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• | The majority of our leases and all of our rental arrangements are classified as operating leases and therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs. |
• | The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term. |
• | Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point at which the customer’s delinquent balance is determined to be at risk (generally over 120 days past due). Accrual is resumed, and previously suspended income is recognized, when the receivable becomes contractually current and/or collection doubts are removed. Cash receipts on impaired direct finance lease receivables are first recorded against the direct finance lease receivable and then to any unrecognized income. A direct finance lease receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms of the lease. |
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3 | Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
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Assets: | (In thousands) | ||||
Revenue earning equipment | $ | 202,837 | |||
Operating property and equipment | 18,780 | ||||
Customer relationships and other intangibles | 10,133 | ||||
Other assets, primarily accounts receivable | 60,179 | ||||
291,929 | |||||
Liabilities, primarily accrued liabilities | (40,434 | ) | |||
Net assets acquired | $ | 251,495 |
Company Acquired | Date Acquired | Segment | Purchase Price | Vehicles | Contractual Customers | |||||
Carmenita Leasing, Inc. | January 10, 2011 | FMS | $ 9 million | 190 | 60 | |||||
The Scully Companies | January 28, 2011 | FMS/SCS | $91 million | 2,100 | 200 | |||||
B.I.T. Leasing | April 1, 2011 | FMS | $14 million | 490 | 130 |
Year ended December 31, | ||||||
2011 | ||||||
(In thousands, except per share amounts) | ||||||
Revenue — As reported | $ | 6,050,534 | ||||
Revenue — Pro forma | $ | 6,118,104 | ||||
Net earnings — As reported | $ | 169,777 | ||||
Net earnings — Pro forma | $ | 184,849 | ||||
Net earnings per common share: | ||||||
Basic — As reported | $ | 3.31 | ||||
Basic — Pro forma | $ | 3.60 | ||||
Diluted — As reported | $ | 3.28 | ||||
Diluted — Pro forma | $ | 3.58 |
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Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Pre-tax loss from discontinued operations | $ | (5,450 | ) | $ | (2,226 | ) | $ | (1,185 | ) | |||
Income tax benefit (expense) | 46 | 11,306 | (406 | ) | ||||||||
(Loss) earnings from discontinued operations, net of tax | $ | (5,404 | ) | $ | 9,080 | $ | (1,591 | ) |
December 31, 2013 | December 31, 2012 | |||||||
(In thousands) | ||||||||
Total assets, primarily deposits (included in other assets) | $ | 3,627 | $ | 4,460 | ||||
Total liabilities, primarily contingent accruals (included in other non-current liabilities) | $ | 4,501 | $ | 5,329 |
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Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Restructuring and other (recoveries) charges, net: | ||||||||||
Severance and employee-related (recoveries) costs | $ | (470 | ) | 7,205 | 3,162 | |||||
Contract termination costs | — | 865 | 493 | |||||||
(470 | ) | 8,070 | 3,655 |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Fleet Management Solutions | $ | (470 | ) | 6,448 | 3,531 | |||||
Supply Chain Solutions | — | 1,346 | 124 | |||||||
Central Support Services | — | 276 | — | |||||||
Total | $ | (470 | ) | 8,070 | 3,655 |
Deductions | |||||||||||||||||||
Beginning Balance | Additions | Cash Payments | Non-Cash Reductions(1) | Foreign Translation Adjustment | Ending Balance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||
Employee severance and benefits | $ | 3,147 | 84 | 2,297 | 554 | (40 | ) | 340 | |||||||||||
Contract termination costs | 1,728 | — | 1,365 | — | (44 | ) | 319 | ||||||||||||
Total | $ | 4,875 | 84 | 3,662 | 554 | (84 | ) | 659 | |||||||||||
Year ended December 31, 2012: | |||||||||||||||||||
Employee severance and benefits | $ | 2,607 | 8,460 | 6,711 | 1,307 | 98 | 3,147 | ||||||||||||
Contract termination costs | 2,639 | 1,084 | 1,519 | 575 | 99 | 1,728 | |||||||||||||
Total | $ | 5,246 | 9,544 | 8,230 | 1,882 | 197 | 4,875 |
(1) | Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated. |
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December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Trade | $ | 680,345 | 670,717 | ||||
Direct financing leases | 79,787 | 76,395 | |||||
Income tax | 2,920 | 6,596 | |||||
Insurance (1) | 6,911 | 17,345 | |||||
Vendor rebates | 5,916 | 5,547 | |||||
Warranty claims | 7,441 | 4,229 | |||||
Other | 11,005 | 10,365 | |||||
794,325 | 791,194 | ||||||
Allowance | (16,955 | ) | (15,429 | ) | |||
Total | $ | 777,370 | 775,765 |
(1) | The 2012 balance includes $7 million of insurance recoveries from Superstorm Sandy. Refer to Note 27, "Other Matters," for additional information. |
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December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Current deferred tax asset | $ | 37,431 | 29,129 | ||||
Restricted cash | 10,655 | 102 | |||||
Prepaid vehicle licenses | 49,121 | 46,784 | |||||
Prepaid operating taxes | 14,321 | 13,322 | |||||
Prepaid real estate rent | 4,507 | 4,351 | |||||
Prepaid contract incentives | 4,556 | 4,789 | |||||
Prepaid software maintenance costs | 2,813 | 3,928 | |||||
Interest rate swap agreement | — | 1,313 | |||||
Prepaid insurance | 8,798 | 8,810 | |||||
Prepaid sales commissions | 10,033 | 7,908 | |||||
Other | 17,028 | 13,498 | |||||
Total | $ | 159,263 | 133,934 |
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Estimated Useful Lives | December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value (1) | Cost | Accumulated Depreciation | Net Book Value (1) | ||||||||||||||||
(In years) | (In thousands) | ||||||||||||||||||||
Held for use: | |||||||||||||||||||||
Full service lease | 3 — 12 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | 6,728,746 | (2,500,786 | ) | 4,227,960 | |||||||||||
Commercial rental | 4.5 — 12 | 2,210,863 | (747,283 | ) | 1,463,580 | 2,041,698 | (660,356 | ) | 1,381,342 | ||||||||||||
Held for sale | 439,983 | (311,742 | ) | 128,241 | 499,074 | (353,768 | ) | 145,306 | |||||||||||||
Total | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 | 9,269,518 | (3,514,910 | ) | 5,754,608 |
(1) | Revenue earning equipment, net includes vehicles under capital leases of $54 million, less accumulated depreciation of $22 million, at December 31, 2013 and $56 million, less accumulated depreciation of $17 million, at December 31, 2012. |
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Estimated Useful Lives | December 31, | ||||||||
2013 | 2012 | ||||||||
(In years) | (In thousands) | ||||||||
Land | — | $ | 193,031 | 190,357 | |||||
Buildings and improvements | 10 — 40 | 715,965 | 716,743 | ||||||
Machinery and equipment | 3 — 10 | 595,244 | 578,718 | ||||||
Other | 3 — 10 | 120,703 | 105,255 | ||||||
1,624,943 | 1,591,073 | ||||||||
Accumulated depreciation | (991,117 | ) | (966,220 | ) | |||||
Total | $ | 633,826 | 624,853 |
|
Fleet Management Solutions | Supply Chain Solutions | Total | ||||||||
(In thousands) | ||||||||||
Balance at January 1, 2012 | ||||||||||
Goodwill | $ | 216,559 | 189,968 | 406,527 | ||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
206,237 | 171,069 | 377,306 | ||||||||
Acquisitions | 6,033 | — | 6,033 | |||||||
Purchase accounting adjustments | 215 | 97 | 312 | |||||||
Foreign currency translation adjustment | 322 | 243 | 565 | |||||||
Balance at December 31, 2012 | ||||||||||
Goodwill | 223,129 | 190,308 | 413,437 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
212,807 | 171,409 | 384,216 | ||||||||
Purchase accounting adjustments | 377 | — | 377 | |||||||
Foreign currency translation adjustment | (302 | ) | (572 | ) | (874 | ) | ||||
Balance at December 31, 2013 | ||||||||||
Goodwill | 223,204 | 189,736 | 412,940 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
$ | 212,882 | 170,837 | 383,719 |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Indefinite lived intangible assets — Trade name | $ | 9,084 | 9,084 | ||||
Finite lived intangible assets: | |||||||
Customer relationship intangibles | 95,683 | 95,683 | |||||
Other intangibles, primarily trade name | 2,254 | 2,254 | |||||
Accumulated amortization | (35,478 | ) | (27,860 | ) | |||
62,459 | 70,077 | ||||||
Foreign currency translation adjustment | 863 | 1,314 | |||||
Total | $ | 72,406 | 80,475 |
(In thousands) | |||
2014 | $ | 6,545 | |
2015 | 6,428 | ||
2016 | 6,420 | ||
2017 | 6,420 | ||
2018 | 5,948 | ||
Total | $ | 31,761 | |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Direct financing leases, net | $ | 320,327 | 315,528 | ||||
Investments held in Rabbi Trusts | 32,519 | 22,426 | |||||
Insurance receivables | 14,933 | 21,695 | |||||
Debt issuance costs | 16,570 | 16,323 | |||||
Prepaid pension asset | 23,556 | 6,090 | |||||
Contract incentives | 20,355 | 17,613 | |||||
Interest rate swap agreements | 9,333 | 15,412 | |||||
Other | 22,908 | 19,503 | |||||
Total | $ | 460,501 | 434,590 |
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December 31, 2013 | December 31, 2012 | ||||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||
(In thousands) | |||||||||||||||||||
Salaries and wages | $ | 106,281 | — | 106,281 | 86,776 | — | 86,776 | ||||||||||||
Deferred compensation | 2,505 | 31,896 | 34,401 | 1,630 | 24,918 | 26,548 | |||||||||||||
Pension benefits | 3,660 | 292,155 | 295,815 | 3,309 | 597,275 | 600,584 | |||||||||||||
Other postretirement benefits | 2,414 | 28,374 | 30,788 | 2,683 | 37,916 | 40,599 | |||||||||||||
Insurance obligations (1) | 125,835 | 186,700 | 312,535 | 133,459 | 178,714 | 312,173 | |||||||||||||
Residual value guarantees | — | 239 | 239 | 1,505 | 130 | 1,635 | |||||||||||||
Accrued rent | 4,373 | 3,372 | 7,745 | 9,244 | 9,405 | 18,649 | |||||||||||||
Environmental liabilities | 4,515 | 8,548 | 13,063 | 4,201 | 8,415 | 12,616 | |||||||||||||
Asset retirement obligations | 6,144 | 19,403 | 25,547 | 3,642 | 17,116 | 20,758 | |||||||||||||
Operating taxes | 94,188 | — | 94,188 | 91,419 | — | 91,419 | |||||||||||||
Income taxes | 2,623 | 62,569 | 65,192 | 8,288 | 57,590 | 65,878 | |||||||||||||
Interest | 33,654 | — | 33,654 | 35,798 | — | 35,798 | |||||||||||||
