RYDER SYSTEM INC, 10-K filed on 2/14/2014
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2013
Jan. 31, 2014
Jun. 30, 2013
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
RYDER SYSTEM INC 
 
 
Entity Central Index Key
0000085961 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 3,184,343,722 
Entity Common Stock, Shares Outstanding
 
53,399,863 
 
Consolidated Statements of Earnings (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement [Abstract]
 
 
 
Lease and rental revenues
$ 2,770,026 
$ 2,695,376 
$ 2,553,877 
Services revenue
2,819,673 
2,707,013 
2,609,174 
Fuel services revenue
829,586 
854,578 
887,483 
Total revenue
6,419,285 
6,256,967 
6,050,534 
Cost of lease and rental
1,915,736 
1,890,659 
1,746,057 
Cost of services
2,366,820 
2,274,118 
2,186,353 
Cost of fuel services
814,058 
838,673 
873,466 
Other operating expenses
137,916 
135,904 
129,180 
Selling, general and administrative expenses
790,681 
766,704 
771,244 
Gains on vehicle sales, net
(96,175)
(89,108)
(62,879)
Interest expense
137,196 
140,557 
133,164 
Miscellaneous income, net
(15,372)
(11,727)
(9,093)
Restructuring and other charges, net
(470)
8,070 
3,655 
Total expenses
6,050,390 
5,953,850 
5,771,147 
Earnings from continuing operations before income taxes
368,895 
303,117 
279,387 
Provision for income taxes
125,699 
102,218 
108,019 
Earnings from continuing operations
243,196 
200,899 
171,368 
Loss from discontinued operations, net of tax
(5,404)
9,080 
(1,591)
Net earnings
$ 237,792 
$ 209,979 
$ 169,777 
Earnings (loss) per common share - Basic
 
 
 
Continuing operations (USD per share)
$ 4.67 
$ 3.93 
$ 3.34 
Discontinued operations (USD per share)
$ (0.10)
$ 0.18 
$ (0.03)
Net earnings (USD per share)
$ 4.57 
$ 4.11 
$ 3.31 
Earnings (loss) per common share - Diluted
 
 
 
Continuing operations (USD per share)
$ 4.63 
$ 3.91 
$ 3.31 
Discontinued operations (USD per share)
$ (0.10)
$ 0.18 
$ (0.03)
Net earnings (USD per share)
$ 4.53 
$ 4.09 
$ 3.28 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Statement of Other Comprehensive Income [Abstract]
 
 
 
Net earnings
$ 237,792 
$ 209,979 
$ 169,777 
Other comprehensive income (loss):
 
 
 
Changes in cumulative translation adjustment and other, before and after tax
(21,985)
29,641 
(17,768)
Amortization of pension and postretirement items
33,219 
28,674 
17,917 
Income tax expense related to amortization of pension and postretirement items
(11,739)
(10,016)
(6,414)
Amortization of pension and postretirement items, net of tax
21,480 
18,658 
11,503 
Change in net actuarial loss and prior service cost
236,855 
(109,765)
(282,943)
Income tax (expense) benefit related to change in net actuarial loss and prior service cost
(86,979)
41,012 
98,642 
Change in net actuarial loss and prior service cost, net of taxes
149,876 
(68,753)
(184,301)
Other comprehensive income (loss), net of taxes
149,371 
(20,454)
(190,566)
Comprehensive income (loss)
$ 387,163 
$ 189,525 
$ (20,789)
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 61,562 
$ 66,392 
Receivables, net
777,370 
775,765 
Inventories
64,298 
64,146 
Prepaid expenses and other current assets
159,263 
133,934 
Total current assets
1,062,493 
1,040,237 
Revenue earning equipment, net of accumulated depreciation of $3,596,102 and $3,514,910, respectively
6,490,837 
5,754,608 
Operating property and equipment, net of accumulated depreciation of $991,117 and $966,220, respectively
633,826 
624,853 
Goodwill
383,719 
384,216 
Intangible assets
72,406 
80,475 
Direct financing leases and other assets
460,501 
434,590 
Total assets
9,103,782 
8,318,979 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
259,438 
367,975 
Accounts payable
475,364 
398,983 
Accrued expenses and other current liabilities
496,337 
505,707 
Total current liabilities
1,231,139 
1,272,665 
Long-term debt
3,929,987 
3,452,821 
Other non-current liabilities
655,061 
948,932 
Deferred income taxes
1,390,881 
1,177,074 
Total liabilities
7,207,068 
6,851,492 
Shareholders' equity:
 
 
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, December 31, 2013 or 2012
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, December 31, 2013 — 53,335,386; December 31, 2012 — 51,371,696
26,667 
25,686 
Additional paid-in capital
917,539 
808,230 
Retained earnings
1,390,756 
1,221,190 
Accumulated other comprehensive loss
(438,248)
(866,927)
Total shareholders' equity
1,896,714 
1,467,487 
Total liabilities and shareholders' equity
$ 9,103,782 
$ 8,318,979 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Accumulated depreciation on revenue earning equipment
$ 3,596,102 
$ 3,514,910 
Accumulated depreciation on operating property and equipment
$ 991,117 
$ 966,220 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
Common stock, par value
$ 0.50 
$ 0.50 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
53,335,386 
51,371,696 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities of continuing operations:
 
 
 
Net earnings
$ 237,792 
$ 209,979 
$ 169,777 
Less: (Loss) earnings from discontinued operations, net of tax
(5,404)
9,080 
(1,591)
Earnings from continuing operations
243,196 
200,899 
171,368 
Depreciation expense
957,141 
939,677 
872,262 
Gains on vehicle sales, net
(96,175)
(89,108)
(62,879)
Share-based compensation expense
19,310 
18,864 
17,423 
Amortization expense and other non-cash charges, net
56,389 
49,209 
39,928 
Deferred income tax expense
113,581 
87,102 
90,016 
Changes in operating assets and liabilities, net of acquisitions:
 
 
 
Receivables
(14,272)
7,107 
(92,020)
Inventories
(841)
729 
(6,154)
Prepaid expenses and other assets
(23,114)
10,715 
(25,040)
Accounts payable
34,431 
(22,803)
24,657 
Accrued expenses and other non-current liabilities
(66,564)
(68,267)
12,395 
Net cash provided by operating activities of continuing operations
1,223,082 
1,134,124 
1,041,956 
Cash flows from financing activities of continuing operations:
 
 
 
Net change in commercial paper borrowings
146,382 
(64,751)
46,749 
Debt proceeds
556,989 
745,777 
966,402 
Debt repaid, including capital lease obligations
(332,624)
(283,937)
(419,287)
Dividends on common stock
(67,720)
(61,266)
(57,504)
Proceeds from Issuance or Sale of Equity
90,646 
28,000 
33,000 
Common stock repurchased
(26,878)
(59,689)
Excess tax benefits from share-based compensation
5,151 
1,341 
1,710 
Debt issuance costs
(5,189)
(4,867)
(7,538)
Net cash provided by (used in) financing activities of continuing operations
393,635 
333,805 
504,202 
Cash flows from investing activities of continuing operations:
 
 
 
Purchases of property and revenue earning equipment
(2,140,464)
(2,133,235)
(1,698,589)
Sales of revenue earning equipment
445,589 
405,440 
290,336 
Sale and leaseback of revenue earning equipment
130,184 
37,395 
Sales of operating property and equipment
6,782 
7,350 
9,905 
Acquisitions
(1,858)
(5,113)
(361,921)
Collections on direct finance leases
70,677 
71,897 
62,224 
Changes in restricted cash
(10,553)
19,204 
3,478 
Other, net
8,173 
Net cash used in investing activities of continuing operations
(1,621,654)
(1,504,273)
(1,657,172)
Effect of exchange rate changes on cash
5,558 
1,344 
3,219 
(Decrease) increase in cash and cash equivalents from continuing operations
621 
(35,000)
(107,795)
Cash flows from discontinued operations:
 
 
 
Operating cash flows
(5,793)
(3,219)
(500)
Financing cash flows
(140)
Effect of exchange rate changes on cash
342 
39 
(46)
Decrease in cash and cash equivalents from discontinued operations
(5,451)
(3,180)
(686)
Decrease (increase) in cash and cash equivalents
(4,830)
(38,180)
(108,481)
Cash and cash equivalents at January 1
66,392 
104,572 
213,053 
Cash and cash equivalents at December 31
$ 61,562 
$ 66,392 
$ 104,572 
Consolidated Statements of Shareholders' Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2010
$ 1,404,313 
$ 0 
$ 25,587 
$ 735,540 
$ 1,019,785 
$ (376,599)
Balance, shares at Dec. 31, 2010
 
 
51,174,757 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
169,777 
 
 
 
169,777 
 
Other comprehensive income (loss)
(190,566)
 
 
 
 
 
Comprehensive income (loss)
(20,789)
 
 
 
 
 
Common stock dividends declared and paid
(57,504)
(57,504)
Common stock issued under employee stock option and stock purchase plans1
33,359 
579 
32,780 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
1,157,548 
 
 
 
Benefit plan stock sales (purchases)2
(587)
(6)
(581)
Benefit plan stock sales (purchases), shares2
 
 
(12,576)
 
 
 
Common stock repurchases
(59,102)
(588)
(16,819)
(41,695)
Common stock repurchases, shares
 
 
(1,175,783)
 
 
 
Share-based compensation
17,423 
17,423 
Tax benefits from share-based compensation
1,040 
1,040 
Balance at Dec. 31, 2011
1,318,153 
25,572 
769,383 
1,090,363 
(567,165)
Balance, shares at Dec. 31, 2011
 
 
51,143,946 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
209,979 
 
 
 
209,979 
 
Other comprehensive income (loss)
(20,454)
 
 
 
 
 
Comprehensive income (loss)
189,525 
 
 
 
 
 
Common stock dividends declared and paid
(61,266)
(61,266)
Common stock issued under employee stock option and stock purchase plans1
28,386 
391 
27,995 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
782,783 
 
 
 
Benefit plan stock sales (purchases)2
(535)
(5)
(530)
Benefit plan stock sales (purchases), shares2
 
 
(11,110)
 
 
 
Common stock repurchases
(26,343)
(272)
(8,185)
(17,886)
Common stock repurchases, shares
 
 
(543,923)
 
 
 
Share-based compensation
18,864 
18,864 
Tax benefits from share-based compensation
703 
703 
Balance at Dec. 31, 2012
1,467,487 
25,686 
808,230 
1,221,190 
(587,619)
Balance, shares at Dec. 31, 2012
51,371,696 
 
51,371,696 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
237,792 
 
 
 
237,792 
 
Other comprehensive income (loss)
149,371 
 
 
 
 
149,371 
Comprehensive income (loss)
387,163 
 
 
 
 
 
Common stock dividends declared and paid
 
 
Dividends
68,226 
 
 
 
68,226 
 
Common stock issued under employee stock option and stock purchase plans1
87,168 
956 
86,212 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
1,913,067 
 
 
 
Benefit plan stock sales (purchases)2
3,478 
25 
3,453 
Benefit Plan Stock Sales (Repurchases) Shares
 
 
50,623 
 
 
 
Share-based compensation
19,310 
19,310 
   
Tax benefits from share-based compensation
334 
334 
Balance at Dec. 31, 2013
$ 1,896,714 
$ 0 
$ 26,667 
$ 917,539 
$ 1,390,756 
$ (438,248)
Balance, shares at Dec. 31, 2013
53,335,386 
 
53,335,386 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Common stock dividends declared and paid, per share
$ 1.30 
$ 1.20 
$ 1.12 
Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Consolidation and Presentation
The consolidated financial statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (“subsidiaries”) and variable interest entities (“VIEs”) where Ryder is determined to be the primary beneficiary. Ryder is deemed to be the primary beneficiary if we have the power to direct the activities that most significantly impact the entity’s economic performance and we share in the significant risks and rewards of the entity. All significant intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.
Reclassifications
In 2013, we revised our classification of product line revenue between "Contract maintenance" and "Contract-related maintenance" within the Fleet Management Solutions revenue in Note 29, "Segment Reporting." Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole.

Use of Estimates
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on management’s best knowledge of historical trends, actions that we may take in the future, and other information available when the consolidated financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. Areas where the nature of the estimate make it reasonably possible that actual results could materially differ from the amounts estimated include: depreciation and residual value guarantees, employee benefit plan obligations, self-insurance accruals, impairment assessments on long-lived assets (including goodwill and indefinite-lived intangible assets), revenue recognition, allowance for accounts receivable, income tax liabilities and contingent liabilities.
Cash Equivalents
Cash equivalents represent cash in excess of current operating requirements invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and are stated at cost.
Restricted Cash
Restricted cash primarily consists of cash proceeds from the sale of eligible vehicles set aside for the acquisition of replacement vehicles under our like-kind exchange tax program. See Note 14, “Income Taxes,” for a complete discussion of the vehicle like-kind exchange tax program. We classify restricted cash within “Prepaid expenses and other current assets” if the restriction is expected to expire in the twelve months following the balance sheet date or within “Direct financing leases and other assets” if the restriction is expected to expire more than twelve months after the balance sheet date. The changes in restricted cash balances are reflected as an investing activity in our Consolidated Statements of Cash Flows as they relate to the sales and purchases of revenue earning equipment.
 
Revenue Recognition
We recognize revenue when persuasive evidence of an arrangement exists, the services have been rendered to customers or delivery has occurred, the pricing is fixed or determinable, and collectibility is reasonably assured. In our evaluation of whether revenue is fixed or determinable, we determine whether the total contract consideration in the arrangement could change based on one or more factors. These factors, which vary among each of our segments, are further discussed below. Generally, the judgments made for these purposes do not materially impact the revenue recognized in any period. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue.
Our judgments on collectibility are initially established when a business relationship with a customer is initiated and is continuously monitored as services are provided. We have a credit rating system based on internally developed standards and ratings provided by third parties. Our credit rating system, along with monitoring for delinquent payments, allows us to make decisions as to whether collectibility may not be reasonably assured. Factors considered during this process include historical payment trends, industry risks, liquidity of the customer, years in business, and judgments, liens or bankruptcies. When collectibility is not considered reasonably assured (typically when a customer is 120 days past due), revenue is not recognized until cash is collected from the customer.

We generate revenue primarily through the lease, rental and maintenance of revenue earning equipment and by providing logistics management and dedicated services. We classify our revenues in one of the following categories:
Lease and rental
Lease and rental includes full service lease and commercial rental revenues from our FMS business segment. Full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues.
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines.
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL).

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.
Services
Services include contract maintenance, contract-related maintenance and other revenues from our FMS business segment and all SCS revenues.
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and access to emergency road service and substitute vehicles. The vast majority of our services are routine services performed on a recurring basis throughout the term of the arrangement. From time to time, we provide non-routine major repair services in order to place a vehicle back in service. Revenue from maintenance service contracts is recognized on a straight-line basis as maintenance services are rendered over the terms of the related arrangements.

Contract maintenance arrangements are generally cancelable, without penalty, after one year with 60 days prior written notice. Our maintenance service arrangement provides for a monthly fixed charge and a monthly variable charge based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Most contract maintenance agreements allow for rate changes based upon changes in the CPI. The fixed per-mile charge and the changes in rates attributed to changes in the CPI are recognized as earned. Costs associated with the activities performed under our contract maintenance arrangements are primarily comprised of labor, parts and outside work. These costs are expensed as incurred. Non-chargeable maintenance costs have been allocated and reflected within “Cost of services” based on the relative maintenance-related labor costs relative to all product lines.
Revenue from SCS service contracts is recognized as services are rendered in accordance with contract terms, which typically include discrete billing rates for the services. In certain SCS contracts, a portion of the contract consideration may be contingent upon the satisfaction of performance criteria, attainment of pain/gain share thresholds or volume thresholds. The contingent portion of the revenue in these arrangements is not considered fixed or determinable until the performance criteria or thresholds have been met. In transportation management arrangements where we act as principal, revenue is reported on a gross basis, without deducting third-party purchased transportation costs. To the extent that we are acting as an agent in the arrangement, revenue is reported on a net basis, after deducting purchased transportation costs.
Fuel
Fuel services include fuel services revenue from our FMS business segment. Revenue from fuel services is recognized when fuel is delivered to customers. Fuel is largely a pass-through to our customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.
Accounts Receivable Allowance
We maintain an allowance for uncollectible customer receivables and an allowance for billing adjustments related to certain discounts and billing corrections. Estimates are updated regularly based on historical experience of bad debts and billing adjustments processed, current collection trends and aging analysis. Accounts are charged against the allowance when determined to be uncollectible. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectibility. Historical results may not necessarily be indicative of future results.
Inventories
Inventories, which consist primarily of fuel, tires and vehicle parts, are valued using the lower of weighted-average cost or market.
 
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation
Revenue earning equipment, comprised of vehicles and operating property and equipment are initially recorded at cost inclusive of vendor rebates. Revenue earning equipment and operating property and equipment under capital lease are initially recorded at the lower of the present value of minimum lease payments or fair value. Vehicle repairs and maintenance that extend the life or increase the value of a vehicle are capitalized, whereas ordinary maintenance and repairs are expensed as incurred. The cost of vehicle replacement tires and tire repairs are expensed as incurred. Direct costs incurred in connection with developing or obtaining internal-use software are capitalized. Costs incurred during the preliminary software development project stage, as well as maintenance and training costs, are expensed as incurred.
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the related lease, which may include one or more option renewal periods where failure to exercise such options would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. If a substantial additional investment is made in a leased property during the term of the lease, we re-evaluate the lease term to determine whether the investment, together with any penalties related to non-renewal, would constitute an economic penalty in such amount that renewal appears to be reasonably assured.

Provision for depreciation is computed using the straight-line method on all depreciable assets. Depreciation expense has been recorded within "Cost of lease and rental," "Cost of services," and "Cost of fuel services" and "Other operating expenses" depending on the nature of the related asset.We periodically review and adjust, as appropriate, the residual values and useful lives of revenue earning equipment. Our review of the residual values and useful lives of revenue earning equipment, is established with a long-term view considering historical market price changes, current and expected future market price trends, expected life of vehicles and extent of alternative uses. Factors that could cause actual results to materially differ from estimates include but are not limited to unforeseen changes in technology innovations.
We routinely dispose of used revenue earning equipment as part of our FMS business. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks, and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value is determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Reductions in the carrying values of vehicles held for sale are recorded within “Other operating expenses” in the Consolidated Statements of Earnings. While we believe our estimates of residual values and fair values of revenue earning equipment are reasonable, changes to our estimates of values may occur due to changes in the market for used vehicles, the condition of the vehicles, and inherent limitations in the estimation process.
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.”
Goodwill and Other Intangible Assets
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows.
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized.
Our valuation of fair value for each reporting unit is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. We consider the current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. Our discount rates reflect a weighted average cost of capital based on our industry and capital structure adjusted for equity risk premiums and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss. While we believe our estimates of future cash flows are reasonable, there can be no assurance that deterioration in economic conditions, customer relationships or adverse changes to expectations of future performance will not occur, resulting in a goodwill impairment loss.
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. Rates used to discount future cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future.

Identifiable intangible assets not subject to amortization are assessed for impairment using a similar process to that used to evaluate goodwill as described above. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.
 
Impairment of Long-Lived Assets Other than Goodwill
Long-lived assets held and used, including revenue earning equipment, operating property and equipment and intangible assets with finite lives, are tested for recoverability when circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of long-lived assets is evaluated by comparing the carrying amount of an asset or asset group to management’s best estimate of the undiscounted future operating cash flows (excluding interest charges) expected to be generated by the asset or asset group. If these comparisons indicate that the asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying value of the asset or asset group exceeds fair value. Fair value is determined by a quoted market price, if available, or an estimate of projected future operating cash flows, discounted using a rate that reflects the related operating segment’s average cost of funds. Long-lived assets to be disposed of including revenue earning equipment, operating property and equipment and indefinite-lived intangible assets, are reported at the lower of carrying amount or fair value less costs to sell.
Debt Issuance Costs
Costs incurred to issue debt are generally deferred and amortized as a component of interest expense over the estimated term of the related debt using the effective interest rate method. Debt issuance costs associated with our global revolving credit facility are deferred and amortized on a straight-line basis over the term of the facility.
Contract Incentives
Payments made to or on behalf of a lessee or customer upon entering into a lease of our revenue earning equipment or contract are deferred and recognized on a straight-line basis as a reduction of revenue over the contract term. Amounts to be amortized in the next year have been classified as “Prepaid expenses and other current assets” with the remainder included in “Direct financing leases and other assets.”
Self-Insurance Accruals
We retain a portion of the accident risk under vehicle liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets.
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets.

Residual Value Guarantees and Deferred Gains
We periodically enter into agreements for the sale and leaseback of revenue earning equipment. These leases contain purchase and/or renewal options as well as limited guarantees of the lessor’s residual value (“residual value guarantees”). We review the residual values of revenue earning equipment that we lease from third parties and our exposures under residual value guarantees. The review is conducted in a manner similar to that used to analyze residual values and fair values of owned revenue earning equipment. Certain residual value guarantees are conditioned on termination of the lease prior to its contractual lease term. For sale and leaseback of revenue earning equipment accounted for as operating leases, the amount of residual value guarantees expected to be paid is recognized as rent expense over the expected remaining term of the lease. Adjustments in the estimate of residual value guarantees are recognized prospectively over the expected remaining lease term. While we believe that the amounts are adequate, changes to our estimates of residual value guarantees may occur due to changes in the market for used vehicles, the condition of the vehicles at the end of the lease and inherent limitations in the estimation process. See Note 19, “Guarantees,” for additional information.
 
Gains on the sale and operating leaseback of revenue earning equipment are deferred and amortized on a straight-line basis over the term of the lease as an adjustment of rent expense (operating leases) or depreciation expense (capital lease).
Income Taxes
Our provision for income taxes is based on reported earnings before income taxes. Deferred taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using tax rates in effect for the years in which the differences are expected to reverse.
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers estimates of future taxable income. We calculate our current and deferred tax position based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified.
We are subject to tax audits in numerous jurisdictions in the U.S. and around the world. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Services (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. We determine whether the benefits of our tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are at least more likely than not of being sustained upon audit, we recognize the largest amount of the benefit that is more likely than not of being sustained in our consolidated financial statements. For all other tax positions, we do not recognize any portion of the benefit in our consolidated financial statements. To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made.
Interest and penalties related to income tax exposures are recognized as incurred and included in “Provision for income taxes” in our Consolidated Statements of Earnings. Accruals for income tax exposures, including penalties and interest, expected to be settled within the next year are included in “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. The federal benefit from state income tax exposures is included in “Deferred income taxes” in our Consolidated Balance Sheets.
Severance and Contract Termination Costs
We recognize liabilities for severance and contract termination costs based upon the nature of the cost to be incurred. For involuntary separation plans that are completed within the guidelines of our written involuntary separation plan, we record the liability when it is probable and reasonably estimable. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as contract termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Severance related to position eliminations that are part of a restructuring plan are recorded within “Restructuring and other (recoveries) charges, net” in the Consolidated Statements of Earnings. To the extent that severance costs are not part of a restructuring plan, the termination costs are recorded as a direct cost of revenue or within “Selling, general and administrative expenses,” in the Consolidated Statements of Earnings depending upon the nature of the eliminated position.

