RYDER SYSTEM INC, 10-K filed on 2/14/2013
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2012
Jan. 31, 2013
Jun. 30, 2012
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, 2012 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2012 
 
 
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
 
 
$ 1,802,526,311 
Entity Common Stock, Shares Outstanding
 
51,477,492 
 
Consolidated Statements of Earnings (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Statement [Abstract]
 
 
 
Lease and rental revenues
$ 2,695,376 
$ 2,553,877 
$ 2,309,816 
Services revenue
2,707,013 
2,609,174 
2,109,748 
Fuel services revenue
854,578 
887,483 
716,871 
Total revenue
6,256,967 
6,050,534 
5,136,435 
Cost of lease and rental
1,890,659 
1,746,057 
1,604,253 
Cost of services
2,274,118 
2,186,353 
1,763,018 
Cost of fuel services
838,673 
873,466 
699,107 
Other operating expenses
135,904 
129,180 
134,224 
Selling, general and administrative expenses
766,704 
771,244 
655,375 
Gains on vehicle sales, net
(89,108)
(62,879)
(28,727)
Interest expense
140,557 
133,164 
129,994 
Miscellaneous income, net
(11,727)
(9,093)
(7,114)
Restructuring and other charges, net
8,070 
3,655 
0 
Total expenses
5,953,850 
5,771,147 
4,950,130 
Earnings from continuing operations before income taxes
303,117 
279,387 
186,305 
Provision for income taxes
102,218 
108,019 
61,697 
Earnings from continuing operations
200,899 
171,368 
124,608 
Loss from discontinued operations, net of tax
9,080 
(1,591)
(6,438)
Net earnings
$ 209,979 
$ 169,777 
$ 118,170 
Earnings (loss) per common share - Basic
 
 
 
Continuing operations (USD per share)
$ 3.93 
$ 3.34 
$ 2.38 
Discontinued operations (USD per share)
$ 0.18 
$ (0.03)
$ (0.13)
Net earnings (USD per share)
$ 4.11 
$ 3.31 
$ 2.25 
Earnings (loss) per common share - Diluted
 
 
 
Continuing operations (USD per share)
$ 3.91 
$ 3.31 
$ 2.37 
Discontinued operations (USD per share)
$ 0.18 
$ (0.03)
$ (0.12)
Net earnings (USD per share)
$ 4.09 
$ 3.28 
$ 2.25 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Statement of Other Comprehensive Income [Abstract]
 
 
 
Net earnings
$ 209,979 
$ 169,777 
$ 118,170 
Change in unrealized components of defined benefit plans:
 
 
 
Net actuarial loss during the period
(109,765)
(282,943)
(35,819)
Amortization
28,674 
17,917 
16,865 
Settlements
0 
0 
1,487 
Change in unrealized componenets of defined benefit plans
(81,091)
(265,026)
(17,467)
Change in cumulative translation adjustment and other
29,641 
(17,768)
12,995 
Other comprehensive loss before taxes
(51,450)
(282,794)
(4,472)
Benefit for taxes
30,996 
92,228 
6,792 
Other comprehensive (loss) income, net of taxes
(20,454)
(190,566)
2,320 
Comprehensive income (loss)
$ 189,525 
$ (20,789)
$ 120,490 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 66,392 
$ 104,572 
Receivables, net
775,765 
754,644 
Inventories
64,146 
65,912 
Prepaid expenses and other current assets
133,934 
163,045 
Total current assets
1,040,237 
1,088,173 
Revenue earning equipment, net of accumulated depreciation of $3,514,910 and $3,462,359, respectively
5,754,608 
5,049,671 
Operating property and equipment, net of accumulated depreciation of $966,220 and $911,717, respectively
624,853 
624,180 
Goodwill
384,216 
377,306 
Intangible assets
80,475 
84,820 
Direct financing leases and other assets
434,590 
393,685 
Total assets
8,318,979 
7,617,835 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
367,975 
274,366 
Accounts payable
398,983 
391,827 
Accrued expenses and other current liabilities
505,707 
507,630 
Total current liabilities
1,272,665 
1,173,823 
Long-term debt
3,452,821 
3,107,779 
Other non-current liabilities
948,932 
896,587 
Deferred income taxes
1,177,074 
1,121,493 
Total liabilities
6,851,492 
6,299,682 
Shareholders' equity:
 
 
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, December 31, 2012 or 2011
0 
0 
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, December 31, 2012 — 51,371,696; December 31, 2011 — 51,143,946
25,686 
25,572 
Additional paid-in capital
808,230 
769,383 
Retained earnings
1,221,190 
1,090,363 
Accumulated other comprehensive loss
(587,619)
(567,165)
Total shareholders' equity
1,467,487 
1,318,153 
Total liabilities and shareholders' equity
$ 8,318,979 
$ 7,617,835 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Statement of Financial Position [Abstract]
 
 
Accumulated depreciation on revenue earning equipment
$ 3,514,910 
$ 3,462,359 
Accumulated depreciation on operating property and equipment
$ 966,220 
$ 911,717 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.50 
$ 0.50 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
51,371,696 
51,143,946 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities of continuing operations:
 
 
 
Net earnings
$ 209,979 
$ 169,777 
$ 118,170 
Less: Earnings (loss) from discontinued operations, net of tax
9,080 
(1,591)
(6,438)
Earnings from continuing operations
200,899 
171,368 
124,608 
Depreciation expense
939,677 
872,262 
833,841 
Gains on vehicle sales, net
(89,108)
(62,879)
(28,727)
Share-based compensation expense
18,864 
17,423 
16,543 
Amortization expense and other non-cash charges, net
49,209 
39,928 
40,900 
Deferred income tax expense
87,102 
90,016 
41,097 
Changes in operating assets and liabilities, net of acquisitions:
 
 
 
Receivables
7,107 
(92,020)
(18,020)
Inventories
729 
(6,154)
(7,508)
Prepaid expenses and other assets
10,715 
(25,040)
(4,896)
Accounts payable
(22,803)
24,657 
6,906 
Accrued expenses and other non-current liabilities
(68,267)
12,395 
23,290 
Net cash provided by operating activities of continuing operations
1,134,124 
1,041,956 
1,028,034 
Cash flows from financing activities of continuing operations:
 
 
 
Net change in commercial paper borrowings
(64,751)
46,749 
174,939 
Debt proceeds
745,777 
966,402 
314,169 
Debt repaid, including capital lease obligations
(283,937)
(419,287)
(248,668)
Dividends on common stock
(61,266)
(57,504)
(54,474)
Common stock issued
28,386 
33,359 
17,028 
Common stock repurchased
(26,878)
(59,689)
(123,300)
Excess tax benefits from share-based compensation
1,341 
1,710 
754 
Debt issuance costs
(4,867)
(7,538)
(2,282)
Net cash provided by (used in) financing activities of continuing operations
333,805 
504,202 
78,166 
Cash flows from investing activities of continuing operations:
 
 
 
Purchases of property and revenue earning equipment
(2,133,235)
(1,698,589)
(1,070,092)
Sales of revenue earning equipment
405,440 
290,336 
220,843 
Sale and leaseback of revenue earning equipment
130,184 
37,395 
0 
Sales of operating property and equipment
7,350 
9,905 
13,844 
Acquisitions
(5,113)
(361,921)
(211,897)
Collections on direct finance leases
71,897 
62,224 
61,767 
Changes in restricted cash
19,204 
3,478 
(107)
Other, net
0 
0 
3,178 
Net cash used in investing activities of continuing operations
(1,504,273)
(1,657,172)
(982,464)
Effect of exchange rate changes on cash
1,344 
3,219 
1,723 
(Decrease) increase in cash and cash equivalents from continuing operations
(35,000)
(107,795)
125,459 
Cash flows from discontinued operations:
 
 
 
Operating cash flows
(3,219)
(500)
(9,276)
Financing cash flows
0 
(140)
(2,955)
Investing cash flows
0 
0 
1,677 
Effect of exchange rate changes on cash
39 
(46)
(377)
Decrease in cash and cash equivalents from discontinued operations
(3,180)
(686)
(10,931)
Decrease (increase) in cash and cash equivalents
(38,180)
(108,481)
114,528 
Cash and cash equivalents at January 1
104,572 
213,053 
98,525 
Cash and cash equivalents at December 31
$ 66,392 
$ 104,572 
$ 213,053 
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, 2009
$ 1,426,995 
$ 0 
$ 26,710 
$ 743,026 
$ 1,036,178 
$ (378,919)
Balance, shares at Dec. 31, 2009
 