Deposits, mainly from customers | 55,854 | 6,239 | 62,093 | 51,671 | 6,236 | 57,907 | |||||||||||||
Deferred revenue | 15,123 | — | 15,123 | 21,557 | — | 21,557 | |||||||||||||
Acquisition holdbacks | 2,012 | — | 2,012 | 1,637 | 2,673 | 4,310 | |||||||||||||
Other | 37,156 | 15,566 | 52,722 | 48,888 | 8,544 | 57,432 | |||||||||||||
Total | $ | 496,337 | 655,061 | 1,151,398 | 505,707 | 948,932 | 1,454,639 |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Earnings from continuing operations before income taxes: | ||||||||||
United States | $ | 302,689 | 241,672 | 223,209 | ||||||
Foreign | 66,206 | 61,445 | 56,178 | |||||||
Total | $ | 368,895 | 303,117 | 279,387 | ||||||
Current tax expense (benefit) from continuing operations: | ||||||||||
Federal (1) | $ | 233 | (4,157 | ) | 1,615 | |||||
State (1) | 4,194 | 11,514 | 7,785 | |||||||
Foreign | 7,691 | 7,759 | 8,603 | |||||||
12,118 | 15,116 | 18,003 | ||||||||
Deferred tax expense from continuing operations: | ||||||||||
Federal | 98,036 | 77,819 | 67,849 | |||||||
State | 15,399 | 3,871 | 17,247 | |||||||
Foreign | 146 | 5,412 | 4,920 | |||||||
113,581 | 87,102 | 90,016 | ||||||||
Provision for income taxes from continuing operations | $ | 125,699 | 102,218 | 108,019 |
(1) | Excludes federal and state tax benefits resulting from the exercise of stock options and vesting of restricted stock awards, which were credited directly to “Additional paid-in capital.” |
Years ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(Percentage of pre-tax earnings) | |||||||||
Federal statutory tax rate | 35.0 | 35.0 | 35.0 | ||||||
Impact on deferred taxes for changes in tax rates | 0.1 | — | 2.6 | ||||||
State income taxes, net of federal income tax benefit | 4.0 | 4.1 | 3.9 | ||||||
Foreign rates varying from federal | (4.1 | ) | (2.8 | ) | (2.3 | ) | |||
Tax reviews and audits | (0.8 | ) | (2.7 | ) | (0.9 | ) | |||
Miscellaneous items, net | (0.1 | ) | 0.1 | 0.4 | |||||
Effective tax rate | 34.1 | 33.7 | 38.7 |
Tax Jurisdiction | Enactment Date | Net Earnings | ||
(in thousands) | ||||
2013 | ||||
Puerto Rico | June 30, 2013 | $(503) | ||
United Kingdom | July 17, 2013 | $485 | ||
2012 | ||||
United Kingdom | July 17, 2012 | $(856) | ||
Canada | June 20, 2012 | $(671) | ||
2011 | ||||
State of Michigan | May 25, 2011 | $(5,350) | ||
State of Illinois | January 13, 2011 | $(1,221) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Deferred income tax assets: | |||||||
Self-insurance accruals | $ | 69,291 | 52,177 | ||||
Net operating loss carryforwards | 361,136 | 258,808 | |||||
Alternative minimum taxes | 10,727 | 9,679 | |||||
Accrued compensation and benefits | 60,039 | 61,095 | |||||
Federal benefit on state tax positions | 18,417 | 17,925 | |||||
Pension benefits | 87,745 | 204,069 | |||||
Miscellaneous other accruals | 39,414 | 39,708 | |||||
646,769 | 643,461 | ||||||
Valuation allowance | (33,793 | ) | (38,182 | ) | |||
612,976 | 605,279 | ||||||
Deferred income tax liabilities: | |||||||
Property and equipment bases difference | (1,943,923 | ) | (1,734,508 | ) | |||
Other items | (22,503 | ) | (18,716 | ) | |||
(1,966,426 | ) | (1,753,224 | ) | ||||
Net deferred income tax liability (1) | $ | (1,353,450 | ) | (1,147,945 | ) |
(1) | Deferred tax assets of $37 million and $29 million have been included in “Prepaid expenses and other current assets” at December 31, 2013 and 2012, respectively. |
December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Balance at January 1 | $ | 52,271 | 62,247 | 61,236 | ||||||
Additions based on tax positions related to the current year | 7,606 | 3,980 | 3,776 | |||||||
Reductions due to lapse of applicable statutes of limitation | (3,064 | ) | (13,956 | ) | (2,765 | ) | ||||
Gross balance at December 31 | 56,813 | 52,271 | 62,247 | |||||||
Interest and penalties | 5,756 | 5,319 | 6,933 | |||||||
Balance at December 31 | $ | 62,569 | 57,590 | 69,180 |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Total minimum lease payments receivable | $ | 633,445 | 629,919 | ||||
Less: Executory costs | (198,755 | ) | (201,777 | ) | |||
Minimum lease payments receivable | 434,690 | 428,142 | |||||
Less: Allowance for uncollectibles | (501 | ) | (703 | ) | |||
Net minimum lease payments receivable | 434,189 | 427,439 | |||||
Unguaranteed residuals | 57,424 | 60,764 | |||||
Less: Unearned income | (91,499 | ) | (96,280 | ) | |||
Net investment in direct financing and sales-type leases | 400,114 | 391,923 | |||||
Current portion | (79,787 | ) | (76,395 | ) | |||
Non-current portion | $ | 320,327 | 315,528 |
December 31, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Very low risk to low risk | $ | 203,556 | 193,123 | |||
Moderate | 164,761 | 177,400 | ||||
Moderately high to high risk | 66,373 | 57,619 | ||||
$ | 434,690 | 428,142 | ||||
(In thousands) | |||
Balance at December 31, 2011 | $ | 903 | |
Charged to earnings | 812 | ||
Deductions | (1,012 | ) | |
Balance at December 31, 2012 | 703 | ||
Charged to earnings | 205 | ||
Deductions | (407 | ) | |
Balance at December 31, 2013 | $ | 501 |
As Lessor (1) | As Lessee | |||||||||
Operating Leases | Direct Financing Leases | Operating Leases | ||||||||
(In thousands) | ||||||||||
2014 | $ | 887,604 | 105,071 | 83,844 | ||||||
2015 | 718,429 | 91,281 | 65,934 | |||||||
2016 | 568,155 | 77,785 | 41,383 | |||||||
2017 | 420,288 | 59,161 | 25,205 | |||||||
2018 | 277,665 | 42,024 | 28,803 | |||||||
Thereafter | 216,440 | 59,368 | 33,473 | |||||||
Total | $ | 3,088,581 | 434,690 | 278,642 |
(1) | Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of used or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2013, 2012 and 2011 were $318 million, $319 million, and $303 million, respectively. Contingent rentals from direct financing leases included in revenue during 2013, 2012, and 2011 were $11 million in all periods. |
|
Weighted-Average Interest Rate | |||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | Maturities | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||||
Short-term debt and current portion of long-term debt: | |||||||||||||||
Short-term debt | 1.70 | % | 2.27 | % | 2014 | $ | 1,315 | 9,820 | |||||||
Current portion of long-term debt, including capital leases | 258,123 | 358,155 | |||||||||||||
Total short-term debt and current portion of long-term debt | 259,438 | 367,975 | |||||||||||||
Long-term debt: | |||||||||||||||
U.S. commercial paper(1) | 0.28 | % | 0.41 | % | 2018 | 486,939 | 329,925 | ||||||||
Canadian commercial paper(1) | 1.13 | % | 1.14 | % | 2018 | 11,297 | 23,165 | ||||||||
Global revolving credit facility | — | % | 1.58 | % | 2018 | — | 8,924 | ||||||||
Unsecured U.S. notes – Medium-term notes(1) | 3.76 | % | 4.01 | % | 2014-2025 | 3,271,734 | 2,971,313 | ||||||||
Unsecured U.S. obligations, principally bank term loans | 1.45 | % | 1.56 | % | 2015-2018 | 55,500 | 105,500 | ||||||||
Unsecured foreign obligations | 1.99 | % | 1.91 | % | 2015-2016 | 315,558 | 313,406 | ||||||||
Capital lease obligations | 3.81 | % | 4.08 | % | 2014-2019 | 38,911 | 42,018 | ||||||||
Total before fair market value adjustment | 4,179,939 | 3,794,251 | |||||||||||||
Fair market value adjustment on notes subject to hedging(2) | 8,171 | 16,725 | |||||||||||||
4,188,110 | 3,810,976 | ||||||||||||||
Current portion of long-term debt, including capital leases | (258,123 | ) | (358,155 | ) | |||||||||||
Long-term debt | 3,929,987 | 3,452,821 | |||||||||||||
Total debt | $ | 4,189,425 | 3,820,796 |
(1) | We had unamortized original issue discounts of $8 million and $9 million at December 31, 2013 and 2012, respectively. |
(2) | The notional amount of the executed interest rate swaps designated as fair value hedges was $400 million and $550 million at December 31, 2013 and 2012, respectively. Refer to Note 18, "Derivatives", for additional information. |
Capital Leases | Debt | ||||||
(In thousands) | |||||||
2014 | $ | 9,383 | 251,315 | ||||
2015 | 8,096 | 712,305 | |||||
2016 | 6,505 | 872,994 | |||||
2017 | 7,602 | 704,270 | |||||
2018 | 5,807 | 1,185,649 | |||||
Thereafter | 4,987 | 415,810 | |||||
Total | 42,380 | 4,142,343 | |||||
Imputed interest | (3,469 | ) | |||||
Present value of minimum capitalized lease payments | 38,911 | ||||||
Current portion | (8,123 | ) | |||||
Long-term capitalized lease obligation | $ | 30,788 |
|
Fair Value Measurements At December 31, 2013 Using | |||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swaps | DFL and other assets | $ | — | 9,333 | — | 9,333 | |||||||||
Investments held in Rabbi Trusts: | |||||||||||||||
Cash and cash equivalents | 7,101 | — | — | 7,101 | |||||||||||
U.S. equity mutual funds | 16,479 | — | — | 16,479 | |||||||||||
Foreign equity mutual funds | 4,323 | — | — | 4,323 | |||||||||||
Fixed income mutual funds | 4,616 | — | — | 4,616 | |||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 32,519 | — | — | 32,519 | ||||||||||
Total assets at fair value | $ | 32,519 | 9,333 | — | 41,852 | ||||||||||
Liabilities: | |||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 1,162 | — | 1,162 | ||||||||||
Total liabilities at fair value | $ | — | 1,162 | — | 1,162 | ||||||||||
Fair Value Measurements At December 31, 2012 Using | |||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swap | Prepaid expenses and other current assets | $ | — | 1,313 | — | 1,313 | |||||||||
Interest rate swaps | DFL and other assets | — | 15,412 | — | 15,412 | ||||||||||
Investments held in Rabbi Trusts: | |||||||||||||||
Cash and cash equivalents | 4,055 | — | — | 4,055 | |||||||||||
U.S. equity mutual funds | 10,871 | — | — | 10,871 | |||||||||||
Foreign equity mutual funds | 2,974 | — | — | 2,974 | |||||||||||
Fixed income mutual funds | 4,526 | — | — | 4,526 | |||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 22,426 | — | — | 22,426 | ||||||||||
Total assets at fair value | $ | 22,426 | 16,725 | — | 39,151 | ||||||||||
Liabilities: | |||||||||||||||
Contingent consideration | Other non-current liabilities | — | — | 478 | 478 | ||||||||||
Total liabilities at fair value | $ | — | — | 478 | 478 |
Fair Value Measurements At December 31, 2013 Using | Year ended December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total Losses (2) | |||||||||||
Assets held for sale: | ||||||||||||||
Revenue earning equipment: (1) | ||||||||||||||