Environmental Expenditures
We record liabilities for environmental assessments and/or cleanup when it is probable a loss has been incurred and the costs can be reasonably estimated. Environmental liability estimates may include costs such as anticipated site testing, consulting, remediation, disposal, post-remediation monitoring and legal fees, as appropriate. The liability does not reflect possible recoveries from insurance companies or reimbursement of remediation costs by state agencies, but does include estimates of cost sharing with other potentially responsible parties. Estimates are not discounted, as the timing of the anticipated cash payments is not fixed or readily determinable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. In future periods, new laws or regulations, advances in remediation technology and additional information about the ultimate remediation methodology to be used could significantly change our estimates. Claims for reimbursement of remediation costs are recorded when recovery is deemed probable.
Asset Retirement Obligations
Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets. Our AROs are associated with underground tanks, tires and leasehold improvements. These liabilities are initially recorded at fair value and the related asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, we expense period-to-period changes in the ARO liability resulting from the passage of time.
Derivative Instruments and Hedging Activities
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default.
On the date a derivative contract is entered into, we formally document, among other items, the intended hedging designation and relationship, along with the risk management objectives and strategies for entering into the derivative contract. We also formally assess, both at inception and on an ongoing basis, whether the derivatives we used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Cash flows from derivatives that are accounted for as hedges are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively.
The hedging designation may be classified as one of the following:
No Hedging Designation. The gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized in earnings.
Fair Value Hedge. A hedge of a recognized asset or liability or an unrecognized firm commitment is considered a fair value hedge. For fair value hedges, both the effective and ineffective portions of the changes in the fair value of the derivative, along with the gain or loss on the hedged item that is attributable to the hedged risk, are both recorded in earnings.
Cash Flow Hedge. A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is considered a cash flow hedge. The effective portion of the change in the fair value of a derivative that is declared as a cash flow hedge is recorded in “Accumulated other comprehensive loss” until earnings are affected by the variability in cash flows of the designated hedged item.
Net Investment Hedge. A hedge of a net investment in a foreign operation is considered a net investment hedge. The effective portion of the change in the fair value of the derivative used as a net investment hedge of a foreign operation is recorded in the currency translation adjustment account within “Accumulated other comprehensive loss.” The ineffective portion, if any, on the hedged item that is attributable to the hedged risk is recorded in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings.

Foreign Currency Translation
Our foreign operations generally use the local currency as their functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. If exchangeability between the functional currency and the U.S. dollar is temporarily lacking at the balance sheet date, the first subsequent rate at which exchanges can be made is used to translate assets and liabilities. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is recorded in “Changes in cumulative translation adjustment and other, before and after tax” in the Consolidated Statements of Comprehensive Income as a currency translation adjustment. Upon sale or upon complete or substantially complete liquidation of an investment in a foreign operation, the currency translation adjustment attributable to that operation is removed from accumulated other comprehensive loss and is reported as part of the gain or loss on sale or liquidation of the investment for the period during which the sale or liquidation occurs. Gains and losses resulting from foreign currency transactions are recorded in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Share-Based Compensation
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits.
Earnings Per Share
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock (time-vested restricted stock rights, market-based restricted stock rights and restricted stock units) issued prior to 2012 are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Share Repurchases
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase.
Defined Benefit Pension and Postretirement Benefit Plans
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a pension and postretirement benefit liability equal to this excess.

The current portion of pension and postretirement benefit liabilities represent the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recorded in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets.
Pension and postretirement benefit expense includes service cost, interest cost, expected return on plan assets (if funded), and amortization of prior service credit and net actuarial loss. Service cost represents the actuarial present value of participant benefits earned in the current year. Interest cost represents the time value of money cost associated with the passage of time. The expected return on plan assets represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the obligation. Prior service credit represents the impact of negative plan amendments. Net actuarial loss arises as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service cost, net of tax" in the Consolidated Statements of Comprehensive Income. These pension and postretirement items are subsequently amortized as a component of pension and postretirement benefit expense over the remaining service period, if the majority of the employees are active, otherwise over the remaining life expectancy, provided such amounts exceed thresholds which are based upon the benefit obligation or the value of plan assets.
The measurement of benefit obligations and pension and postretirement benefit expense is based on estimates and assumptions approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates.
Fair Value Measurements
We carry various assets and liabilities at fair value in the Consolidated Balance Sheets. The most significant assets and liabilities are vehicles held for sale, which are stated at the lower of carrying amount or fair value less costs to sell, investments held in Rabbi Trusts and derivatives.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified based on the following fair value hierarchy:
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.

When available, we use unadjusted quoted market prices to measure fair value and classify such measurements within Level 1. If quoted prices are not available, fair value is based upon model-driven valuations that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using these models are classified according to the lowest level input or value driver that is significant to the valuation.
Revenue earning equipment held for sale is measured at fair value on a nonrecurring basis and is stated at the lower of carrying amount or fair value less costs to sell. Investments held in Rabbi Trusts, derivatives, and contingent consideration are carried at fair value on a recurring basis. Investments held in Rabbi Trusts include exchange-traded equity securities and mutual funds. Fair values for these investments are based on quoted prices in active markets. For derivatives, fair value is based on model-driven valuations using the LIBOR rate or observable forward foreign exchange rates, which are observable at commonly quoted intervals for the full term of the financial instrument. Fair value of contingent consideration is based on significant unobservable inputs based on contractual provisions and our expectations of what will be paid.
Accounting Changes
ACCOUNTING CHANGES
ACCOUNTING CHANGES
In July 2013, the Financial Accounting Standards Board issued accounting guidance on the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance will result in a reclassification of approximately $40 million from other non-current liabilities to deferred income taxes. Other than the change in presentation within the Consolidated Balance Sheet, this accounting guidance will not have an impact on our consolidated financial position, results of operations or cash flows.
Acquisitions
ACQUISITIONS
ACQUISITIONS
2012 Acquisition
Euroway Ltd., — On August 1, 2012, we acquired all of the common stock of Euroway Ltd., a U.K.-based, full service leasing, rental and maintenance company for a purchase price of $2 million and assumed capital lease obligations and debt of $20 million. Approximately $2 million of the stock purchase price has been paid ($1 million paid in both 2013 and in 2012), and the majority of the capital lease obligations have been repaid as of December 31, 2013. The acquisition included Euroway's fleet of approximately 560 full service lease vehicles as well as 800 contract maintenance vehicles. As of December 31, 2013, goodwill and customer relationship intangibles related to the Euroway acquisition were $6 million and $3 million, respectively. The combined network operates under the Ryder name, complementing our FMS business segment coverage in the U.K. Transaction costs related to the Euroway acquisition were $1 million during 2012 and were primarily reflected within "Selling, general and administrative expenses" in our Consolidated Statements of Earnings.
The purchase price included $0.5 million in contingent consideration to be paid to the seller provided certain conditions were met by January 31, 2014. We determined that the payment of the contingent consideration was not probable as of December 31, 2013 and recorded a gain of $0.5 million.
2011 Acquisitions
Hill Hire plc — On June 8, 2011, we acquired all of the common stock of Hill Hire plc (Hill Hire), a U.K. based full service leasing, rental and maintenance company for a purchase price of $251 million, net of cash acquired, all of which was
paid in 2011. The acquisition included Hill Hire’s fleet of approximately 8,000 full service lease and 5,700 rental vehicles, and approximately 400 contractual customers. The fleet included 9,700 trailers. The combined network operates under the Ryder name, complementing our business segment market coverage in the U.K. Transaction costs related to the Hill Hire acquisition were $2 million during 2011 and were primarily reflected within ‘‘Selling, general and administrative expenses" in our Consolidated Statements of Earnings.
The following table provides the final allocated fair values of the assets acquired and the liabilities assumed at the date of the Hill Hire acquisition:
 
 
 
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




During 2012, purchase price adjustments totaled $2 million and related to adjustments to the fair value of revenue earning equipment and liabilities assumed.

Other Acquisitions— During 2011, we completed three other acquisitions of full service leasing and fleet service companies, one of which included the assets of the seller’s SCS business. The combined networks operate under the Ryder name, complementing our FMS and SCS business segment market coverage throughout the United States. The purchase price of these acquisitions totaled $114 million, of which $1 million, $3 million and $107 million was paid during 2013, 2012 and 2011, respectively. Goodwill and customer relationship intangibles related to these acquisitions totaled $28 million and $12 million, respectively. The following table provides further information regarding each of these acquisitions:
 
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

Pro Forma Information – The operating results of each acquisition has been included in the consolidated financial statements from the dates of acquisition. The following table provides the unaudited pro forma revenues, net earnings and earnings per common share as if the results of the Hill Hire acquisition had been included in operations commencing January 1, 2010. This pro forma information is not necessarily indicative either of the combined results of operations that actually would have been realized had the acquisition been consummated during the periods for which the pro forma information is presented, or of future results. Pro forma information for the Euroway acquisition in 2012 and the other acquisitions in 2011 is not disclosed because the pro forma effect of these acquisitions is not significant.

 
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

 
 

We paid approximately $1 million and $4 million in 2012 and 2011, respectively, related to other acquisitions completed in prior years. All recent acquisitions have been accounted for as an acquisition of a business.
Discontinued Operations
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
In December 2008, we announced strategic initiatives to improve our competitive advantage and drive long-term profitable growth. As part of these initiatives, we decided to discontinue SCS operations in South America and Europe. In 2009, we ceased SCS service operations in Brazil, Argentina, Chile and European markets. Accordingly, results of these operations, financial position and cash flows are separately reported as discontinued operations for all periods presented in the Consolidated Financial Statements and notes thereto.
Summarized results of discontinued operations were as follows:
 
 
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
)


Results of discontinued operations in 2013, 2012 and 2011 included $5 million, $3 million and $2 million, respectively, of pre-tax losses related to adverse legal developments and professional and administrative fees associated with our discontinued South American operations. As previously disclosed, we were assessed $5 million (before and after tax) in prior years for certain state operating tax credits utilized between 2001 and 2003. During 2013, we received an adverse tax ruling related to this matter. We incurred and paid $2 million to the Brazilian tax authority to settle all of these state operating tax-credit assessments. Results of discontinued operations in 2012 also included $1 million of pre-tax income related to the sub-lease of a European SCS facility as well as a tax benefit of $11 million resulting from the expiration of a statute of limitations. Results of discontinued operations in 2011 also included $1 million of pre-tax income from a favorable prior year insurance claim development.
The following is a summary of assets and liabilities of discontinued operations:
 
 
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



Although we discontinued our South American operations in 2009, we continue to be party to various federal, state and local legal proceedings involving labor matters, tort claims and tax assessments. We have established loss provisions for any matters where we believe a loss is probable and can be reasonably estimated. Other than with respect to the matters discussed below, for matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements.

In Brazil, in addition to the settlement noted above for tax years 2001 through 2003, we were previously assessed $5 million (before and after tax) in prior years for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We successfully overturned these federal tax assessments in the lower courts; however, there is a reasonable possibility that these rulings could be reversed and we would be required to pay the assessments. We believe it is more likely than not that our position will ultimately be sustained if appealed and no amounts have been reserved for these matters. We are entitled to indemnification for a portion of any resulting liability on these federal tax claims which, if honored, would reduce the estimated loss.
Restructuring and Other Charges
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER (RECOVERIES) CHARGES
The components of restructuring and other (recoveries) charges, net in 2013, 2012 and 2011 were as follows: 
 
 
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


As mentioned in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other (recoveries) charges, net. However, the applicable portion of the restructuring and other (recoveries) charges, net that related to each segment in 2013, 2012 and 2011 were as follows:
 
 
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


 
2013 Activity

The 2013 recoveries resulted from refining previous estimates of employee severance and benefit costs.

2012 Activity
In the second quarter of 2012, we approved a plan to eliminate approximately 350 employees, primarily in the U.S., as a result of cost containment actions. These actions have been completed. Workforce reductions resulted in a a pre-tax charge of $7 million. Restructuring and other (recoveries) charges, net in 2012 also included severance and employee related costs associated with the elimination of certain positions assumed in the Euroway acquisition offset by benefits from refinements in estimates from restructuring charges in the prior year. During 2012, we also recorded a pre-tax charge of $1 million associated with non-essential leased facilities assumed in the Hill Hire acquisition.

2011 Activity
During 2011, we eliminated certain positions and terminated non-essential equipment contracts assumed in the Hill Hire and Scully acquisitions, which resulted in a pre-tax charge of $4 million.













The following table presents a roll-forward of the activity and balances of our restructuring reserves, including discontinued operations for the years ended December 31, 2013 and 2012:
 
 
 
 
 
 
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.
At December 31, 2013, the majority of outstanding restructuring obligations are required to be paid by December 31, 2014.
Receivables
RECEIVABLES
RECEIVABLES
 
 
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.
Prepaid Expenses and Other Current Assets
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS
 
 
 
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

Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT
 
 
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.

Depreciation expense was $884 million, $867 million and $800 million in 2013, 2012 and 2011, respectively. At the end of each fiscal year, we review residual values and useful lives of revenue earning equipment. Based on the results of these analyses, we adjust the estimated residual values and useful lives of certain classes of revenue earning equipment effective January 1 of the following year. The change in estimated residual values and useful lives increased pre-tax earnings by approximately $30 million in 2013 compared with 2012, and approximately $18 million in 2012 compared with 2011.
Operating Property and Equipment
OPERATING PROPERTY AND EQUIPMENT
OPERATING PROPERTY AND EQUIPMENT
 
 
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

 

Depreciation expense was $73 million in both 2013 and 2012, respectively, and $72 million in 2011.
Goodwill
GOODWILL
GOODWILL
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
 
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



Purchase accounting adjustments in 2013 primarily related to changes in the fair value of acquired revenue earning equipment. We did not adjust the December 31, 2012 balance sheet as the amounts are not material.
We assess goodwill for impairment on April 1st of each year or more often if deemed necessary. For our annual goodwill impairment test on April 1, 2013, we performed a qualitative test for all of our reporting units. After performing the qualitative assessment, we concluded it is more likely than not that fair values are greater than carrying values and determined that quantitative testing was not necessary.
Intangible Assets
INTANGIBLE ASSETS
INTANGIBLE ASSETS
 
 
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


 
The Ryder trade name has been identified as having an indefinite useful life. Customer relationship intangibles are being amortized on a straight-line basis over their estimated useful lives, generally 10-16 years. We recorded amortization expense associated with finite lived intangible assets of approximately $8 million in 2013, 2012 and 2011. The future amortization expense for each of the five succeeding years related to all intangible assets that are currently recorded in the Consolidated Balance Sheets is estimated to be as follows at December 31, 2013:
 
(In thousands)
2014
$
6,545

2015
6,428

2016
6,420

2017
6,420

2018
5,948

 
 
Total
$
31,761

 
 
Direct Financing Leases and Other Assets
DIRECT FINANCING LEASES AND OTHER ASSETS
DIRECT FINANCING LEASES AND OTHER ASSETS
 
 
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

Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES
 
 
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

_________________
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.

We retain a portion of the accident risk under vehicle liability and workers’ compensation insurance programs. Self-insurance accruals are based primarily on actuarially estimated, undiscounted cost of claims, and include claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe the amounts are adequate, there can be no assurance that changes to our estimates may not occur due to limitations inherent in the estimation process. During 2013, 2012 and 2011, we recorded a benefit within earnings from continuing operations of $5 million, $1 million, and $4 million, respectively, from development in estimated prior years’ self-insured loss reserves for the reasons noted above.
Income Taxes
INCOME TAXES
INCOME TAXES
The components of earnings from continuing operations before income taxes and the provision for income taxes from continuing operations were as follows:
 
 
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.”
A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:
 
 
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 Law Changes
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. The following provides a summary of the impact of changes in tax laws on net earnings from continuing operations by tax jurisdiction:
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)


Deferred Income Taxes
The components of the net deferred income tax liability were as follows:
 
 
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.
 
We do not provide for U.S. deferred income taxes on temporary differences related to our foreign investments that are considered permanent in duration. These temporary differences consist primarily of undistributed foreign earnings of $600 million at December 31, 2013. A full foreign tax provision has been made on these undistributed foreign earnings. Determination of the amount of deferred taxes on these temporary differences is not practicable due to foreign tax credits and exclusions.

At December 31, 2013, we had U.S. federal tax effected net operating loss carryforwards of $274 million and various U.S. subsidiaries had state tax effected net operating loss carryforwards of $57 million both expiring through tax year 2029. We also had foreign tax effected net operating losses of $30 million that are available to reduce future income tax payments in several countries, subject to varying expiration rules. A valuation allowance has been established to reduce deferred income tax assets, principally foreign tax loss carryforwards, to amounts more likely than not to be realized. We had unused alternative minimum tax credits, for tax purposes, of $11 million at December 31, 2013 available to reduce future income tax liabilities. The alternative minimum tax credits may be carried forward indefinitely.
Uncertain Tax Positions
We are subject to tax audits in numerous jurisdictions in the U.S. and foreign countries. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we recognize the tax benefit from uncertain tax positions that are at least more likely than not of being sustained upon audit, based on the technical merits of the tax position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Such calculations require management to make estimates and judgments with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates.
The following is a summary of tax years that are no longer subject to examination:
Federal — audits of our U.S. federal income tax returns are closed through fiscal year 2008.
State — for the majority of states, tax returns are closed through fiscal year 2008.

Foreign — we are no longer subject to foreign tax examinations by tax authorities for tax years before 2006 in Canada, 2008 in Brazil, 2008 in Mexico and 2011 in the U.K., which are our major foreign tax jurisdictions. Refer to Note 4, "Discontinued Operations," for further discussion on various assessments related to our former South American operations.
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
 
 
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


Of the total unrecognized tax benefits, $44 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The total amount includes $5 million and $4 million of interest and penalties, at December 31, 2013 and 2012, respectively, net of the federal benefit on state issues. For the years ended December 31, 2013, 2012 and 2011, we recognized an income tax benefit related to interest and penalties of $1 million in each period, within “Provision for income taxes” in our Consolidated Statements of Earnings. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $3 million by December 31, 2014, if audits are completed or tax years close during 2014.
 

Like-Kind Exchange Program
We have a like-kind exchange program for certain of our U.S.-based revenue earning equipment. Pursuant to the program, we dispose of vehicles and acquire replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, we exchange through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing us to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes, and a decrease in cash taxes in periods when we are not in a net operating loss (NOL) position. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. Due to the structure utilized to facilitate the like-kind exchanges, the qualified intermediary that holds the proceeds from the sales of eligible vehicles and the entity that holds the vehicles to be acquired under the program are required to be consolidated in the accompanying Consolidated Financial Statements in accordance with U.S. GAAP. The total assets, primarily revenue earning equipment, and the total liabilities, primarily vehicle accounts payable, held by these consolidated entities are equal in value as these entities are solely structured to facilitate the like-kind exchanges. At December 31, 2013 and 2012, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable of $246 million and $26 million, respectively.
In the second quarter of 2012, we began to restructure and centralize the administration of vehicle purchasing, licensing and sales in order to reduce vehicle acquisition costs as well as realize operational efficiencies. During 2012, we were in a NOL position for tax purposes and were not realizing any benefits from the like-kind exchange program. As a result of those events, effective April 1, 2012, we temporarily suspended the like-kind exchange program. Once we suspended the program, tax gains on vehicles sold during that period were no longer deferred. Those tax gains resulted in an immaterial decrease in the NOL. Although the suspension did not impact our 2012 tax provision or capital spending program, our cash flows increased by $19 million from the release of the program's restricted cash.
In the first quarter of 2013, once we had completed our restructuring of the administrative processes for purchasing and selling vehicles, we reinstated our like-kind exchange program. The reinstated program operates, and will provide cash tax benefits, in the same manner as it did prior to suspension once we are no longer in a NOL position. Our cash flow declined $11 million as a result of the program's restricted cash. There were no other impacts to cash flow as a result of the program's reinstatement.
Leases
LEASES
LEASES
Leases as Lessor
We lease revenue earning equipment to customers for periods ranging from three to seven years for trucks and tractors and up to ten years for trailers. From time to time, we may also lease facilities to third parties. The majority of our leases are classified as operating leases. However, some of our revenue earning equipment leases are classified as direct financing leases and, to a lesser extent, sales-type leases. The net investment in direct financing and sales-type leases consisted of:
 
 
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


Our direct financing lease customers operate in a wide variety of industries, and we have no significant customer concentrations in any one industry. We assess credit risk for all of our customers including those who lease equipment under direct financing leases. Credit risk is assessed using an internally developed model which incorporates credit scores from third party providers and our own custom risk ratings and is updated on a monthly basis. The external credit scores are developed based on the customer’s historical payment patterns and an overall assessment of the likelihood of delinquent payments. Our internal ratings are weighted based on the industry that the customer operates, company size, years in business, and other credit-related indicators (i.e., profitability, cash flow, liquidity, tangible net worth, etc.). Any one of the following factors may result in a customer being classified as high risk: i) the customer has a history of late payments; ii) the customer has open lawsuits, liens or judgments; iii) the customer has been in business less than three years; and iv) the customer operates in an industry with low barriers to entry. For those customers who are designated as high risk, we typically require deposits to be paid in advance in order to mitigate our credit risk. Additionally, our receivables are collateralized by the vehicle’s fair value, which further mitigates our credit risk.
The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2013:
 
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

 
 
 
 













The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the years ended December 31, 2013 and 2012:
 
(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 of December 31, 2013 and 2012, the amount of direct financing lease receivables which were past due was not significant and there were no impaired receivables. Accordingly, there was no material risk of default with respect to the direct financing lease receivables as of December 31, 2013 or 2012.
Leases as Lessee
We lease vehicles, facilities and office equipment under operating lease agreements. Rental payments on certain vehicle lease agreements vary based on the number of miles run during the period. Generally, vehicle lease agreements specify that rental payments be adjusted periodically based on changes in interest rates and provide for early termination at stipulated values. None of our leasing arrangements contain restrictive financial covenants.
We periodically enter into sale and leaseback transactions to lower the total cost of funding our operations and to diversify our funding among different types of funding instruments. These sale-leaseback transactions are often executed with third-party financial institutions not deemed to be VIEs. In general, these sale-leaseback transactions result in a reduction in revenue earning equipment and debt on the balance sheet, as proceeds from the sale of revenue earning equipment are used primarily to repay debt. Sale-leaseback transactions accounted for as operating leases will result in reduced depreciation and interest expense and increased equipment rental expense. We did not enter into any sale-leaseback transactions during 2013. During 2012, we completed a sale-leaseback transaction of revenue earning equipment with a third party and the leaseback was accounted for as an operating lease. Proceeds from the sale-leaseback transaction totaled $130 million. During 2011, we completed a sale-leaseback transaction of revenue earning equipment with a third party and the leaseback was accounted for as a capital lease. Proceeds from the sale-leaseback transaction totaled $37 million.
Certain leases contain purchase and/or renewal options, as well as limited guarantees for a portion of the lessor’s residual value. Certain residual value guarantees are conditional on termination of the lease prior to its contractual lease term. The amount of residual value guarantees expected to be paid is recognized as rent expense over the expected remaining term of the lease. Facts and circumstances that impact management’s estimates of residual value guarantees include the market for used equipment, the condition of the equipment at the end of the lease and inherent limitations in the estimation process. See Note 19, “Guarantees,” for additional information.
During 2013, 2012 and 2011, rent expense (including rent of facilities but excluding contingent rentals) was $153 million, $148 million, and $154 million, respectively. During 2013, 2012 and 2011, contingent rental expense comprised of residual value guarantees, payments based on miles run and adjustments to rental payments for changes in interest rates on all other leased vehicles was $1 million, $1 million, and $2 million, respectively.
















 

Lease Payments
Future minimum payments for leases in effect at December 31, 2013 were as follows:
 
 
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.
The amounts in the previous table related to the lease of revenue earning equipment are based upon the general assumption that revenue earning equipment will remain on lease for the length of time specified by the respective lease agreements. The future minimum payments presented above related to the lease of revenue earning equipment are not a projection of future lease revenue or expense; no effect has been given to renewals, new business, cancellations, contingent rentals or future rate changes.
Debt
DEBT
DEBT
 
 
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.
 