 
53,419,721 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
118,170 
 
 
 
118,170 
 
Other comprehensive income (loss)
2,320 
 
 
 
 
2,320 
Comprehensive income (loss)
120,490 
 
 
 
 
 
Common stock dividends declared and paid
(54,474)
0 
0 
0 
(54,474)
0 
Common stock issued under employee stock option and stock purchase plans1
17,028 
0 
370 
16,658 
0 
0 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
740,242 
 
 
 
Benefit plan stock sales (purchases)2
(130)
0 
(2)
(128)
0 
0 
Benefit plan stock sales (purchases), shares2
 
 
(3,160)
 
 
 
Common stock repurchases
(123,170)
0 
(1,491)
(41,590)
(80,089)
0 
Common stock repurchases, shares
 
 
(2,982,046)
 
 
 
Share-based compensation
16,543 
0 
0 
16,543 
0 
0 
Tax benefits from share-based compensation
1,031 
0 
0 
1,031 
0 
0 
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)
 
 
 
 
(190,566)
Comprehensive income (loss)
(20,789)
 
 
 
 
 
Common stock dividends declared and paid
(57,504)
0 
0 
0 
(57,504)
0 
Common stock issued under employee stock option and stock purchase plans1
33,359 
0 
579 
32,780 
0 
0 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
1,157,548 
 
 
 
Benefit plan stock sales (purchases)2
(587)
0 
(6)
(581)
0 
0 
Benefit plan stock sales (purchases), shares2
 
 
(12,576)
 
 
 
Common stock repurchases
(59,102)
0 
(588)
(16,819)
(41,695)
0 
Common stock repurchases, shares
 
 
(1,175,783)
 
 
 
Share-based compensation
17,423 
0 
0 
17,423 
0 
0 
Tax benefits from share-based compensation
1,040 
0 
0 
1,040 
0 
0 
Balance at Dec. 31, 2011
1,318,153 
0 
25,572 
769,383 
1,090,363 
(567,165)
Balance, shares at Dec. 31, 2011
51,143,946 
 
51,143,946 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
209,979 
 
 
 
209,979 
 
Other comprehensive income (loss)
(20,454)
 
 
 
 
(20,454)
Comprehensive income (loss)
189,525 
 
 
 
 
 
Common stock dividends declared and paid
(61,266)
0 
0 
0 
 
0 
Common stock issued under employee stock option and stock purchase plans1
28,386 
0 
391 
27,995 
0 
0 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
782,783 
 
 
 
Benefit plan stock sales (purchases)2
(535)
0 
(5)
(530)
0 
0 
Benefit plan stock sales (purchases), shares2
 
 
(11,110)
 
 
 
Common stock repurchases
(26,343)
0 
(272)
(8,185)
(17,886)
0 
Common stock repurchases, shares
 
 
(543,923)
 
 
 
Share-based compensation
18,864 
0 
0 
18,864 
0 
0 
Tax benefits from share-based compensation
703 
0 
0 
703 
0 
0 
Balance at Dec. 31, 2012
$ 1,467,487 
$ 0 
$ 25,686 
$ 808,230 
$ 1,221,190 
$ (587,619)
Balance, shares at Dec. 31, 2012
51,371,696 
 
51,371,696 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Common stock dividends declared and paid, per share
$ 1.2 
$ 1.12 
$ 1.04 
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.
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. Our total comprehensive income (loss) presently consists of net earnings, currency translation adjustments associated with foreign operations that use the local currency as their functional currency, adjustments for derivative instruments accounted for as cash flow hedges and various pension and other postretirement benefits related items.
Reclassifications
In 2012, we changed our business segments and our primary measure of segment operating performance. We operate in two business segments: Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS). Prior to 2012, Dedicated Contract Carriage (DCC) was reported as a separate business segment. In 2012, SCS and DCC were combined as a result of changing our internal reporting to coincide with how we operate our business. Our primary measurement of segment operating performance, “Earnings Before Taxes” (EBT) from continuing operations, was also changed in 2012 to exclude the non-operating components of pension costs in order to more accurately reflect the operating performance of the business segments. Prior year amounts have been reclassified to conform to the current period presentation.
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 equipment. 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 equipment 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 rent. 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 generally 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 mechanical 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 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.
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.”
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.”
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 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 as well as the revisions to either the timing or amount of expected cash flows.
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 (primarily J.P. Morgan) 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 “Accumulated other comprehensive loss” 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. 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.
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 12 months 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 a component of accumulated other comprehensive loss, net of tax in the Consolidated Statements of Shareholders’ Equity. 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. 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.
Accounting Changes
ACCOUNTING CHANGES
ACCOUNTING CHANGES
Comprehensive Income
In June 2011, the Financial Accounting Standards Board (FASB) issued accounting guidance on the presentation of comprehensive income. Under this guidance, entities have the option to present the components of net income and other comprehensive income in either a single continuous statement of comprehensive income or in two separate but consecutive statements. We adopted this guidance in the first quarter of 2012 and the consolidated financial statements contain a separate statement of comprehensive income (loss). This accounting guidance only impacted presentation and did not have an effect on our consolidated financial position, results of operations or cash flows.
Goodwill Impairment Testing
In September 2011, the FASB issued accounting guidance on goodwill impairment testing which permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Companies are required to calculate the fair value of a reporting unit if the qualitative evaluation indicates that it is more likely than not that the fair value is less than the carrying amount. This guidance was effective for us beginning with our annual goodwill impairment test on April 1, 2012. This guidance had no effect on our consolidated financial position, results of operations or cash flows. For our annual goodwill impairment test on April 1, 2012, we performed a qualitative test for one of our reporting units. Due to acquisitions and volatility in the economic environment, we believed it was appropriate to have recent fair values for the remaining two reporting units with goodwill.
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 $1 million of the stock purchase price has been paid, and the majority of the capital lease obligations have been repaid as of December 31, 2012. The purchase price includes $0.5 million in contingent consideration to be paid to the seller provided certain conditions are met. As of December 31, 2012, the fair value of the contingent consideration has been reflected in "Other non-currrent liabilities" in our Consolidated Balance Sheets. See Note 17, "Fair Value Measurements," for additional information. The acquisition included Euroway's fleet of approximately 560 full service lease vehicles as well as 800 contract maintenance vehicles. As of December 31, 2012, 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 and were primarily reflected within "Selling, general and administrative expenses" in our Consolidated Statements of Earnings.
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 $3 million and $107 million was paid during 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
2010 Acquisition
Total Logistic Control – On December 31, 2010, we acquired all of the common stock of Total Logistic Control (TLC), a leading provider of comprehensive supply chain solutions to food, beverage, and consumer packaged goods manufacturers in the U.S. TLC provides customers a broad suite of end-to-end services, including distribution management, contract packaging services and solutions engineering. This acquisition enhances our SCS capabilities and growth prospects in the areas of packaging and warehousing, including temperature-controlled facilities. The purchase price was $207 million, of which $3 million was paid in 2011. No further payments are due related to this acquisition. During 2011, the purchase price was reduced by $1 million due to contractual adjustments in acquired deferred taxes and working capital.
The following table provides the final allocated fair values of the assets acquired and the liabilities assumed at the date of the TLC acquisition:
Assets:
 
(In thousands)

Current assets
 
$
24,588

Operating property and equipment
 
73,135

Goodwill
 
131,911

Customer relationships and other intangibles
 
34,980

Other assets
 
816

 
 
265,430

Liabilities:
 
 
Current liabilities
 
(26,875
)
Deferred income taxes and other liabilities
 
(31,432
)
 
 
(58,307
)
Net assets acquired
 
$
207,123


 
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 and the TLC acquisition had been included in operations commencing January 1, 2009. 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.
 