Trucks | $ | — | — | 13,326 | $ | 9,926 | ||||||||
Tractors | — | — | 10,339 | 4,824 | ||||||||||
Trailers | — | — | 723 | 1,678 | ||||||||||
Total assets at fair value | $ | — | — | 24,388 | $ | 16,428 | ||||||||
Fair Value Measurements At December 31, 2012 Using | Year ended December 31, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total Losses (2) | |||||||||||
Assets held for sale: | ||||||||||||||
Revenue earning equipment (1) | ||||||||||||||
Trucks | $ | — | — | 14,263 | $ | 12,853 | ||||||||
Tractors | — | — | 11,619 | 4,058 | ||||||||||
Trailers | — | — | 585 | 1,489 | ||||||||||
Total assets at fair value | $ | — | — | 26,467 | $ | 18,400 |
(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 less costs to sell was less than carrying value. |
|
Face value of medium-term notes | Aggregate notional amount of interest rate swaps | Weighted-average variable interest rate on hedged debt as of December 31, | ||||||||||
Issuance date | Maturity date | Fixed interest rate | 2013 | 2012 | ||||||||
(Dollars in thousands) | ||||||||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.44% | 1.62% | ||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.34% | 1.66% | ||||||
November 2013 | November 2018 | $300,000 | $100,000 | 2.45% | 1.19% | — |
Location of (Gain) Loss Recognized in Income | December 31, | |||||||||||
Fair Value Hedging Relationship | 2013 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Derivative: Interest rate swap | Interest expense | $ | (8,554 | ) | (5,118 | ) | 6,414 | |||||
Hedged item: Fixed-rate debt | Interest expense | 8,554 | 5,118 | (6,414 | ) | |||||||
Total | $ | — | — | — |
|
December 31, 2013 | December 31, 2012 | |||||||||||||
Guarantee | Maximum Exposure of Guarantee | Carrying Amount of Liability | Maximum Exposure of Guarantee | Carrying Amount of Liability | ||||||||||
(In thousands) | ||||||||||||||
Vehicle residual value guarantees (end of lease term) — operating leases (1) | $ | 24,059 | $ | — | 24,558 | 11 | ||||||||
Standby letters of credit | 6,234 | 6,234 | 6,234 | 6,234 | ||||||||||
Total | $ | 30,293 | $ | 6,234 | 30,792 | 6,245 |
(1) | Amounts exclude contingent rentals associated with residual value guarantees on certain vehicles held under operating leases for which the guarantees are conditioned upon disposal of the leased vehicles prior to the end of their lease term. At December 31, 2013 and 2012, our maximum exposure for such guarantees was approximately $120 million and $183 million, respectively, with $0.2 million and $2 million recorded as a liability at December 31, 2013 and 2012, respectively. |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Letters of credit | $ | 210,995 | 198,227 | ||||
Surety bonds | 99,486 | 95,856 |
|
Currency Translation Adjustments | Net Actuarial Loss (1) | Prior Service Credit (1) | Transition Obligation (1) | Unrealized Gain on Derivatives | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||||
January 1, 2011 | $ | 45,987 | (428,532 | ) | 5,912 | 34 | — | (376,599 | ) | ||||||||||
Amortization | — | 13,146 | (1,621 | ) | (22 | ) | — | 11,503 | |||||||||||
Current period change | (17,768 | ) | (184,301 | ) | — | — | — | (202,069 | ) | ||||||||||
December 31, 2011 | 28,219 | (599,687 | ) | 4,291 | 12 | — | (567,165 | ) | |||||||||||
Amortization | — | 20,315 | (1,657 | ) | — | — | 18,658 | ||||||||||||
Current period change | 29,629 | (68,753 | ) | — | — | 12 | (39,112 | ) | |||||||||||
December 31, 2012 | 57,848 | (648,125 | ) | 2,634 | 12 | 12 | (587,619 | ) | |||||||||||
Amortization | — | 22,832 | (1,340 | ) | (12 | ) | — | 21,480 | |||||||||||
Current period change | (22,079 | ) | 147,410 | 2,466 | — | 94 | 127,891 | ||||||||||||
December 31, 2013 | $ | 35,769 | (477,883 | ) | 3,760 | — | 106 | (438,248 | ) |
(1) | These amounts are included in the computation of net periodic pension cost. See Note 24, "Employee Benefit Plans," for further information. |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Company-administered plans: | ||||||||||
Service cost | $ | 15,991 | 15,479 | 14,719 | ||||||
Interest cost | 89,682 | 94,605 | 97,526 | |||||||
Expected return on plan assets | (106,150 | ) | (96,342 | ) | (101,803 | ) | ||||
Census data adjustment | 3,905 | — | — | |||||||
Amortization of: | ||||||||||
Transition obligation | (20 | ) | — | (31 | ) | |||||
Net actuarial loss | 35,302 | 31,200 | 20,226 | |||||||
Prior service credit | (1,818 | ) | (2,275 | ) | (2,278 | ) | ||||
36,892 | 42,667 | 28,359 | ||||||||
Union-administered plans | 11,226 | 6,746 | 5,988 | |||||||
Net pension expense | $ | 48,118 | 49,413 | 34,347 | ||||||
Company-administered plans: | ||||||||||
U.S. | $ | 37,636 | 38,992 | 28,974 | ||||||
Foreign | (744 | ) | 3,675 | (615 | ) | |||||
36,892 | 42,667 | 28,359 | ||||||||
Union-administered plans | 11,226 | 6,746 | 5,988 | |||||||
$ | 48,118 | 49,413 | 34,347 |
U.S. Plans Years ended December 31, | Foreign Plans Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||
Discount rate | 4.10% | 4.90% | 5.70% | 4.43% | 4.76% | 5.55% | ||||||
Rate of increase in compensation levels | 4.00% | 4.00% | 4.00% | 3.55% | 3.54% | 3.55% | ||||||
Expected long-term rate of return on plan assets | 6.80% | 7.05% | 7.45% | 6.57% | 6.00% | 6.84% | ||||||
Transition amortization in years | — | — | — | — | 1 | 1 | ||||||
Gain and loss amortization in years | 23 | 24 | 25 | 26 | 27 | 27 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Change in benefit obligations: | |||||||
Benefit obligations at January 1 | $ | 2,207,421 | 1,967,586 | ||||
Service cost | 15,991 | 15,479 | |||||
Interest cost | 89,682 | 94,605 | |||||
Actuarial (gain) loss | (129,259 | ) | 189,936 | ||||
Benefits paid | (82,120 | ) | (76,742 | ) | |||
Foreign currency exchange rate changes | 3,034 | 16,557 | |||||
Benefit obligations at December 31 | 2,104,749 | 2,207,421 | |||||
Change in plan assets: | |||||||
Fair value of plan assets at January 1 | 1,612,927 | 1,418,042 | |||||
Actual return on plan assets | 201,019 | 174,650 | |||||
Employer contribution | 96,183 | 81,116 | |||||
Participants’ contributions | 3 | 52 | |||||
Benefits paid | (82,120 | ) | (76,742 | ) | |||
Foreign currency exchange rate changes | 4,478 | 15,809 | |||||
Fair value of plan assets at December 31 | 1,832,490 | 1,612,927 | |||||
Funded status | $ | (272,259 | ) | (594,494 | ) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Noncurrent asset | $ | 23,556 | 6,090 | ||||
Current liability | (3,660 | ) | (3,309 | ) | |||
Noncurrent liability | (292,155 | ) | (597,275 | ) | |||
Net amount recognized | $ | (272,259 | ) | (594,494 | ) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Transition obligation | $ | — | (20 | ) | |||
Prior service credit | (2,153 | ) | (3,077 | ) | |||
Net actuarial loss | 745,356 | 1,007,315 | |||||
Net amount recognized | $ | 743,203 | 1,004,218 |
U.S. Plans December 31, | Foreign Plans December 31, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Discount rate | 5.00% | 4.10% | 4.58% | 4.43% | ||||
Rate of increase in compensation levels | 3.00% | 4.00% | 3.09% | 3.55% |
U.S. Plans December 31, | Foreign Plans December 31, | Total December 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||||
Accumulated benefit obligations | $ | 1,628,407 | 1,747,610 | 445,993 | 418,245 | 2,074,400 | 2,165,855 | ||||||||||||
Plans with ABO in excess of plan assets: | |||||||||||||||||||
PBO | $ | 1,656,086 | 1,786,025 | 9,303 | 83,618 | 1,665,389 | 1,869,643 | ||||||||||||
ABO | $ | 1,628,407 | 1,747,610 | 7,740 | 80,468 | 1,636,147 | 1,828,078 | ||||||||||||
Fair value of plan assets | $ | 1,369,574 | 1,202,565 | — | 66,494 | 1,369,574 | 1,269,059 | ||||||||||||
Plans with PBO in excess of plan assets: | |||||||||||||||||||
PBO | $ | 1,656,086 | 1,786,025 | 9,303 | 83,618 | 1,665,389 | 1,869,643 | ||||||||||||
ABO | $ | 1,628,407 | 1,747,610 | 7,740 | 80,648 | 1,636,147 | 1,828,258 | ||||||||||||
Fair value of plan assets | $ | 1,369,574 | 1,202,565 | — | 66,494 | 1,369,574 | 1,269,059 |
Fair Value Measurements at December 31, 2013 | |||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||||
Equity securities: | |||||||||||||
U.S. companies | $ | 63,346 | 63,346 | — | — | ||||||||
U.S. common collective trusts | 406,358 | — | 406,358 | — | |||||||||
Foreign common collective trusts | 431,933 | — | 431,933 | — | |||||||||
Fixed income securities: | |||||||||||||
Corporate bonds | 59,917 | — | 59,917 | — | |||||||||
Common collective trusts | 794,437 | — | 794,437 | — | |||||||||
Private equity and hedge funds | 76,499 | — | — | 76,499 | |||||||||
Total | $ | 1,832,490 | 63,346 | 1,692,645 | 76,499 |
Fair Value Measurements at December 31, 2012 | |||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||||
Equity securities: | |||||||||||||
U.S. companies | $ | 76,660 | 76,660 | — | — | ||||||||
U.S. common collective trusts | 471,504 | — | 471,504 | — | |||||||||
Foreign common collective trusts | 497,315 | — | 497,315 | — | |||||||||
Fixed income securities: | |||||||||||||
Corporate bonds | 61,571 | — | 61,571 | — | |||||||||
Common collective trusts | 434,670 | — | 434,670 | — | |||||||||
Private equity and hedge funds | 71,207 | — | — | 71,207 | |||||||||
Total | $ | 1,612,927 | 76,660 | 1,465,060 | 71,207 |
2013 | 2012 | ||||||
(In thousands) | |||||||
Beginning balance at January 1 | $ | 71,207 | 68,543 | ||||
Return on plan assets: | |||||||
Relating to assets still held at the reporting date | 4,258 | (551 | ) | ||||
Relating to assets sold during the period | 2,194 | 5,990 | |||||
Purchases, sales, settlements and expenses | (1,160 | ) | (2,775 | ) | |||
Ending balance at December 31 | $ | 76,499 | 71,207 |
(In thousands) | |||
2014 | $ | 94,446 | |
2015 | 98,893 | ||
2016 | 105,008 | ||
2017 | 109,681 | ||
2018 | 115,414 | ||
2019-2023 | 649,051 |
Pension Protection Act Zone Status | Ryder Contributions | Expiration Date(s) of Collective-Bargaining Agreement(s) | ||||||||||||||||||||
Pension Fund | Employer Identification Number | 2013 | 2012 | FIP/RP Status Pending/ Implemented (1) | 2013 | 2012 | 2011 | Surcharge Imposed | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Western Conference Teamsters | 91-6145047 | Green | Green | No | $ | 2,180 | 1,943 | 1,855 | No | 6/30/14 to 4/1/16 | ||||||||||||
IAM National | 51-6031295 | Green | Green | No | 2,987 | 2,038 | 1,794 | No | 4/30/14 to 3/31/17 | |||||||||||||