Maturities of total debt are as follows:
 
 
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

 
 







Debt Facilities
We maintain a $900 million global revolving credit facility with a syndicate of twelve lending institutions led by Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, Royal Bank of Scotland Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. In October 2013, the maturity date of the global credit facility was extended from June 2016 to October 2018. The global facility is used primarily to finance working capital but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at December 31, 2013). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The agreement previously provided for annual facility fees ranging from 10.0 basis points to 32.5 basis points. The amended agreement provides for annual facility fees which range from 8.0 basis points to 27.5 basis points and are based on Ryder’s long-term credit ratings. The previous annual facility fee was 15.0 basis points. This fee was amended to 12.5 basis points, which applies to the total facility size of $900 million. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions and certain affirmative and negative covenants. In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. Net worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at December 31, 2013 was 177%. At December 31, 2013, $402 million was available under the credit facility, net of outstanding commercial paper borrowings.
Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. At December 31, 2013 and 2012, we classified $498 million and $353 million, respectively, of short-term commercial paper as long-term debt.
In February 2013, we issued $250 million of unsecured medium-term notes maturing in February 2019 and in November 2013, we issued $300 million of unsecured medium-term notes maturing in November 2018. The proceeds from these notes were used to pay down commercial paper and for general corporate purposes. If either of the notes are downgraded following, and as a result of, a change in control, the note holders can require us to repurchase all or a portion of the respective notes at a purchase price equal to 101% of principal plus accrued and unpaid interest.
We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. In October 2013, we renewed the trade receivables purchase and sale program. If no event occurs which causes early termination, the 364-day program will expire on October 24, 2014. The program contained provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. At December 31, 2013 and 2012, no amounts were outstanding under the program. Sales of receivables under this program will be accounted for as secured borrowings based on our continuing involvement in the transferred assets.
On February 6, 2013, we filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission. The registration is for an indeterminate number of securities and is effective for three years. Under this universal shelf registration statement, we have the capacity to offer and sell from time to time various types of securities, including common stock, preferred stock and debt securities, subject to market demand and ratings status.
Fair Value Measurements
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:
 
 
 
 
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


 

The following table presents our assets that are measured at fair value on a nonrecurring basis and the levels of inputs used to measure fair value:
 
 
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.
Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses to reflect changes in fair value are presented within “Other operating expenses” in the Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value was determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Therefore, our revenue earning equipment held for sale was classified within Level 3 of the fair value hierarchy. During the years ended December 31, 2013, 2012, and 2011, we recorded losses to reflect changes in fair value of $16 million, $18 million and $9 million, respectively.
Total fair value of debt (excluding capital lease obligations) at December 31, 2013 and 2012 was $4.28 billion and $$3.99 billion, respectively. For publicly-traded debt, estimates of fair value are based on market prices. Since our publicly-traded debt is not actively traded, the fair value measurement was classified within Level 2 of the fair value hierarchy. For other debt, fair value is estimated based on rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments.
Derivatives
DERIVATIVES
DERIVATIVES
From time to time, we enter into interest rate swap and cap agreements to manage our fixed and variable interest rate exposure and to better match the repricing of debt instruments to that of our portfolio of assets. We assess the risk that changes in interest rates will have either on the fair value of debt obligations or on the amount of future interest payments by monitoring changes in interest rate exposures and by evaluating hedging opportunities. We regularly monitor interest rate risk attributable to both our outstanding or forecasted debt obligations as well as our offsetting hedge positions. This risk management process involves the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows.
 
As of December 31, 2013, we have interest rate swaps outstanding which are designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. The following table provides a detail of the swaps outstanding and the related hedged items as of December 31, 2013:
 
 
 
 
 
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%
 
Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps. The location and amount of (gains) losses on derivative instruments and related hedged items reported in the Consolidated Statements of Earnings were as follows:
 
  
 
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
 
 
 
$

 

 



Refer to Note 17, “Fair Value Measurements,” for disclosures of the fair value and line item caption of derivative instruments recorded on the Consolidated Balance Sheets.
Guarantees
GUARANTEES
GUARANTEES
We have executed various agreements with third parties that contain standard indemnifications that may require us to indemnify a third party against losses arising from a variety of matters such as lease obligations, financing agreements, environmental matters, and agreements to sell business assets. In each of these instances, payment by Ryder is contingent on the other party bringing about a claim under the procedures outlined in the specific agreement. Normally, these procedures allow us to dispute the other party’s claim. Additionally, our obligations under these agreements may be limited in terms of the amount and/or timing of any claim. We have entered into individual indemnification agreements with each of our independent directors, through which we will indemnify such director acting in good faith against any and all losses, expenses and liabilities arising out of such director’s service as a director of Ryder. The maximum amount of potential future payments under these agreements is generally unlimited.
We cannot predict the maximum potential amount of future payments under certain of these agreements, including the indemnification agreements, due to the contingent nature of the potential obligations and the distinctive provisions that are involved in each individual agreement. Historically, no such payments made by us have had a material adverse effect on our business. We believe that if a loss were incurred in any of these matters, the loss would not have a material adverse impact on our consolidated results of operations or financial position.

At December 31, 2013 and 2012, the maximum determinable exposure of each type of guarantee and the corresponding liability, if any, recorded on the Consolidated Balance Sheets were as follows:
 
 
 
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.
 
We have provided partial end of lease term residual value guarantees as part of a sale leaseback transaction in 2012. If the sales proceeds from the final disposition of the specified vehicles are less than the residual value guarantee, we are required to pay the difference to the lessor. The leases expire periodically through 2019. At December 31, 2013, our maximum exposure for such guarantees was approximately $24 million. No liability has been recognized as of December 31, 2013 because we do not expect to pay any guaranteed amounts to the lessor based on current market conditions. The payments associated with the end of lease term residual value guarantees have been included in our future minimum lease payments for leases in effect as of December 31, 2013. See Note 15, "Leases," for further information.
At December 31, 2013 and 2012, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2013
 
2012
 
 
(In thousands)
Letters of credit
 
$
210,995

 
198,227

Surety bonds
 
99,486

 
95,856


Certain of these letters of credit and surety bonds guarantee insurance activities associated with insurance claim liabilities transferred in conjunction with the sale of our automotive transport business, reported as discontinued operations in previous years. To date, the insurance claims representing per-claim deductibles payable under third-party insurance policies have been paid and continue to be paid by the company that assumed such liabilities. However, if all or a portion of the estimated outstanding assumed claims of approximately $6 million at December 31, 2013 are unable to be paid, the third-party insurers may have recourse against certain of the outstanding letters of credit provided by Ryder in order to satisfy the unpaid claim deductibles. In 2009, in order to reduce our potential exposure to these claims, we drew upon an outstanding letter of credit provided by the purchaser and have a deposit and corresponding liability, both of which are outstanding at December 31, 2013. Periodically, an actuarial valuation is made in order to better estimate the amount of outstanding insurance claim liabilities.
Share Repurchase Programs
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS

In December 2013, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2013 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company’s various employee stock, stock option and employee stock purchase plans from December 1, 2013 through December 31, 2015. The December 2013 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management may establish prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2013 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. We did not repurchase any shares under this program in 2013.

In December 2011, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2011 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company’s various employee stock, stock option and employee stock purchase plans from December 1, 2011 through December 13, 2013. The December 2011 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. During 2012, we repurchased and retired 543,923 shares under this program at an aggregate amount of $26 million . We did not repurchase any shares under this program in 2013 or 2011.
In December 2009, our Board of Directors authorized a two-year anti-dilutive share repurchase program. The December 2009 program limited aggregate share repurchases to no more than 2 million shares of Ryder common stock. During 2011, we repurchased and retired 1,175,783 shares under this program at an aggregate cost of $59 million .
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS
The Comprehensive income (loss) presents a measure of all changes in shareholders’ equity except for changes resulting from transactions with shareholders in their capacity as shareholders. The following summary sets forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
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. 

The loss from currency translation adjustments in 2013 of $22 million was due to the weakening of the Canadian Dollar compared to the U.S. Dollar, which was partially offset by the strengthening of the British Pound. The currency translation adjustment in 2012 of $30 million reflects the strengthening of the Canadian Dollar and the British Pound against the U.S. Dollar. The loss from currency translation adjustments in 2011 of $18 million was due to the weakening of the Canadian Dollar compared to the U.S. Dollar.
Earnings Per Share Information
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION
The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
 
Years ended December 31,
 
 
2013
 
2012
 
2011
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
243,196

 
200,899

 
171,368

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,173
)
 
(2,566
)
 
(2,751
)
Earnings from continuing operations available to common shareholders — Basic
 
$
241,023

 
198,333

 
168,617

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
51,617

 
50,449

 
50,500

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
4.67

 
3.93

 
3.34

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
243,196

 
200,899

 
171,368

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,159
)
 
(2,556
)
 
(2,737
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
241,037

 
198,343

 
168,631

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
51,617

 
50,449

 
50,500

Effect of dilutive equity awards
 
454

 
291

 
378

Weighted average common shares outstanding— Diluted
 
52,071

 
50,740

 
50,878

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
4.63

 
3.91

 
3.31

Anti-dilutive equity awards and market-based restrictive stocks rights not included above
 
785

 
2,278

 
1,514

Share-Based Compensation Plans
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS
The following table provides information on share-based compensation expense and income tax benefits recognized in 2013, 2012 and 2011:
 
 
Years ended December 31,
 
 
2013
 
2012
 
2011
 
 
(In thousands)
Stock option and stock purchase plans
 
$
8,303

 
9,469

 
9,497

Nonvested stock
 
11,007

 
9,395

 
7,926

Share-based compensation expense
 
19,310

 
18,864

 
17,423

Income tax benefit
 
(6,224
)
 
(6,309
)
 
(5,794
)
Share-based compensation expense, net of tax
 
$
13,086

 
12,555

 
11,629


Total unrecognized pre-tax compensation expense related to share-based compensation arrangements at December 31, 2013 was $22 million and is expected to be recognized over a weighted-average period of approximately 1.60 years. The total fair value of equity awards vested during the years ended December 31, 2013, 2012, and 2011 were $12 million, $12 million and $23 million, respectively.
 








Share-Based Incentive Awards

Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Awards under the Plans principally include at-the-money stock options, nonvested stock and cash awards. Nonvested stock awards include grants of market-based, performance-based, and time-vested restricted stock rights. Under the terms of our Plans, dividends may be paid on our stock options and nonvested stock awards. We have historically paid dividends on nonvested stock awards but not on our stock option awards. Dividends on nonvested stock granted after 2011 are not paid unless the award vests. Upon vesting, the amount of the dividends paid is equal to the aggregate dividends declared on common shares during the period from the date of grant of the award until the date the shares underlying the award are delivered. For grants prior to 2012, participants are entitled to non-forfeitable dividend equivalents on such awarded shares, but the sale or transfer of these shares is restricted during the vesting period. There are 2.6 million shares authorized and available to be granted under the Plans as of December 31, 2013.
A majority of share-based compensation expense is generated from stock options. Stock options are awards which allow employees to purchase shares of our stock at a fixed price. Stock option awards are granted at an exercise price equal to the market price of our stock at the time of grant. These awards, which generally vest one-third each year, are fully vested three years from the grant date. The stock options granted in 2013 have contractual terms of ten years and stock options granted in 2012 and 2011 have contractual terms of seven years.
Restricted stock awards are nonvested stock rights that are granted to employees and entitle the holder to shares of common stock as the award vests. Time-vested restricted stock rights typically vest in three years regardless of company performance. The fair value of the time-vested awards is determined and fixed on the grant date based on Ryder’s stock price on the date of grant.
During 2013, performance-based restricted stock awards were granted, which include a performance-based vesting condition. The awards are segmented into three performance periods of one, two and three years. For these awards, 25%-125% of the awards may be earned based on Ryder's 2013 adjusted return on capital (ROC) measured against a ROC target. If earned, employees will receive the grant of stock three years after the grant date, provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the performance-based restricted stock awards is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. Share-based compensation expense is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. During 2013, 31,000 performance-based restricted stock rights were also awarded under the Plans for which the annual ROC target will be determined in future years. These awards will be considered granted under accounting guidance for stock compensation once the Compensation Committee approves the annual ROC target and communicates the terms of the awards to the recipients.
Market-based restricted stock awards include a market-based vesting provision. The awards are segmented into three performance periods of one, two and three years. At the end of each performance period, 25%-125% of the award may be earned based on Ryder's total shareholder return (TSR) compared to the target TSR of a peer group over the applicable performance period. For the 2013 awards, Ryder's TSR will be compared to the TSR of a custom peer group. For the 2012 awards, Ryder's TSR will be compared to the TSR of the S&P 500. If earned, employees will receive the grant of stock at the end of the relevant three year performance period provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the market-based awards is determined on the date of grant and is based on the likelihood of Ryder achieving the market-based condition. Share-based compensation expense on the market-based restricted stock awards is recognized regardless of whether the awards vest.
Certain employees also received market-based cash awards as part of our long-term incentive compensation program. The cash awards have the same vesting provisions as the market-based restricted stock rights granted in the respective years except that, for 2011, Ryder’s TSR must at least meet the TSR of the 33rd percentile of the S&P 500. The cash awards are accounted for as liability awards as the awards are based upon the performance of our common stock and are settled in cash. As a result, the liability is adjusted to reflect fair value at the end of each reporting period. The fair value of the cash awards was estimated using a lattice-based option pricing valuation model that incorporates a Monte-Carlo simulation. The liability related to the cash awards was $2 million and $4 million at December 31, 2013 and December 31, 2012, respectively.






The following table is a summary of compensation expense recognized related to cash awards in addition to share-based compensation expense reported in the previous table.
 
 
Years ended December 31
 
 
2013
 
2012
 
2011
 
 
(In thousands)
Cash awards
 
$
996

 
1,099

 
1,882


We grant restricted stock units (RSUs) to non-management members of the Board of Directors. Once granted, RSUs are eligible for non-forfeitable dividend equivalents but have no voting rights. The fair value of the awards is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. The board member receives the RSUs upon their departure from the Board. The initial grant of RSUs will not vest unless the director has served a minimum of one year. When the board member receives the RSUs, they are redeemed for an equivalent number of shares of our common stock. Share-based compensation expense is recognized for RSUs in the year the RSUs are granted.
 
Option Awards
The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2013:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
3,148

 
$
46.36

 
 
 
 
Granted
 
391

 
58.27

 
 
 
 
Exercised
 
(1,730
)
 
45.28

 
 
 
 
Forfeited or expired
 
(92
)
 
49.56

 
 
 
 
Options outstanding at December 31
 
1,717

 
$
49.99

 
4.9
 
$
40,861

Vested and expected to vest at December 31
 
1,653

 
$
49.75

 
4.5
 
$
39,730

Exercisable at December 31
 
889

 
$
45.34

 
3.2
 
$
25,285


The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the market price of our stock on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options at year-end. The amount changes based on the fair market value of our stock.
Information about options in various price ranges at December 31, 2013 follows:
 
 
Options Outstanding
 
Options Exercisable
Price Ranges
 
Shares
 
Weighted-
Average
Remaining
Contractual
Term
 
Weighted-
Average  Exercise
Price
 
Shares
 
Weighted-
Average  Exercise
Price
 
 
(In thousands)
 
(In years)
 
 

 
(In thousands)
 
 
Less than $45.00
 
354
 
2.9
 
$
33.14

 
354
 
$
33.14

45.00-50.00
 
412
 
4.1
 
49.39

 
254
 
49.39

50.00-55.00
 
413
 
4.9
 
53.57

 
128
 
53.47

55.00 and over
 
538
 
6.9
 
58.79

 
153
 
60.07

Total
 
1,717
 
4.9
 
$
49.99

 
889
 
$
45.34







Restricted Stock Awards
The following is a summary of the status of Ryder’s nonvested restricted stock awards as of and for the year ended December 31, 2013:
 
 
Time-Vested
 
Market-Based Vested
 
Performance-Based Vested
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Nonvested stock outstanding at January 1
 
440
 
$
49.16

 
387
 
$
25.35

 
 
$

Granted
 
162
 
58.39

 
23
 
53.66

 
16
 
58.27

Vested
 
(58)
 
40.19

 
 

 
 

Forfeited
 
(10)
 
58.85

 
(205)
 
20.19

 
(1)
 
58.21

Nonvested stock outstanding at December 31
 
534
 
$
52.58

 
205
 
$
33.71

 
15
 
$
58.27


 
Stock Purchase Plan
We maintain an Employee Stock Purchase Plan (ESPP), which enables eligible participants in the U.S. and Canada to purchase full or fractional shares of Ryder common stock through payroll deductions of up to 15% of eligible compensation. The ESPP provides for quarterly offering periods during which shares may be purchased at 85% of the fair market value on either the first or the last trading day of the quarter, whichever is less. Stock purchased under the ESPP must generally be held for 90 days. The amount of shares authorized to be issued under the existing ESPP was 4.5 million at December 31, 2013. There were 0.5 million unused shares available to be purchased under the ESPP at December 31, 2013.
The following table summarizes the status of Ryder’s ESPP:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Outstanding at January 1
 
 
$

 
 
 
 
Granted
 
194
 
48.72

 
 
 
 
Exercised
 
(194)
 
48.72

 
 
 
 
Forfeited or expired
 
 

 
 
 
 
Outstanding at December 31
 

 
$

 

 
$

Exercisable at December 31
 

 
$

 

 
$


Share-Based Compensation Fair Value Assumptions
The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option-pricing valuation model that uses the weighted-average assumptions noted in the table below. Expected volatility is based on historical volatility of our stock and implied volatility from traded options on our stock. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award is granted with a maturity equal to the expected term of the stock option award. We use historical data to estimate stock option exercises and forfeitures within the valuation model. The expected term of stock option awards granted is derived from historical exercise experience under the share-based employee compensation arrangements and represents the period of time that stock option awards granted are expected to be outstanding. The fair value of market-based restricted stock awards is estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by Ryder.





The following table presents the weighted-average assumptions used for options granted:
 
 
Years ended December 31,
  
 
2013
 
2012
 
2011
Option plans:
 
 
 
 
 
 
Expected dividends
 
2.1%
 
2.2%
 
2.2%
Expected volatility
 
35.1%
 
40.7%
 
38.7%
Risk-free rate
 
0.7%
 
0.6%
 
1.7%
Expected term in years
 
4.3 years
 
3.7 years
 
3.6 years
Grant-date fair value
 
$13.97
 
$14.07
 
$12.88
Purchase plan:
 
 
 
 
 
 
Expected dividends
 
2.2%
 
2.7%
 
2.4%
Expected volatility
 
28.0%
 
32.7%
 
32.8%
Risk-free rate
 
0.1%
 
0.1%
 
0.1%
Expected term in years
 
0.25 years
 
0.25 years
 
0.25 years
Grant-date fair value
 
$11.73
 
$9.53
 
$10.21

 
Exercise of Employee Stock Options and Purchase Plans
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $30 million, $6 million, and $9 million, respectively. The total cash received from employees as a result of exercises under all share-based employee compensation arrangements for the years ended December 31, 2013, 2012 and 2011 was $87 million, $28 million, and $33 million, respectively. In connection with these exercises, the tax benefits generated from share-based employee compensation arrangements were $4 million, $1 million, and $1 million for the years ended December 31, 2013, 2012, and 2011, respectively.
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS
Pension Plans
We historically sponsored several defined benefit pension plans covering most employees not covered by union-administered plans, including certain employees in foreign countries. These plans generally provided participants with benefits based on years of service and career-average compensation levels. The funding policy for these plans is to make contributions based on annual service costs plus amortization of unfunded past service liability, but not greater than the maximum allowable contribution deductible for federal income tax purposes. We may, from time to time, make voluntary contributions to our pension plans, which exceed the amount required by statute. The majority of the plans’ assets are invested in a master trust that, in turn, is invested primarily in commingled funds whose investments are listed stocks and bonds. As discussed under the Pension Amendments section, we have frozen all of our major defined benefit pension plans.
We have a non-qualified supplemental pension plan covering certain U.S. employees, which provides for incremental pension payments from our funds so that total pension payments equal the amounts that would have been payable from our principal pension plans if it were not for limitations imposed by income tax regulations. The accrued pension liability related to this plan was $44 million and $46 million at December 31, 2013 and 2012, respectively.









Pension Expense
Pension expense from continuing operations was as follows:
  
 
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


 
In the fourth quarter of 2013, we determined certain census data used to actuarially determine the value of our pension benefit obligations for the years 1998 to 2012 was inaccurate. We recorded a one-time, non-cash charge of $4 million for the adjustment of our pension benefit obligation. We recorded the cumulative adjustment within "Selling, general and administrative expenses" in our Consolidated Statement of Earnings as the impact of revising our pension benefit obligation was not material to our consolidated financial statements in any individual prior period, and the cumulative amount is not material to 2013 results.

The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense:
 
 
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

The return on plan assets assumption reflects the weighted-average of the expected long-term rates of return for the broad categories of investments held in the plans. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns or in asset allocation strategies of the plan assets.





Pension Amendments
In past years, we made amendments to defined benefit retirement plans which froze the retirement benefits for non-grandfathered and certain non-union employees in the U.S., Canada and the United Kingdom (U.K.). As a result of these amendments, non-grandfathered plan participants ceased accruing benefits under the plan as of the respective amendment effective date and began receiving an enhanced benefit under a defined contribution plan. All retirement benefits earned as of the amendment effective date were fully preserved and will be paid in accordance with the plan and legal requirements. There was no material impact to our financial condition and operating results from the plan amendments.
 
Obligations and Funded Status
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:  
 
 
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
)

Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
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
)









Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
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


In 2014, we expect to recognize approximately $2 million of the prior service credit and $25 million of the net actuarial loss as a component of pension expense. 

The following table sets forth the weighted-average actuarial assumptions used in determining funded status:
 
 
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%

At December 31, 2013 and 2012, our pension obligations (accumulated benefit obligations (ABO) and projected benefit obligations (PBO)) greater than the fair value of related plan assets for our U.S. and foreign plans were as follows: 
 
 
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


Plan Assets 
Our pension investment strategy is to generate a total rate of return that is sufficient, coupled with existing assets and funding contributions, to support payment of the ongoing plan obligations with an acceptable, appropriate and reasonable level of total asset-liability risk. The plans utilize several investment strategies, including actively and passively managed equity and fixed income strategies. The investment policy establishes targeted allocations for each asset class that incorporate measures of asset and liability risks. Deviations between actual pension plan asset allocations and targeted asset allocations may occur as a result of investment performance and changes in the funded status from time to time. Rebalancing of our pension plan asset portfolios is evaluated periodically and rebalanced if actual allocations exceed an acceptable range. U.S. plans account for approximately 75% of our total pension plan assets. Equity securities primarily include investments in both domestic and international common collective trusts and publicly traded equities. Fixed income securities primarily include domestic collective trusts and corporate bonds. Other types of investments include private equity fund-of-funds and hedge fund-of-funds. Equity and fixed income securities in our international plans include actively and passively managed mutual funds.
In the fourth quarter of 2012, we modified our U.S. pension investment policy and strategy to reduce the effects of future volatility on the fair value of our pension assets relative to our pension liabilities as a result of an asset-liability study. Under the new strategy, we increase our allocation of high quality, longer-term fixed income securities and reduce our allocation of equity investments as the funded status of the plan improves.


The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2013 and 2012:
 
 
 
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

 
The following is a description of the valuation methodologies used for our pension assets as well as the level of input used to measure fair value:
Equity securities — These investments include common and preferred stocks and index common collective trusts that track U.S. and foreign indices. Fair values for the common and preferred stocks were based on quoted prices in active markets and were therefore classified within Level 1 of the fair value hierarchy. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy.
Fixed income securities — These investments include investment grade bonds of U.S. issuers from diverse industries, government issuers, index common collective trusts that track the Barclays Aggregate Index and other fixed income investments (primarily mortgage-backed securities). Fair values for the corporate bonds were valued using third-party pricing services. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. Since the corporate bonds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The other investments are not actively traded and fair values are estimated using bids provided by brokers, dealers or quoted prices of similar securities with similar characteristics or pricing models. Therefore, the other investments have been classified within Level 2 of the fair value hierarchy.