 
Years ended December 31,
 
 
2011
 
2010
 
 
(In thousands, except per share amounts)
Revenue — As reported
 
$
6,050,534

 
5,136,435

Revenue — Pro forma
 
$
6,118,104

 
5,538,824

 
 
 
 
 
Net earnings — As reported
 
$
169,777

 
118,170

Net earnings — Pro forma
 
$
184,849

 
149,501

 
 
 
 
 
Net earnings per common share:
 
 
 
 
Basic — As reported
 
$
3.31

 
2.25

Basic — Pro forma
 
$
3.60

 
2.85

 
 
 
 
 
Diluted — As reported
 
$
3.28

 
2.25

Diluted — Pro forma
 
$
3.58

 
2.84


We paid approximately $1 million in both 2012 and 2011 and $8 million in 2010 related to other acquisitions completed in prior years.
All of the acquisitions were accounted for as an acquisition of a business. Goodwill on these acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contributed to the recognition of goodwill in our acquisitions included (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) the experienced workforce and (v) our strategies for growth in sales, income and cash flows.
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. During

the second half of 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,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Pre-tax loss from discontinued operations
 
$
(2,226
)
 
$
(1,185
)
 
$
(7,525
)
Income tax benefit (expense)
 
11,306

 
(406
)
 
1,087

Earnings (loss) from discontinued operations, net of tax
 
$
9,080

 
$
(1,591
)
 
$
(6,438
)

Results of discontinued operations in 2012, 2011 and 2010 included $3 million, $2 million and $4 million, respectively, of pre-tax losses related to adverse legal developments and professional and administrative fees associated with our discontinued South American operations. Results of discontinued operations in 2012 also included $1 million of pre-tax income related to the sub-lease of a European SCS facility. During 2010, we recognized pre-tax exit costs of $3 million from the aforementioned SCS facility related to changes in sublease income estimates because of continued weak commercial real estate market conditions. Results of discontinued operations in 2011 also included $1 million of pre-tax income from favorable prior year insurance claims development. Earnings from discontinued operations in 2012 also reflect a tax benefit of $11 million resulting from the expiration of a statute of limitations.
The following is a summary of assets and liabilities of discontinued operations:
 
 
December 31, 2012
 
December 31, 2011
 
 
(In thousands)
Total assets, primarily deposits
 
$
4,460

 
$
4,600

Total liabilities, primarily contingent accruals
 
$
5,329

 
$
6,502



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, we were assessed $5 million (before and after tax) for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We have 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.

In Brazil, we were assessed $6 million (before and after tax) for certain state operating tax credits utilized between 2001 and 2003. Although there is a reasonable possibility that we could incur this loss, we believe it is more likely than not that our position will ultimately be sustained and no amounts have been reserved for these matters.

Additionally in Brazil, we were assessed $16 million, including penalties and interest, related to tax due on the sale of our outbound auto carriage business in 2001. On November 11, 2010, the Administrative Tax Court dismissed the assessment. The tax authority filed a motion to review the decision before the Administrative Tax Court. On December 6, 2011, the Administrative Tax Court upheld our position. In the first quarter of 2012, the tax authority decided not to file a final special appeal and the case was dismissed. There was no financial statement impact upon resolution as no amounts were reserved for this matter.
Restructuring and Other Charges
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES
The components of restructuring and other charges, net in 2012, 2011 and 2010 were as follows: 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Restructuring charges, net:
 
 
 
 
 
 
Severance and employee-related costs
 
$
7,205

 
3,162

 
—

Contract termination costs
 
865

 
493

 
—

 
 
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 charges, net. However, the applicable portion of the restructuring and other charges, net that related to each segment in 2012, 2011 and 2010 were as follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Fleet Management Solutions
 
$
6,448

 
3,531

 
—

Supply Chain Solutions
 
1,346

 
124

 
—

Central Support Services
 
276

 
—

 
—

Total
 
$
8,070

 
3,655

 
—


 
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 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, 2012 and 2011:
 
 
 
 
 
 
Deductions
 
 
 
 
 
 
Beginning
Balance
 
Additions
 
Cash
Payments
 
Non-Cash
Reductions(1)
 
Foreign
Translation
Adjustment
 
Ending
Balance
 
 
(In thousands)
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

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
Employee severance and benefits
 
$
234

 
3,290

 
736

 
105

 
(76
)
 
2,607

Contract termination costs
 
3,813

 
493

 
1,557

 
141

 
31

 
2,639

Total
 
$
4,047

 
3,783

 
2,293

 
246

 
(45
)
 
5,246

____________ 
(1)
Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated.
At December 31, 2012, outstanding restructuring obligations are generally required to be paid over the next year.
Receivables
RECEIVABLES
RECEIVABLES
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Trade
 
$
670,717

 
661,592

Direct financing leases
 
76,395

 
68,896

Income tax
 
6,596

 
8,961

Insurance (1)
 
17,345

 
7,619

Vendor rebates
 
5,547

 
8,998

Other
 
14,594

 
13,067

 
 
791,194

 
769,133

Allowance
 
(15,429
)
 
(14,489
)
Total
 
$
775,765

 
754,644


 ____________ 
(1)
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,
 
 
2012
 
2011
 
 
(In thousands)
Current deferred tax asset
 
$
29,129

 
31,426

Restricted cash
 
102

 
17,994

Prepaid vehicle licenses
 
46,784

 
47,045

Prepaid operating taxes
 
13,322

 
12,477

Prepaid real estate rent
 
4,351

 
7,030

Prepaid contract incentives
 
4,789

 
5,612

Prepaid software maintenance costs
 
3,928

 
3,490

Interest rate swap agreement
 
1,313

 
—

Prepaid insurance
 
8,810

 
14,003

Prepaid sales commissions
 
7,908

 
9,385

Other
 
13,498

 
14,583

Total
 
$
133,934

 
163,045

Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT
 
 
Estimated
Useful
Lives
 
December 31, 2012
 
December 31, 2011
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
 
$
6,728,746

 
(2,500,786
)
 
4,227,960

 
6,010,335

 
(2,518,830
)
 
3,491,505

Commercial rental
 
4.5 — 12
 
2,041,698

 
(660,356
)
 
1,381,342

 
2,175,003

 
(708,052
)
 
1,466,951

Held for sale
 
 
 
499,074

 
(353,768
)
 
145,306

 
326,692

 
(235,477
)
 
91,215

Total
 
 
 
$
9,269,518

 
(3,514,910
)
 
5,754,608

 
8,512,030

 
(3,462,359
)
 
5,049,671

_______________ 
(1)
Revenue earning equipment, net includes vehicles under capital leases of $56 million, less accumulated depreciation of $17 million, at December 31, 2012 and $61 million, less accumulated depreciation of $14 million, at December 31, 2011.
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 $18 million in 2012 compared with 2011, and approximately $5 million in 2011 compared with 2010. The adjustment decreased pre-tax earnings by approximately $14 million in 2010 compared with 2009.
Operating Property and Equipment
OPERATING PROPERTY AND EQUIPMENT
OPERATING PROPERTY AND EQUIPMENT
 
 
Estimated
Useful  Lives
 
December 31,
 
 
2012
 
2011
 
 
(In years)
 
(In thousands)
Land
 
—
 
$
190,357

 
188,617

Buildings and improvements
 
10 — 40
 
716,743

 
699,809

Machinery and equipment
 
3 — 10
 
578,718

 
535,183

Other
 
3 — 10
 
105,255

 
112,288

 
 
 
 
1,591,073

 
1,535,897

Accumulated depreciation
 
 
 
(966,220
)
 
(911,717
)
Total
 
 
 
$
624,853

 
624,180

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, 2011
 
 
 
 
 
 
Goodwill
 
$
202,941

 
182,122

 
385,063

Accumulated impairment losses
 
(10,322
)
 
(18,899
)
 
(29,221
)
 
 
192,619

 
163,223

 
355,842

Acquisitions
 
13,958

 
14,658

 
28,616

Purchase accounting adjustments
 
(185
)
 
(6,613
)
 
(6,798
)
Foreign currency translation adjustment
 
(155
)
 
(199
)
 
(354
)
Balance at December 31, 2011
 
 
 
 
 
 
Goodwill
 
216,559

 
189,968

 
406,527

Accumulated impairment losses
 
(10,322
)
 
(18,899
)
 
(29,221
)
 