Automobile Mechanics Local No. 701 | 36-6042061 | Red | Red | RP Adopted | 1,530 | 1,527 | 1,203 | Yes | 10/31/14 to 5/31/16 | |||||||||||||
International Association of Machinists Motor City | 38-6237143 | Red (2) | Red (2) | RP adopted | 555 | 437 | 392 | No | 1/31/14 to 3/31/16 | |||||||||||||
Central States Southeast and Southwest Areas | 36-6044243 | Red | Red | RP adopted | 226 | 226 | 182 | No | 10/31/15 to 5/31/17 | |||||||||||||
Other funds | 928 | 575 | 562 | |||||||||||||||||||
Total contributions | 8,406 | 6,746 | 5,988 | |||||||||||||||||||
Pension settlement charges | 2,820 | — | — | |||||||||||||||||||
Union-administered plans | $ | 11,226 | 6,746 | 5,988 |
(1) | The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. |
(2) | Plan years ended June 30, 2012 and 2011. |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Service cost | $ | 981 | 1,095 | 1,294 | ||||||
Interest cost | 1,580 | 1,980 | 2,503 | |||||||
Amortization of: | ||||||||||
Net actuarial (gain) loss | (14 | ) | (20 | ) | 231 | |||||
Prior service credit | (231 | ) | (231 | ) | (231 | ) | ||||
Postretirement benefit expense | $ | 2,316 | 2,824 | 3,797 | ||||||
U.S. | $ | 1,625 | 2,142 | 3,155 | ||||||
Foreign | 691 | 682 | 642 | |||||||
$ | 2,316 | 2,824 | 3,797 |
U.S. Plan Years ended December 31, | Foreign Plan Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||
Discount rate | 4.10% | 4.90% | 5.70% | 4.00% | 4.50% | 5.25% |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Benefit obligations at January 1 | $ | 40,599 | 42,992 | ||||
Service cost | 981 | 1,095 | |||||
Interest cost | 1,580 | 1,980 | |||||
Actuarial gain | (9,332 | ) | (1,746 | ) | |||
Benefits paid | (2,515 | ) | (3,947 | ) | |||
Foreign currency exchange rate changes | (525 | ) | 225 | ||||
Benefit obligations at December 31 | $ | 30,788 | 40,599 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Current liability | $ | 2,414 | 2,683 | ||||
Noncurrent liability | 28,374 | 37,916 | |||||
Amount recognized | $ | 30,788 | 40,599 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Prior service credit | $ | (4,986 | ) | (1,307 | ) | ||
Net actuarial gain | (6,239 | ) | (859 | ) | |||
Net amount recognized | $ | (11,225 | ) | (2,166 | ) |
U.S. Plan December 31, | Foreign Plan December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Discount rate | 5.00 | % | 4.10 | % | 4.80 | % | 4.00 | % | ||||
Rate of increase in compensation levels | 3.00 | % | 4.00 | % | 3.00 | % | 3.50 | % | ||||
Healthcare cost trend rate assumed for next year | 7.25 | % | 7.50 | % | 6.50 | % | 7.00 | % | ||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | 2017 | 2017 |
(In thousands) | |||
2014 | $ | 2,462 | |
2015 | 2,602 | ||
2016 | 2,705 | ||
2017 | 2,758 | ||
2018 | 2,806 | ||
2019-2023 | 13,133 |
|
|
|
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Interest paid | $ | 132,946 | 126,764 | 126,916 | ||||||
Income taxes paid | 13,063 | 11,613 | 21,541 | |||||||
Changes in accounts payable related to purchases of revenue earning equipment | 43,745 | 27,528 | 61,290 | |||||||
Operating and revenue earning equipment acquired under capital leases (1) | 5,698 | 20,670 | 39,279 | |||||||
Fair value of debt assumed on acquisition | — | 379 | — |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Revenue: | ||||||||||
Fleet Management Solutions: | ||||||||||
Full service lease | $ | 2,016,570 | 1,956,812 | 1,862,304 | ||||||
Commercial rental | 753,456 | 738,564 | 691,573 | |||||||
Full service lease and commercial rental | 2,770,026 | 2,695,376 | 2,553,877 | |||||||
Contract maintenance | 178,001 | 184,149 | 181,003 | |||||||
Contract-related maintenance | 186,580 | 170,323 | 153,009 | |||||||
Other | 72,029 | 71,955 | 69,124 | |||||||
Fuel services revenue | 829,586 | 854,578 | 887,483 | |||||||
Total Fleet Management Solutions from external customers | 4,036,222 | 3,976,381 | 3,844,496 | |||||||
Inter-segment revenue | 458,464 | 428,944 | 373,834 | |||||||
Fleet Management Solutions | 4,494,686 | 4,405,325 | 4,218,330 | |||||||
Supply Chain Solutions from external customers | 2,383,063 | 2,280,586 | 2,206,038 | |||||||
Eliminations | (458,464 | ) | (428,944 | ) | (373,834 | ) | ||||
Total revenue | $ | 6,419,285 | 6,256,967 | 6,050,534 | ||||||
EBT: | ||||||||||
Fleet Management Solutions | $ | 344,049 | 307,628 | 265,691 | ||||||
Supply Chain Solutions | 129,959 | 115,193 | 104,898 | |||||||
Eliminations | (35,489 | ) | (29,265 | ) | (24,212 | ) | ||||
$ | 438,519 | 393,556 | 346,377 | |||||||
Unallocated Central Support Services | (45,493 | ) | (42,348 | ) | (42,549 | ) | ||||
Non-operating pension costs | (24,285 | ) | (31,423 | ) | (18,652 | ) | ||||
Restructuring and other recoveries (charges), net and other items(1) | 154 | (16,668 | ) | (5,789 | ) | |||||
Earnings before income taxes from continuing operations | $ | 368,895 | 303,117 | 279,387 |
(1) | See Note 26, “Other Items Impacting Comparability,” for a discussion of items, in addition to restructuring and other (recoveries) charges, net that are excluded from our primary measure of segment performance. |
FMS | SCS | CSS | Eliminations | Total | ||||||||||||
(In thousands) | ||||||||||||||||
2013 | ||||||||||||||||
Share-based compensation expense | $ | 4,979 | 4,934 | 9,397 | — | 19,310 | ||||||||||
Depreciation expense (1) | $ | 926,724 | 29,560 | 857 | — | 957,141 | ||||||||||
Gains on vehicles sales, net | $ | (96,011 | ) | (164 | ) | — | — | (96,175 | ) | |||||||
Other non-cash charges, net (2) | $ | 19,071 | 3,640 | 33,678 | — | 56,389 | ||||||||||
Interest expense (income) (3) | $ | 139,288 | (1,864 | ) | (228 | ) | — | 137,196 | ||||||||
Capital expenditures paid (4) | $ | 2,092,544 | 22,677 | 25,243 | — | 2,140,464 | ||||||||||
Total assets | $ | 8,309,149 | 869,074 | 160,249 | (234,690 | ) | 9,103,782 | |||||||||
2012 | ||||||||||||||||
Share-based compensation expense | $ | 5,359 | 4,433 | 9,072 | — | 18,864 | ||||||||||
Depreciation expense (1) | $ | 910,352 | 28,275 | 1,050 | — | 939,677 | ||||||||||
Gains on vehicles sales, net | $ | (89,075 | ) | (33 | ) | — | — | (89,108 | ) | |||||||
Other non-cash charges, net (2) | $ | 15,567 | 2,768 | 30,874 | — | 49,209 | ||||||||||
Interest expense (income) (3) | $ | 140,747 | 11 | (201 | ) | — | 140,557 | |||||||||
Capital expenditures paid (4) | $ | 2,090,443 | 19,278 | 23,514 | — | 2,133,235 | ||||||||||
Total assets | $ | 7,556,509 | 807,935 | 144,355 | (189,820 | ) | 8,318,979 | |||||||||
2011 | ||||||||||||||||
Share-based compensation expense | $ | 5,388 | 4,312 | 7,723 | — | 17,423 | ||||||||||
Depreciation expense (1) | $ | 842,094 | 29,118 | 1,050 | — | 872,262 | ||||||||||
Gains on vehicle sales, net | $ | (62,496 | ) | (383 | ) | — | — | (62,879 | ) | |||||||
Other non-cash charges, net (2) | $ | 16,271 | 3,214 | 20,443 | — | 39,928 | ||||||||||
Interest expense (income) (3) | $ | 133,245 | (74 | ) | (7 | ) | — | 133,164 | ||||||||
Capital expenditures paid (4) | $ | 1,653,425 | 30,209 | 14,955 | — | 1,698,589 | ||||||||||
Total assets | $ | 6,815,404 | 827,169 | 198,476 | (223,214 | ) | 7,617,835 |
(1) | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $14 million, $12 million, and $9 million during 2013, 2012, and 2011, respectively, associated with CSS assets was allocated to other business segments. |
(2) | Includes amortization expense. |
(3) | Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest expense (income) was also reflected in SCS based on targeted segment leverage ratios. |
(4) | Excludes acquisition payments of $2 million, $5 million, and $362 million in 2013, 2012, and 2011, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information. |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Revenue: | ||||||||||
United States | $ | 5,411,376 | 5,231,899 | 5,075,432 | ||||||
Foreign: | ||||||||||
Canada | 455,440 | 477,495 | 481,593 | |||||||
Europe | 372,209 | 384,105 | 324,214 | |||||||
Mexico | 161,279 | 143,282 | 147,464 | |||||||
Asia | 18,981 | 20,186 | 21,831 | |||||||
1,007,909 | 1,025,068 | 975,102 | ||||||||
Total | $ | 6,419,285 | 6,256,967 | 6,050,534 | ||||||
Long-lived assets: | ||||||||||
United States | $ | 5,996,646 | 5,261,622 | 4,708,086 | ||||||
Foreign: | ||||||||||
Canada | 529,880 | 557,351 | 481,139 | |||||||
Europe | 568,850 | 534,728 | 463,848 | |||||||
Mexico | 29,008 | 24,973 | 19,931 | |||||||
Asia | 279 | 787 | 847 | |||||||
1,128,017 | 1,117,839 | 965,765 | ||||||||
Total | $ | 7,124,663 | 6,379,461 | 5,673,851 |
|
Earnings from Continuing Operations | Earnings from Continuing Operations per Common Share | Net Earnings per Common Share | |||||||||||||||||||||
Revenue | Net Earnings | Basic | Diluted | Basic | Diluted | ||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
First quarter | $ | 1,563,017 | 40,802 | 39,924 | 0.79 | 0.79 | 0.77 | 0.77 | |||||||||||||||
Second quarter | 1,603,999 | 62,575 | 62,194 | 1.21 | 1.19 | 1.20 | 1.19 | ||||||||||||||||
Third quarter | 1,634,540 | 73,875 | 71,067 | 1.41 | 1.40 | 1.36 | 1.35 | ||||||||||||||||
Fourth quarter | 1,617,729 | 65,944 | 64,607 | 1.25 | 1.24 | 1.23 | 1.22 | ||||||||||||||||
Full year | $ | 6,419,285 | 243,196 | 237,792 | 4.67 | 4.63 | 4.57 | 4.53 | |||||||||||||||
2012 | |||||||||||||||||||||||
First quarter | $ | 1,536,276 | 34,876 | 34,321 | 0.68 | 0.68 | 0.67 | 0.67 | |||||||||||||||
Second quarter | 1,563,860 | 46,767 | 46,723 | 0.92 | 0.91 | 0.92 | 0.91 | ||||||||||||||||
Third quarter | 1,573,295 | 64,311 | 75,091 | 1.26 | 1.26 | 1.47 | 1.47 | ||||||||||||||||
Fourth quarter | 1,583,536 | 54,945 | 53,844 | 1.07 | 1.07 | 1.05 | 1.05 | ||||||||||||||||
Full year | $ | 6,256,967 | 200,899 | 209,979 | 3.93 | 3.91 | 4.11 | $ | 4.09 |
|
Column A | Column B | Column C | Column D | Column E | ||||||||||||
Additions | ||||||||||||||||
Description | Balance at Beginning of Period | Charged to Earnings | Transferred from (to) Other Accounts (1) | Deductions (2) | Balance at End of Period | |||||||||||
(In thousands) | ||||||||||||||||
2013 | ||||||||||||||||
Accounts receivable allowance | $ | 15,429 | 7,561 | — | 6,035 | 16,955 | ||||||||||
Direct finance lease allowance | $ | 703 | 205 | — | 407 | 501 | ||||||||||
Self-insurance accruals (3) | $ | 279,157 | 266,314 | 60,235 | 315,451 | 290,255 | ||||||||||