Private equity and hedge funds — These investments represent limited partnership interests in private equity and hedge funds. The partnership interests are valued by the general partners based on the underlying assets in each fund. The limited partnership interests are valued using unobservable inputs and have been classified within Level 3 of the fair value hierarchy.
The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2013 and 2012: 
 
 
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


The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:
 
(In thousands)

2014
$
94,446

2015
98,893

2016
105,008

2017
109,681

2018
115,414

2019-2023
649,051


For 2014, required pension contributions to our pension plans are estimated to be $75 million.
 
Multi-employer Plans
We also participate in multi-employer plans that provide defined benefits to certain employees covered by collective-bargaining agreements. Such plans are usually administered by a board of trustees comprised of the management of the participating companies and labor representatives. The net pension cost of these plans is equal to the annual contribution determined in accordance with the provisions of negotiated labor contracts. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following respects: 1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees and former employees of other participating employers; 2) if a participating employer is no longer able to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers at annual contribution rates under the collective bargaining agreements; 3) if there is a mass withdrawal of substantially all employers from the plan, we may be required to pay that plan an annual contribution based on historical contribution levels as prescribed by federal statute; and 4) if we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability.
During 2013, we recorded estimated pension settlement charges of $3 million for the exit from a U.S. multi-employer pension plan and the restructured agreement with another U.S. multi-employer pension plan. These charges were recorded within "Selling, general, and administrative expenses" in our Consolidated Statement of Earnings and is included in the Union-administered plans expense.

Our participation in these plans is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2013 and 2012 is for the plan years ended December 31, 2012 and December 31, 2011, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded.

 
 
 
 
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.

Our contributions are impacted by changes in contractual contributions rates as well as changes in the number of employees covered by each plan. Our contributions to the International Association of Machinists Motor City Pension Fund represented more than 5% of the total plan contributions for the plan year ended June 30, 2012.
Savings Plans
Employees who do not actively participate in pension plans and are not covered by union-administered plans are generally eligible to participate in enhanced savings plans. These plans provide for (i) a company contribution even if employees do not make contributions, (ii) a company match of employee contributions of eligible pay, subject to tax limits and (iii) a discretionary company match. Savings plan costs totaled $35 million in 2013, $33 million in 2012, and $33 million in 2011.
Deferred Compensation and Long-Term Compensation Plans
We have deferred compensation plans that permit eligible U.S. employees, officers and directors to defer a portion of their compensation. The deferred compensation liability, including Ryder matching amounts and accumulated earnings, totaled $34 million and $27 million at December 31, 2013 and 2012, respectively.
We have established grantor trusts (Rabbi Trusts) to provide funding for benefits payable under the supplemental pension plan, deferred compensation plans and long-term incentive compensation plans. The assets held in the trusts at December 31, 2013 and 2012 amounted to $35 million and $26 million, respectively. The Rabbi Trusts’ assets consist of short-term cash investments and a managed portfolio of equity securities, including our common stock. These assets, except for the investment in our common stock, are included in “Direct financing leases and other assets” because they are available to our general creditors in the event of insolvency. The equity securities are classified as trading securities and stated at fair value. Both realized and unrealized gains and losses are included in “Miscellaneous income, net.” The Rabbi Trusts’ investment of $2 million and $4 million in our common stock at December 31, 2013 and 2012, respectively, is reflected at historical cost and recorded against shareholders’ equity.

Other Postretirement Benefits
We sponsor plans that provide retired U.S. and Canadian employees with certain healthcare and life insurance benefits. Substantially all U.S. and Canadian employees not covered by union-administered health and welfare plans are eligible for the healthcare benefits. Healthcare benefits for our principal plan are generally provided to qualified retirees under age 65 and eligible dependents. This plan requires employee contributions that vary based on years of service and include provisions that limit our contributions. Effective January 1, 2014, we made amendments to our healthcare benefits for early retirees which modified future eligibility requirements for non-grandfathered retirees in the U.S. The post-retirement medical plan was closed on December 31, 2013 to participants who were not at least age 52 with 12 years of service as of December 31, 2013.
Total postretirement benefit expense was as follows: 
 
 
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


The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense: 
 
 
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%

 
Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
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


Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2013
 
2012
 
 
(In thousands)
Current liability
 
$
2,414

 
2,683

Noncurrent liability
 
28,374

 
37,916

Amount recognized
 
$
30,788

 
40,599



Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
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
)

In 2014, we expect to recognize approximately $2 million of the prior service credit as a component of postretirement benefit expense. The amount of net actuarial gain we expect to recognize in 2014 as a component of total postretirement benefit expense is not material.
Our annual measurement date is December 31 for both U.S. and foreign postretirement benefit plans. Assumptions used in determining accrued postretirement benefit obligations were as follows:
 
 
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


Changing the assumed healthcare cost trend rates by 1% in each year would not have a material effect on the accumulated postretirement benefit obligation at December 31, 2013 or annual postretirement benefit expense for 2013.
The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:
 
(In thousands)

2014
$
2,462

2015
2,602

2016
2,705

2017
2,758

2018
2,806

2019-2023
13,133

Environmental Matters
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS
Our operations involve storing and dispensing petroleum products, primarily diesel fuel, regulated under environmental protection laws. These laws require us to eliminate or mitigate the effect of such substances on the environment. In response to these requirements, we continually upgrade our operating facilities and implement various programs to detect and minimize contamination. In addition, we have received notices from the Environmental Protection Agency (EPA) and others that we have been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and Reauthorization Act and similar state statutes and may be required to share in the cost of cleanup of 19 identified disposal sites.
Our environmental expenses which are presented within “Other operating expenses” in our Consolidated Statements of Earnings, consist of remediation costs as well as normal recurring expenses such as licensing, testing and waste disposal fees. These expenses totaled $9 million in 2013 and $7 million in both 2012 and 2011, respectively. The carrying amount of our environmental liabilities was $13 million at both December 31, 2013 and 2012. Capital expenditures related to our environmental programs totaled approximately $1 million, $2 million, and $3 million in 2013, 2012, and 2011, respectively. Our asset retirement obligations related to fuel tanks to be removed are not included above and are recorded within “Accrued expenses and other current liabilities” and “Other non-current liabilities” in our Consolidated Balance Sheets.

The ultimate cost of our environmental liabilities cannot presently be projected with certainty due to the presence of several unknown factors, primarily the level of contamination, the effectiveness of selected remediation methods, the stage of investigation at individual sites, the determination of our liability in proportion to other responsible parties and the recoverability of such costs from third parties. Based on information presently available, we believe that the ultimate disposition of these matters, although potentially material to the results of operations in any one year, will not have a material adverse effect on our financial condition or liquidity.
Other Items Impacting Comparability
OTHER ITEMS IMPACTING COMPARABILITY
OTHER ITEMS IMPACTING COMPARABILITY
Our primary measure of segment performance excludes certain items we do not believe are representative of the ongoing operations of the segment. Excluding these items from our segment measure of performance allows for better year over year comparison.
Foreign Currency Translation Adjustment
During 2013, we recognized a benefit of $2 million from the recognition of the accumulated currency translation adjustment from a FMS foreign operation which substantially liquidated its net assets. This benefit was recorded within “Miscellaneous income, net” in our Consolidated Statements of Earnings.
Superstorm Sandy
During 2013, we recognized a benefit of $1 million from the recovery of Superstorm Sandy losses. In the fourth quarter of 2012, we incurred $8 million of losses for property damage to vehicles owned by full service lease customers for which Ryder had liability under certain agreements. The 2013 benefit and the 2012 charge were both recorded within “Cost of services” in our Consolidated Statements of Earnings. See Note 27, "Other Matters" for further discussion on the financial impact from Superstorm Sandy.
Acquisition-related Transaction Costs
During 2012 and 2011, we incurred transaction costs totaling $0.4 million and $2 million, respectively. These charges, which were primarily reflected within “Selling, general and administrative expenses” in our Consolidated Statements of Earnings, related to the acquisitions of Euroway in 2012 and Hill Hire in 2011.
Other Matters
Other Matters
OTHER MATTERS
On October 28, 2012, Superstorm Sandy caused widespread property damage and flooding to large areas of the East Coast and the northeastern United States. As a result of the storm, we incurred a liability of $8 million for property damage to vehicles owned by contractual FMS customers for which Ryder has liability under certain agreements. In December 2012, we enhanced our insurance coverage to mitigate this type of risk in the future. Additionally, company-owned units with a carrying value of $16 million were damaged or completely destroyed as a direct result of Superstorm Sandy.
We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations including but not limited to those relating to commercial and employment claims, environmental matters, risk management matters (e.g. vehicle liability, workers’ compensation, etc.) and administrative assessments primarily associated with operating taxes. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. For matters from continuing operations where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements.
Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates..

Refer to Note 4, "Discontinued Operations," for additional matters.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information was as follows:  
 
 
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

 


____________________________
(1) The 2012 amount includes $20 million of capital leases assumed in the Euroway acquisition.
Segment Reporting
SEGMENT REPORTING
SEGMENT REPORTING
We operate in two business segments: Fleet Management Solutions (FMS), which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; and Supply Chain Solutions (SCS), which provides comprehensive supply chain consulting including distribution and transportation services in North America and Asia. The SCS segment also provides dedicated services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S.

Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of CSS and excludes non-operating pension costs, restructuring and other charges, net described in Note 5, “Restructuring and Other (Recoveries) Charges” and excludes the items discussed in Note 26, “Other Items Impacting Comparability.” CSS represents those costs incurred to support all business segments, including human resources, finance, corporate services, public affairs, information technology, health and safety, legal and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS and SCS as follows:

Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization;

Human resources — individual costs within this category are allocated in several ways, including allocation based on
estimated utilization and number of personnel supported;

Information technology — principally allocated based upon utilization-related metrics such as number of users or
minutes of CPU time. Customer-related project costs and expenses are allocated to the business segment responsible
for the project; and

Other — represents legal and other centralized costs and expenses including certain share-based incentive
compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported.

Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS segment. Inter-segment revenue and EBT are accounted for at rates similar to those executed with third parties. EBT related to inter-segment equipment and services billed to customers (equipment contribution) are included in both FMS and SCS and then eliminated (presented as “Eliminations”). In 2013, we revised the methodology used to allocate intercompany earnings to SCS and recasted the SCS EBT and Eliminations previously presented in 2013. The results in 2012 and 2011 were not materially impacted by the new methodology.

Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Each business segment follows the same accounting policies as described in Note 1, “Summary of Significant Accounting Policies.” Business segment revenue and EBT from continuing operations is as follows:
 
 
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.
 

The following table sets forth share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges, net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2013, 2012 and 2011 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
 
 
 
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.

Geographic 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


Certain Concentrations
We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many industries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of full service lease and commercial rental customers is not concentrated in any one particular industry or geographic region. We derive a significant portion of our SCS revenue from the automotive industry, mostly from manufacturers and suppliers of original equipment parts. During 2013, 2012 and 2011, the automotive industry accounted for approximately 29%, 30% and 27%, respectively, of SCS total revenue.
Quarterly Information (Unaudited)
QUARTERLY INFORMATION (UNAUDITED)
QUARTERLY INFORMATION (UNAUDITED)
 
 
 
 
 
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


Quarterly and year-to-date computations of per share amounts are made independently; therefore, the sum of per-share amounts for the quarters may not equal per-share amounts for the year.
See Note 4, “Discontinued Operations,” Note 5, “Restructuring and Other (Recoveries) Charges,” and Note 26, “Other Items Impacting Comparability,” for items included in earnings during 2013 and 2012.
Earnings in the first quarter of 2012 included an income tax benefit of $5 million, or $0.10 per diluted common share, related to a favorable resolution of a tax item from prior periods. Earnings in the third quarter of 2012 included an income tax charge of $1 million, or $0.02 per diluted common share, relating to a tax law change in the UK.
Valuation and Qualifying Accounts
VALUATION AND QUALIFYING ACCOUNTS
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.
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2013
Accounting Policies [Abstract]
 
Basis of Consolidation and Presentation
Reclassifications
Use of Estimates
Cash Equivalents
Restricted Cash
Revenue Recognition
Accounts Receivable Allowance
Accounts Receivable AllowanceWe maintain an allowance for uncollectible customer receivables and an allowance for billing adjustments related to certain discounts and billing corrections. Estimates are updated regularly based on historical experience of bad debts and billing adjustments processed, current collection trends and aging analysis. Accounts are charged against the allowance when determined to be uncollectible. The allowance is maintained at a level deemed appropriate based on loss experience and other factors affecting collectibility. Historical results may not necessarily be indicative of future results. 
Inventories
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation
Goodwill and Other Intangible Assets
Impairment of Long-Lived Assets Other than Goodwill
Debt Issuance Costs
Contract Incentives
Self-Insurance Accruals
Residual Value Guarantees and Deferred Gains
Income Taxes
Severance and Contract Termination Costs
Environmental Expenditures
Asset Retirement Obligations
Derivative Instruments and Hedging Activities
Foreign Currency Translation
Share-Based Compensation
Defined Benefit Pension and Postretirement Benefit Plans
Fair Value Measurements
Earnings Per Share
Share Repurchases
Basis of Consolidation and Presentation
The consolidated financial statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (“subsidiaries”) and variable interest entities (“VIEs”) where Ryder is determined to be the primary beneficiary. Ryder is deemed to be the primary beneficiary if we have the power to direct the activities that most significantly impact the entity’s economic performance and we share in the significant risks and rewards of the entity. All significant intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.
Reclassifications
In 2013, we revised our classification of product line revenue between "Contract maintenance" and "Contract-related maintenance" within the Fleet Management Solutions revenue in Note 29, "Segment Reporting." Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole.

Use of Estimates
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on management’s best knowledge of historical trends, actions that we may take in the future, and other information available when the consolidated financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. Areas where the nature of the estimate make it reasonably possible that actual results could materially differ from the amounts estimated include: depreciation and residual value guarantees, employee benefit plan obligations, self-insurance accruals, impairment assessments on long-lived assets (including goodwill and indefinite-lived intangible assets), revenue recognition, allowance for accounts receivable, income tax liabilities and contingent liabilities.
Cash Equivalents
Cash equivalents represent cash in excess of current operating requirements invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and are stated at cost.
Restricted Cash
Restricted cash primarily consists of cash proceeds from the sale of eligible vehicles set aside for the acquisition of replacement vehicles under our like-kind exchange tax program. See Note 14, “Income Taxes,” for a complete discussion of the vehicle like-kind exchange tax program. We classify restricted cash within “Prepaid expenses and other current assets” if the restriction is expected to expire in the twelve months following the balance sheet date or within “Direct financing leases and other assets” if the restriction is expected to expire more than twelve months after the balance sheet date. The changes in restricted cash balances are reflected as an investing activity in our Consolidated Statements of Cash Flows as they relate to the sales and purchases of revenue earning equipment.
Revenue Recognition
We recognize revenue when persuasive evidence of an arrangement exists, the services have been rendered to customers or delivery has occurred, the pricing is fixed or determinable, and collectibility is reasonably assured. In our evaluation of whether revenue is fixed or determinable, we determine whether the total contract consideration in the arrangement could change based on one or more factors. These factors, which vary among each of our segments, are further discussed below. Generally, the judgments made for these purposes do not materially impact the revenue recognized in any period. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue.
Our judgments on collectibility are initially established when a business relationship with a customer is initiated and is continuously monitored as services are provided. We have a credit rating system based on internally developed standards and ratings provided by third parties. Our credit rating system, along with monitoring for delinquent payments, allows us to make decisions as to whether collectibility may not be reasonably assured. Factors considered during this process include historical payment trends, industry risks, liquidity of the customer, years in business, and judgments, liens or bankruptcies. When collectibility is not considered reasonably assured (typically when a customer is 120 days past due), revenue is not recognized until cash is collected from the customer.

We generate revenue primarily through the lease, rental and maintenance of revenue earning equipment and by providing logistics management and dedicated services. We classify our revenues in one of the following categories:
Lease and rental
Lease and rental includes full service lease and commercial rental revenues from our FMS business segment. Full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues.
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines.
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL).

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.
Services
Services include contract maintenance, contract-related maintenance and other revenues from our FMS business segment and all SCS revenues.
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and access to emergency road service and substitute vehicles. The vast majority of our services are routine services performed on a recurring basis throughout the term of the arrangement. From time to time, we provide non-routine major repair services in order to place a vehicle back in service. Revenue from maintenance service contracts is recognized on a straight-line basis as maintenance services are rendered over the terms of the related arrangements.

Contract maintenance arrangements are generally cancelable, without penalty, after one year with 60 days prior written notice. Our maintenance service arrangement provides for a monthly fixed charge and a monthly variable charge based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Most contract maintenance agreements allow for rate changes based upon changes in the CPI. The fixed per-mile charge and the changes in rates attributed to changes in the CPI are recognized as earned. Costs associated with the activities performed under our contract maintenance arrangements are primarily comprised of labor, parts and outside work. These costs are expensed as incurred. Non-chargeable maintenance costs have been allocated and reflected within “Cost of services” based on the relative maintenance-related labor costs relative to all product lines.
Revenue from SCS service contracts is recognized as services are rendered in accordance with contract terms, which typically include discrete billing rates for the services. In certain SCS contracts, a portion of the contract consideration may be contingent upon the satisfaction of performance criteria, attainment of pain/gain share thresholds or volume thresholds. The contingent portion of the revenue in these arrangements is not considered fixed or determinable until the performance criteria or thresholds have been met. In transportation management arrangements where we act as principal, revenue is reported on a gross basis, without deducting third-party purchased transportation costs. To the extent that we are acting as an agent in the arrangement, revenue is reported on a net basis, after deducting purchased transportation costs.
Fuel
Fuel services include fuel services revenue from our FMS business segment. Revenue from fuel services is recognized when fuel is delivered to customers. Fuel is largely a pass-through to our customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.
Inventories
Inventories, which consist primarily of fuel, tires and vehicle parts, are valued using the lower of weighted-average cost or market.
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation
Revenue earning equipment, comprised of vehicles and operating property and equipment are initially recorded at cost inclusive of vendor rebates. Revenue earning equipment and operating property and equipment under capital lease are initially recorded at the lower of the present value of minimum lease payments or fair value. Vehicle repairs and maintenance that extend the life or increase the value of a vehicle are capitalized, whereas ordinary maintenance and repairs are expensed as incurred. The cost of vehicle replacement tires and tire repairs are expensed as incurred. Direct costs incurred in connection with developing or obtaining internal-use software are capitalized. Costs incurred during the preliminary software development project stage, as well as maintenance and training costs, are expensed as incurred.
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the related lease, which may include one or more option renewal periods where failure to exercise such options would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. If a substantial additional investment is made in a leased property during the term of the lease, we re-evaluate the lease term to determine whether the investment, together with any penalties related to non-renewal, would constitute an economic penalty in such amount that renewal appears to be reasonably assured.

Provision for depreciation is computed using the straight-line method on all depreciable assets. Depreciation expense has been recorded within "Cost of lease and rental," "Cost of services," and "Cost of fuel services" and "Other operating expenses" depending on the nature of the related asset.We periodically review and adjust, as appropriate, the residual values and useful lives of revenue earning equipment. Our review of the residual values and useful lives of revenue earning equipment, is established with a long-term view considering historical market price changes, current and expected future market price trends, expected life of vehicles and extent of alternative uses. Factors that could cause actual results to materially differ from estimates include but are not limited to unforeseen changes in technology innovations.
We routinely dispose of used revenue earning equipment as part of our FMS business. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks, and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value is determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Reductions in the carrying values of vehicles held for sale are recorded within “Other operating expenses” in the Consolidated Statements of Earnings. While we believe our estimates of residual values and fair values of revenue earning equipment are reasonable, changes to our estimates of values may occur due to changes in the market for used vehicles, the condition of the vehicles, and inherent limitations in the estimation process.
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.”
Goodwill and Other Intangible Assets
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows.
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized.
Our valuation of fair value for each reporting unit is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. We consider the current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital at a point in time. Our discount rates reflect a weighted average cost of capital based on our industry and capital structure adjusted for equity risk premiums and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss. While we believe our estimates of future cash flows are reasonable, there can be no assurance that deterioration in economic conditions, customer relationships or adverse changes to expectations of future performance will not occur, resulting in a goodwill impairment loss.
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. Rates used to discount future cash flows are dependent upon interest rates and the cost of capital at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future.

Identifiable intangible assets not subject to amortization are assessed for impairment using a similar process to that used to evaluate goodwill as described above. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.
Impairment of Long-Lived Assets Other than Goodwill
Long-lived assets held and used, including revenue earning equipment, operating property and equipment and intangible assets with finite lives, are tested for recoverability when circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of long-lived assets is evaluated by comparing the carrying amount of an asset or asset group to management’s best estimate of the undiscounted future operating cash flows (excluding interest charges) expected to be generated by the asset or asset group. If these comparisons indicate that the asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying value of the asset or asset group exceeds fair value. Fair value is determined by a quoted market price, if available, or an estimate of projected future operating cash flows, discounted using a rate that reflects the related operating segment’s average cost of funds. Long-lived assets to be disposed of including revenue earning equipment, operating property and equipment and indefinite-lived intangible assets, are reported at the lower of carrying amount or fair value less costs to sell.
Debt Issuance Costs
Costs incurred to issue debt are generally deferred and amortized as a component of interest expense over the estimated term of the related debt using the effective interest rate method. Debt issuance costs associated with our global revolving credit facility are deferred and amortized on a straight-line basis over the term of the facility.
Contract Incentives
Payments made to or on behalf of a lessee or customer upon entering into a lease of our revenue earning equipment or contract are deferred and recognized on a straight-line basis as a reduction of revenue over the contract term. Amounts to be amortized in the next year have been classified as “Prepaid expenses and other current assets” with the remainder included in “Direct financing leases and other assets.”
Self-Insurance Accruals
We retain a portion of the accident risk under vehicle liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets.
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets.
Residual Value Guarantees and Deferred Gains
We periodically enter into agreements for the sale and leaseback of revenue earning equipment. These leases contain purchase and/or renewal options as well as limited guarantees of the lessor’s residual value (“residual value guarantees”). We review the residual values of revenue earning equipment that we lease from third parties and our exposures under residual value guarantees. The review is conducted in a manner similar to that used to analyze residual values and fair values of owned revenue earning equipment. Certain residual value guarantees are conditioned on termination of the lease prior to its contractual lease term. For sale and leaseback of revenue earning equipment accounted for as operating leases, the amount of residual value guarantees expected to be paid is recognized as rent expense over the expected remaining term of the lease. Adjustments in the estimate of residual value guarantees are recognized prospectively over the expected remaining lease term. While we believe that the amounts are adequate, changes to our estimates of residual value guarantees may occur due to changes in the market for used vehicles, the condition of the vehicles at the end of the lease and inherent limitations in the estimation process. See Note 19, “Guarantees,” for additional information.
 
