | $ | 3,072 | $ | 6,111 | ||||||||||||
|
Fair Value Measurements | ||||||||||||||||||||
At June 30, 2010 Using | Total Losses (2) | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets held for sale:
|
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Revenue earning equipment (1)
|
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Trucks
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$ | — | — | 12,992 | $ | 3,513 | $ | 7,882 | ||||||||||||
Tractors
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— | — | 20,992 | 2,682 | 6,492 | |||||||||||||||
Trailers
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— | — | 2,535 | 680 | 2,231 | |||||||||||||||
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Total assets at fair value
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$ | — | — | 36,519 | $ | 6,875 | $ | 16,605 | ||||||||||||
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(1) | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. | |
(2) | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value. |
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Location of Gain (Loss) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
Fair Value Hedging Relationship | Recognized in Income | 2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives: Interest rate swaps
|
Interest expense | $ | 2,161 | 2,098 | $ | 1,012 | 4,125 | |||||||||||
Hedged items: Fixed-rate debt
|
Interest expense | (2,161 | ) | (2,098 | ) | (1,012 | ) | (4,125 | ) | |||||||||
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Total
|
$ | — | — | $ | — | — | ||||||||||||
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Amount of Loss Recognized in | ||||||||||||
Accumulated Other Comprehensive | Amount of Gain Reclassified from | |||||||||||
Income (OCI) on Derivative | Accumulated OCI into Income | |||||||||||
Three and six months ended June 30, | Location of Gain Reclassified from | Three and six months ended June 30, | ||||||||||
Cash Flow Hedging Relationship | 2011 | Accumulated OCI into Income | 2011 | |||||||||
(In thousands) | (In thousands) | |||||||||||
Foreign currency forward
contract
|
$ | 136 | Miscellaneous income, net | $ | 4,173 |
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Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Net earnings
|
$ | 40,033 | 29,841 | $ | 65,158 | 42,214 | ||||||||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustments
|
1,645 | (28,724 | ) | 25,988 | (30,374 | ) | ||||||||||
Unrealized loss on derivative instruments
|
(136 | ) | — | (136 | ) | — | ||||||||||
Amortization of transition obligation (1)
|
(5 | ) | (5 | ) | (11 | ) | (9 | ) | ||||||||
Amortization of net actuarial loss (1)
|
3,245 | 3,062 | 6,613 | 6,219 | ||||||||||||
Amortization of prior service credit (1)
|
(408 | ) | (400 | ) | (814 | ) | (800 | ) | ||||||||
Change in net actuarial loss (1)
|
(1,520 | ) | (886 | ) | (1,520 | ) | (968 | ) | ||||||||
|
||||||||||||||||
Total comprehensive income
|
$ | 42,854 | 2,888 | $ | 95,278 | 16,282 | ||||||||||
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(1) | Amounts pertain to our pension and/or postretirement benefit plans and are presented net of tax. See Note (R), “Employee Benefit Plans,” for additional information. |
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Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Pension Benefits
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
Service cost
|
$ | 3,616 | 3,063 | $ | 7,383 | 8,152 | ||||||||||
Interest cost
|
24,384 | 23,845 | 48,874 | 47,942 | ||||||||||||
Expected return on plan assets
|
(25,177 | ) | (23,120 | ) | (51,036 | ) | (46,421 | ) | ||||||||
Amortization of:
|
||||||||||||||||
Transition obligation
|
(7 | ) | (6 | ) | (15 | ) | (12 | ) | ||||||||
Net actuarial loss
|
5,002 | 4,767 | 10,131 | 9,499 | ||||||||||||
Prior service credit
|
(572 | ) | (563 | ) | (1,142 | ) | (1,126 | ) | ||||||||
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||||||||||||||||
|
7,246 | 7,986 | 14,195 | 18,034 | ||||||||||||
Union-administered plans
|
1,455 | 1,316 | 2,796 | 2,591 | ||||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 8,701 | 9,302 | $ | 16,991 | 20,625 | ||||||||||
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|
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Company-administered plans:
|
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U.S.
|
$ | 7,387 | 8,051 | $ | 14,487 | 16,867 | ||||||||||
Non-U.S.