 
206,237

 
171,069

 
377,306

Acquisition
 
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 in 2011 related primarily to changes in deferred tax liabilities and evaluations of the physical and market condition of operating property and equipment. We did not recast the December 31, 2011 balance sheet as the adjustments are not material.
On April 1st of this year, we completed our annual goodwill impairment test and determined there was no impairment.
Intangible Assets
INTANGIBLE ASSETS
INTANGIBLE ASSETS
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Indefinite lived intangible assets — Trade name
 
$
9,084

 
9,084

Finite lived intangible assets:
 
 
 
 
Customer relationship intangibles
 
95,683

 
92,888

Other intangibles, primarily trade name
 
2,254

 
2,083

Accumulated amortization
 
(27,860
)
 
(19,797
)
 
 
70,077

 
75,174

Foreign currency translation adjustment
 
1,314

 
562

Total
 
$
80,475

 
84,820


 
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 both 2012 and 2011, and $3 million in 2010. 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, 2012:
 
(In thousands)
2013
$
7,510

2014
6,599

2015
6,481

2016
6,474

2017
6,473

 
 
Total
$
33,537

 
 
Direct Financing Leases and Other Assets
DIRECT FINANCING LEASES AND OTHER ASSETS
DIRECT FINANCING LEASES AND OTHER ASSETS
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Direct financing leases, net
 
$
315,528

 
280,988

Investments held in Rabbi Trusts
 
22,426

 
18,696

Insurance receivables
 
21,695

 
15,488

Debt issuance costs
 
16,323

 
16,106

Prepaid pension asset
 
6,090

 
257

Contract incentives
 
17,613

 
17,524

Interest rate swap agreements
 
15,412

 
21,843

Other
 
19,503

 
22,783

Total
 
$
434,590

 
393,685

Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES
 
 
December 31, 2012
 
December 31, 2011
 
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
 
(In thousands)
Salaries and wages
 
$
86,776

 
—

 
86,776

 
121,087

 
—

 
121,087

Deferred compensation
 
1,630

 
24,918

 
26,548

 
1,405

 
21,285

 
22,690

Pension benefits
 
3,309

 
597,275

 
600,584

 
3,120

 
546,681

 
549,801

Other postretirement benefits
 
2,683

 
37,916

 
40,599

 
2,838

 
40,154

 
42,992

Insurance obligations (1)
 
133,459

 
178,714

 
312,173

 
120,045

 
157,390

 
277,435

Residual value guarantees
 
1,505

 
130

 
1,635

 
3,093

 
1,125

 
4,218

Accrued rent
 
9,244

 
9,405

 
18,649

 
4,088

 
14,686

 
18,774

Environmental liabilities
 
4,201

 
8,415

 
12,616

 
4,368

 
9,171

 
13,539

Asset retirement obligations
 
3,642

 
17,116

 
20,758

 
5,702

 
12,364

 
18,066

Operating taxes
 
91,419

 
—

 
91,419

 
81,820

 
—

 
81,820

Income taxes
 
8,288

 
57,590

 
65,878

 
4,160

 
74,147

 
78,307

Interest
 
35,798

 
—

 
35,798

 
30,410

 
—

 
30,410

Deposits, mainly from customers
 
51,671

 
6,236

 
57,907

 
50,951

 
7,544

 
58,495

Deferred revenue
 
21,557

 
—

 
21,557

 
20,698

 
476

 
21,174

Acquisition holdbacks
 
1,637

 
2,673

 
4,310

 
7,422

 
—

 
7,422

Other
 
48,888

 
8,544

 
57,432

 
46,423

 
11,564

 
57,987

Total
 
$
505,707

 
948,932

 
1,454,639

 
507,630

 
896,587

 
1,404,217

_________________
(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 2012, 2011 and 2010, we recorded a benefit (charge) within earnings from continuing operations of $1 million, $4 million, and $(3) 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,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Earnings from continuing operations before income taxes:
 
 
 
 
 
 
United States
 
$
241,672

 
223,209

 
156,123

Foreign
 
61,445

 
56,178

 
30,182

Total
 
$
303,117

 
279,387

 
186,305

Current tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal (1)
 
$
(4,157
)
 
1,615

 
4,536

State (1)
 
11,514

 
7,785

 
4,468

Foreign
 
7,759

 
8,603

 
11,596

 
 
15,116

 
18,003

 
20,600

Deferred tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal
 
77,819

 
67,849

 
38,179

State
 
3,871

 
17,247

 
7,198

Foreign
 
5,412

 
4,920

 
(4,280
)
 
 
87,102

 
90,016

 
41,097

Provision for income taxes from continuing operations
 
$
102,218

 
108,019

 
61,697

______________ 
(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,
 
 
2012
 
2011
 
2010
 
 
(Percentage of pre-tax earnings)
Federal statutory tax rate
 
35.0

 
35.0

 
35.0

Impact on deferred taxes for changes in tax rates
 
0.5

 
2.6

 
0.4

State income taxes, net of federal income tax benefit
 
4.4

 
3.9

 
4.6

Tax reviews and audits
 
(2.9
)
 
(0.9
)
 
(7.0
)
Miscellaneous items, net
 
(3.3
)
 
(1.9
)
 
0.1

Effective tax rate
 
33.7

 
38.7

 
33.1


 
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)
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)
 
 
 
 
 
2010
 
 
 
 
United Kingdom
 
July 27, 2010
 
$400

Deferred Income Taxes
The components of the net deferred income tax liability were as follows:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Deferred income tax assets:
 
 
 
 
Self-insurance accruals
 
$
52,177

 
37,296

Net operating loss carryforwards
 
258,808

 
275,124

Alternative minimum taxes
 
9,679

 
9,679

Accrued compensation and benefits
 
61,095

 
67,323

Federal benefit on state tax positions
 
17,925

 
18,847

Pension benefits
 
204,069

 
179,159

Miscellaneous other accruals
 
39,708

 
38,588

 
 
643,461

 
626,016

Valuation allowance
 
(38,182
)
 
(41,324
)
 
 
605,279

 
584,692

Deferred income tax liabilities:
 
 
 
 
Property and equipment bases difference
 
(1,734,508
)
 
(1,649,494
)
Other items
 
(18,716
)
 
(25,265
)
 
 
(1,753,224
)
 
(1,674,759
)
Net deferred income tax liability (1)
 
$
(1,147,945
)
 
(1,090,067
)
______________ 
(1)
Deferred tax assets of $29 million and $31 million have been included in “Prepaid expenses and other current assets” at December 31, 2012 and 2011, 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 $544 million at December 31, 2012. 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, 2012, we had U.S. federal tax effected net operating loss carryforwards of $178 million and various U.S. subsidiaries had state tax effected net operating loss carryforwards of $47 million both expiring through tax year 2029. We also had foreign tax effected net operating losses of $34 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 $10 million at December 31, 2012 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 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 2005 in Canada, 2006 in Brazil, 2007 in Mexico and 2010 in the U.K., which are our major foreign tax jurisdictions.
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
 
 
December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Balance at January 1
 
$
62,247

 
61,236

 
69,494

Additions based on tax positions related to the current year
 
3,980

 
3,776

 
4,233

Settlements
 
—

 
—

 
(8,280
)
Reductions due to lapse of applicable statute of limitations
 
(13,956
)
 
(2,765
)
 
(4,211
)
Gross balance at December 31
 
52,271

 
62,247

 
61,236

Interest and penalties
 
5,319

 
6,933

 
5,858

Balance at December 31
 
$
57,590

 
69,180

 
67,094


Of the total unrecognized tax benefits, $40 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 $4 million and $5 million of interest and penalties, at December 31, 2012 and 2011, respectively, net of the federal benefit on state issues. For the years ended December 31, 2012, 2011 and 2010, we recognized an income tax benefit related to interest and penalties of $1 million, $1 million, and $2 million, respectively, 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 $2 million by December 31, 2013, if audits are completed or tax years close during 2013.
 