Gains on the sale and operating leaseback of revenue earning equipment are deferred and amortized on a straight-line basis over the term of the lease as an adjustment of rent expense (operating leases) or depreciation expense (capital lease).
Income Taxes
Our provision for income taxes is based on reported earnings before income taxes. Deferred taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using tax rates in effect for the years in which the differences are expected to reverse.
The effects of changes in tax laws on deferred tax balances are recognized in the period the new legislation is enacted. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers estimates of future taxable income. We calculate our current and deferred tax position based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified.
We are subject to tax audits in numerous jurisdictions in the U.S. and around the world. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Services (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. We determine whether the benefits of our tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are at least more likely than not of being sustained upon audit, we recognize the largest amount of the benefit that is more likely than not of being sustained in our consolidated financial statements. For all other tax positions, we do not recognize any portion of the benefit in our consolidated financial statements. To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made.
Interest and penalties related to income tax exposures are recognized as incurred and included in “Provision for income taxes” in our Consolidated Statements of Earnings. Accruals for income tax exposures, including penalties and interest, expected to be settled within the next year are included in “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets. The federal benefit from state income tax exposures is included in “Deferred income taxes” in our Consolidated Balance Sheets.
Severance and Contract Termination Costs
We recognize liabilities for severance and contract termination costs based upon the nature of the cost to be incurred. For involuntary separation plans that are completed within the guidelines of our written involuntary separation plan, we record the liability when it is probable and reasonably estimable. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as contract termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Severance related to position eliminations that are part of a restructuring plan are recorded within “Restructuring and other (recoveries) charges, net” in the Consolidated Statements of Earnings. To the extent that severance costs are not part of a restructuring plan, the termination costs are recorded as a direct cost of revenue or within “Selling, general and administrative expenses,” in the Consolidated Statements of Earnings depending upon the nature of the eliminated position.
Environmental Expenditures
We record liabilities for environmental assessments and/or cleanup when it is probable a loss has been incurred and the costs can be reasonably estimated. Environmental liability estimates may include costs such as anticipated site testing, consulting, remediation, disposal, post-remediation monitoring and legal fees, as appropriate. The liability does not reflect possible recoveries from insurance companies or reimbursement of remediation costs by state agencies, but does include estimates of cost sharing with other potentially responsible parties. Estimates are not discounted, as the timing of the anticipated cash payments is not fixed or readily determinable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. In future periods, new laws or regulations, advances in remediation technology and additional information about the ultimate remediation methodology to be used could significantly change our estimates. Claims for reimbursement of remediation costs are recorded when recovery is deemed probable.
Asset Retirement Obligations
Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets. Our AROs are associated with underground tanks, tires and leasehold improvements. These liabilities are initially recorded at fair value and the related asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, we expense period-to-period changes in the ARO liability resulting from the passage of time.
Derivative Instruments and Hedging Activities
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default.
On the date a derivative contract is entered into, we formally document, among other items, the intended hedging designation and relationship, along with the risk management objectives and strategies for entering into the derivative contract. We also formally assess, both at inception and on an ongoing basis, whether the derivatives we used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Cash flows from derivatives that are accounted for as hedges are classified in the Consolidated Statements of Cash Flows in the same category as the items being hedged. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively.
The hedging designation may be classified as one of the following:
No Hedging Designation. The gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized in earnings.
Fair Value Hedge. A hedge of a recognized asset or liability or an unrecognized firm commitment is considered a fair value hedge. For fair value hedges, both the effective and ineffective portions of the changes in the fair value of the derivative, along with the gain or loss on the hedged item that is attributable to the hedged risk, are both recorded in earnings.
Cash Flow Hedge. A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is considered a cash flow hedge. The effective portion of the change in the fair value of a derivative that is declared as a cash flow hedge is recorded in “Accumulated other comprehensive loss” until earnings are affected by the variability in cash flows of the designated hedged item.
Net Investment Hedge. A hedge of a net investment in a foreign operation is considered a net investment hedge. The effective portion of the change in the fair value of the derivative used as a net investment hedge of a foreign operation is recorded in the currency translation adjustment account within “Accumulated other comprehensive loss.” The ineffective portion, if any, on the hedged item that is attributable to the hedged risk is recorded in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Foreign Currency Translation
Our foreign operations generally use the local currency as their functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. If exchangeability between the functional currency and the U.S. dollar is temporarily lacking at the balance sheet date, the first subsequent rate at which exchanges can be made is used to translate assets and liabilities. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is recorded in “Changes in cumulative translation adjustment and other, before and after tax” in the Consolidated Statements of Comprehensive Income as a currency translation adjustment. Upon sale or upon complete or substantially complete liquidation of an investment in a foreign operation, the currency translation adjustment attributable to that operation is removed from accumulated other comprehensive loss and is reported as part of the gain or loss on sale or liquidation of the investment for the period during which the sale or liquidation occurs. Gains and losses resulting from foreign currency transactions are recorded in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Share-Based Compensation
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits.
Defined Benefit Pension and Postretirement Benefit Plans
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a pension and postretirement benefit liability equal to this excess.

The current portion of pension and postretirement benefit liabilities represent the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recorded in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets.
Pension and postretirement benefit expense includes service cost, interest cost, expected return on plan assets (if funded), and amortization of prior service credit and net actuarial loss. Service cost represents the actuarial present value of participant benefits earned in the current year. Interest cost represents the time value of money cost associated with the passage of time. The expected return on plan assets represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the obligation. Prior service credit represents the impact of negative plan amendments. Net actuarial loss arises as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service cost, net of tax" in the Consolidated Statements of Comprehensive Income. These pension and postretirement items are subsequently amortized as a component of pension and postretirement benefit expense over the remaining service period, if the majority of the employees are active, otherwise over the remaining life expectancy, provided such amounts exceed thresholds which are based upon the benefit obligation or the value of plan assets.
The measurement of benefit obligations and pension and postretirement benefit expense is based on estimates and assumptions approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates.
Fair Value Measurements
We carry various assets and liabilities at fair value in the Consolidated Balance Sheets. The most significant assets and liabilities are vehicles held for sale, which are stated at the lower of carrying amount or fair value less costs to sell, investments held in Rabbi Trusts and derivatives.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified based on the following fair value hierarchy:
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.

When available, we use unadjusted quoted market prices to measure fair value and classify such measurements within Level 1. If quoted prices are not available, fair value is based upon model-driven valuations that use current market-based or independently sourced market parameters such as interest rates and currency rates. Items valued using these models are classified according to the lowest level input or value driver that is significant to the valuation.
Revenue earning equipment held for sale is measured at fair value on a nonrecurring basis and is stated at the lower of carrying amount or fair value less costs to sell. Investments held in Rabbi Trusts, derivatives, and contingent consideration are carried at fair value on a recurring basis. Investments held in Rabbi Trusts include exchange-traded equity securities and mutual funds. Fair values for these investments are based on quoted prices in active markets. For derivatives, fair value is based on model-driven valuations using the LIBOR rate or observable forward foreign exchange rates, which are observable at commonly quoted intervals for the full term of the financial instrument. Fair value of contingent consideration is based on significant unobservable inputs based on contractual provisions and our expectations of what will be paid.
Earnings Per Share
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock (time-vested restricted stock rights, market-based restricted stock rights and restricted stock units) issued prior to 2012 are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Share Repurchases
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase.
Acquisitions (Tables)
The following table provides the final allocated fair values of the assets acquired and the liabilities assumed at the date of the Hill Hire acquisition:
 
 
 
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

The following table provides the unaudited pro forma revenues, net earnings and earnings per common share as if the results of the Hill Hire acquisition had been included in operations commencing January 1, 2010. This pro forma information is not necessarily indicative either of the combined results of operations that actually would have been realized had the acquisition been consummated during the periods for which the pro forma information is presented, or of future results. Pro forma information for the Euroway acquisition in 2012 and the other acquisitions in 2011 is not disclosed because the pro forma effect of these acquisitions is not significant.

 
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

 
 
Discontinued Operations (Tables)
Summarized results of discontinued operations were as follows:
 
 
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
)
The following is a summary of assets and liabilities of discontinued operations:
 
 
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

Restructuring and Other Charges (Tables)
The components of restructuring and other (recoveries) charges, net in 2013, 2012 and 2011 were as follows: 
 
 
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

As mentioned in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other (recoveries) charges, net. However, the applicable portion of the restructuring and other (recoveries) charges, net that related to each segment in 2013, 2012 and 2011 were as follows:
 
 
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


The following table presents a roll-forward of the activity and balances of our restructuring reserves, including discontinued operations for the years ended December 31, 2013 and 2012:
 
 
 
 
 
 
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.
Receivables (Tables)
Receivables
 
 
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.
Prepaid Expenses and Other Current Assets (Tables)
Prepaid expenses and other current assets
 
 
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

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
 
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.
Operating Property And Equipment (Tables)
Operating Property and Equipment
 
 
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

Goodwill (Tables)
Carrying amount of goodwill attributable to each reportable business segment
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
 
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

Intangible Assets (Tables)
 
 
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

The future amortization expense for each of the five succeeding years related to all intangible assets that are currently recorded in the Consolidated Balance Sheets is estimated to be as follows at December 31, 2013:
 
(In thousands)
2014
$
6,545

2015
6,428

2016
6,420

2017
6,420

2018
5,948

 
 
Total
$
31,761

 
 
Direct Financing Leases and Other Assets (Tables)
Direct financing leases and other assets
 
 
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

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
 
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

_________________
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.

Income Taxes (Tables)
The components of earnings from continuing operations before income taxes and the provision for income taxes from continuing operations were as follows:
 
 
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.”
A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:
 
 
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

The following provides a summary of the impact of changes in tax laws on net earnings from continuing operations by tax jurisdiction:
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)
The components of the net deferred income tax liability were as follows:
 
 
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.
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
 
 
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

Leases (Tables)
The net investment in direct financing and sales-type leases consisted of:
 
 
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

The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2013:
 
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

 
 
 
 
The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the years ended December 31, 2013 and 2012:
 
(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

Future minimum payments for leases in effect at December 31, 2013 were as follows:
 
 
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.
Debt (Tables)
 
 
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
Maturities of total debt are as follows:
 
 
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 (Tables)
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:
 
 
 
 
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

The following table presents our assets that are measured at fair value on a nonrecurring basis and the levels of inputs used to measure fair value:
 
 
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.
Derivatives (Tables)
 
As of December 31
The location and amount of (gains) losses on derivative instruments and related hedged items reported in the Consolidated Statements of Earnings were as follows:
 
  
 
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
 
 
 
$

 

 

Guarantees (Tables)
At December 31, 2013 and 2012, the maximum determinable exposure of each type of guarantee and the corresponding liability, if any, recorded on the Consolidated Balance Sheets were as follows:
 
 
 
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.
At December 31, 2013 and 2012, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2013
 
2012
 
 
(In thousands)
Letters of credit
 
$
210,995

 
198,227

Surety bonds
 
99,486

 
95,856

Accumulated Other Comprehensive Loss (Tables)
Summary of components of accumulated other comprehensive loss, net of tax
The Comprehensive income (loss) presents a measure of all changes in shareholders’ equity except for changes resulting from transactions with shareholders in their capacity as shareholders. The following summary sets forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
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. 

The loss from currency translation adjustments in 2013 of $22 million was due to the weakening of the Canadian Dollar compared to the U.S. Dollar, which was partially offset by the strengthening of the British Pound. The currency translation adjustment in 2012 of $30 million reflects the strengthening of the Canadian Dollar and the British Pound against the U.S. Dollar. The loss from currency translation adjustments in 2011 of $18 million was due to the weakening of the Canadian Dollar compared to the U.S. Dollar.

Earnings Per Share Information (Tables)
Schedule of basic and diluted earnings per common share from continuing operations
The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
 
Years ended December 31,
 
 
2013
 
2012
 
2011
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
243,196

 
200,899

 
171,368

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,173
)
 
(2,566
)
 
(2,751
)
Earnings from continuing operations available to common shareholders — Basic
 
$
241,023

 
198,333

 
168,617

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
51,617

 
50,449

 
50,500

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
4.67

 
3.93

 
3.34

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
243,196

 
200,899

 
171,368

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,159
)
 
(2,556
)
 
(2,737
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
241,037

 
198,343

 
168,631

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
51,617

 
50,449

 
50,500

Effect of dilutive equity awards
 
454

 
291

 
378

Weighted average common shares outstanding— Diluted
 
52,071

 
50,740

 
50,878

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
4.63

 
3.91

 
3.31

Anti-dilutive equity awards and market-based restrictive stocks rights not included above
 
785

 
2,278

 
1,514

Share-Based Compensation Plans (Tables)
The following table provides information on share-based compensation expense and income tax benefits recognized in 2013, 2012 and 2011:
 
 
Years ended December 31,
 
 
2013
 
2012
 
2011
 
 
(In thousands)
Stock option and stock purchase plans
 
$
8,303

 
9,469

 
9,497

Nonvested stock
 
11,007

 
9,395

 
7,926

Share-based compensation expense
 
19,310

 
18,864

 
17,423

Income tax benefit
 
(6,224
)
 
(6,309
)
 
(5,794
)
Share-based compensation expense, net of tax
 
$
13,086

 
12,555

 
11,629

The following table is a summary of compensation expense recognized related to cash awards in addition to share-based compensation expense reported in the previous table.
 
 
Years ended December 31
 
 
2013
 
2012
 
2011
 
 
(In thousands)
Cash awards
 
$
996

 
1,099

 
1,882

The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2013:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
3,148

 
$
46.36

 
 
 
 
Granted
 
391

 
58.27

 
 
 
 
Exercised
 
(1,730
)
 
45.28

 
 
 
 
Forfeited or expired
 
(92
)
 
49.56

 
 
 
 
Options outstanding at December 31
 
1,717

 
$
49.99

 
4.9
 
$
40,861

Vested and expected to vest at December 31
 
1,653

 
$
49.75

 
4.5
 
$
39,730

Exercisable at December 31
 
889

 
$
45.34

 
3.2
 
$
25,285

Information about options in various price ranges at December 31, 2013 follows:
 
 
Options Outstanding
 
Options Exercisable
Price Ranges
 
Shares
 
Weighted-
Average
Remaining
Contractual
Term
 
Weighted-
Average  Exercise
Price
 
Shares
 
Weighted-
Average  Exercise
Price
 
 
(In thousands)
 
(In years)
 
 

 
(In thousands)
 
 
Less than $45.00
 
354
 
2.9
 
$
33.14

 
354
 
$
33.14

45.00-50.00
 
412
 
4.1
 
49.39

 
254
 
49.39

50.00-55.00
 
413
 
4.9
 
53.57

 
128
 
53.47

55.00 and over
 
538
 
6.9
 
58.79

 
153
 
60.07

Total
 
1,717
 
4.9
 
$
49.99

 
889
 
$
45.34

The following is a summary of the status of Ryder’s nonvested restricted stock awards as of and for the year ended December 31, 2013:
 
 
Time-Vested
 
Market-Based Vested
 
Performance-Based Vested
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Nonvested stock outstanding at January 1
 
440
 
$
49.16

 
387
 
$
25.35

 
 
$

Granted
 
162
 
58.39

 
23
 
53.66

 
16
 
58.27

Vested
 
(58)
 
40.19

 
 

 
 

Forfeited
 
(10)
 
58.85

 
(205)
 
20.19

 
(1)
 
58.21

Nonvested stock outstanding at December 31
 
534
 
$
52.58

 
205
 
$
33.71

 
15
 
$
58.27

The following table summarizes the status of Ryder’s ESPP:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Outstanding at January 1
 
 
$

 
 
 
 
Granted
 
194
 
48.72

 
 
 
 
Exercised
 
(194)
 
48.72

 
 
 
 
Forfeited or expired
 
 

 
 
 
 
Outstanding at December 31
 

 
$

 

 
$

Exercisable at December 31
 

 
$

 

 
$

The following table presents the weighted-average assumptions used for options granted:
 
 
Years ended December 31,
  
 
2013
 
2012
 
2011
Option plans:
 
 
 
 
 
 
Expected dividends
 
2.1%
 
2.2%
 
2.2%
Expected volatility
 
35.1%
 
40.7%
 
38.7%
Risk-free rate
 
0.7%
 
0.6%
 
1.7%
Expected term in years
 
4.3 years
 
3.7 years
 
3.6 years
Grant-date fair value
 
$13.97
 
$14.07
 
$12.88
Purchase plan:
 
 
 
 
 
 
Expected dividends
 
2.2%
 
2.7%
 
2.4%
Expected volatility
 
28.0%
 
32.7%
 
32.8%
Risk-free rate
 
0.1%
 
0.1%
 
0.1%
Expected term in years
 
0.25 years
 
0.25 years
 
0.25 years
Grant-date fair value
 
$11.73
 
$9.53
 
$10.21
Employee Benefit Plans (Tables)
Pension expense from continuing operations was as follows:
  
 
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

The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:  
 
 
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
)
Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
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
)
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
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

At December 31, 2013 and 2012, our pension obligations (accumulated benefit obligations (ABO) and projected benefit obligations (PBO)) greater than the fair value of related plan assets for our U.S. and foreign plans were as follows: 
 
 
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

The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2013 and 2012:
 
 
 
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

 
The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2013 and 2012: 
 
 
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

The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:
 
(In thousands)

2014
$
94,446

2015
98,893

2016
105,008

2017
109,681

2018
115,414

2019-2023
649,051

The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense: 
 
 
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.
The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense:
 
 
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
The following table sets forth the weighted-average actuarial assumptions used in determining funded status:
 
 
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%
Total postretirement benefit expense was as follows: 
 
 
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

Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2013
 
2012
 
 
(In thousands)
Current liability
 
$
2,414

 
2,683

Noncurrent liability
 
28,374

 
37,916

Amount recognized
 
$
30,788

 
40,599

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
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
)
Assumptions used in determining accrued postretirement benefit obligations were as follows:
 
 
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

The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:
 
(In thousands)

2014
$
2,462

2015
2,602

2016
2,705

2017
2,758

2018
2,806

2019-2023
13,133

Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
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

Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:  
 
 
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

 


____________________________
(1) The 2012 amount includes $20 million of capital leases assumed in the Euroway acquisition.

Segment Reporting (Tables)
Business segment revenue and EBT from continuing operations is as follows:
 
 
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.
The following table sets forth share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges, net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2013, 2012 and 2011 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
 
 
 
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

Quarterly Information (Unaudited) (Tables)
Quarterly Information
 
 
 
 
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

Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Summary of Significant Accounting Policies (Textual) [Abstract]
 
Contract maintenance arrangements cancelable without penalty
after one year with 60 days prior written notice 
Revenue recognition criteria description
typically when a customer is 120 days past due 
Direct financing lease revenue recognition criteria description
generally over 120 days past due 
Interest-bearing instruments maturities
three months or less at the date of purchase 
Maximum amount of insurance risk of loss retained per occurrence
$ 3 
Accounting Changes Accounting Changes (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Deferred Tax Liabilities, Net, Noncurrent
$ 1,390,881 
$ 1,177,074 
FIN 48 [Member] |
Restatement Adjustment [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Deferred Tax Liabilities, Net, Noncurrent
$ 40,000 
 
Acquisitions (Details) (Hill Hire [Member], USD $)
In Thousands, unless otherwise specified
Jun. 8, 2011
Hill Hire [Member]
 
Summary of purchase price allocations
 
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 
Assets
291,929 
Liabilities, primarily accrued liabilities
(40,434)
Net asset acquired
$ 251,495 
Acquisitions (Details 1) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Euroway Ltd. [Member]
Aug. 1, 2012
Euroway Ltd. [Member]
Jan. 10, 2011
Carmenita Leasing Inc [Member]
Fleet Management Solutions [Member]
Person
Vehicle
Jan. 28, 2011
The Scully Companies [Member]
FMS/DCC [Member]
Person
Vehicle
Mar. 31, 2012
BIT Leasing Inc [Member]
Fleet Management Solutions [Member]
Person
Vehicle
Business Acquisition [Line Items]
 
 
 
 
 
Business Acquisition, Contingent Consideration, Potential Cash Payment
$ 0.5 
 
 
 
 
Goodwill
 
 
 
 
Summary of acquisitions
 
 
 
 
 
Number of full services lease and rental vehicles
 
 
190 
2,100 
490 
Number of contractual customers acquired
 
 
60 
200 
130 
Purchase price of acquisitions
 
$ 2 
$ 9 
$ 91 
$ 14 
Acquisitions (Details 3) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Schedule of unaudited proforma information
 
 
 
 
 
 
 
 
 
 
 
Revenue - As reported
$ 1,617,729 
$ 1,634,540 
$ 1,603,999 
$ 1,563,017 
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 6,419,285 
$ 6,256,967 
$ 6,050,534 
Revenue - Pro forma
 
 
 
 
 
 
 
 
 
 
6,118,104 
Net earnings - As reported
64,607 
71,067 
62,194 
39,924 
53,844 
75,091 
46,723 
34,321 
237,792 
209,979 
169,777 
Net earnings - Pro forma
 
 
 
 
 
 
 
 
 
 
$ 184,849 
Net earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic - As reported (USD per share)
$ 1.23 
$ 1.36 
$ 1.20 
$ 0.77 
$ 1.05 
$ 1.47 
$ 0.92 
$ 0.67 
$ 4.57 
$ 4.11 
$ 3.31 
Basic - Pro forma (USD per share)
 
 
 
 
 
 
 
 
 
 
$ 3.60 
Diluted - As reported (USD per share)
$ 1.22 
$ 1.35 
$ 1.19 
$ 0.77 
$ 1.05 
$ 1.47 
$ 0.91 
$ 0.67 
$ 4.53 
$ 4.09 
$ 3.28 
Diluted - Pro forma (USD per share)
 
 
 
 
 
 
 
 
 
 
$ 3.58 
Acquisitions (Details Textual) (USD $)
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Euroway Ltd. [Member]
Dec. 31, 2012
Euroway Ltd. [Member]
Aug. 1, 2012
Euroway Ltd. [Member]
Vehicle
Dec. 31, 2012
Hill Hire [Member]
Jun. 8, 2011
Hill Hire [Member]
Trailer
Vehicle
Person
Lease
Dec. 31, 2013
2011 Other Acquisitions [Member]
Dec. 31, 2012
2011 Other Acquisitions [Member]
Dec. 31, 2011
2011 Other Acquisitions [Member]
Dec. 31, 2012
Other Acquisitions [Member]
Dec. 31, 2011
Other Acquisitions [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Cost of Acquired Entity, Purchase Price Adjustment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,000,000 
 
 
 
 
 
 
Acquisitions (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price of acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
 
251,000,000 
 
 
114,000,000 
 
 
Fair value of debt assumed on acquisition
 
 
 
 
 
 
 
 
379,000 
 
20,000,000 
 
 
 
 
 
 
 
 
Number of full service lease vehicles
 
 
 
 
 
 
 
 
 
 
 
 
 
560 
 
8,000 
 
 
 
 
 
Number of rental vehicles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,700 
 
 
 
 
 
Number of contractual customers acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400 
 
 
 
 
 
Business Acquisition Number Of Contract Maintenance Vehicles Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
800 
 
 
 
 
 
 
 
Number of trailers included in fleet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,700 
 
 
 
 
 
Transaction costs related to the acquisition
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
2,000,000 
 
 
 
 
 
 
Goodwill
 
 
 
 
 
 
 
 
 
 
 
6,000,000 
 
 
 
 
 
28,000,000 
 
 
 
Finite-Lived Customer Relationships, Gross
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000,000 
 
 
 
Acquisitions
 
 
 
 
 
 
 
 
(1,858,000)
(5,113,000)
(361,921,000)
(2,000,000)
 
 
 
 
(1,000,000)
(3,000,000)
(107,000,000)
(1,000,000)
(4,000,000)
Revenue
1,617,729,000 
1,634,540,000 
1,603,999,000 
1,563,017,000 
1,583,536,000 
1,573,295,000 
1,563,860,000 
1,536,276,000 
6,419,285,000 
6,256,967,000 
6,050,534,000 
 
 
 
 
 
 
 
 
 
 
Net earnings
$ 64,607,000 
$ 71,067,000 
$ 62,194,000 
$ 39,924,000 
$ 53,844,000 
$ 75,091,000 
$ 46,723,000 
$ 34,321,000 
$ 237,792,000 
$ 209,979,000 
$ 169,777,000 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Loss from discontinued operations
 
 
 