Reserve for residual value guarantees | $ | 1,635 | (413 | ) | — | 983 | 239 | |||||||||
Valuation allowance on deferred tax assets | $ | 38,182 | 1,627 | — | 6,016 | 33,793 | ||||||||||
2012 | ||||||||||||||||
Accounts receivable allowance | $ | 14,489 | 10,478 | — | 9,538 | 15,429 | ||||||||||
Direct finance lease allowance | $ | 903 | 812 | — | 1,012 | 703 | ||||||||||
Self-insurance accruals (3) | $ | 253,424 | 272,357 | 57,285 | 303,909 | 279,157 | ||||||||||
Reserve for residual value guarantees | $ | 4,218 | 179 | — | 2,762 | 1,635 | ||||||||||
Valuation allowance on deferred tax assets | $ | 41,324 | 1,061 | — | 4,203 | 38,182 | ||||||||||
2011 | ||||||||||||||||
Accounts receivable allowance | $ | 13,867 | 7,466 | — | 6,844 | 14,489 | ||||||||||
Direct finance lease allowance | $ | 784 | 867 | — | 748 | 903 | ||||||||||
Self-insurance accruals (3) | $ | 243,248 | 217,980 | 54,833 | 262,637 | 253,424 | ||||||||||
Reserve for residual value guarantees | $ | 4,497 | 347 | — | 626 | 4,218 | ||||||||||
Valuation allowance on deferred tax assets | $ | 39,216 | 672 | — | (1,436 | ) | 41,324 |
(1) | Transferred from (to) other accounts includes employee contributions made to the medical and dental self-insurance plans. |
(2) | Deductions represent receivables written-off, lease termination payments, insurance claim payments during the period and net foreign currency translation adjustments. |
(3) | Self-insurance accruals include vehicle liability, workers’ compensation, property damage, cargo and medical and dental, which comprise our self-insurance programs. Amounts charged to earnings include developments in prior year selected loss development factors which benefited earnings by $5 million, $1 million, and $4 million in 2013, 2012, and 2011, respectively. |
|
• | The majority of our leases and all of our rental arrangements are classified as operating leases and therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs. |
• | The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term. |
• | Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point at which the customer’s delinquent balance is determined to be at risk (generally over 120 days past due). Accrual is resumed, and previously suspended income is recognized, when the receivable becomes contractually current and/or collection doubts are removed. Cash receipts on impaired direct finance lease receivables are first recorded against the direct finance lease receivable and then to any unrecognized income. A direct finance lease receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms of the lease. |
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3 | Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
|
Assets: | (In thousands) | ||||
Revenue earning equipment | $ | 202,837 | |||
Operating property and equipment | 18,780 | ||||
Customer relationships and other intangibles | 10,133 | ||||
Other assets, primarily accounts receivable | 60,179 | ||||
291,929 | |||||
Liabilities, primarily accrued liabilities | (40,434 | ) | |||
Net assets acquired | $ | 251,495 |
Year ended December 31, | ||||||
2011 | ||||||
(In thousands, except per share amounts) | ||||||
Revenue — As reported | $ | 6,050,534 | ||||
Revenue — Pro forma | $ | 6,118,104 | ||||
Net earnings — As reported | $ | 169,777 | ||||
Net earnings — Pro forma | $ | 184,849 | ||||
Net earnings per common share: | ||||||
Basic — As reported | $ | 3.31 | ||||
Basic — Pro forma | $ | 3.60 | ||||
Diluted — As reported | $ | 3.28 | ||||
Diluted — Pro forma | $ | 3.58 |
|
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Pre-tax loss from discontinued operations | $ | (5,450 | ) | $ | (2,226 | ) | $ | (1,185 | ) | |||
Income tax benefit (expense) | 46 | 11,306 | (406 | ) | ||||||||
(Loss) earnings from discontinued operations, net of tax | $ | (5,404 | ) | $ | 9,080 | $ | (1,591 | ) |
December 31, 2013 | December 31, 2012 | |||||||
(In thousands) | ||||||||
Total assets, primarily deposits (included in other assets) | $ | 3,627 | $ | 4,460 | ||||
Total liabilities, primarily contingent accruals (included in other non-current liabilities) | $ | 4,501 | $ | 5,329 |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Restructuring and other (recoveries) charges, net: | ||||||||||
Severance and employee-related (recoveries) costs | $ | (470 | ) | 7,205 | 3,162 | |||||
Contract termination costs | — | 865 | 493 | |||||||
(470 | ) | 8,070 | 3,655 |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Fleet Management Solutions | $ | (470 | ) | 6,448 | 3,531 | |||||
Supply Chain Solutions | — | 1,346 | 124 | |||||||
Central Support Services | — | 276 | — | |||||||
Total | $ | (470 | ) | 8,070 | 3,655 |
Deductions | |||||||||||||||||||
Beginning Balance | Additions | Cash Payments | Non-Cash Reductions(1) | Foreign Translation Adjustment | Ending Balance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||
Employee severance and benefits | $ | 3,147 | 84 | 2,297 | 554 | (40 | ) | 340 | |||||||||||
Contract termination costs | 1,728 | — | 1,365 | — | (44 | ) | 319 | ||||||||||||
Total | $ | 4,875 | 84 | 3,662 | 554 | (84 | ) | 659 | |||||||||||
Year ended December 31, 2012: | |||||||||||||||||||
Employee severance and benefits | $ | 2,607 | 8,460 | 6,711 | 1,307 | 98 | 3,147 | ||||||||||||
Contract termination costs | 2,639 | 1,084 | 1,519 | 575 | 99 | 1,728 | |||||||||||||
Total | $ | 5,246 | 9,544 | 8,230 | 1,882 | 197 | 4,875 |
(1) | Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated. |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Trade | $ | 680,345 | 670,717 | ||||
Direct financing leases | 79,787 | 76,395 | |||||
Income tax | 2,920 | 6,596 | |||||
Insurance (1) | 6,911 | 17,345 | |||||
Vendor rebates | 5,916 | 5,547 | |||||
Warranty claims | 7,441 | 4,229 | |||||
Other | 11,005 | 10,365 | |||||
794,325 | 791,194 | ||||||
Allowance | (16,955 | ) | (15,429 | ) | |||
Total | $ | 777,370 | 775,765 |
(1) | The 2012 balance includes $7 million of insurance recoveries from Superstorm Sandy. Refer to Note 27, "Other Matters," for additional information. |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Current deferred tax asset | $ | 37,431 | 29,129 | ||||
Restricted cash | 10,655 | 102 | |||||
Prepaid vehicle licenses | 49,121 | 46,784 | |||||
Prepaid operating taxes | 14,321 | 13,322 | |||||
Prepaid real estate rent | 4,507 | 4,351 | |||||
Prepaid contract incentives | 4,556 | 4,789 | |||||
Prepaid software maintenance costs | 2,813 | 3,928 | |||||
Interest rate swap agreement | — | 1,313 | |||||
Prepaid insurance | 8,798 | 8,810 | |||||
Prepaid sales commissions | 10,033 | 7,908 | |||||
Other | 17,028 | 13,498 | |||||
Total | $ | 159,263 | 133,934 |
|
Estimated Useful Lives | December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value (1) | Cost | Accumulated Depreciation | Net Book Value (1) | ||||||||||||||||
(In years) | (In thousands) | ||||||||||||||||||||
Held for use: | |||||||||||||||||||||
Full service lease | 3 — 12 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | 6,728,746 | (2,500,786 | ) | 4,227,960 | |||||||||||
Commercial rental | 4.5 — 12 | 2,210,863 | (747,283 | ) | 1,463,580 | 2,041,698 | (660,356 | ) | 1,381,342 | ||||||||||||
Held for sale | 439,983 | (311,742 | ) | 128,241 | 499,074 | (353,768 | ) | 145,306 | |||||||||||||
Total | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 | 9,269,518 | (3,514,910 | ) | 5,754,608 |
(1) | Revenue earning equipment, net includes vehicles under capital leases of $54 million, less accumulated depreciation of $22 million, at December 31, 2013 and $56 million, less accumulated depreciation of $17 million, at December 31, 2012. |
|
Estimated Useful Lives | December 31, | ||||||||
2013 | 2012 | ||||||||
(In years) | (In thousands) | ||||||||
Land | — | $ | 193,031 | 190,357 | |||||
Buildings and improvements | 10 — 40 | 715,965 | 716,743 | ||||||
Machinery and equipment | 3 — 10 | 595,244 | 578,718 | ||||||
Other | 3 — 10 | 120,703 | 105,255 | ||||||
1,624,943 | 1,591,073 | ||||||||
Accumulated depreciation | (991,117 | ) | (966,220 | ) | |||||
Total | $ | 633,826 | 624,853 |
|
Fleet Management Solutions | Supply Chain Solutions | Total | ||||||||
(In thousands) | ||||||||||
Balance at January 1, 2012 | ||||||||||
Goodwill | $ | 216,559 | 189,968 | 406,527 | ||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
206,237 | 171,069 | 377,306 | ||||||||
Acquisitions | 6,033 | — | 6,033 | |||||||
Purchase accounting adjustments | 215 | 97 | 312 | |||||||
Foreign currency translation adjustment | 322 | 243 | 565 | |||||||
Balance at December 31, 2012 | ||||||||||
Goodwill | 223,129 | 190,308 | 413,437 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
212,807 | 171,409 | 384,216 | ||||||||
Purchase accounting adjustments | 377 | — | 377 | |||||||
Foreign currency translation adjustment | (302 | ) | (572 | ) | (874 | ) | ||||
Balance at December 31, 2013 | ||||||||||
Goodwill | 223,204 | 189,736 | 412,940 | |||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | ||||
$ | 212,882 | 170,837 | 383,719 |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Indefinite lived intangible assets — Trade name | $ | 9,084 | 9,084 | ||||
Finite lived intangible assets: | |||||||
Customer relationship intangibles | 95,683 | 95,683 | |||||
Other intangibles, primarily trade name | 2,254 | 2,254 | |||||
Accumulated amortization | (35,478 | ) | (27,860 | ) | |||
62,459 | 70,077 | ||||||
Foreign currency translation adjustment | 863 | 1,314 | |||||
Total | $ | 72,406 | 80,475 |
(In thousands) | |||
2014 | $ | 6,545 | |
2015 | 6,428 | ||
2016 | 6,420 | ||
2017 | 6,420 | ||
2018 | 5,948 | ||
Total | $ | 31,761 | |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Direct financing leases, net | $ | 320,327 | 315,528 | ||||
Investments held in Rabbi Trusts | 32,519 | 22,426 | |||||
Insurance receivables | 14,933 | 21,695 | |||||
Debt issuance costs | 16,570 | 16,323 | |||||
Prepaid pension asset | 23,556 | 6,090 | |||||
Contract incentives | 20,355 | 17,613 | |||||
Interest rate swap agreements | 9,333 | 15,412 | |||||
Other | 22,908 | 19,503 | |||||
Total | $ | 460,501 | 434,590 |
|
December 31, 2013 | December 31, 2012 | ||||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||
(In thousands) | |||||||||||||||||||
Salaries and wages | $ | 106,281 | — | 106,281 | 86,776 | — | 86,776 | ||||||||||||