Like-Kind Exchange Program
We have a like-kind exchange program for certain of our revenue earning equipment located in the U.S. 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. 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. Effective April 1, 2012, we temporarily suspended the like-kind exchange program. 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. At December 31, 2012 and 2011, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable of $26 million and $142 million, respectively.
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,
 
 
2012
 
2011
 
 
(In thousands)
Total minimum lease payments receivable
 
$
629,919

 
561,772

Less: Executory costs
 
(201,777
)
 
(181,820
)
Minimum lease payments receivable
 
428,142

 
379,952

Less: Allowance for uncollectibles
 
(703
)
 
(903
)
Net minimum lease payments receivable
 
427,439

 
379,049

Unguaranteed residuals
 
60,764

 
63,472

Less: Unearned income
 
(96,280
)
 
(92,637
)
Net investment in direct financing and sales-type leases
 
391,923

 
349,884

Current portion
 
(76,395
)
 
(68,896
)
Non-current portion
 
$
315,528

 
280,988


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 3 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, 2012:
 
December 31,
 
2012
 
2011
 
(In thousands)
Very low risk to low risk
$
193,123

 
121,836

Moderate
177,400

 
190,070

Moderately high to high risk
57,619

 
68,046

 
 
 
 
 
$
428,142

 
$
379,952

 
 
 
 












The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the twelve months ended December 31, 2012:
 
(In thousands)
Balance at December 31, 2010
$
784

Charged to earnings
867

Deductions
(748
)
Balance at December 31, 2011
903

Charged to earnings
812

Deductions
(1,012
)
 
 
Balance at December 31, 2012
$
703

 
 


As of December 31, 2012 and 2011, 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, 2012 or 2011.
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. 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. We did not enter into any sale-leaseback transactions during 2010.
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 2012, 2011 and 2010, rent expense (including rent of facilities but excluding contingent rentals) was $148 million, $154 million, and $156 million, respectively. During 2012, 2011 and 2010, 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, $(2) million, and $(2) million, respectively.

 
Lease Payments
Future minimum payments for leases in effect at December 31, 2012 were as follows:
 
 
As Lessor (1)
 
As Lessee
 
 
Operating
Leases
 
Direct
Financing
Leases
 
Operating
Leases
 
 
(In thousands)
2013
 
$
823,369

 
107,890

 
106,688

2014
 
620,533

 
87,459

 
96,402

2015
 
475,226

 
73,507

 
54,414

2016
 
348,897

 
60,254

 
34,261

2017
 
230,016

 
40,109

 
21,365

Thereafter
 
172,756

 
58,923

 
58,765

Total
 
$
2,670,797

 
428,142

 
371,895

____________________
(1)
Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of use or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2012, 2011 and 2010 were $319 million, $303 million, and $294 million, respectively. Contingent rentals from direct financing leases included in revenue during 2012, 2011, and 2010 were $11 million, $11 million, and $12 million, respectively.
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,
 
 
2012
 
2011
 
Maturities
 
2012
 
2011
 
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
2.27
%
 
1.45
%
 
2013
 
$
9,820

 
5,091

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
358,155

 
269,275

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
 
367,975

 
274,366

Long-term debt:
 
 
 
 
 
 
 
 
 
 
U.S. commercial paper(1)
 
0.41
%
 
0.40
%
 
2016
 
329,925

 
415,936

Canadian commercial paper(1)
 
1.14
%
 
—
%
 
2016
 
23,165

 
—

Global revolving credit facility
 
1.58
%
 
1.52
%
 
2016
 
8,924

 
1,000

Unsecured U.S. notes – Medium-term notes(1)
 
4.01
%
 
4.49
%
 
2013-2025
 
2,971,313

 
2,484,712

Unsecured U.S. obligations, principally bank term loans
 
1.56
%
 
1.78
%
 
2013-2017
 
105,500

 
105,000

Unsecured foreign obligations
 
1.91
%
 
2.71
%
 
2014-2016
 
313,406

 
300,516

Capital lease obligations
 
4.08
%
 
4.24
%
 
2013-2019
 
42,018

 
48,047

Total before fair market value adjustment
 
 
 
 
 
 
 
3,794,251

 
3,355,211

Fair market value adjustment on notes subject to hedging(2)
 
 
 
 
 
 
 
16,725

 
21,843

 
 
 
 
 
 
 
 
3,810,976

 
3,377,054

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
(358,155
)
 
(269,275
)
Long-term debt
 
 
 
 
 
 
 
3,452,821

 
3,107,779

Total debt
 
 
 
 
 
 
 
$
3,820,796

 
3,382,145

_________________ 
(1)
We had unamortized original issue discounts of $9 million at December 31, 2012 and 2011.
(2)
The notional amount of the executed interest rate swaps designated as fair value hedges was $550 million at December 31, 2012 and 2011.
 
Maturities of total debt are as follows:
 
 
Capital Leases
 
Debt
 
 
(In thousands)
2013
 
$
8,210

 
359,821

2014
 
7,710

 
339,339

2015
 
6,910

 
727,897

2016
 
5,771

 
1,117,289

2017
 
7,140

 
704,062

Thereafter
 
10,942

 
513,645

Total
 
46,683

 
3,762,053

Imputed interest
 
(4,665
)
 
 
Present value of minimum capitalized lease payments
 
42,018

 
 
Current portion
 
(6,841
)
 
 
Long-term capitalized lease obligation
 
$
35,177

 
 

Debt Facilities
We can borrow up to $900 million under a 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. This facility matures in June 2016 and is used primarily to finance working capital and provide support for the issuance of unsecured commercial paper in the U.S. and Canada. This facility 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, 2012). 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 provides for annual facility fees, which range from 10.0 basis points to 32.5 basis points, and are based on Ryder’s long-term credit ratings. The current annual facility fee is 15.0 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 and amended in April 2012, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at December 31, 2012 was 180%. At December 31, 2012, $538 million was available under the credit facility, net of the support for commercial paper borrowings.
Our global revolving credit facility permits us to refinance short-term commercial paper 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, 2012 and 2011, we classified $353 million and $416 million, respectively, of short-term commercial paper as long-term debt.
In August 2012, we issued $350 million of unsecured medium term notes maturing in March 2018. In February 2012, we issued $350 million of unsecured medium-term notes maturing in March 2017. The proceeds were used to pay down commercial paper and for general corporate purposes. If the notes are downgraded following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of the principle amount 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 2012, 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 25, 2013. The program contains 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, 2012 and 2011, 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, 2012 Using
 
 
 
 
Balance Sheet Location    
 
Level 1
 
Level 2
 
Level 3
 
Total    
 
 
 
 
(In thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
Interest rate swap
 
Prepaid expenses and other current assets
 
$
—

 
1,313

 
—

 
1,313

Interest rate swaps
 
DFL and other assets
 
—

 
15,412

 
—

 
15,412

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
4,055

 
—

 
—

 
4,055

U.S. equity mutual funds
 
 
 
10,871

 
—

 
—

 
10,871

Foreign equity mutual funds
 
 
 
2,974

 
—

 
—

 
2,974

Fixed income mutual funds
 
 
 
4,526

 
—

 
—

 
4,526

Investments held in Rabbi Trusts
 
DFL and other assets
 
22,426

 
—

 
—

 
22,426

Total assets at fair value
 
 
 
$
22,426

 
16,725

 
—

 
39,151

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
Other non-current liabilities
 
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
 
$
—

 
—

 
478

 
478

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
At December 31, 2011 Using
 
 
 
 
Balance Sheet Location
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
(In thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
DFL and other assets
 
$
—

 
21,843

 
—

 
21,843

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
3,783

 
—

 
—

 
3,783

U.S. equity mutual funds
 
 
 
8,850

 
—

 
—

 
8,850

Foreign equity mutual funds
 
 
 
2,526

 
—

 
—

 
2,526

Fixed income mutual funds
 
 
 
3,537

 
—

 
—

 
3,537

Investments held in Rabbi Trusts
 
DFL and other assets
 
18,696

 
—

 
—

 
18,696

Total assets at fair value
 
 
 
$
18,696

 
21,843

 
—

 
40,539

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
Accrued Expenses
 
$
—

 
—

 
1,000

 
1,000

Total liabilities at fair value
 
 
 
$
—

 
—

 
1,000

 
1,000


 
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, 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

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
    At December 31, 2011 Using    
 
Year ended
December 31, 2011
 
 
Level 1
 
Level 2
 
Level 3
 
Total Losses (2)
Assets held for sale:
 
 
 
 
 
 
 
 
Revenue earning equipment (1)
 
 
 
 
 
 
 