Pre-tax loss from discontinued operations
$ (5,450)
$ (2,226)
$ (1,185)
Income tax (expense) benefit
46 
11,306 
(406)
Loss from discontinued operations, net of tax
(5,404)
9,080 
(1,591)
Summary of assets and liabilities of discontinued operations
 
 
 
Total assets, primarily deposits
3,627 
4,460 
 
Total liabilities, primarily contingent accruals
$ 4,501 
$ 5,329 
 
Discontinued Operations (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
 
 
 
Discontinued Operation Loss From Discontinued Operation Before Income Tax, insurance related
 
 
$ 1 
Discontinued Operation, Tax Effect of Discontinued Operation
 
11 
 
South American operations [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Discontinued Operation Loss From Discontinued Operation Before Income Tax, adverse legal and professional fees
European operations [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Loss from discontinued operations before income taxes
 
 
Brazil Federal and Social Contribution tax [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Tax Amounts Assessed But Not Reserved
5.0 
 
 
Tax assessment settled
2.0 
 
 
Brazil state operating tax [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Tax Amounts Assessed But Not Reserved
$ 5.0 
 
 
Restructuring and Other Charges (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
$ (470)
$ 8,070 
$ 3,655 
Employee severance and benefits [Member]
 
 
 
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
(470)
7,205 
3,162 
Contract termination costs [Member]
 
 
 
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
$ 0 
$ 865 
$ 493 
Restructuring and Other Charges (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
$ (470)
$ 8,070 
$ 3,655 
Fleet Management Solutions [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
(470)
6,448 
3,531 
Supply Chain Solutions [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
1,346 
124 
Central Support Services [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
$ 0 
$ 276 
$ 0 
Restructuring and Other Charges (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
$ 4,875 
$ 5,246 
Additions
84 
9,544 
Cash Payments
3,662 
8,230 
Non-Cash Reductions
554 
1,882 
Foreign Translation Adjustment
(84)
197 
Restructuring Reserves, Ending Balance
659 
4,875 
Employee severance and benefits [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
3,147 
2,607 
Additions
84 
8,460 
Cash Payments
2,297 
6,711 
Non-Cash Reductions
554 
1,307 
Foreign Translation Adjustment
(40)
98 
Restructuring Reserves, Ending Balance
340 
3,147 
Contract termination costs [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
1,728 
2,639 
Additions
1,084 
Cash Payments
1,365 
1,519 
Non-Cash Reductions
575 
Foreign Translation Adjustment
(44)
99 
Restructuring Reserves, Ending Balance
$ 319 
$ 1,728 
Restructuring and Other Charges (Details Textual) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2012
employees
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring and Other Charges (Textual) [Abstract]
 
 
 
 
Number of positions eliminated as part of work force reductions
350 
 
 
 
Pre-tax restructuring charge
 
 
$ 7,000,000 
$ 4,000,000 
Restructuring and other charges (recoveries), net
 
(470,000)
8,070,000 
3,655,000 
Hill Hire contract termination [Member]
 
 
 
 
Restructuring and Other Charges (Textual) [Abstract]
 
 
 
 
Restructuring and other charges (recoveries), net
$ 1,000,000 
 
 
 
Receivables (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Receivables
 
 
Trade
$ 680,345 
$ 670,717 
Direct financing leases
79,787 
76,395 
Income tax
2,920 
6,596 
Insurance
6,911 
17,345 
Vendor rebates
5,916 
5,547 
Contracts Receivable, Claims and Uncertain Amounts, Expected to be Collected in Next Twelve Months
7,441 
4,229 
Other
11,005 
10,365 
Receivables, gross
794,325 
791,194 
Allowance
(16,955)
(15,429)
Total
777,370 
775,765 
Superstorm Sandy [Member]
 
 
Receivables
 
 
Insurance
 
$ 7,000 
Prepaid Expenses and Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Prepaid expenses and other current assets
 
 
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 
Derivative Assets, Current
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 
Revenue Earning Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Y
Dec. 31, 2012
Summary of revenue earning equipment
 
 
Cost
$ 10,086,939 
$ 9,269,518 
Accumulated depreciation on revenue earning equipment
(3,596,102)
(3,514,910)
Net Book Value
6,490,837 
5,754,608 
Held for use: Full service lease [Member]
 
 
Summary of revenue earning equipment
 
 
Estimated Useful Life, Minimum
 
Estimated Useful Life, Maximum
12 
 
Cost
7,436,093 
6,728,746 
Accumulated depreciation on revenue earning equipment
(2,537,077)
(2,500,786)
Net Book Value
4,899,016 
4,227,960 
Held for use: Commercial rental [Member]
 
 
Summary of revenue earning equipment
 
 
Estimated Useful Life, Minimum
4.5 
 
Estimated Useful Life, Maximum
12 
 
Cost
2,210,863 
2,041,698 
Accumulated depreciation on revenue earning equipment
(747,283)
(660,356)
Net Book Value
1,463,580 
1,381,342 
Held-for-sale [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
439,983 
499,074 
Accumulated depreciation on revenue earning equipment
(311,742)
(353,768)
Net Book Value
$ 128,241 
$ 145,306 
Revenue Earning Equipment (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenue Earning Equipment (Textual) [Abstract]
 
 
 
Cost
$ 10,086,939,000 
$ 9,269,518,000 
 
Accumulated Depreciation
3,596,102,000 
3,514,910,000 
 
Revenue Earning Equipment Depreciation
884,000,000 
867,000,000 
800,000,000 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
30,000,000 
18,000,000 
 
Assets held under capital leases [Member]
 
 
 
Revenue Earning Equipment (Textual) [Abstract]
 
 
 
Cost
54,000,000 
56,000,000 
 
Accumulated Depreciation
$ 22,000,000 
$ 17,000,000 
 
Operating Property And Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
 
Operating Equipment Depreciation
$ 73,000,000 
$ 73,000,000 
$ 72,000,000 
Operating Property and Equipment
 
 
 
Land
193,031,000 
190,357,000 
 
Buildings and improvements
715,965,000 
716,743,000 
 
Machinery and equipment
595,244,000 
578,718,000 
 
Other
120,703,000 
105,255,000 
 
Gross
1,624,943,000 
1,591,073,000 
 
Accumulated depreciation
(991,117,000)
(966,220,000)
 
Total
$ 633,826,000 
$ 624,853,000 
 
Minimum [Member] |
Land [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
0 years 
 
 
Minimum [Member] |
Buildings and improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
10 years 
 
 
Minimum [Member] |
Machinery and equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
3 years 
 
 
Minimum [Member] |
Other [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
3 years 
 
 
Maximum [Member] |
Land [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
0 years 
 
 
Maximum [Member] |
Buildings and improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
40 years 
 
 
Maximum [Member] |
Machinery and equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
10 years 
 
 
Maximum [Member] |
Other [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Minimum estimated useful lives
10 years 
 
 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
$ 413,437 
$ 406,527 
Accumulated impairment losses, Beginning Balance
(29,221)
(29,221)
Goodwill, Beginning Balance
384,216 
377,306 
Acquisitions
 
6,033 
Purchase accounting adjustment
377 
312 
Foreign currency translation adjustment
(874)
565 
Goodwill, Gross, Ending Balance
412,940 
413,437 
Accumulated impairment losses, Ending Balance
(29,221)
(29,221)
Goodwill, Ending Balance
383,719 
384,216 
Fleet Management Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
223,129 
216,559 
Accumulated impairment losses, Beginning Balance
(10,322)
(10,322)
Goodwill, Beginning Balance
212,807 
206,237 
Acquisitions
 
6,033 
Purchase accounting adjustment
377 
215 
Foreign currency translation adjustment
(302)
322 
Goodwill, Gross, Ending Balance
223,204 
223,129 
Accumulated impairment losses, Ending Balance
(10,322)
(10,322)
Goodwill, Ending Balance
212,882 
212,807 
Supply Chain Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
190,308 
189,968 
Accumulated impairment losses, Beginning Balance
(18,899)
(18,899)
Goodwill, Beginning Balance
171,409 
171,069 
Acquisitions
 
Purchase accounting adjustment
97 
Foreign currency translation adjustment
(572)
243 
Goodwill, Gross, Ending Balance
189,736 
190,308 
Accumulated impairment losses, Ending Balance
(18,899)
(18,899)
Goodwill, Ending Balance
$ 170,837 
$ 171,409 
Intangible Assets Intangible Assets (Details) (Trade Names [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Trade Names [Member]
 
 
Indefinite-lived Intangible Assets by Major Class [Line Items]
 
 
Indefinite-lived Intangible Assets
$ 9,084 
$ 9,084 
Intangible Assets (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Finite lived intangible assets
 
 
Accumulated amortization
$ (35,478)
$ (27,860)
Total
62,459 
70,077 
Foreign currency translation adjustment
863 
1,314 
Total
72,406 
80,475 
Customer relationship intangibles [Member]
 
 
Finite lived intangible assets
 
 
Customer relationship intangibles
95,683 
95,683 
Other intangible assets [Member]
 
 
Finite lived intangible assets
 
 
Customer relationship intangibles
$ 2,254 
$ 2,254 
Intangible Assets (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Future Amortization Expense of Intangible Assets
 
2013
$ 6,545 
2014
6,428 
2015
6,420 
2016
6,420 
2017
5,948 
Total
$ 31,761 
Intangible Assets (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Intangible Assets (Textual) [Abstract]
 
 
 
Amortization Expense Associated With Finite Lived Intangible Assets Amortization Expense
$ 7,619 
$ 8,000 
$ 8,000 
Customer relationship intangibles [Member] |
Minimum [Member]
 
 
 
Intangible Assets (Textual) [Abstract]
 
 
 
Estimated useful lives
10 years 
 
 
Customer relationship intangibles [Member] |
Maximum [Member]
 
 
 
Intangible Assets (Textual) [Abstract]
 
 
 
Estimated useful lives
16 years 
 
 
Direct Financing Leases and Other Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Direct Financing Leases And Other Assets [Abstract]
 
 
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 agreement
9,333 
15,412 
Other
22,908 
19,503 
Total
$ 460,501 
$ 434,590 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Accrued Expenses and Other Liabilities
 
 
Salaries and wages, Accrued Expenses
$ 106,281 
$ 86,776 
Salaries and wages, Non-Current Liabilities
Salaries and wages, Total
106,281 
86,776 
Deferred compensation, Accrued Expenses
2,505 
1,630 
Deferred compensation, Non-Current Liabilities
31,896 
24,918 
Deferred compensation, Total
34,401 
26,548 
Pension benefits, Accrued Expenses
3,660 
3,309 
Pension benefits, Non-Current Liabilities
292,155 
597,275 
Pension benefits, Total
295,815 
600,584 
Other postretirement benefits, Accrued Expenses
2,414 
2,683 
Other postretirement benefits, Non-Current Liabilities
28,374 
37,916 
Other postretirement benefits, Total
30,788 
40,599 
Insurance obligations, primarily self-insurance, Accrued Expenses
125,835 
133,459 
Insurance obligations, primarily self-insurance, Non-Current Liabilities
186,700 
178,714 
Insurance obligations, primarily self-insurance, Total
312,535 
312,173 
Residual value guarantees, Accrued Expenses
1,505 
Residual value guarantees, Non-Current Liabilities
239 
130 
Residual value guarantees, Total
239 
1,635 
Deferred rent, Accrued Expenses
4,373 
9,244 
Deferred rent, Non-Current Liabilities
3,372 
9,405 
Deferred rent, Total
7,745 
18,649 
Environmental liabilities, Accrued Expenses
4,515 
4,201 
Environmental liabilities, Non-Current Liabilities
8,548 
8,415 
Environmental liabilities, Total
13,063 
12,616 
Asset retirement obligations, Accrued Expenses
6,144 
3,642 
Asset retirement obligations, Non-Current Liabilities
19,403 
17,116 
Asset retirement obligations, Total
25,547 
20,758 
Operating taxes, Accrued Expenses
94,188 
91,419 
Operating taxes, Non-Current Liabilities
Operating taxes, Total
94,188 
91,419 
Income taxes, Accrued Expenses
2,623 
8,288 
Income taxes, Non-Current Liabilities
62,569 
57,590 
Income taxes, Total
65,192 
65,878 
Interest, Accrued Expenses
33,654 
35,798 
Interest, Non-Current Liabilities
Interest, Total
33,654 
35,798 
Deposits, mainly from customers, Accrued Expenses
55,854 
51,671 
Deposits, mainly from customers, Non-Current Liabilities
6,239 
6,236 
Deposits, mainly from customers, Total
62,093 
57,907 
Deferred revenue, Accrued Expenses
15,123 
21,557 
Deferred revenue, Non-Current Liabilities
Deferred revenue, Total
15,123 
21,557 
Acquisition holdbacks, Accrued Expenses
2,012 
1,637 
Acquisition holdbacks, Non-Current Liabilities
2,673 
Acquisition holdbacks, Total
2,012 
4,310 
Other, Accrued Expenses
37,156 
48,888 
Other, Non-Current Liabilities
15,566 
8,544 
Other, Total
52,722 
57,432 
Total Accrued Expenses
496,337 
505,707 
Total, Non-Current Liabilities
655,061 
948,932 
Total
$ 1,151,398 
$ 1,454,639 
Accrued Expenses and Other Liabilities (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Accrued Expenses and Other Liabilities (Textual) (Abstract)
 
 
 
Benefit (charge) within operating expense
$ 5 
$ 1 
$ 4 
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings from continuing operations before income taxes:
 
 
 
United States
$ 302,689 
$ 241,672 
$ 223,209 
Foreign
66,206 
61,445 
56,178 
Earnings from continuing operations before income taxes
368,895 
303,117 
279,387 
Current tax expense (benefit) from continuing operations:
 
 
 
Federal
233 
(4,157)
1,615 
State
4,194 
11,514 
7,785 
Foreign
7,691 
7,759 
8,603 
Total current tax expense (benefit) from continuing operations
12,118 
15,116 
18,003 
Deferred tax expense (benefit) from continuing operations:
 
 
 
Federal
98,036 
77,819 
67,849 
State
15,399 
3,871 
17,247 
Foreign
146 
5,412 
4,920 
Total Deferred tax expense (benefit) from continuing operations
113,581 
87,102 
90,016 
Provision for income taxes from continuing operations
$ 125,699 
$ 102,218 
$ 108,019 
Income Taxes (Details 1)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Reconciliation of federal statutory tax rate with effective tax rate
 
 
 
Federal statutory tax rate
35.00% 
35.00% 
35.00% 
Impact on deferred taxes for changes in tax rates
0.10% 
0.00% 
2.60% 
State income taxes, net of federal income tax benefit
4.00% 
4.10% 
3.90% 
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential
(4.10%)
(2.80%)
(2.30%)
Tax reviews and audits
(0.80%)
(2.70%)
(0.90%)
Miscellaneous items, net
(0.10%)
0.10% 
0.40% 
Effective tax rate
34.10% 
33.70% 
38.70% 
Income Taxes (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Tax Examination [Line Items]
 
 
 
Increase (Decrease) in Restricted Cash
$ 10,553 
$ (19,204)
$ (3,478)
Puerto Rico [Member] [Domain]
 
 
 
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
Tax Jurisdiction
Puerto Rico 
 
 
Enactment Date
Jun. 30, 2013 
 
 
Net Earnings
(1)
 
 
State of Michigan [Member]
 
 
 
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
Tax Jurisdiction
 
 
State of Michigan 
Enactment Date
 
 
May 25, 2011 
Net Earnings
 
 
(5,350)
State of Illinois [Member]
 
 
 
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
Tax Jurisdiction
 
 
State of Illinois 
Enactment Date
 
 
Jan. 13, 2011 
Net Earnings
 
 
(1,221)
United Kingdom [Member]
 
 
 
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
Tax Jurisdiction
United Kingdom 
United Kingdom 
 
Enactment Date
Jul. 17, 2013 
Jul. 17, 2012 
 
Net Earnings
(856)
 
Canada [Member]
 
 
 
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
Tax Jurisdiction
 
Canada 
 
Enactment Date
 
Jun. 20, 2012 
 
Net Earnings
 
$ (671)
 
Income Taxes (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
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 
Deferred tax assets gross
646,769 
643,461 
Valuation allowance
(33,793)
(38,182)
Deferred tax assets net
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)
Deferred tax liabilities
(1,966,426)
(1,753,224)
Net deferred income tax liability
$ (1,353,450)
$ (1,147,945)
Income Taxes (Details 4) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
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 statute of limitations
(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 
Income Taxes (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Income Tax Examination [Line Items]
 
 
Deferred tax assets included in prepaid expenses and other current assets
$ 37,431,000 
$ 29,129,000 
Undistributed foreign earnings
600,000,000 
 
Net operating loss carryforwards
361,136,000 
258,808,000 
Alternative minimum taxes
10,727,000 
9,679,000 
Expected recognized tax benefit to be realized upon ultimate settlement
greater than fifty percent 
 
Unrecognized tax benefits that would affect the effective tax rate in future periods
44,000,000 
 
Deferred income tax accrued interest and penalties
5,000,000 
4,000,000 
Income tax related to interest and penalties
(1,000,000)
 
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions
3,000,000 
 
Total Assets of Variable Interest Entities
246,000,000 
26,000,000 
Total Liabilities of Variable Interest Entities
246,000,000 
26,000,000 
Domestic Country [Member]
 
 
Income Tax Examination [Line Items]
 
 
Net operating loss carryforwards
274,000,000 
 
Foreign Country [Member]
 
 
Income Tax Examination [Line Items]
 
 
Net operating loss carryforwards
30,000,000 
 
State and Local Jurisdiction [Member]
 
 
Income Tax Examination [Line Items]
 
 
Net operating loss carryforwards
$ 57,000,000 
 
Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net investment in direct financing and sales-type leases
 
 
 
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)
(903)
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 
 
Leases (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 434,690 
$ 428,142 
Very low risk to low risk [Member]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
203,556 
193,123 
Moderate [Member]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
164,761 
177,400 
Moderately high to High risk [Member]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 66,373 
$ 57,619 
Leases (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Allowance for Loan and Lease Losses [Roll Forward]
 
 
Beginning Balance
$ 703 
$ 903 
Charged to earnings
205 
812 
Deductions
(407)
(1,012)
Ending Balance
$ 501 
$ 703 
Leases (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Future minimum payments for leases
 
Future minimum payments, Operating Leases (As Lessor), 2013
$ 887,604 
Future minimum payments, Direct Financing Leases (as Lessor), 2013
105,071 
Future minimum payments, Operating Leases (As Lessee), 2013
83,844 
Future minimum payments, Operating Leases (As Lessor), 2014
718,429 
Future minimum payments, Direct Financing Leases (as Lessor), 2014
91,281 
Future minimum payments, Operating Leases (As Lessee), 2014
65,934 
Future minimum payments, Operating Leases (As Lessor), 2015
568,155 
Future minimum payments, Direct Financing Leases (as Lessor), 2015
77,785 
Future minimum payments, Operating Leases (As Lessee), 2015
41,383 
Future minimum payments, Operating Leases (As Lessor), 2016
420,288 
Future minimum payments, Direct Financing Leases (as Lessor), 2016
59,161 
Future minimum payments, Operating Leases (As Lessee), 2016
25,205 
Future minimum payments, Operating Leases (As Lessor), 2017
277,665 
Future minimum payments, Direct Financing Leases (as Lessor), 2017
42,024 
Future minimum payments, Operating Leases (As Lessee), 2017
28,803 
Future minimum payments, Operating Leases (As Lessor), Thereafter
216,440 
Future minimum payments, Direct Financing Leases (as Lessor), Thereafter
59,368 
Future minimum payments, Operating Leases (As Lessee), Thereafter
33,473 
Future minimum payments, Operating Leases (As Lessor), Total
3,088,581 
Future minimum payments, Direct Financing Leases (As Lessor), Total
434,690 
Future minimum payments, Operating Leases (As Lessee), Total
$ 278,642 
Leases (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Operating Leased Assets [Line Items]
 
 
 
Impaired direct financing receivables
$ 0 
$ 0 
 
Proceeds from sale-leaseback transaction
130,184,000 
37,395,000 
Rent expense
153,000,000 
148,000,000 
154,000,000 
Contingent rentals from operating leases
318,000,000 
319,000,000 
303,000,000 
Operating Leases [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Contingent rental income
(1,000,000)
(1,000,000)
(2,000,000)
Direct Financing Leases [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Contingent rental income
$ (11,000,000)
 
 
Trucks and Tractors [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Minimum lease term of revenue earning equipment
3 years 
 
 
Maximum lease term of revenue earning equipment
7 years 
 
 
Trailers [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Maximum lease term of revenue earning equipment
10 years 
 
 
Debt (Details) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Short-term debt [Member]
Dec. 31, 2012
Short-term debt [Member]
Nov. 4, 2013
300 million unsecured medium-term notes due 2018 [Member]
Dec. 31, 2013
Unsecured Medium Term Notes Due 2019 [Member]
Feb. 19, 2013
Unsecured Medium Term Notes Due 2019 [Member]
Short-term Debt [Line Items]
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
$ 900,000,000 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
300,000,000 
 
250,000,000 
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
Short-term debt, Weighted Average Interest Rate
 
 
1.70% 
2.27% 
 
 
 
Maturity date range, start
 
 
Jan. 01, 2014 
 
 
 
 
Debt Instrument, Call Feature
 
 
 
 
 
101% of principal plus accrued and unpaid interest 
 
Short-term debt
1,315,000 
9,820,000 
 
 
 
 
 
Current portion of long-term debt, including capital leases
258,123,000 
358,155,000 
 
 
 
 
 
Total short-term debt and current portion of long-term debt
$ 259,438,000 
$ 367,975,000 
 
 
 
 
 
Debt (Details 1) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Debt Instrument, Unamortized Discount
$ 8,000,000 
$ 9,000,000 
Long-term debt:
 
 
Unsecured U.S. notes - Medium-term notes
3,271,734,000 
2,971,313,000 
Unsecured U.S. obligations, principally bank term loans
55,500,000 
105,500,000 
Unsecured foreign obligations
315,558,000 
313,406,000 
Capital lease obligations
38,911,000 
42,018,000 
Total before fair market value adjustment
4,179,939,000 
3,794,251,000 
Fair market value adjustment on notes subject to hedging
8,171,000 
16,725,000 
Total after fair market value adjustment
4,188,110,000 
3,810,976,000 
Current portion of long-term debt, including capital leases
(258,123,000)
(358,155,000)
Long-term debt
3,929,987,000 
3,452,821,000 
Total debt
4,189,425,000 
3,820,796,000 
U.S Commercial Paper, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.28% 
0.41% 
Commercial Paper
486,939,000 
329,925,000 
Maturity date range, start
Oct. 17, 2018 
 
Canadian Commerial Paper [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.13% 
1.14% 
Commercial Paper
11,297,000 
23,165,000 
Maturity date range, start
Oct. 17, 2018 
 
Global Revolving Credit Facility [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.00% 
1.58% 
Maturity date range, start
Oct. 17, 2018 
 
Long-term Line of Credit, Noncurrent
$ 0 
$ 8,924,000 
Unsecured U.S. notes - Medium-term notes, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.76% 
4.01% 
Maturity date range, start
Mar. 01, 2014 
 
Maturity date range, end
Dec. 31, 2025 
 
Unsecured U.S. obligations, principally bank term loans, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.45% 
1.56% 
Maturity date range, start
Jan. 01, 2015 
 
Maturity date range, end
Sep. 19, 2018 
 
Unsecured Foreign Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.99% 
1.91% 
Maturity date range, start
Feb. 01, 2015 
 
Maturity date range, end
Sep. 15, 2016 
 
Capital Lease Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.81% 
4.08% 
Maturity date range, start
Jan. 01, 2014 
 