Deferred compensation | 2,505 | 31,896 | 34,401 | 1,630 | 24,918 | 26,548 | |||||||||||||
Pension benefits | 3,660 | 292,155 | 295,815 | 3,309 | 597,275 | 600,584 | |||||||||||||
Other postretirement benefits | 2,414 | 28,374 | 30,788 | 2,683 | 37,916 | 40,599 | |||||||||||||
Insurance obligations (1) | 125,835 | 186,700 | 312,535 | 133,459 | 178,714 | 312,173 | |||||||||||||
Residual value guarantees | — | 239 | 239 | 1,505 | 130 | 1,635 | |||||||||||||
Accrued rent | 4,373 | 3,372 | 7,745 | 9,244 | 9,405 | 18,649 | |||||||||||||
Environmental liabilities | 4,515 | 8,548 | 13,063 | 4,201 | 8,415 | 12,616 | |||||||||||||
Asset retirement obligations | 6,144 | 19,403 | 25,547 | 3,642 | 17,116 | 20,758 | |||||||||||||
Operating taxes | 94,188 | — | 94,188 | 91,419 | — | 91,419 | |||||||||||||
Income taxes | 2,623 | 62,569 | 65,192 | 8,288 | 57,590 | 65,878 | |||||||||||||
Interest | 33,654 | — | 33,654 | 35,798 | — | 35,798 | |||||||||||||
Deposits, mainly from customers | 55,854 | 6,239 | 62,093 | 51,671 | 6,236 | 57,907 | |||||||||||||
Deferred revenue | 15,123 | — | 15,123 | 21,557 | — | 21,557 | |||||||||||||
Acquisition holdbacks | 2,012 | — | 2,012 | 1,637 | 2,673 | 4,310 | |||||||||||||
Other | 37,156 | 15,566 | 52,722 | 48,888 | 8,544 | 57,432 | |||||||||||||
Total | $ | 496,337 | 655,061 | 1,151,398 | 505,707 | 948,932 | 1,454,639 |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Earnings from continuing operations before income taxes: | ||||||||||
United States | $ | 302,689 | 241,672 | 223,209 | ||||||
Foreign | 66,206 | 61,445 | 56,178 | |||||||
Total | $ | 368,895 | 303,117 | 279,387 | ||||||
Current tax expense (benefit) from continuing operations: | ||||||||||
Federal (1) | $ | 233 | (4,157 | ) | 1,615 | |||||
State (1) | 4,194 | 11,514 | 7,785 | |||||||
Foreign | 7,691 | 7,759 | 8,603 | |||||||
12,118 | 15,116 | 18,003 | ||||||||
Deferred tax expense from continuing operations: | ||||||||||
Federal | 98,036 | 77,819 | 67,849 | |||||||
State | 15,399 | 3,871 | 17,247 | |||||||
Foreign | 146 | 5,412 | 4,920 | |||||||
113,581 | 87,102 | 90,016 | ||||||||
Provision for income taxes from continuing operations | $ | 125,699 | 102,218 | 108,019 |
(1) | Excludes federal and state tax benefits resulting from the exercise of stock options and vesting of restricted stock awards, which were credited directly to “Additional paid-in capital.” |
Years ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(Percentage of pre-tax earnings) | |||||||||
Federal statutory tax rate | 35.0 | 35.0 | 35.0 | ||||||
Impact on deferred taxes for changes in tax rates | 0.1 | — | 2.6 | ||||||
State income taxes, net of federal income tax benefit | 4.0 | 4.1 | 3.9 | ||||||
Foreign rates varying from federal | (4.1 | ) | (2.8 | ) | (2.3 | ) | |||
Tax reviews and audits | (0.8 | ) | (2.7 | ) | (0.9 | ) | |||
Miscellaneous items, net | (0.1 | ) | 0.1 | 0.4 | |||||
Effective tax rate | 34.1 | 33.7 | 38.7 |
Tax Jurisdiction | Enactment Date | Net Earnings | ||
(in thousands) | ||||
2013 | ||||
Puerto Rico | June 30, 2013 | $(503) | ||
United Kingdom | July 17, 2013 | $485 | ||
2012 | ||||
United Kingdom | July 17, 2012 | $(856) | ||
Canada | June 20, 2012 | $(671) | ||
2011 | ||||
State of Michigan | May 25, 2011 | $(5,350) | ||
State of Illinois | January 13, 2011 | $(1,221) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Deferred income tax assets: | |||||||
Self-insurance accruals | $ | 69,291 | 52,177 | ||||
Net operating loss carryforwards | 361,136 | 258,808 | |||||
Alternative minimum taxes | 10,727 | 9,679 | |||||
Accrued compensation and benefits | 60,039 | 61,095 | |||||
Federal benefit on state tax positions | 18,417 | 17,925 | |||||
Pension benefits | 87,745 | 204,069 | |||||
Miscellaneous other accruals | 39,414 | 39,708 | |||||
646,769 | 643,461 | ||||||
Valuation allowance | (33,793 | ) | (38,182 | ) | |||
612,976 | 605,279 | ||||||
Deferred income tax liabilities: | |||||||
Property and equipment bases difference | (1,943,923 | ) | (1,734,508 | ) | |||
Other items | (22,503 | ) | (18,716 | ) | |||
(1,966,426 | ) | (1,753,224 | ) | ||||
Net deferred income tax liability (1) | $ | (1,353,450 | ) | (1,147,945 | ) |
(1) | Deferred tax assets of $37 million and $29 million have been included in “Prepaid expenses and other current assets” at December 31, 2013 and 2012, respectively. |
December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Balance at January 1 | $ | 52,271 | 62,247 | 61,236 | ||||||
Additions based on tax positions related to the current year | 7,606 | 3,980 | 3,776 | |||||||
Reductions due to lapse of applicable statutes of limitation | (3,064 | ) | (13,956 | ) | (2,765 | ) | ||||
Gross balance at December 31 | 56,813 | 52,271 | 62,247 | |||||||
Interest and penalties | 5,756 | 5,319 | 6,933 | |||||||
Balance at December 31 | $ | 62,569 | 57,590 | 69,180 |
|
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Total minimum lease payments receivable | $ | 633,445 | 629,919 | ||||
Less: Executory costs | (198,755 | ) | (201,777 | ) | |||
Minimum lease payments receivable | 434,690 | 428,142 | |||||
Less: Allowance for uncollectibles | (501 | ) | (703 | ) | |||
Net minimum lease payments receivable | 434,189 | 427,439 | |||||
Unguaranteed residuals | 57,424 | 60,764 | |||||
Less: Unearned income | (91,499 | ) | (96,280 | ) | |||
Net investment in direct financing and sales-type leases | 400,114 | 391,923 | |||||
Current portion | (79,787 | ) | (76,395 | ) | |||
Non-current portion | $ | 320,327 | 315,528 |
December 31, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Very low risk to low risk | $ | 203,556 | 193,123 | |||
Moderate | 164,761 | 177,400 | ||||
Moderately high to high risk | 66,373 | 57,619 | ||||
$ | 434,690 | 428,142 | ||||
(In thousands) | |||
Balance at December 31, 2011 | $ | 903 | |
Charged to earnings | 812 | ||
Deductions | (1,012 | ) | |
Balance at December 31, 2012 | 703 | ||
Charged to earnings | 205 | ||
Deductions | (407 | ) | |
Balance at December 31, 2013 | $ | 501 |
As Lessor (1) | As Lessee | |||||||||
Operating Leases | Direct Financing Leases | Operating Leases | ||||||||
(In thousands) | ||||||||||
2014 | $ | 887,604 | 105,071 | 83,844 | ||||||
2015 | 718,429 | 91,281 | 65,934 | |||||||
2016 | 568,155 | 77,785 | 41,383 | |||||||
2017 | 420,288 | 59,161 | 25,205 | |||||||
2018 | 277,665 | 42,024 | 28,803 | |||||||
Thereafter | 216,440 | 59,368 | 33,473 | |||||||
Total | $ | 3,088,581 | 434,690 | 278,642 |
(1) | Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of used or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2013, 2012 and 2011 were $318 million, $319 million, and $303 million, respectively. Contingent rentals from direct financing leases included in revenue during 2013, 2012, and 2011 were $11 million in all periods. |
|
Weighted-Average Interest Rate | |||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | Maturities | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||||
Short-term debt and current portion of long-term debt: | |||||||||||||||
Short-term debt | 1.70 | % | 2.27 | % | 2014 | $ | 1,315 | 9,820 | |||||||
Current portion of long-term debt, including capital leases | 258,123 | 358,155 | |||||||||||||
Total short-term debt and current portion of long-term debt | 259,438 | 367,975 | |||||||||||||
Long-term debt: | |||||||||||||||
U.S. commercial paper(1) | 0.28 | % | 0.41 | % | 2018 | 486,939 | 329,925 | ||||||||
Canadian commercial paper(1) | 1.13 | % | 1.14 | % | 2018 | 11,297 | 23,165 | ||||||||
Global revolving credit facility | — | % | 1.58 | % | 2018 | — | 8,924 | ||||||||
Unsecured U.S. notes – Medium-term notes(1) | 3.76 | % | 4.01 | % | 2014-2025 | 3,271,734 | 2,971,313 | ||||||||
Unsecured U.S. obligations, principally bank term loans | 1.45 | % | 1.56 | % | 2015-2018 | 55,500 | 105,500 | ||||||||
Unsecured foreign obligations | 1.99 | % | 1.91 | % | 2015-2016 | 315,558 | 313,406 | ||||||||
Capital lease obligations | 3.81 | % | 4.08 | % | 2014-2019 | 38,911 | 42,018 | ||||||||
Total before fair market value adjustment | 4,179,939 | 3,794,251 | |||||||||||||
Fair market value adjustment on notes subject to hedging(2) | 8,171 | 16,725 | |||||||||||||
4,188,110 | 3,810,976 | ||||||||||||||
Current portion of long-term debt, including capital leases | (258,123 | ) | (358,155 | ) | |||||||||||
Long-term debt | 3,929,987 | 3,452,821 | |||||||||||||
Total debt | $ | 4,189,425 | 3,820,796 |
(1) | We had unamortized original issue discounts of $8 million and $9 million at December 31, 2013 and 2012, respectively. |
(2) | The notional amount of the executed interest rate swaps designated as fair value hedges was $400 million and $550 million at December 31, 2013 and 2012 |
Capital Leases | Debt | ||||||
(In thousands) | |||||||
2014 | $ | 9,383 | 251,315 | ||||
2015 | 8,096 | 712,305 | |||||
2016 | 6,505 | 872,994 | |||||
2017 | 7,602 | 704,270 | |||||
2018 | 5,807 | 1,185,649 | |||||
Thereafter | 4,987 | 415,810 | |||||
Total | 42,380 | 4,142,343 | |||||
Imputed interest | (3,469 | ) | |||||
Present value of minimum capitalized lease payments | 38,911 | ||||||
Current portion | (8,123 | ) | |||||
Long-term capitalized lease obligation | $ | 30,788 |
|
Fair Value Measurements At December 31, 2013 Using | |||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swaps | DFL and other assets | $ | — | 9,333 | — | 9,333 | |||||||||
Investments held in Rabbi Trusts: | |||||||||||||||
Cash and cash equivalents | 7,101 | — | — | 7,101 | |||||||||||
U.S. equity mutual funds | 16,479 | — | — | 16,479 | |||||||||||
Foreign equity mutual funds | 4,323 | — | — | 4,323 | |||||||||||
Fixed income mutual funds | 4,616 | — | — | 4,616 | |||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 32,519 | — | — | 32,519 | ||||||||||
Total assets at fair value | $ | 32,519 | 9,333 | — | 41,852 | ||||||||||
Liabilities: | |||||||||||||||
Interest rate swaps | Other non-current liabilities | — | 1,162 | — | 1,162 | ||||||||||
Total liabilities at fair value | $ | — | 1,162 | — | 1,162 | ||||||||||
Fair Value Measurements At December 31, 2012 Using | |||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swap | Prepaid expenses and other current assets | $ | — | 1,313 | — | 1,313 | |||||||||
Interest rate swaps | DFL and other assets | — | 15,412 | — | 15,412 | ||||||||||