 
Trucks
 
$
—

 
—

 
6,147

 
$
5,556

Tractors
 
—

 
—

 
3,040

 
1,982

Trailers
 
—

 
—

 
296

 
1,353

Total assets at fair value
 
$
—

 
—

 
9,483

 
$
8,891

______________
(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 (trucks, tractors 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, 2012, 2011, and 2010, we recorded losses to reflect changes in fair value of $18 million, $9 million and $23 million, respectively.
Total fair value of debt (excluding capital lease obligations) at December 31, 2012 and 2011 was $3.99 billion and $3.51 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, 2012, 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, 2012:
 
 
 
 
 
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
 
2012
 
2011
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.62%
 
1.84%
February 2011
 
March 2015
 
$350,000
 
$150,000
 
3.15%
 
1.66%
 
1.43%
February 2008
 
March 2013
 
$250,000
 
$250,000
 
6.00%
 
2.84%
 
2.61%

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
 
 
2012
 
2011
 
2010
 
 
 
 
(In thousands)
Derivative: Interest rate swap
 
Interest expense
 
$
(5,118
)
 
6,414

 
3,328

Hedged item: Fixed-rate debt
 
Interest expense
 
5,118

 
(6,414
)
 
(3,328
)
Total
 
 
 
$
—

 
—

 
—

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, 2012 and 2011, 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, 2012
 
December 31, 2011
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)
 
$
24,544

 
—

 
—

 
—

Vehicle residual value guarantees — finance lease programs
 
14

 
11

 
805

 
244

Standby letters of credit
 
6,234

 
6,234

 
7,520

 
7,520

Total
 
$
30,792

 
6,245

 
8,325

 
7,764

________________
(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, 2012 and 2011, our maximum exposure for such guarantees was approximately $183 million and $91 million, respectively, with $2 million and $4 million recorded as a liability at December 31, 2012 and 2011, 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, 2012, our maximum exposure for such guarantees was approximately $25 million. No liability has been recognized as of December 31, 2012 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, 2012. See Note 15, "Leases," for further information.
At December 31, 2012 and 2011, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Letters of credit
 
$
198,227

 
196,671

Surety bonds
 
95,856

 
74,280


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, 2012 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, 2012. 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 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. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management established prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2011 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. 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 2011.
In February 2010, our Board of Directors authorized a $100 million discretionary share repurchase program over a period not to exceed two years. In 2010, we completed this program and repurchased and retired 2,420,390 shares at an aggregate cost of $100 million.
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 and 2010, we repurchased and retired 1,175,783 shares and 561,656 shares, respectively, under this program at an aggregate cost of $59 million and $23 million, respectively.
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS
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 (Loss)
on  Derivatives
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
January 1, 2010
 
$
32,978

 
(419,445
)
 
7,482

 
52

 
14

 
(378,919
)
Amortization
 
—

 
12,416

 
(1,570
)
 
(18
)
 
—

 
10,828

Pension curtailment
 
—

 
1,074

 
—

 
—

 
—

 
1,074

Current period change
 
13,009

 
(22,577
)
 
—

 
—

 
(14
)
 
(9,582
)
December 31, 2010
 
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
)
_______________________ 
(1)
Amounts pertain to our pension and/or postretirement benefit plans. 

The following summary sets forth the taxes related to items of other comprehensive (loss) income:

 
 
2012
 
2011
 
2010
 
 
(In thousands)
Tax benefit (expense) on change in unrealized components of defined benefit plans:
 
 
 
 
 
 
Tax benefit on net actuarial loss arising during the period
 
$
41,012



98,642

 
13,242

Tax expense on amortization of actuarial loss, transition obligation and prior service credit
 
(10,016
)


(6,414
)
 
(6,037
)
Tax expense on settlements and other
 
—

—

—

 
(413
)
Tax benefit on other comprehensive loss
 
$
30,996

 
92,228

 
6,792

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,
 
 
2012
 
2011
 
2010
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
200,899

 
171,368

 
124,608

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,566
)
 
(2,751
)
 
(1,759
)
Earnings from continuing operations available to common shareholders — Basic
 
$
198,333

 
168,617

 
122,849

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
50,449

 
50,500

 
51,717

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
3.93

 
3.34

 
2.38

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
200,899

 
171,368

 
124,608

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,556
)
 
(2,737
)
 
(1,756
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
198,343

 
168,631

 
122,852

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
50,449

 
50,500

 
51,717

Effect of dilutive equity awards
 
291

 
378

 
167

Weighted average common shares outstanding— Diluted
 
50,740

 
50,878

 
51,884

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
3.91

 
3.31

 
2.37

Anti-dilutive equity awards and market-based restrictive stocks rights not included above
 
2,278

 
1,514

 
1,654

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 2012, 2011 and 2010:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Stock option and stock purchase plans
 
$
9,469

 
9,497

 
9,069

Nonvested stock
 
9,395

 
7,926

 
7,474

Share-based compensation expense
 
18,864

 
17,423

 
16,543

Income tax benefit
 
(6,309
)
 
(5,794
)
 
(5,572
)
Share-based compensation expense, net of tax
 
$
12,555

 
11,629

 
10,971


Total unrecognized pre-tax compensation expense related to share-based compensation arrangements at December 31, 2012 was $30 million and is expected to be recognized over a weighted-average period of approximately 1.7 years. The total fair value of equity awards vested during the years ended December 31, 2012, 2011, and 2010 were $12 million, $23 million and $11 million, respectively.
 
Share-Based Incentive Awards
Share-based incentive awards are provided to employees under the terms of three 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 and nonvested stock at December 31, 2012. There are 3.5 million shares authorized and available to be granted under the Plans as of December 31, 2012. There were 3.45 million unused shares available to be granted under the Plans as of December 31, 2012.
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 and generally 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. 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. 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. Market-based restricted stock awards include a market-based vesting provision. For the 2012 grant, the awards were segmented into three equal 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 the S&P 500 over the applicable performance period. Employees will receive the grant of stock at the end of the three year period provided they continue to be employed with Ryder, subject to Compensation Committee approval. For grants prior to 2012, employees only receive the grant of stock if Ryder’s cumulative average total shareholder return (TSR) at least meets the S&P 500 cumulative average TSR for the applicable three-year period. 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. 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 and 2010, 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 $4 million and $3 million at December 31, 2012 and December 31, 2011, 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
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Cash awards
 
$
1,099

 
1,882

 
2,052


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, 2012:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
3,297

 
$
44.25

 
 
 
 
Granted
 
456

 
53.63

 
 
 
 
Exercised
 
(508
)
 
38.68

 
 
 
 
Forfeited or expired
 
(97
)
 
48.92

 
 
 
 
Options outstanding at December 31
 
3,148

 
$
46.36

 
3.6
 
$
18,566

Vested and expected to vest at December 31
 
3,077

 
$
46.31

 
3.1
 
$
18,313

Exercisable at December 31
 
2,032

 
$
45.76

 
2.6
 
$
14,106


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, 2012 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
 
1,131
 
3.4
 
$
33.82

 
881
 
$
34.05

45.00-50.00
 
617
 
5.1
 
49.38

 
204
 
49.38

50.00-55.00
 
897
 
3.6
 
53.04

 
452
 
52.48

55.00 and over
 
503
 
2.2
 
58.96

 
495
 
58.96

Total
 
3,148
 
3.6
 
$
46.36

 
2,032
 
$
45.76


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, 2012:
 
 
Time-Vested
 
Market-Based Vested
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Nonvested stock outstanding at January 1
 
373
 
$
46.72

 
476
 
$
18.69

Granted
 
129
 
52.38

 
93
 
43.39

Vested
 
(47)
 
39.10

 
—
 
—

Forfeited
 
(15)
 
49.76

 
(182)
 
32.20

Nonvested stock outstanding at December 31
 
440
 
$
49.16

 
387
 
$
25.35


 
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, 2012. There were 0.7 million unused shares available to be purchased under the ESPP at December 31, 2012.
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
 
268

 
33.72

 
 
 
 
Exercised
 
(268
)
 
33.72

 
 
 
 
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,
  
 
2012
 
2011
 
2010
Option plans:
 
 
 
 
 
 
Expected dividends
 
2.2%
 
2.2%
 
3.0%
Expected volatility
 
40.7%
 
38.7%
 
43.9%
Risk-free rate
 
0.6%
 
1.7%
 
1.7%
Expected term in years
 
3.7 years
 
3.6 years
 
3.4 years
Grant-date fair value
 
$14.07
 
$12.88
 
$8.93
Purchase plan:
 
 
 
 
 
 
Expected dividends
 
2.7%
 
2.4%
 
2.5%
Expected volatility
 
32.7%
 
32.8%
 
35.6%
Risk-free rate
 
0.1%
 
0.1%
 
0.2%
Expected term in years
 
0.25 years
 
0.25 years
 
0.25 years
Grant-date fair value
 
$9.53
 
$10.21
 
$8.95

 
Exercise of Employee Stock Options and Purchase Plans
The total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $6 million, $9 million, and $4 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, 2012, 2011 and 2010 was $28 million, $33 million, and $17 million, respectively. In connection with these exercises, the tax benefits realized from share-based employee compensation arrangements were $1 million for each of the years ended December 31, 2012, 2011, and 2010.
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 Curtailments and Settlements 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 $46 million and $42 million at December 31, 2012 and 2011, respectively.