Maturity date range, end
Dec. 31, 2019 
 
Debt (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Maturities of debt
 
Debt, 2014
$ 251,315 
Capital leases, 2014
9,383 
Debt, 2015
712,305 
Capital leases, 2015
8,096 
Debt, 2016
872,994 
Capital leases, 2016
6,505 
Debt, 2017
704,270 
Capital leases, 2017
7,602 
Debt, 2018
1,185,649 
Capital leases, 2018
5,807 
Debt, Thereafter
415,810 
Capital leases, Thereafter
4,987 
Debt, Total
4,142,343 
Capital leases, Total
42,380 
Imputed interest
(3,469)
Present value of minimum capitalized lease payments
38,911 
Current portion
(8,123)
Long-term capitalized lease obligation
$ 30,788 
Debt (Details Textual) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2013
Institutions
Dec. 31, 2012
Dec. 31, 2013
Commercial paper [Member]
Dec. 31, 2012
Commercial paper [Member]
Dec. 31, 2013
Medium-term Notes [Member]
Nov. 4, 2013
300 million unsecured medium-term notes due 2018 [Member]
Sep. 30, 2013
Letter of Credit [Member]
Sep. 30, 2013
Global Revolving Credit Facility [Member]
Debt (Textual) [Abstract]
 
 
 
 
 
 
 
 
Unamortized original issue discounts
$ 8,000,000 
$ 9,000,000 
 
 
 
 
 
 
Aggregate notional amount of interest rate swaps
400,000,000 
550,000,000 
 
 
 
 
 
 
Maximum borrowing capacity under global revolving credit facility
900,000,000 
 
 
 
 
 
75,000,000 
900,000,000 
Debt To Consolidated Net Worth Ratio
177.00% 
 
 
 
 
 
 
 
Number of lending institutions
12 
 
 
 
 
 
 
 
Letter of credit outstanding amount
 
 
 
 
 
 
 
Annual facility fees minimum
8.00% 
 
 
 
 
 
 
 
Annual facility fees maximum
27.50% 
 
 
 
 
 
 
 
Current annual facility fee
0.125% 
 
 
 
 
 
 
 
Global revolving credit facility covenant terms, debt to consolidated tangible net worth ratio
less than or equal to 300% 
 
 
 
 
 
 
 
Amount available under the global revolving credit facility
402,000,000 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
 
 
498,236,000 
353,090,000 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
300,000,000 
 
 
Repurchase price condition of notes
 
 
 
 
101% of Principal Plus Accrued And Unpaid Interest 
 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
Amount outstanding under trade receivables purchase and sale program
$ 0 
$ 0 
 
 
 
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
$ 32,519 
$ 22,426 
Interest rate swaps, assets
9,333 
15,412 
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
41,852 
39,151 
Total liabilities at fair value
1,162 
478 
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
7,101 
4,055 
Fair Value, Measurements, Recurring [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
16,479 
10,871 
Fair Value, Measurements, Recurring [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,323 
2,974 
Fair Value, Measurements, Recurring [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,616 
4,526 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
32,519 
22,426 
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
7,101 
4,055 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
16,479 
10,871 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,323 
2,974 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,616 
4,526 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
9,333 
16,725 
Total liabilities at fair value
1,162 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
Total liabilities at fair value
478 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
1,313 
Fair Value, Measurements, Recurring [Member] |
Prepaid Expenses and Other Current Assets [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Fair Value, Measurements, Recurring [Member] |
Prepaid Expenses and Other Current Assets [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
1,313 
Fair Value, Measurements, Recurring [Member] |
Prepaid Expenses and Other Current Assets [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
32,519 
22,426 
Interest rate swaps, assets
9,333 
15,412 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
32,519 
22,426 
Interest rate swaps, assets
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Interest rate swaps, assets
 
15,412 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Interest rate swaps, assets
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Derivative Financial Instruments, Liabilities, Fair Value Disclosure
1,162 
 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Derivative Financial Instruments, Liabilities, Fair Value Disclosure
 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Derivative Financial Instruments, Liabilities, Fair Value Disclosure
1,162 
 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
478 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
$ 478 
Fair Value Measurements (Details 1) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets held for sale at fair value
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 24,388,000 
$ 26,467,000 
$ 13,326,000 
$ 14,263,000 
$ 10,339,000 
$ 11,619,000 
$ 723,000 
$ 585,000 
Total Losses
9,000,000 
 
 
16,428,000 
18,400,000 
9,926,000 
12,853,000 
4,824,000 
4,058,000 
1,678,000 
1,489,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Textual) (Abstract)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total debt
 
4,280,000,000 
3,990,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss to reflect changes in fair value
$ 9,000,000 
 
 
$ 16,428,000 
$ 18,400,000 
$ 9,926,000 
$ 12,853,000 
$ 4,824,000 
$ 4,058,000 
$ 1,678,000 
$ 1,489,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Interest rate swaps maturing June 2017 [Member]
 
 
Summarized details of swaps outstanding and the related hedged items
 
 
Issuance date
May 01, 2011 
 
Maturity date
Jun. 01, 2017 
 
Face value of medium - term notes
$ 350,000 
 
Aggregate notional amount of interest rate swaps
150,000 
 
Fixed interest rate
3.50% 
 
Weighted-average variable interest rate on hedged debt
1.44% 
1.62% 
Interest rate swaps maturing March 2015 [Member]
 
 
Summarized details of swaps outstanding and the related hedged items
 
 
Issuance date
Feb. 01, 2011 
 
Maturity date
Mar. 01, 2015 
 
Face value of medium - term notes
350,000 
 
Aggregate notional amount of interest rate swaps
150,000 
 
Fixed interest rate
3.15% 
 
Weighted-average variable interest rate on hedged debt
1.34% 
1.66% 
Interest Rate Swaps Maturing November Two Thousand Eighteeen [Member] [Domain]
 
 
Summarized details of swaps outstanding and the related hedged items
 
 
Issuance date
Nov. 04, 2013 
 
Maturity date
Nov. 03, 2018 
 
Face value of medium - term notes
300,000 
 
Aggregate notional amount of interest rate swaps
$ 100,000 
 
Fixed interest rate
2.45% 
 
Weighted-average variable interest rate on hedged debt
1.19% 
 
Derivatives (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
 
Total
$ 0 
$ 0 
$ 0 
Interest expense [Member] |
Interest rate swap [Member]
 
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
 
Derivative: Interest rate swap
(8,554)
(5,118)
6,414 
Interest expense [Member] |
Fixed-rate debt [Member]
 
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
 
Hedged item: Fixed-rate debt
$ 8,554 
$ 5,118 
$ (6,414)
Guarantees (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
$ 30,293 
$ 30,792 
Carrying Amount of Liability
6,234 
6,245 
Vehicle Residual Value Guarnatees Operating Lease Programs [Member]
 
 
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
 
24,558 
Carrying Amount of Liability
11 
Standby letters of credit [Member]
 
 
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
6,234 
6,234 
Carrying Amount of Liability
$ 6,234 
$ 6,234 
Guarantees (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Letters of credit and surety bonds outstanding
 
 
Letters of credit
$ 210,995 
$ 198,227 
Surety bonds
$ 99,486 
$ 95,856 
Guarantees (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
$ 30,293 
$ 30,792 
Carrying Amount of Liability
6,234 
6,245 
Guarantees (Textual) [Abstract]
 
 
Customer finance leases expire periodically
Jan. 01, 2019 
 
Outstanding letter of credit provided by the purchaser
 
Contingent rentals associated with residual value guarantees [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
120,000 
183,000 
Carrying Amount of Liability
2,000 
Lease Term Residual Value Guarantees [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
$ 24,059 
 
Share Repurchase Programs (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
December Two Thousand Thirteen Anti Dilutive Share Repurchase Program [Member] [Domain]
Dec. 31, 2012
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member]
Dec. 31, 2013
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member]
Dec. 31, 2011
December 2009 Anti-Dilutive Share Repurchase Program [Member]
Dec. 31, 2012
Common Stock [Member]
Dec. 31, 2011
Common Stock [Member]
Share Repurchase Programs (Textual) [Abstract]
 
 
 
 
 
 
 
 
Repurchased and retired shares
 
 
 
 
 
 
543,923 
1,175,783 
Aggregate cost of repurchased and retired
$ 26,343 
$ 59,102 
 
$ 26,000 
 
$ (59,000)
$ 272 
$ 588 
Maximum number of share repurchases authorization
 
 
2,000,000 
 
2,000,000 
 
 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Summary of components of accumulated other comprehensive loss, net of tax
 
 
 
Currency Translation Adjustment, Beginning Balance
$ 57,848 
$ 28,219 
$ 45,987 
Net Actuarial Loss, Beginning Balance
(648,125)
(599,687)
(428,532)
Prior Service Credit, Beginning Balance
2,634 
4,291 
5,912 
Transition Obligation, Beginning Balance
12 
12 
34 
Unrealized (Loss) Gain on Derivatives, Beginning Balance
12 
Accumulated other comprehensive loss, Beginning Balance
(866,927)
 
(376,599)
Amortization of Net Actuarial Loss
22,832 
20,315 
13,146 
Amortization of Prior Service Credit
(1,340)
(1,657)
(1,621)
Amortization of Transition Obligation
(12)
(22)
Amortization of Accumulated Other Comprehensive Loss
21,480 
18,658 
11,503 
Current period change, Currency Translation Adjustments
(22,079)
29,629 
(17,768)
Current period change, Net Actuarial Loss
147,410 
(68,753)
(184,301)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Arising During Period, before Tax
2,466 
 
 
Current period change, Unrealized Gain (Loss) on Derivatives
94 
12 
Current period change, Accumulated Other Comprehensive Loss
127,891 
(39,112)
(202,069)
Currency Translation Adjustment, Ending Balance
35,769 
57,848 
28,219 
Net Actuarial Loss, Ending Balance
(477,883)
(648,125)
(599,687)
Prior Service Credit, Ending Balance
3,760 
2,634 
4,291 
Transition Obligation, Ending Balance
12 
12 
Unrealized (Loss) Gain on Derivatives, Ending Balance
106 
12 
Accumulated other comprehensive loss, Ending Balance
$ (438,248)
$ (866,927)
 
Earnings Per Share Information (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings per share - Basic:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
$ 65,944 
$ 73,875 
$ 62,575 
$ 40,802 
$ 54,945 
$ 64,311 
$ 46,767 
$ 34,876 
$ 243,196 
$ 200,899 
$ 171,368 
Less: Distributed and undistributed earnings allocated to nonvested stock
 
 
 
 
 
 
 
 
(2,173)
(2,566)
(2,751)
Earnings from continuing operations available to common shareholders - Basic
 
 
 
 
 
 
 
 
241,023 
198,333 
168,617 
Weighted average common shares outstanding - Basic
 
 
 
 
 
 
 
 
51,617 
50,449 
50,500 
Earnings from continuing operations per common share - Basic (USD per share)
$ 1.25 
$ 1.41 
$ 1.21 
$ 0.79 
$ 1.07 
$ 1.26 
$ 0.92 
$ 0.68 
$ 4.67 
$ 3.93 
$ 3.34 
Earnings per share - Diluted:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
65,944 
73,875 
62,575 
40,802 
54,945 
64,311 
46,767 
34,876 
243,196 
200,899 
171,368 
Less: Distributed and undistributed earnings allocated to nonvested stock
 
 
 
 
 
 
 
 
(2,159)
(2,556)
(2,737)
Earnings from continuing operations available to common shareholders - Diluted
 
 
 
 
 
 
 
 
$ 241,037 
$ 198,343 
$ 168,631 
Weighted average common shares outstanding - Basic
 
 
 
 
 
 
 
 
51,617 
50,449 
50,500 
Effect of dilutive options (shares)
 
 
 
 
 
 
 
 
454 
291 
378 
Weighted average common shares outstanding - Diluted
 
 
 
 
 
 
 
 
52,071 
50,740 
50,878 
Earnings from continuing operations per common share - Diluted (USD per share)
$ 1.24 
$ 1.40 
$ 1.19 
$ 0.79 
$ 1.07 
$ 1.26 
$ 0.91 
$ 0.68 
$ 4.63 
$ 3.91 
$ 3.31 
Anti-dilutive options not included above (shares)
 
 
 
 
 
 
 
 
785 
2,278 
1,514 
Share-Based Compensation Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 19,310 
$ 18,864 
$ 17,423 
Income tax benefit
(6,224)
(6,309)
(5,794)
Share-based compensation expense, net of tax
13,086 
12,555 
11,629 
Summary of compensation expense recognized related to cash awards
 
 
 
Cash awards
996 
1,099 
1,882 
Stock option and stock purchase plan [Member]
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
8,303 
9,469 
9,497 
Nonvested stock [Member]
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 11,007 
$ 9,395 
$ 7,926 
Minimum [Member] |
ROC performance based restricted stock rights, 2013 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
 
Minimum [Member] |
Market Based Restricted Stock Rights, 2012 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
25.00% 
 
Maximum [Member] |
ROC performance based restricted stock rights, 2013 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
 
Maximum [Member] |
Market Based Restricted Stock Rights, 2012 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
125.00% 
 
Share-Based Compensation Plans (Details 1) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Summary of stock option activity
 
Outstanding Ending Balance, Shares
1,717 
Exercisable, Shares
889 
Outstanding weighted average exercise price, Ending Balance
$ 49.99 
Exercisable, weighted average exercise price
$ 45.34 
Outstanding, weighted average remaining contractual term (years)
4 years 10 months 24 days 
Stock options [Member]
 
Summary of stock option activity
 
Outstanding Beginning Balance, Shares
3,148 
Granted, Shares
391 
Exercised, Shares
(1,730)
Forfeited or expired, Shares
(92)
Vested or expected to vest, Shares
1,653 
Outstanding, weighted average exercise price, Beginning Balance
$ 46.36 
Granted, weighted average exercise price
$ 58.27 
Exercised, weighted average exercise price
$ 45.28 
Forfeited or expired, weighted average exercise price
$ 49.56 
Vested or expected, weighted average exercise price
$ 49.75 
Vested or expected to vest, weighted average remaining contractual term (years)
4 years 6 months 
Exercisable, weighted average remaining contractual term (years)
3 years 2 months 13 days 
Outstanding, Aggregate Intrinsic Value, of In-The-Money Options
$ 40,861 
Vested or expected to vest, Aggregate Intrinsic Value of In-The-Money Options
39,730 
Exercisable, Aggregate Intrinsic Value of In-The-Money Options
$ 25,285 
Share-Based Compensation Plans (Details 2) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Information about options in various price ranges
 
Outstanding Shares
1,717 
Weighted Average Remaining Contractual Term
4 years 10 months 24 days 
Weighted Average Exercise Price
$ 49.99 
Options Exercisable, shares
889 
Options Exercisable, weighted average exercise price
$ 45.34 
Less than $45.00 [Member]
 
Information about options in various price ranges
 
Lower limit price range
$ 0.00 
Upper limit price range
$ 45.00 
Outstanding Shares
354 
Weighted Average Remaining Contractual Term
2 years 10 months 24 days 
Weighted Average Exercise Price
$ 33.14 
Options Exercisable, shares
354 
Options Exercisable, weighted average exercise price
$ 33.14 
45.00-50.00 [Member]
 
Information about options in various price ranges
 
Lower limit price range
$ 45.00 
Upper limit price range
$ 50.00 
Outstanding Shares
412 
Weighted Average Remaining Contractual Term
4 years 1 month 6 days 
Weighted Average Exercise Price
$ 49.39 
Options Exercisable, shares
254 
Options Exercisable, weighted average exercise price
$ 49.39 
50.00-55.00 [Member]
 
Information about options in various price ranges
 
Lower limit price range
$ 50.00 
Upper limit price range
$ 55.00 
Outstanding Shares
413 
Weighted Average Remaining Contractual Term
4 years 10 months 24 days 
Weighted Average Exercise Price
$ 53.57 
Options Exercisable, shares
128 
Options Exercisable, weighted average exercise price
$ 53.47 
55.00 and over [Member]
 
Information about options in various price ranges
 
55.00 and over
55 and over 
Outstanding Shares
538 
Weighted Average Remaining Contractual Term
6 years 10 months 24 days 
Weighted Average Exercise Price
$ 58.79 
Options Exercisable, shares
153 
Options Exercisable, weighted average exercise price
$ 60.07 
Share-Based Compensation Plans (Details 3) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Time Vested [Member]
 
Summary of Nonvested stock awards
 
Nonvested stock awards outstanding, Beginning balance
440 
Nonvested stock awards granted
162 
Nonvested stock awards vested
(58)
Nonvested stock awards forfeited
(10)
Nonvested stock awards outstanding, Ending balance
534 
Weighted-Average Grant Date, Fair Value, Beginning balance
$ 49.16 
Weighted-Average Grant Date, Fair Value, granted
$ 58.39 
Weighted-Average Grant Date, Fair Value, vested
$ 40.19 
Weighted-Average Grant Date, Fair Value, forfeited
$ 58.85 
Weighted-Average Grant Date, Fair Value, Ending balance
$ 52.58 
Market Based Vested [Member]
 
Summary of Nonvested stock awards
 
Nonvested stock awards outstanding, Beginning balance
387 
Nonvested stock awards granted
23 
Nonvested stock awards vested
Nonvested stock awards forfeited
(205)
Nonvested stock awards outstanding, Ending balance
205 
Weighted-Average Grant Date, Fair Value, Beginning balance
$ 25.35 
Weighted-Average Grant Date, Fair Value, granted
$ 53.66 
Weighted-Average Grant Date, Fair Value, vested
$ 0.00 
Weighted-Average Grant Date, Fair Value, forfeited
$ 20.19 
Weighted-Average Grant Date, Fair Value, Ending balance
$ 33.71 
Performance-Based Vested [Member] [Domain]
 
Summary of Nonvested stock awards
 
Nonvested stock awards outstanding, Beginning balance
Nonvested stock awards granted
16 
Nonvested stock awards vested
Nonvested stock awards forfeited
(1)
Nonvested stock awards outstanding, Ending balance
15 
Weighted-Average Grant Date, Fair Value, Beginning balance
$ 0.00 
Weighted-Average Grant Date, Fair Value, granted
$ 58.27 
Weighted-Average Grant Date, Fair Value, vested
$ 0.00 
Weighted-Average Grant Date, Fair Value, forfeited
$ 58.21 
Weighted-Average Grant Date, Fair Value, Ending balance
$ 58.27 
Share-Based Compensation Plans (Details 4) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Summary of employee stock purchase plan
 
Outstanding Ending Balance, Shares
1,717 
Exercisable, Shares
889 
Outstanding weighted average exercise price, Ending Balance
$ 49.99 
Exercisable, weighted average exercise price
$ 45.34 
Outstanding, weighted average remaining contractual term
4 years 10 months 24 days 
Employee Stock Purchase Plan [Member]
 
Summary of employee stock purchase plan
 
Outstanding Beginning Balance, Shares
Granted, Shares
194 
Exercised, Shares
(194)
Forfeited or expired, Shares
Outstanding Ending Balance, Shares
Exercisable, Shares
Outstanding, weighted average exercise price, Beginning Balance
$ 0.00 
Granted, weighted average exercise price
$ 48,720.00 
Exercised, weighted average exercise price
$ 48,720.00 
Forfeited or expired, weighted average exercise price
$ 0.00 
Outstanding weighted average exercise price, Ending Balance
$ 0.00 
Exercisable, weighted average exercise price
$ 0.00 
Outstanding, weighted average remaining contractual term
0 years 
Exercisable, weighted average remaining contractual term
0 years 
Exercisable, Aggregate Intrinsic Value of In-The-Money Options
$ 0 
Share-Based Compensation Plans (Details 5)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Stock Option [Member]
 
 
 
Weighted-average assumptions used for options granted
 
 
 
Expected dividends
2.10% 
2.20% 
2.20% 
Expected volatility
35.10% 
40.70% 
38.70% 
Risk-free interest rate
0.70% 
0.60% 
1.70% 
Expected term in years
4 years 3 months 17 days 
3 years 8 months 12 days 
3 years 7 months 6 days 
Grant-date fair value
$ 13.97 
$ 14.07 
$ 12.88 
Employee Stock Purchase Plan [Member]
 
 
 
Weighted-average assumptions used for options granted
 
 
 
Expected dividends
2.20% 
2.70% 
2.40% 
Expected volatility
28.00% 
32.70% 
32.80% 
Risk-free interest rate
0.10% 
0.10% 
0.10% 
Expected term in years
3 months 
3 months 
3 months 
Grant-date fair value
$ 11.73 
$ 9.53 
$ 10.21 
Share-Based Compensation Plans (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
one-third 
 
 
Awards issued but not granted
31,000 
 
 
Share-Based Compensation Plans (Textual) [Abstract]
 
 
 
Total unrecognized pre-tax compensation expense
$ 22,000,000 
 
 
Unrecognized Compensation Costs weighted-average period
1 year 7 months 5 days 
 
 
Total fair value of equity awards
12,000,000 
12,000,000 
23,000,000 
Stock option plan granted, contractual term
7 years 
 
 
Ryder's total shareholders return criteria for market based cash awards
33rd percentile of the S&P 500 
 
 
Total intrinsic value of option exercised
30,000,000 
6,000,000 
9,000,000 
Total cash received exercised stock option
87,000,000 
 
 
Proceeds from Issuance or Sale of Equity
90,646,000 
28,000,000 
33,000,000 
Tax benefits realized from share based employee compensation arrangements
4,000,000 
1,000,000 
1,000,000 
Time Vested Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
3 years 
 
 
Market Based Cash Awards [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Liability related to the cash awards
$ 2,000,000 
$ 4,000,000 
 
Stock Option And Nonvested Stock Plan Member
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Unused shares
2,600,000 
 
 
Stock Option [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
3 years 
 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
1 year 
 
 
Employee Stock Purchase Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share authorized
4,500,000 
 
 
Unused shares
500,000 
 
 
Percentage of payroll deductions of eligible compensation
15.00% 
 
 
Percentage of share purchased fair market value
85.00% 
 
 
Employee stock purchase plan holding period
90 days 
 
 
Minimum [Member] |
ROC performance based restricted stock rights, 2013 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
 
Minimum [Member] |
Market Based Restricted Stock Rights, 2012 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
25.00% 
 
Maximum [Member] |
ROC performance based restricted stock rights, 2013 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
 
Maximum [Member] |
Market Based Restricted Stock Rights, 2012 Grant [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
125.00% 
 
Employee Benefits Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Pension Expense [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 48,118 
$ 49,413 
$ 34,347 
Company Administered Plan [Member] |
Pension Expense [Member]
 
 
 
Pension expense from continuing operations
 
 
 
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)
Settlement/curtailment loss
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)
Net pension expense
36,892 
42,667 
28,359 
Company Administered Plan [Member] |
Pension Expense U.S. [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
37,636 
38,992 
28,974 
Company Administered Plan [Member] |
Pension Expense Foreign [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
(744)
3,675 
(615)
Union Administered Plan [Member] |
Pension Expense [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 11,226 
$ 6,746 
$ 5,988 
Employee Benefits Plans (Details 1)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
U.S. Plans [Member]
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
4.10% 
4.90% 
5.70% 
Rate of increase in compensation levels
4.00% 
4.00% 
4.00% 
Expected long-term rate of return on plan assets
6.80% 
7.05% 
7.45% 
Transition amortization in years
0 years 
0 years 
0 years 
Gain and loss amortization in years
23 years 
24 years 
25 years 
Foreign Plans [Member]
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
4.43% 
4.76% 
5.55% 
Rate of increase in compensation levels
3.55% 
3.54% 
3.55% 
Expected long-term rate of return on plan assets
6.57% 
6.00% 
6.84% 
Transition amortization in years
 
1 year 
1 year 
Gain and loss amortization in years
26 years 
27 years 
27 years 
Employee Benefits Plans (Details 2) (Pension Plans [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Pension Plans [Member]
 