Investments held in Rabbi Trusts: | |||||||||||||||
Cash and cash equivalents | 4,055 | — | — | 4,055 | |||||||||||
U.S. equity mutual funds | 10,871 | — | — | 10,871 | |||||||||||
Foreign equity mutual funds | 2,974 | — | — | 2,974 | |||||||||||
Fixed income mutual funds | 4,526 | — | — | 4,526 | |||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 22,426 | — | — | 22,426 | ||||||||||
Total assets at fair value | $ | 22,426 | 16,725 | — | 39,151 | ||||||||||
Liabilities: | |||||||||||||||
Contingent consideration | Other non-current liabilities | — | — | 478 | 478 | ||||||||||
Total liabilities at fair value | $ | — | — | 478 | 478 |
Fair Value Measurements At December 31, 2013 Using | Year ended December 31, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total Losses (2) | |||||||||||
Assets held for sale: | ||||||||||||||
Revenue earning equipment: (1) | ||||||||||||||
Trucks | $ | — | — | 13,326 | $ | 9,926 | ||||||||
Tractors | — | — | 10,339 | 4,824 | ||||||||||
Trailers | — | — | 723 | 1,678 | ||||||||||
Total assets at fair value | $ | — | — | 24,388 | $ | 16,428 | ||||||||
Fair Value Measurements At December 31, 2012 Using | Year ended December 31, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total Losses (2) | |||||||||||
Assets held for sale: | ||||||||||||||
Revenue earning equipment (1) | ||||||||||||||
Trucks | $ | — | — | 14,263 | $ | 12,853 | ||||||||
Tractors | — | — | 11,619 | 4,058 | ||||||||||
Trailers | — | — | 585 | 1,489 | ||||||||||
Total assets at fair value | $ | — | — | 26,467 | $ | 18,400 |
(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 less costs to sell was less than carrying value. |
|
Location of (Gain) Loss Recognized in Income | December 31, | |||||||||||
Fair Value Hedging Relationship | 2013 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Derivative: Interest rate swap | Interest expense | $ | (8,554 | ) | (5,118 | ) | 6,414 | |||||
Hedged item: Fixed-rate debt | Interest expense | 8,554 | 5,118 | (6,414 | ) | |||||||
Total | $ | — | — | — |
|
December 31, 2013 | December 31, 2012 | |||||||||||||
Guarantee | Maximum Exposure of Guarantee | Carrying Amount of Liability | Maximum Exposure of Guarantee | Carrying Amount of Liability | ||||||||||
(In thousands) | ||||||||||||||
Vehicle residual value guarantees (end of lease term) — operating leases (1) | $ | 24,059 | $ | — | 24,558 | 11 | ||||||||
Standby letters of credit | 6,234 | 6,234 | 6,234 | 6,234 | ||||||||||
Total | $ | 30,293 | $ | 6,234 | 30,792 | 6,245 |
(1) | Amounts exclude contingent rentals associated with residual value guarantees on certain vehicles held under operating leases for which the guarantees are conditioned upon disposal of the leased vehicles prior to the end of their lease term. At December 31, 2013 and 2012, our maximum exposure for such guarantees was approximately $120 million and $183 million, respectively, with $0.2 million and $2 million recorded as a liability at December 31, 2013 and 2012, respectively. |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Letters of credit | $ | 210,995 | 198,227 | ||||
Surety bonds | 99,486 | 95,856 |
|
Currency Translation Adjustments | Net Actuarial Loss (1) | Prior Service Credit (1) | Transition Obligation (1) | Unrealized Gain on Derivatives | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||||
January 1, 2011 | $ | 45,987 | (428,532 | ) | 5,912 | 34 | — | (376,599 | ) | ||||||||||
Amortization | — | 13,146 | (1,621 | ) | (22 | ) | — | 11,503 | |||||||||||
Current period change | (17,768 | ) | (184,301 | ) | — | — | — | (202,069 | ) | ||||||||||
December 31, 2011 | 28,219 | (599,687 | ) | 4,291 | 12 | — | (567,165 | ) | |||||||||||
Amortization | — | 20,315 | (1,657 | ) | — | — | 18,658 | ||||||||||||
Current period change | 29,629 | (68,753 | ) | — | — | 12 | (39,112 | ) | |||||||||||
December 31, 2012 | 57,848 | (648,125 | ) | 2,634 | 12 | 12 | (587,619 | ) | |||||||||||
Amortization | — | 22,832 | (1,340 | ) | (12 | ) | — | 21,480 | |||||||||||
Current period change | (22,079 | ) | 147,410 | 2,466 | — | 94 | 127,891 | ||||||||||||
December 31, 2013 | $ | 35,769 | (477,883 | ) | 3,760 | — | 106 | (438,248 | ) |
(1) | These amounts are included in the computation of net periodic pension cost. See Note 24, "Employee Benefit Plans," for further information. |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Company-administered plans: | ||||||||||
Service cost | $ | 15,991 | 15,479 | 14,719 | ||||||
Interest cost | 89,682 | 94,605 | 97,526 | |||||||
Expected return on plan assets | (106,150 | ) | (96,342 | ) | (101,803 | ) | ||||
Census data adjustment | 3,905 | — | — | |||||||
Amortization of: | ||||||||||
Transition obligation | (20 | ) | — | (31 | ) | |||||
Net actuarial loss | 35,302 | 31,200 | 20,226 | |||||||
Prior service credit | (1,818 | ) | (2,275 | ) | (2,278 | ) | ||||
36,892 | 42,667 | 28,359 | ||||||||
Union-administered plans | 11,226 | 6,746 | 5,988 | |||||||
Net pension expense | $ | 48,118 | 49,413 | 34,347 | ||||||
Company-administered plans: | ||||||||||
U.S. | $ | 37,636 | 38,992 | 28,974 | ||||||
Foreign | (744 | ) | 3,675 | (615 | ) | |||||
36,892 | 42,667 | 28,359 | ||||||||
Union-administered plans | 11,226 | 6,746 | 5,988 | |||||||
$ | 48,118 | 49,413 | 34,347 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Change in benefit obligations: | |||||||
Benefit obligations at January 1 | $ | 2,207,421 | 1,967,586 | ||||
Service cost | 15,991 | 15,479 | |||||
Interest cost | 89,682 | 94,605 | |||||
Actuarial (gain) loss | (129,259 | ) | 189,936 | ||||
Benefits paid | (82,120 | ) | (76,742 | ) | |||
Foreign currency exchange rate changes | 3,034 | 16,557 | |||||
Benefit obligations at December 31 | 2,104,749 | 2,207,421 | |||||
Change in plan assets: | |||||||
Fair value of plan assets at January 1 | 1,612,927 | 1,418,042 | |||||
Actual return on plan assets | 201,019 | 174,650 | |||||
Employer contribution | 96,183 | 81,116 | |||||
Participants’ contributions | 3 | 52 | |||||
Benefits paid | (82,120 | ) | (76,742 | ) | |||
Foreign currency exchange rate changes | 4,478 | 15,809 | |||||
Fair value of plan assets at December 31 | 1,832,490 | 1,612,927 | |||||
Funded status | $ | (272,259 | ) | (594,494 | ) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Noncurrent asset | $ | 23,556 | 6,090 | ||||
Current liability | (3,660 | ) | (3,309 | ) | |||
Noncurrent liability | (292,155 | ) | (597,275 | ) | |||
Net amount recognized | $ | (272,259 | ) | (594,494 | ) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Transition obligation | $ | — | (20 | ) | |||
Prior service credit | (2,153 | ) | (3,077 | ) | |||
Net actuarial loss | 745,356 | 1,007,315 | |||||
Net amount recognized | $ | 743,203 | 1,004,218 |
U.S. Plans December 31, | Foreign Plans December 31, | Total December 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||||
Accumulated benefit obligations | $ | 1,628,407 | 1,747,610 | 445,993 | 418,245 | 2,074,400 | 2,165,855 | ||||||||||||
Plans with ABO in excess of plan assets: | |||||||||||||||||||
PBO | $ | 1,656,086 | 1,786,025 | 9,303 | 83,618 | 1,665,389 | 1,869,643 | ||||||||||||
ABO | $ | 1,628,407 | 1,747,610 | 7,740 | 80,468 | 1,636,147 | 1,828,078 | ||||||||||||
Fair value of plan assets | $ | 1,369,574 | 1,202,565 | — | 66,494 | 1,369,574 | 1,269,059 | ||||||||||||
Plans with PBO in excess of plan assets: | |||||||||||||||||||
PBO | $ | 1,656,086 | 1,786,025 | 9,303 | 83,618 | 1,665,389 | 1,869,643 | ||||||||||||
ABO | $ | 1,628,407 | 1,747,610 | 7,740 | 80,648 | 1,636,147 | 1,828,258 | ||||||||||||
Fair value of plan assets | $ | 1,369,574 | 1,202,565 | — | 66,494 | 1,369,574 | 1,269,059 |
Fair Value Measurements at December 31, 2013 | |||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||||
Equity securities: | |||||||||||||
U.S. companies | $ | 63,346 | 63,346 | — | — | ||||||||
U.S. common collective trusts | 406,358 | — | 406,358 | — | |||||||||
Foreign common collective trusts | 431,933 | — | 431,933 | — | |||||||||
Fixed income securities: | |||||||||||||
Corporate bonds | 59,917 | — | 59,917 | — | |||||||||
Common collective trusts | 794,437 | — | 794,437 | — | |||||||||
Private equity and hedge funds | 76,499 | — | — | 76,499 | |||||||||
Total | $ | 1,832,490 | 63,346 | 1,692,645 | 76,499 |
Fair Value Measurements at December 31, 2012 | |||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||||
Equity securities: | |||||||||||||
U.S. companies | $ | 76,660 | 76,660 | — | — | ||||||||
U.S. common collective trusts | 471,504 | — | 471,504 | — | |||||||||
Foreign common collective trusts | 497,315 | — | 497,315 | — | |||||||||
Fixed income securities: | |||||||||||||
Corporate bonds | 61,571 | — | 61,571 | — | |||||||||
Common collective trusts | 434,670 | — | 434,670 | — | |||||||||
Private equity and hedge funds | 71,207 | — | — | 71,207 | |||||||||
Total | $ | 1,612,927 | 76,660 | 1,465,060 | 71,207 |
2013 | 2012 | ||||||
(In thousands) | |||||||
Beginning balance at January 1 | $ | 71,207 | 68,543 | ||||
Return on plan assets: | |||||||
Relating to assets still held at the reporting date | 4,258 | (551 | ) | ||||
Relating to assets sold during the period | 2,194 | 5,990 | |||||
Purchases, sales, settlements and expenses | (1,160 | ) | (2,775 | ) | |||
Ending balance at December 31 | $ | 76,499 | 71,207 |
(In thousands) | |||
2014 | $ | 94,446 | |
2015 | 98,893 | ||
2016 | 105,008 | ||
2017 | 109,681 | ||
2018 | 115,414 | ||
2019-2023 | 649,051 |
U.S. Plan Years ended December 31, | Foreign Plan Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||
Discount rate | 4.10% | 4.90% | 5.70% | 4.00% | 4.50% | 5.25% |
Pension Protection Act Zone Status | Ryder Contributions | Expiration Date(s) of Collective-Bargaining Agreement(s) | ||||||||||||||||||||
Pension Fund | Employer Identification Number | 2013 | 2012 | FIP/RP Status Pending/ Implemented (1) | 2013 | 2012 | 2011 | Surcharge Imposed | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Western Conference Teamsters | 91-6145047 | Green | Green | No | $ | 2,180 | 1,943 | 1,855 | No | 6/30/14 to 4/1/16 | ||||||||||||
IAM National | 51-6031295 | Green | Green | No | 2,987 | 2,038 | 1,794 | No | 4/30/14 to 3/31/17 | |||||||||||||
Automobile Mechanics Local No. 701 | 36-6042061 | Red | Red | RP Adopted | 1,530 | 1,527 | 1,203 | Yes | 10/31/14 to 5/31/16 | |||||||||||||