Pension Expense
Pension expense from continuing operations was as follows:
  
 
Years ended December 31,
  
 
2012
 
2011
 
2010
 
 
(In thousands)
Company-administered plans:
 
 
 
 
 
 
Service cost
 
$
15,479

 
14,719

 
15,239

Interest cost
 
94,605

 
97,526

 
96,125

Expected return on plan assets
 
(96,342
)
 
(101,803
)
 
(93,135
)
Settlement loss
 
—

 
—

 
1,487

Amortization of:
 
 
 
 
 
 
Transition obligation
 
—

 
(31
)
 
(25
)
Net actuarial loss
 
31,200

 
20,226

 
19,025

Prior service credit
 
(2,275
)
 
(2,278
)
 
(2,256
)
 
 
42,667

 
28,359

 
36,460

Union-administered plans
 
6,746

 
5,988

 
5,199

Net pension expense
 
$
49,413

 
34,347

 
41,659

 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
U.S.
 
$
38,992

 
28,974

 
33,733

Foreign
 
3,675

 
(615
)
 
2,727

 
 
42,667

 
28,359

 
36,460

Union-administered plans
 
6,746

 
5,988

 
5,199

 
 
$
49,413

 
34,347

 
41,659


 
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,
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Discount rate
 
4.90
%
 
5.70
%
 
6.20
%
 
4.76
%
 
5.55
%
 
5.93
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
4.00
%
 
3.54
%
 
3.55
%
 
3.54
%
Expected long-term rate of return on plan assets
 
7.05
%
 
7.45
%
 
7.65
%
 
6.00
%
 
6.84
%
 
7.04
%
Transition amortization in years
 
—

 
—

 
—

 
1

 
1

 
2

Gain and loss amortization in years
 
24

 
25

 
26

 
27

 
27

 
28


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 Curtailments and Settlements
In recent 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.




During 2010, a number of employees in our Canadian pension plan elected to receive a lump-sum payment under the plan which resulted in a partial settlement of our benefit plan obligation. Accounting guidance requires that when a partial settlement occurs, the employer should recognize a pro rata portion of the unamortized net loss as pension expense. Accordingly, we recognized a pre-tax settlement loss during 2010 of $1.5 million, which reflects the partial reduction in the projected benefit obligation due to the partial settlement.
 
Obligations and Funded Status
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:
 
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Change in benefit obligations:
 
 
 
 
Benefit obligations at January 1
 
$
1,967,586

 
1,744,233

Service cost
 
15,479

 
14,719

Interest cost
 
94,605

 
97,526

Actuarial loss
 
189,936

 
187,390

Benefits paid
 
(76,742
)
 
(71,910
)
Foreign currency exchange rate changes
 
16,557

 
(4,372
)
Benefit obligations at December 31
 
2,207,421

 
1,967,586

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at January 1
 
1,418,042

 
1,428,784

Actual return on plan assets
 
174,650

 
(1,431
)
Employer contribution
 
81,116

 
65,224

Participants’ contributions
 
52

 
61

Benefits paid
 
(76,742
)
 
(71,910
)
Foreign currency exchange rate changes
 
15,809

 
(2,686
)
Fair value of plan assets at December 31
 
1,612,927

 
1,418,042

Funded status
 
$
(594,494
)
 
(549,544
)

Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Noncurrent asset
 
$
6,090

 
257

Current liability
 
(3,309
)
 
(3,120
)
Noncurrent liability
 
(597,275
)
 
(546,681
)
Net amount recognized
 
$
(594,494
)
 
(549,544
)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Transition obligation
 
$
(20
)
 
(20
)
Prior service credit
 
(3,077
)
 
(5,352
)
Net actuarial loss
 
1,007,315

 
927,004

Net amount recognized
 
$
1,004,218

 
921,632


In 2013, we expect to recognize approximately $2 million of the prior service credit and $36 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,
 
 
2012
 
2011
 
2012
 
2011
Discount rate
 
4.10
%
 
4.90
%
 
4.43
%
 
4.76
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
3.55
%
 
3.54
%

At December 31, 2012 and 2011, 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,
 
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
 
(In thousands)
Accumulated benefit obligations
 
$
1,747,610

 
1,551,211

 
418,245

 
378,768

 
2,165,855

 
1,929,979

Plans with ABO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
$
1,786,025

 
1,586,341

 
83,618

 
380,330

 
1,869,643

 
1,966,671

ABO
 
$
1,747,610

 
1,551,211

 
80,468

 
377,854

 
1,828,078

 
1,929,065

Fair value of plan assets
 
$
1,202,565

 
1,063,386

 
66,494

 
353,484

 
1,269,059

 
1,416,870

Plans with PBO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
$
1,786,025

 
1,586,341

 
83,618

 
380,330

 
1,869,643

 
1,966,671

ABO
 
$
1,747,610

 
1,551,211

 
80,648

 
377,854

 
1,828,258

 
1,929,065

Fair value of plan assets
 
$
1,202,565

 
1,063,386

 
66,494

 
353,484

 
1,269,059

 
1,416,870


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 will increase our allocation to 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, 2012 and 2011:
 
 
 
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

 
 
 
Fair Value Measurements at
December 31, 2011
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. companies
 
$
63,069

 
63,069

 
—

 
—

U.S. common collective trusts
 
500,298

 
—

 
500,298

 
—

Foreign common collective trusts
 
337,185

 
—

 
337,185

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
53,424

 
—

 
53,424

 
—

Common collective trusts
 
394,714

 
—

 
394,714

 
—

Other (primarily mortgage-backed securities)
 
809

 
—

 
809

 
—

Private equity funds
 
68,543

 
—

 
—

 
68,543

Total
 
$
1,418,042

 
63,069

 
1,286,430

 
68,543

 
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, 2012 and 2011: 
 
 
2012
 
2011
 
 
(In thousands)
Beginning balance at January 1
 
$
68,543

 
17,745

Return on plan assets:
 
 
 
 
Relating to assets still held at the reporting date
 
(551
)
 
(2,277
)
Relating to assets sold during the period
 
5,990

 
3,051

Purchases, sales, settlements and expenses
 
(2,775
)
 
50,024

Ending balance at December 31
 
$
71,207

 
68,543


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)

2013
$
89,652

2014
93,336

2015
98,442

2016
103,940

2017
108,462

2018-2022
619,205


For 2013, required pension contributions to our pension plans are estimated to be $66 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 aspects: 1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers; 2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and 3) 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.
Our participation in these plans is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan year ended December 31, 2011 and December 31, 2010, 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
 
 
 
Date of Collective-Bargaining Agreement
Pension Fund
 
Employer Identification Number
 
2012
 
2011
 
FIP/RP Status Pending/ Implemented (1)
 
2012
 
2011
 
2010
 
Surcharge Imposed
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Western Conference Teamsters
 
91-6145047
 
Green
 
Green
 
No
 
$
1,943

 
1,855

 
1,494

 
No
 
6/30/14 to 3/31/16
IAM National
 
51-6031295
 
Green
 
Green
 
No
 
2,038

 
1,794

 
1,573

 
No
 
4/30/13 to 3/31/17
Automobile Mechanics
Local No. 701
 
36-6042061
 
Red
 
Red
 
FIP Adopted
 
1,527

 
1,203

 
1,076

 
Yes
 
5/31/13 to 10/31/14
International Association of Machinists Motor City
 
38-6237143
 
Red (2)
 
Red (2)
 
RP adopted
 
437

 
392

 
372

 
No
 
1/31/14 to 3/31/16
Central States Southeast and Southwest Areas
 
36-6044243
 
Red
 
Red
 
RP adopted
 
226

 
182

 
158

 
No
 
6/1/12 to 5/31/17
Other Funds
 
 
 
 
 
 
 
 
 
575

 
562

 
526

 
 
 
 
Total contributions:
 
 
 
 
 
 
 
 
 
$
6,746

 
5,988

 
5,199

 
 
 
 
_____________ 
(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 to the International Association of Machinists Motor City Pension Fund were 17% 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 $33 million in 2012, $33 million in 2011, and $27 million in 2010.
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 $27 million and $23 million at December 31, 2012 and 2011, 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, 2012 and 2011 amounted to $26 million and $23 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 $4 million in our common stock at December 31, 2012 and 2011 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. Generally, this plan requires employee contributions that vary based on years of service and include provisions that limit our contributions.