 
Change in benefit obligations:
 
 
Benefit obligations at January 1
$ 2,207,421 
$ 1,967,586 
Interest Cost
89,682 
94,605 
Actuarial 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
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)
Employee Benefits Plans (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Amounts recognized in the Consolidated Balance Sheets
 
 
Noncurrent asset
$ 23,556 
$ 6,090 
Pension Plans [Member]
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
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)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
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 
Employee Benefits Plans (Details 4)
Dec. 31, 2013
Dec. 31, 2012
U.S. Plans [Member]
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
5.00% 
4.10% 
Rate of increase in compensation levels
3.00% 
4.00% 
Foreign Plans [Member]
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
4.58% 
4.43% 
Rate of increase in compensation levels
3.09% 
3.55% 
Employee Benefits Plans (Details 5) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
$ 2,074,400 
$ 2,165,855 
Plans with ABO in excess of plan assets:
 
 
PBO
1,665,389 
1,869,643 
ABO
1,636,147 
1,828,078 
Fair value of plan assets
1,369,574 
1,269,059 
Plans with PBO in excess of plan assets:
 
 
PBO
1,665,389 
1,869,643 
ABO
1,636,147 
1,828,258 
Fair value of plan assets
1,369,574 
1,269,059 
U.S. Plans [Member]
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
1,628,407 
1,747,610 
Plans with ABO in excess of plan assets:
 
 
PBO
1,656,086 
1,786,025 
ABO
1,628,407 
1,747,610 
Fair value of plan assets
1,369,574 
1,202,565 
Plans with PBO in excess of plan assets:
 
 
PBO
1,656,086 
1,786,025 
ABO
1,628,407 
1,747,610 
Fair value of plan assets
1,369,574 
1,202,565 
Foreign Plans [Member]
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
445,993 
418,245 
Plans with ABO in excess of plan assets:
 
 
PBO
9,303 
83,618 
ABO
7,740 
80,468 
Fair value of plan assets
66,494 
Plans with PBO in excess of plan assets:
 
 
PBO
9,303 
83,618 
ABO
7,740 
80,648 
Fair value of plan assets
$ 0 
$ 66,494 
Employee Benefits Plans (Details 6) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
$ 76,499 
$ 71,207 
$ 68,543 
Pension Benefits [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
1,832,490 
1,612,927 
1,418,042 
Pension Benefits [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
63,346 
76,660 
 
Pension Benefits [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
1,692,645 
1,465,060 
 
Pension Benefits [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
76,499 
71,207 
 
Pension Benefits [Member] |
Private equity and hedge funds [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
76,499 
71,207 
 
Pension Benefits [Member] |
Private equity and hedge funds [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Private equity and hedge funds [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Private equity and hedge funds [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
76,499 
71,207 
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. companies [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
63,346 
76,660 
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. companies [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
63,346 
76,660 
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. companies [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. companies [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. mutual funds [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
406,358 
471,504 
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. mutual funds [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. mutual funds [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
406,358 
471,504 
 
Pension Benefits [Member] |
Equity securities [Member] |
U.S. mutual funds [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Equity securities [Member] |
Foreign mutual funds [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
431,933 
497,315 
 
Pension Benefits [Member] |
Equity securities [Member] |
Foreign mutual funds [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Equity securities [Member] |
Foreign mutual funds [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
431,933 
497,315 
 
Pension Benefits [Member] |
Equity securities [Member] |
Foreign mutual funds [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Corporate bonds [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
59,917 
61,571 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Corporate bonds [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Corporate bonds [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
59,917 
 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Corporate bonds [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Mutual funds [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
794,437 
434,670 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Mutual funds [Member] |
Level 1 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Mutual funds [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
794,437 
61,571 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Mutual funds [Member] |
Level 3 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Other Securities [Member] |
Level 2 [Member]
 
 
 
Fair value of each major category of pension plan assets and the level of inputs used to measure fair value
 
 
 
Fair Value of Plan Assets
 
$ 434,670 
 
Employee Benefits Plans (Details 7) (Level 3 [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Level 3 [Member]
 
 
Summary of changes in fair value of the pension plans' level 3 assets
 
 
Fair value of plan assets 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)
Fair value of plan assets at December 31
$ 76,499 
$ 71,207 
Employee Benefits Plans (Details 8) (Pension Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Pension Benefits [Member]
 
Pension benefits expected to be paid
 
2013
$ 94,446 
2014
98,893 
2015
105,008 
2016
109,681 
2017
115,414 
2018-2022
$ 649,051 
Employee Benefits Plans (Details 9) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
MEP Contribution Percent
 
 
5.00% 
 
One time charge related to pension settlement (pre-tax)
$ 2,820 
 
 
 
Contributions
8,406 
6,746 
 
5,988 
Western Conference Teamsters [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Plan Number
91-6145047 
 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
 
FIP/RP Status Pending/ Implemented
No 
 
 
 
Contributions
2,180 
1,943 
 
1,855 
Surcharge Imposed
No 
 
 
 
Expiration Date of Collective Bargaining Agreement
6/30/14 to 4/1/16 
 
 
 
IAM National [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Plan Number
51-6031295 
 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
 
FIP/RP Status Pending/ Implemented
No 
 
 
 
Contributions
2,987 
2,038 
 
1,794 
Surcharge Imposed
No 
 
 
 
Expiration Date of Collective Bargaining Agreement
4/30/14 to 3/31/17 
 
 
 
Automobile Mechanics Local No. 701 [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Plan Number
36-6042061 
 
 
 
Pension Protection Act Zone Status
Red 
Red 
 
 
FIP/RP Status Pending/ Implemented
RP Adopted 
 
 
 
Contributions
1,530 
1,527 
 
1,203 
Surcharge Imposed
Yes 
 
 
 
Expiration Date of Collective Bargaining Agreement
10/31/14 to 5/31/16 
 
 
 
International Association of Machinists Motor City [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Plan Number
38-6237143 
 
 
 
FIP/RP Status Pending/ Implemented
RP adopted 
 
 
 
Contributions
555 
437 
 
392 
Surcharge Imposed
No 
 
 
 
Expiration Date of Collective Bargaining Agreement
1/31/14 to 3/31/16 
 
 
 
Central States Southwest and Southwest Areas [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Plan Number
36-6044243 
 
 
 
Pension Protection Act Zone Status
Red 
Red 
 
 
FIP/RP Status Pending/ Implemented
RP adopted 
 
 
 
Contributions
226 
226 
 
182 
Surcharge Imposed
No 
 
 
 
Expiration Date of Collective Bargaining Agreement
10/31/15 to 5/31/17 
 
 
 
Other Funds [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Contributions
928 
575 
 
562 
Pension Costs [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Defined Benefit Plan, Net Periodic Benefit Cost
48,118 
49,413 
 
34,347 
Union Administered Plan [Member] |
Pension Costs [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Defined Benefit Plan, Net Periodic Benefit Cost
$ 11,226 
$ 6,746 
 
$ 5,988 
Employee Benefits Plans (Details 10) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other Postretirement Benefits [Member]
 
 
 
Other Postretirement benefit expense
 
 
 
Service cost
$ 981 
$ 1,095 
$ 1,294 
Interest Cost
1,580 
1,980 
2,503 
Amortization of:
 
 
 
Net actuarial loss
(14)
(20)
231 
Prior service credit
(231)
(231)
(231)
Net pension expense
2,316 
2,824 
3,797 
Other Postretirement benefit expense U.S. [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
1,625 
2,142 
3,155 
Other Postretirement benefit expense Foreign [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 691 
$ 682 
$ 642 
Employee Benefits Plans (Details 11)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other Postretirement benefit expense U.S. [Member]
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.10% 
4.90% 
5.70% 
Other Postretirement benefit expense Foreign [Member]
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.00% 
4.50% 
5.25% 
Employee Benefits Plans (Details 12) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other Postretirement Benefits [Member]
 
 
 
Benefit Obligations associated with postretirement benefit plans
 
 
 
Benefit obligations at January 1
$ 40,599 
$ 42,992 
 
Service cost
981 
1,095 
1,294 
Interest Cost
1,580 
1,980 
2,503 
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 
$ 42,992 
Employee Benefits Plans (Details 13) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Other Postretirement Benefits [Member]
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
Current liability
$ 2,414 
$ 2,683 
Noncurrent liability
28,374 
37,916 
Net amount recognized
30,788 
40,599 
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
Prior service credit
(4,986)
(1,307)
Net actuarial loss
(6,239)
(859)
Net amount recognized
$ (11,225)
$ (2,166)
Employee Benefits Plans (Details 14)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other Postretirement Benefits U.S [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
4.10% 
4.90% 
5.70% 
Rate of increase in compensation levels
3.00% 
4.00% 
 
Healthcare cost trend rate assumed for next year
7.25% 
7.50% 
 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
5.00% 
5.00% 
 
Year that the rate reaches the ultimate trend rate
2023 
2023 
 
Other Postretirement Benefits U.S [Member] |
Actuarial assumptions used in determining accrued postretirement benefit obligations [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
5.00% 
4.10% 
 
Other Postretirement Benefits Foreign [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
4.00% 
4.50% 
5.25% 
Rate of increase in compensation levels
3.00% 
3.50% 
 
Healthcare cost trend rate assumed for next year
6.50% 
7.00% 
 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
5.00% 
5.00% 
 
Year that the rate reaches the ultimate trend rate
2017 
2017 
 
Other Postretirement Benefits Foreign [Member] |
Actuarial assumptions used in determining accrued postretirement benefit obligations [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
4.80% 
4.00% 
 
Employee Benefits Plans (Details 15) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Other Postretirement Benefits [Member]
 
Pension benefits expected to be paid
 
2013
$ 2,462 
2014
2,602 
2015
2,705 
2016
2,758 
2017
2,806 
2018-2022
$ 13,133 
Employee Benefits Plans (Details Textual) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Jun. 30, 2012
Dec. 31, 2014
Dec. 31, 2012
Dec. 31, 2013
Pension Benefits [Member]
Dec. 31, 2012
Pension Benefits [Member]
Dec. 31, 2011
Pension Benefits [Member]
Dec. 31, 2013
Rabbi Trusts [Member]
Dec. 31, 2012
Rabbi Trusts [Member]
Dec. 31, 2013
Other Postretirement Benefits [Member]
Age
Dec. 31, 2013
Non-qualified supplemental pension plan [Member]
Dec. 31, 2012
Non-qualified supplemental pension plan [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
MEP Contribution Percent
 
5.00% 
 
 
 
 
 
 
 
 
 
 
Accrued pension liability
$ 295,815,000 
 
 
$ 600,584,000 
 
 
 
 
 
 
$ 44,000,000 
$ 46,000,000 
Prior service credit to be recognized
 
 
 
 
2,000,000 
 
 
 
 
 
 
 
Net actuarial loss to be recognized
 
 
 
 
24,958,000 
 
 
 
 
 
 
 
U.S. pension plan assets percentage of total pension plan assets
75.00% 
 
 
 
 
 
 
 
 
 
 
 
Required pension contributions to our pension plans
 
 
75,000,000 
 
 
 
 
 
 
 
 
 
Expense related to defined contribution savings plans
 
 
 
 
35,000,000 
33,000,000 
33,000,000 
 
 
 
 
 
Liability related to the cash awards
34,401,000 
 
 
26,548,000 
34,000,000 
27,000,000 
 
 
 
 
 
 
Assets held in trust
 
 
 
 
 
 
 
35,000,000 
26,000,000 
 
 
 
Value of common stock issued in trust
 
 
 
 
 
 
 
$ 2,000,000 
$ 2,000,000 
 
 
 
Maximum age limit of qualified retirees for health care benefits
 
 
 
 
 
 
 
 
 
65 
 
 
Assumed change in healthcare cost trend rates in each year
 
 
 
 
 
 
 
 
 
1.00% 
 
 
Environmental Matters (Details) (USD $)
12 Months Ended
Dec. 31, 2013
DisposalSite
Dec. 31, 2012
Dec. 31, 2011
Environmental Matters (Textual) [Abstract]
 
 
 
Number of disposal sites
19 
 
 
Environmental expenses
$ 9,000,000 
$ 7,000,000 
$ 7,000,000 
Environmental liabilities
13,063,000 
12,616,000 
 
Capital expenditures related to environmental programs
$ 1,000,000 
$ 2,000,000 
$ 3,000,000 
Other Items Impacting Comparability (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2013
Superstorm Sandy [Member]
Oct. 28, 2012
Superstorm Sandy [Member]
Dec. 31, 2012
Hill Hire [Member]
Dec. 31, 2011
Total Logistic Control [Member]
Business Acquisition [Line Items]
 
 
 
 
 
Currencytranslationbenefit
$ (2)
 
 
 
 
Other Items Impacting Comparability (Textual) [Abstract]
 
 
 
 
 
Storm damage liability incurred before tax
 
(1)
 
 
 
Storm Damage, Liability Incurred Before Tax
 
 
 
 
Transaction costs excluded from segment results
 
 
 
$ 0.4 
$ 2.0 
Other Matters (Details) (Superstorm Sandy [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Oct. 28, 2012
Superstorm Sandy [Member]
 
 
Other Matters [Line Items]
 
 
Storm Damage, Liability Incurred Before Tax
 
$ 8 
Carrying value of storm damaged property expected to be recovered
$ 16 
 
Supplemental Cash Flow Information (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Supplemental cash flow information
 
 
 
Interest Paid
$ 132,946,000 
$ 126,764,000 
$ 126,916,000 
Income taxes paid (refunded)
13,063,000 
11,613,000 
21,541,000 
Changes in accounts payable related to purchases of revenue earning equipment
43,745,000 
27,528,000 
61,290,000 
Operating and revenue earning equipment acquired under capital leases
5,698,000 
20,670,000 
39,279,000 
Fair value of debt assumed on acquisition
379,000 
Capital leases assumed
$ 20,000,000 
 
 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,617,729 
$ 1,634,540 
$ 1,603,999 
$ 1,563,017 
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 6,419,285 
$ 6,256,967 
$ 6,050,534 
Unallocated Central Support Services
 
 
 
 
 
 
 
 
(45,493)
(42,348)
(42,549)
Non-operating pension costs
 
 
 
 
 
 
 
 
(24,285)
(31,423)
(18,652)
Restructuring and other charges, net and other items
 
 
 
 
 
 
 
 
154 
(16,668)
(5,789)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
368,895 
303,117 
279,387 
Fleet Management Solutions [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
4,036,222 
3,976,381 
3,844,496 
Inter-segment revenue
 
 
 
 
 
 
 
 
458,464 
428,944 
373,834 
Revenue
 
 
 
 
 
 
 
 
4,494,686 
4,405,325 
4,218,330 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
344,049 
307,628 
265,691 
Fleet Management Solutions [Member] |
Full service lease [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
2,016,570 
1,956,812 
1,862,304 
Fleet Management Solutions [Member] |
Commercial rental [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
753,456 
738,564 
691,573 
Fleet Management Solutions [Member] |
Full service lease and commercial rental [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
2,770,026 
2,695,376 
2,553,877 
Fleet Management Solutions [Member] |
Contract maintenance [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
178,001 
184,149 
181,003 
Fleet Management Solutions [Member] |
Contract-related maintenance [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
186,580 
170,323 
153,009 
Fleet Management Solutions [Member] |
Other Services [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
72,029 
71,955 
69,124 
Fleet Management Solutions [Member] |
Fuel services revenue [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
829,586 
854,578 
887,483 
Supply Chain Solutions [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,383,063 
2,280,586 
2,206,038 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
129,959 
115,193 
104,898 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
(458,464)
(428,944)
(373,834)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
(35,489)
(29,265)
(24,212)
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Segment NBT
 
 
 
 
 
 
 
 
$ 438,519 
$ 393,556 
$ 346,377 
Segment Reporting (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
$ 19,310 
$ 18,864 
$ 17,423 
Depreciation expense
957,141 
939,677 
872,262 
Gains on vehicle sales, net
(96,175)
(89,108)
(62,879)
Other non-cash charges (credits), net
56,389 
49,209 
39,928 
Interest expense (income)
137,196 
140,557 
133,164 
Capital expenditures paid
2,140,464 
2,133,235 
1,698,589 
Total assets
9,103,782 
8,318,979 
7,617,835 
Fleet Management Solutions [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
4,979 
5,359 
5,388 
Depreciation expense
926,724 
910,352 
842,094 
Gains on vehicle sales, net
(96,011)
(89,075)
(62,496)
Other non-cash charges (credits), net
19,071 
15,567 
16,271 
Interest expense (income)
139,288 
140,747 
133,245 
Capital expenditures paid
2,092,544 
2,090,443 
1,653,425 
Total assets
8,309,149 
7,556,509 
6,815,404 
Supply Chain Solutions [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
4,934 
4,433 
4,312 
Depreciation expense
29,560 
28,275 
29,118 
Gains on vehicle sales, net
(164)
(33)
(383)
Other non-cash charges (credits), net
3,640 
2,768 
3,214 
Interest expense (income)
(1,864)
11 
(74)
Capital expenditures paid
22,677 
19,278 
30,209 
Total assets
869,074 
807,935 
827,169 
Central Support Service [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
9,397 
9,072 
7,723 
Depreciation expense
857 
1,050 
1,050 
Gains on vehicle sales, net
Other non-cash charges (credits), net
33,678 
30,874 
20,443 
Interest expense (income)
(228)
(201)
(7)
Capital expenditures paid
25,243 
23,514 
14,955 
Total assets
160,249 
144,355 
198,476 
Eliminations [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
Depreciation expense
Gains on vehicle sales, net
Other non-cash charges (credits), net
Interest expense (income)
Capital expenditures paid
Total assets
$ (234,690)
$ (189,820)
$ (223,214)
Segment Reporting (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,617,729 
$ 1,634,540 
$ 1,603,999 
$ 1,563,017 
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 6,419,285 
$ 6,256,967 
$ 6,050,534 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
7,124,663 
 
 
 
6,379,461 
 
 
 
7,124,663 
6,379,461 
5,673,851 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
5,411,376 
5,231,899 
5,075,432 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
5,996,646 
 
 
 
5,261,622 
 
 
 
5,996,646 
5,261,622 
4,708,086 
Foreign [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,007,909 
1,025,068 
975,102 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
1,128,017 
 
 
 
1,117,839 
 
 
 
1,128,017 
1,117,839 
965,765 
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
455,440 
477,495 
481,593 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
529,880 
 
 
 
557,351 
 
 
 
529,880 
557,351 
481,139 
Europe [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
372,209 
384,105 
324,214 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
568,850 
 
 
 
534,728 
 
 
 
568,850 
534,728 
463,848 
Mexico [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
161,279 
143,282 
147,464 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
29,008 
 
 
 
24,973 
 
 
 
29,008 
24,973 
19,931 
Asia [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
18,981 
20,186 
21,831 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
$ 279 
 
 
 
$ 787 
 
 
 
$ 279 
$ 787 
$ 847 
Segment Reporting (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting (Textual) [Abstract]
 
 
 
Depreciation expense
$ 957,141 
$ 939,677 
$ 872,262 
Acquisitions
1,858 
5,113 
361,921 
Supply Chain Solutions [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Depreciation expense
29,560 
28,275 
29,118 
Central support service assets depreciation expense allocated to other business segments [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Depreciation expense
$ 14,000 
$ 12,000 
$ 9,000 
Automotive industry [Member] |
Supply Chain Solutions [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Percentage of total revenue
29.00% 
30.00% 
27.00% 
Quarterly Information (Unaudited) (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
QUARTERLY INFORMATION
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,617,729,000 
$ 1,634,540,000 
$ 1,603,999,000 
$ 1,563,017,000 
$ 1,583,536,000 
$ 1,573,295,000 
$ 1,563,860,000 
$ 1,536,276,000 
$ 6,419,285,000 
$ 6,256,967,000 
$ 6,050,534,000 
Earnings from Continuing operations
65,944,000 
73,875,000 
62,575,000 
40,802,000 
54,945,000 
64,311,000 
46,767,000 
34,876,000 
243,196,000 
200,899,000 
171,368,000 
Net earnings
64,607,000 
71,067,000 
62,194,000 
39,924,000 
53,844,000 
75,091,000 
46,723,000 
34,321,000 
237,792,000 
209,979,000 
169,777,000 
Earnings from Continuing operations per Common Share
 
 
 
 
 
 
 
 
 
 
 
Continuing operations (USD per share)
$ 1.25 
$ 1.41 
$ 1.21 
$ 0.79 
$ 1.07 
$ 1.26 
$ 0.92 
$ 0.68 
$ 4.67 
$ 3.93 
$ 3.34 
Continuing operations (USD per share)
$ 1.24 
$ 1.40 
$ 1.19 
$ 0.79 
$ 1.07 
$ 1.26 
$ 0.91 
$ 0.68 
$ 4.63 
$ 3.91 
$ 3.31 
Net earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 1.23 
$ 1.36 
$ 1.20 
$ 0.77 
$ 1.05 
$ 1.47 
$ 0.92 
$ 0.67 
$ 4.57 
$ 4.11 
$ 3.31 
Diluted (USD per share)
$ 1.22 
$ 1.35 
$ 1.19 
$ 0.77 
$ 1.05 
$ 1.47 
$ 0.91 
$ 0.67 
$ 4.53 
$ 4.09 
$ 3.28 
State Of Michigan [Member]
 
 
 
 
 
 
 
 
 
 
 
Quarterly Information (Unaudited) (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit per diluted common share
 
 
 
 
 
 
 
$ (0.10)
 
 
 
Income Tax Benefit
 
 
 
 
 
 
 
 
 
 
(5,350,000)
United Kingdom [Member]
 
 
 
 
 
 
 
 
 
 
 
Quarterly Information (Unaudited) (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit per diluted common share
 
 
 
 
 
$ 0.02 
 
 
 
 
 
Income Tax Benefit
 
 
 
 
 
 
 
 
(856,000)
 
Income tax charge
 
 
 
 
 
$ 1,000,000 
 
 
 
 
 
Valuation and Qualifying Accounts (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Valuation and Qualifying Accounts (Textual) [Abstract]
 
 
 
Benefit (charge) within operating expense
$ 5,000,000 
$ 1,000,000 
$ 4,000,000 
Accounts receivable allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
15,429,000 
14,489,000 
13,867,000 
Charged to Earnings
7,561,000 
10,478,000 
7,466,000 
Transferred from to Other Accounts
Deductions
(6,035,000)
(9,538,000)
(6,844,000)
Ending Balance
16,955,000 
15,429,000 
14,489,000 
Direct finance lease allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
703,000 
903,000 
784,000 
Charged to Earnings
205,000 
812,000 
867,000 
Transferred from to Other Accounts
Deductions
(407,000)
(1,012,000)
(748,000)
Ending Balance
501,000 
703,000 
903,000 
Self-insurance accruals [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
279,157,000 
253,424,000 
243,248,000 
Charged to Earnings
266,314,000 
272,357,000 
217,980,000 
Transferred from to Other Accounts
60,235,000 
57,285,000 
54,833,000 
Deductions
(315,451,000)
(303,909,000)
(262,637,000)
Ending Balance
290,255,000 
279,157,000 
253,424,000 
Reserve For Residual Value Guarantees [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
1,635,000 
4,218,000 
4,497,000 
Charged to Earnings
(413,000)
179,000 
347,000 
Transferred from to Other Accounts
Deductions
(983,000)
(2,762,000)
(626,000)
Ending Balance
239,000 
1,635,000 
4,218,000 
Valuation allowance on deferred tax assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
38,182,000 
41,324,000 
39,216,000 
Charged to Earnings
1,627,000 
1,061,000 
672,000 
Transferred from to Other Accounts
Deductions
(6,016,000)
(4,203,000)
1,436,000 
Ending Balance
$ 33,793,000 
$ 38,182,000 
$ 41,324,000