|
(141 | ) | (65 | ) | (292 | ) | 1,167 | |||||||||
|
||||||||||||||||
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7,246 | 7,986 | 14,195 | 18,034 | ||||||||||||
Union-administered plans
|
1,455 | 1,316 | 2,796 | 2,591 | ||||||||||||
|
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$ | 8,701 | 9,302 | $ | 16,991 | 20,625 | ||||||||||
|
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|
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Postretirement Benefits
|
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Company-administered plans:
|
||||||||||||||||
Service cost
|
$ | 303 | 259 | $ | 650 | 685 | ||||||||||
Interest cost
|
585 | 594 | 1,254 | 1,359 | ||||||||||||
Amortization of:
|
||||||||||||||||
Net
actuarial loss (gain)
|
31 | (3 | ) | 137 | 175 | |||||||||||
Prior service credit
|
(57 | ) | (57 | ) | (115 | ) | (115 | ) | ||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 862 | 793 | $ | 1,926 | 2,104 | ||||||||||
|
||||||||||||||||
|
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Company-administered plans:
|
||||||||||||||||
U.S.
|
$ | 694 | 626 | $ | 1,577 | 1,567 | ||||||||||
Non-U.S.
|
168 | 167 | 349 | 537 | ||||||||||||
|
||||||||||||||||
|
$ | 862 | 793 | $ | 1,926 | 2,104 | ||||||||||
|
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Six months ended June 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Interest paid
|
$ | 61,502 | 63,888 | |||||
Income taxes paid (refunded)
|
$ | 7,302 | (9,061 | ) | ||||
Changes in accounts payable related to purchases of revenue earning equipment
|
$ | 62,871 | 86,021 | |||||
Operating and revenue earning equipment acquired under capital leases
|
$ | 1,153 | 99 |
|
FMS | SCS | DCC | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the three months ended June 30, 2011
|
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Revenue from external customers
|
$ | 973,367 | 389,578 | 150,399 | — | 1,513,344 | ||||||||||||||
Inter-segment revenue
|
91,143 | — | — | (91,143 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 1,064,510 | 389,578 | 150,399 | (91,143 | ) | 1,513,344 | |||||||||||||
|
||||||||||||||||||||
|
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Segment NBT
|
$ | 67,504 | 17,231 | 9,761 | (6,529 | ) | 87,967 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(11,230 | ) | ||||||||||||||||||
Restructuring and other charges, net
|
(1,727 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 75,010 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 484,778 | 13,963 | 1,079 | — | 499,820 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
4,339 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 504,159 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
For the
three months ended June 30, 2010
|
||||||||||||||||||||
Revenue from external customers
|
$ | 853,020 | 310,079 | 123,024 | — | 1,286,123 | ||||||||||||||
Inter-segment revenue
|
78,153 | — | — | (78,153 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 931,173 | 310,079 | 123,024 | (78,153 | ) | 1,286,123 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 46,226 | 12,559 | 8,432 | (5,143 | ) | 62,074 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(9,867 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 52,207 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment
capital expenditures (1)
|
$ | 338,797 | 1,996 | 379 | — | 341,172 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
3,116 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 344,288 | ||||||||||||||||||
|
(1) | Excludes revenue earning equipment acquired under capital leases. | |
(2) | Excludes acquisition payments of $264.8 million during the three months ended June 30, 2011. |
FMS | SCS | DCC | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the six months ended June 30, 2011
|
||||||||||||||||||||
Revenue from external customers
|
$ | 1,862,983 | 790,616 | 285,121 | — | 2,938,720 | ||||||||||||||
Inter-segment revenue
|
181,643 | — | — | (181,643 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 2,044,626 | 790,616 | 285,121 | (181,643 | ) | 2,938,720 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 106,066 | 29,295 | 17,159 | (11,433 | ) | 141,087 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(19,972 | ) | ||||||||||||||||||
Restructuring and other charges, net
|
(2,495 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 118,620 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 786,750 | 20,103 | 2,038 | — | 808,891 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
8,486 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 817,377 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
For the six
months ended June 30, 2010
|
||||||||||||||||||||
Revenue from external customers
|
$ | 1,662,409 | 604,286 | 239,366 | — | 2,506,061 | ||||||||||||||
Inter-segment revenue
|
152,747 | — | — | (152,747 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 1,815,156 | 604,286 | 239,366 | (152,747 | ) | 2,506,061 | |||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 67,921 | 19,585 | 15,818 | (9,876 | ) | 93,448 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(18,749 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 74,699 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 534,285 | 3,497 | 991 | — | 538,773 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
5,616 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 544,389 | ||||||||||||||||||
|
(1) | Excludes revenue earning equipment acquired under capital leases. | |
(2) | Excludes acquisition payments of $348.6 million and $2.4 million during the six months ended June 30, 2011 and 2010, respectively. |
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