International Association of Machinists Motor City | 38-6237143 | Red (2) | Red (2) | RP adopted | 555 | 437 | 392 | No | 1/31/14 to 3/31/16 | |||||||||||||
Central States Southeast and Southwest Areas | 36-6044243 | Red | Red | RP adopted | 226 | 226 | 182 | No | 10/31/15 to 5/31/17 | |||||||||||||
Other funds | 928 | 575 | 562 | |||||||||||||||||||
Total contributions | 8,406 | 6,746 | 5,988 | |||||||||||||||||||
Pension settlement charges | 2,820 | — | — | |||||||||||||||||||
Union-administered plans | $ | 11,226 | 6,746 | 5,988 |
(1) | The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. |
(2) | Plan years ended June 30, 2012 and 2011. |
U.S. Plans Years ended December 31, | Foreign Plans Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||
Discount rate | 4.10% | 4.90% | 5.70% | 4.43% | 4.76% | 5.55% | ||||||
Rate of increase in compensation levels | 4.00% | 4.00% | 4.00% | 3.55% | 3.54% | 3.55% | ||||||
Expected long-term rate of return on plan assets | 6.80% | 7.05% | 7.45% | 6.57% | 6.00% | 6.84% | ||||||
Transition amortization in years | — | — | — | — | 1 | 1 | ||||||
Gain and loss amortization in years | 23 | 24 | 25 | 26 | 27 | 27 |
U.S. Plans December 31, | Foreign Plans December 31, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Discount rate | 5.00% | 4.10% | 4.58% | 4.43% | ||||
Rate of increase in compensation levels | 3.00% | 4.00% | 3.09% | 3.55% |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Service cost | $ | 981 | 1,095 | 1,294 | ||||||
Interest cost | 1,580 | 1,980 | 2,503 | |||||||
Amortization of: | ||||||||||
Net actuarial (gain) loss | (14 | ) | (20 | ) | 231 | |||||
Prior service credit | (231 | ) | (231 | ) | (231 | ) | ||||
Postretirement benefit expense | $ | 2,316 | 2,824 | 3,797 | ||||||
U.S. | $ | 1,625 | 2,142 | 3,155 | ||||||
Foreign | 691 | 682 | 642 | |||||||
$ | 2,316 | 2,824 | 3,797 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Current liability | $ | 2,414 | 2,683 | ||||
Noncurrent liability | 28,374 | 37,916 | |||||
Amount recognized | $ | 30,788 | 40,599 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Prior service credit | $ | (4,986 | ) | (1,307 | ) | ||
Net actuarial gain | (6,239 | ) | (859 | ) | |||
Net amount recognized | $ | (11,225 | ) | (2,166 | ) |
U.S. Plan December 31, | Foreign Plan December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Discount rate | 5.00 | % | 4.10 | % | 4.80 | % | 4.00 | % | ||||
Rate of increase in compensation levels | 3.00 | % | 4.00 | % | 3.00 | % | 3.50 | % | ||||
Healthcare cost trend rate assumed for next year | 7.25 | % | 7.50 | % | 6.50 | % | 7.00 | % | ||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||
Year that the rate reaches the ultimate trend rate | 2023 | 2023 | 2017 | 2017 |
(In thousands) | |||
2014 | $ | 2,462 | |
2015 | 2,602 | ||
2016 | 2,705 | ||
2017 | 2,758 | ||
2018 | 2,806 | ||
2019-2023 | 13,133 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Benefit obligations at January 1 | $ | 40,599 | 42,992 | ||||
Service cost | 981 | 1,095 | |||||
Interest cost | 1,580 | 1,980 | |||||
Actuarial gain | (9,332 | ) | (1,746 | ) | |||
Benefits paid | (2,515 | ) | (3,947 | ) | |||
Foreign currency exchange rate changes | (525 | ) | 225 | ||||
Benefit obligations at December 31 | $ | 30,788 | 40,599 |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Interest paid | $ | 132,946 | 126,764 | 126,916 | ||||||
Income taxes paid | 13,063 | 11,613 | 21,541 | |||||||
Changes in accounts payable related to purchases of revenue earning equipment | 43,745 | 27,528 | 61,290 | |||||||
Operating and revenue earning equipment acquired under capital leases (1) | 5,698 | 20,670 | 39,279 | |||||||
Fair value of debt assumed on acquisition | — | 379 | — |
|
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Revenue: | ||||||||||
Fleet Management Solutions: | ||||||||||
Full service lease | $ | 2,016,570 | 1,956,812 | 1,862,304 | ||||||
Commercial rental | 753,456 | 738,564 | 691,573 | |||||||
Full service lease and commercial rental | 2,770,026 | 2,695,376 | 2,553,877 | |||||||
Contract maintenance | 178,001 | 184,149 | 181,003 | |||||||
Contract-related maintenance | 186,580 | 170,323 | 153,009 | |||||||
Other | 72,029 | 71,955 | 69,124 | |||||||
Fuel services revenue | 829,586 | 854,578 | 887,483 | |||||||
Total Fleet Management Solutions from external customers | 4,036,222 | 3,976,381 | 3,844,496 | |||||||
Inter-segment revenue | 458,464 | 428,944 | 373,834 | |||||||
Fleet Management Solutions | 4,494,686 | 4,405,325 | 4,218,330 | |||||||
Supply Chain Solutions from external customers | 2,383,063 | 2,280,586 | 2,206,038 | |||||||
Eliminations | (458,464 | ) | (428,944 | ) | (373,834 | ) | ||||
Total revenue | $ | 6,419,285 | 6,256,967 | 6,050,534 | ||||||
EBT: | ||||||||||
Fleet Management Solutions | $ | 344,049 | 307,628 | 265,691 | ||||||
Supply Chain Solutions | 129,959 | 115,193 | 104,898 | |||||||
Eliminations | (35,489 | ) | (29,265 | ) | (24,212 | ) | ||||
$ | 438,519 | 393,556 | 346,377 | |||||||
Unallocated Central Support Services | (45,493 | ) | (42,348 | ) | (42,549 | ) | ||||
Non-operating pension costs | (24,285 | ) | (31,423 | ) | (18,652 | ) | ||||
Restructuring and other recoveries (charges), net and other items(1) | 154 | (16,668 | ) | (5,789 | ) | |||||
Earnings before income taxes from continuing operations | $ | 368,895 | 303,117 | 279,387 |
(1) | See Note 26, “Other Items Impacting Comparability,” for a discussion of items, in addition to restructuring and other (recoveries) charges, net that are excluded from our primary measure of segment performance. |
FMS | SCS | CSS | Eliminations | Total | ||||||||||||
(In thousands) | ||||||||||||||||
2013 | ||||||||||||||||
Share-based compensation expense | $ | 4,979 | 4,934 | 9,397 | — | 19,310 | ||||||||||
Depreciation expense (1) | $ | 926,724 | 29,560 | 857 | — | 957,141 | ||||||||||
Gains on vehicles sales, net | $ | (96,011 | ) | (164 | ) | — | — | (96,175 | ) | |||||||
Other non-cash charges, net (2) | $ | 19,071 | 3,640 | 33,678 | — | 56,389 | ||||||||||
Interest expense (income) (3) | $ | 139,288 | (1,864 | ) | (228 | ) | — | 137,196 | ||||||||
Capital expenditures paid (4) | $ | 2,092,544 | 22,677 | 25,243 | — | 2,140,464 | ||||||||||
Total assets | $ | 8,309,149 | 869,074 | 160,249 | (234,690 | ) | 9,103,782 | |||||||||
2012 | ||||||||||||||||
Share-based compensation expense | $ | 5,359 | 4,433 | 9,072 | — | 18,864 | ||||||||||
Depreciation expense (1) | $ | 910,352 | 28,275 | 1,050 | — | 939,677 | ||||||||||
Gains on vehicles sales, net | $ | (89,075 | ) | (33 | ) | — | — | (89,108 | ) | |||||||
Other non-cash charges, net (2) | $ | 15,567 | 2,768 | 30,874 | — | 49,209 | ||||||||||
Interest expense (income) (3) | $ | 140,747 | 11 | (201 | ) | — | 140,557 | |||||||||
Capital expenditures paid (4) | $ | 2,090,443 | 19,278 | 23,514 | — | 2,133,235 | ||||||||||
Total assets | $ | 7,556,509 | 807,935 | 144,355 | (189,820 | ) | 8,318,979 | |||||||||
2011 | ||||||||||||||||
Share-based compensation expense | $ | 5,388 | 4,312 | 7,723 | — | 17,423 | ||||||||||
Depreciation expense (1) | $ | 842,094 | 29,118 | 1,050 | — | 872,262 | ||||||||||
Gains on vehicle sales, net | $ | (62,496 | ) | (383 | ) | — | — | (62,879 | ) | |||||||
Other non-cash charges, net (2) | $ | 16,271 | 3,214 | 20,443 | — | 39,928 | ||||||||||
Interest expense (income) (3) | $ | 133,245 | (74 | ) | (7 | ) | — | 133,164 | ||||||||
Capital expenditures paid (4) | $ | 1,653,425 | 30,209 | 14,955 | — | 1,698,589 | ||||||||||
Total assets | $ | 6,815,404 | 827,169 | 198,476 | (223,214 | ) | 7,617,835 |
(1) | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $14 million, $12 million, and $9 million during 2013, 2012, and 2011, respectively, associated with CSS assets was allocated to other business segments. |
(2) | Includes amortization expense. |
(3) | Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest expense (income) was also reflected in SCS based on targeted segment leverage ratios. |
(4) | Excludes acquisition payments of $2 million, $5 million, and $362 million in 2013, 2012, and 2011, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information. |
Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Revenue: | ||||||||||
United States | $ | 5,411,376 | 5,231,899 | 5,075,432 | ||||||
Foreign: | ||||||||||
Canada | 455,440 | 477,495 | 481,593 | |||||||
Europe | 372,209 | 384,105 | 324,214 | |||||||
Mexico | 161,279 | 143,282 | 147,464 | |||||||
Asia | 18,981 | 20,186 | 21,831 | |||||||
1,007,909 | 1,025,068 | 975,102 | ||||||||
Total | $ | 6,419,285 | 6,256,967 | 6,050,534 | ||||||
Long-lived assets: | ||||||||||
United States | $ | 5,996,646 | 5,261,622 | 4,708,086 | ||||||
Foreign: | ||||||||||
Canada | 529,880 | 557,351 | 481,139 | |||||||
Europe | 568,850 | 534,728 | 463,848 | |||||||
Mexico | 29,008 | 24,973 | 19,931 | |||||||
Asia | 279 | 787 | 847 | |||||||
1,128,017 | 1,117,839 | 965,765 | ||||||||
Total | $ | 7,124,663 | 6,379,461 | 5,673,851 |
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Earnings from Continuing Operations | Earnings from Continuing Operations per Common Share | Net Earnings per Common Share | |||||||||||||||||||||
Revenue | Net Earnings | Basic | Diluted | Basic | Diluted | ||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
First quarter | $ | 1,563,017 | 40,802 | 39,924 | 0.79 | 0.79 | 0.77 | 0.77 | |||||||||||||||
Second quarter | 1,603,999 | 62,575 | 62,194 | 1.21 | 1.19 | 1.20 | 1.19 | ||||||||||||||||
Third quarter | 1,634,540 | 73,875 | 71,067 | 1.41 | 1.40 | 1.36 | 1.35 | ||||||||||||||||
Fourth quarter | 1,617,729 | 65,944 | 64,607 | 1.25 | 1.24 | 1.23 | 1.22 | ||||||||||||||||
Full year | $ | 6,419,285 | 243,196 | 237,792 | 4.67 | 4.63 | 4.57 | 4.53 | |||||||||||||||
2012 | |||||||||||||||||||||||
First quarter | $ | 1,536,276 | 34,876 | 34,321 | 0.68 | 0.68 | 0.67 | 0.67 | |||||||||||||||
Second quarter | 1,563,860 | 46,767 | 46,723 | 0.92 | 0.91 | 0.92 | 0.91 | ||||||||||||||||
Third quarter | 1,573,295 | 64,311 | 75,091 | 1.26 | 1.26 | 1.47 | 1.47 | ||||||||||||||||
Fourth quarter | 1,583,536 | 54,945 | 53,844 | 1.07 | 1.07 | 1.05 | 1.05 | ||||||||||||||||
Full year | $ | 6,256,967 | 200,899 | 209,979 | 3.93 | 3.91 | 4.11 | $ | 4.09 |
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