Total postretirement benefit expense was as follows:
 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Service cost
 
$
1,095

 
1,294

 
1,374

Interest cost
 
1,980

 
2,503

 
2,722

Amortization of:
 
 
 
 
 
 
Net actuarial (gain) loss
 
(20
)
 
231

 
352

Prior service credit
 
(231
)
 
(231
)
 
(231
)
Postretirement benefit expense
 
$
2,824

 
3,797

 
4,217

 
 
 
 
 
 
 
U.S.
 
$
2,142

 
3,155

 
3,134

Foreign
 
682

 
642

 
1,083

 
 
$
2,824

 
3,797

 
4,217


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,
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Discount rate
 
4.90
%
 
5.70
%
 
6.20
%
 
4.50
%
 
5.25
%
 
6.00
%

 
Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Benefit obligations at January 1
 
$
42,992

 
47,169

Service cost
 
1,095

 
1,294

Interest cost
 
1,980

 
2,503

Actuarial gain
 
(1,746
)
 
(5,754
)
Benefits paid
 
(3,947
)
 
(2,023
)
Foreign currency exchange rate changes
 
225

 
(197
)
Benefit obligations at December 31
 
$
40,599

 
42,992


Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Current liability
 
$
(2,683
)
 
(2,838
)
Noncurrent liability
 
(37,916
)
 
(40,154
)
Amount recognized
 
$
(40,599
)
 
(42,992
)







Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Prior service credit
 
$
(1,307
)
 
(1,538
)
Net actuarial (gain) loss
 
(859
)
 
867

Net amount recognized
 
$
(2,166
)
 
(671
)

In 2013, the amounts of prior service credit and net actuarial gain to recognize 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,
 
 
2012
 
2011
 
2012
 
2011
Discount rate
 
4.10
%
 
4.90
%
 
4.00
%
 
4.50
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
3.50
%
 
3.50
%
Healthcare cost trend rate assumed for next year
 
7.50
%
 
8.00
%
 
7.00
%
 
7.50
%
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

 
2018

 
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, 2012 or annual postretirement benefit expense for 2012.
 
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)

2013
$
2,728

2014
2,852

2015
3,016

2016
3,120

2017
3,165

2018-2022
15,943

Environmental Matters
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS
Our operations involve storing and dispensing petroleum products, primarily diesel fuel, regulated under environmental protection laws. These laws and environmental best practices require us to identify, track, 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 negative environmental impacts. 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 primarily presented within “Other operating expenses” and “Cost of fuel services” 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 $7 million in 2012, 2011 and 2010. The carrying amount of our environmental liabilities was $13 million and $14 million at December 31, 2012 and 2011, respectively. Capital expenditures related to our environmental programs totaled approximately $2 million, $3 million, and $2 million, in 2012, 2011, and 2010, respectively. Our asset retirement obligations related to fuel tanks to be removed are not included above and are recorded within “Accrued expenses” 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.
Superstorm Sandy
In the fourth quarter of 2012, we incurred a charge of $8 million for property damage to vehicles owned by full service lease customers for which Ryder has liability under certain agreements. This charge was 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, 2011 and 2010, we incurred acquisition-related transaction costs totaling $0.4 million, $2 million and $4 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, Hill Hire in 2011 and TLC in 2010.
Sale of International Facility
During 2010, we completed the sale of a facility in Singapore and recognized a pre-tax gain of $1 million. The gain was included within “Miscellaneous income, net” in our Consolidated Statements of Earnings.
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 ($5 million after-tax) for property damage to vehicles owned by full service lease customers for which Ryder has liability under certain agreements. We are currently pursuing recovery of these losses under applicable property and casualty insurance programs. However, because recovery of these losses is uncertain, no offsetting benefits were recognized in 2012. Insurance recoveries will be recognized if and when they are probable of receipt. 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 $15.7 million were damaged or completely destroyed as a direct result of Superstorm Sandy. We expect to recover at least the cost of repairs or carrying value of these assets from insurance proceeds and customer billings. Insurance recoveries have been recorded within insurance receivables and customer recoveries have been included within trade receivables in our Consolidated Financial Statements.
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,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Interest paid
 
$
126,764

 
126,916

 
120,184

Income taxes paid
 
11,613

 
21,541

 
4,906

Changes in accounts payable related to purchases of revenue earning equipment
 
27,528

 
61,290

 
17,559

Operating and revenue earning equipment acquired under capital leases (1)
 
20,670

 
39,279

 
137

Fair value of debt assumed on acquisition
 
379

 
—

 
—


(1) Includes 19.9 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 contract carriage (DCC) services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S. Prior to 2012, DCC was reported as a separate business segment. In 2012, SCS and DCC were combined as a result of aligning our internal reporting with how we operate our business. While this change did not impact our consolidated results, segment data for prior periods have been recast to be consistent with the current year presentation.
 
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 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. Beginning in 2012, we adjusted our segment financial performance measurement to exclude the non-operating components of pension costs in order to more accurately reflect the operating performance of the business segments. Prior year segment EBT has been recast to conform to the current year presentation. 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) is included in both FMS and SCS and then eliminated (presented as “Eliminations”).
 
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,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
Fleet Management Solutions:
 
 
 
 
 
 
Full service lease
 
$
1,956,812

 
1,862,304

 
1,804,420

Commercial rental
 
738,564

 
691,573

 
505,396

Full service lease and commercial rental
 
2,695,376

 
2,553,877

 
2,309,816

Contract maintenance
 
169,769

 
169,678

 
168,293

Contract-related maintenance
 
184,703

 
164,334

 
139,173

Other
 
71,955

 
69,124

 
67,448

Fuel services revenue
 
854,578

 
887,483

 
716,871

Total Fleet Management Solutions from external customers
 
3,976,381

 
3,844,496

 
3,401,601

Inter-segment revenue
 
428,944

 
373,834

 
310,552

Fleet Management Solutions
 
4,405,325

 
4,218,330

 
3,712,153

Supply Chain Solutions from external customers
 
2,280,586

 
2,206,038

 
1,734,834

Eliminations
 
(428,944
)
 
(373,834
)
 
(310,552
)
Total revenue
 
$
6,256,967

 
6,050,534

 
5,136,435

 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
Fleet Management Solutions
 
$
307,628

 
265,691

 
194,909

Supply Chain Solutions
 
115,193

 
104,898

 
81,683

Eliminations
 
(29,265
)
 
(24,212
)
 
(19,275
)
 
 
$
393,556

 
346,377

 
257,317

Unallocated Central Support Services
 
(42,348
)
 
(42,549
)
 
(41,310
)
Non-operating pension costs
 
(31,423
)
 
(18,652
)
 
(26,551
)
Restructuring and other charges, net and other items(1)
 
(16,668
)
 
(5,789
)
 
(3,151
)
Earnings before income taxes from continuing operations
 
$
303,117

 
279,387

 
186,305

______________ 
(1)
See Note 26, “Other Items Impacting Comparability,” for a discussion of items, in addition to restructuring and other charges, net that are excluded from our primary measure of segment performance.
 

The following table sets forth share-based compensation, depreciation expense, (gains) losses on vehicle sales, net, other non-cash charges (credits), net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2012, 2011 and 2010 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
 
 
 
FMS
 
SCS
 
CSS
 
Eliminations
 
Total
 
 
(In thousands)
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 (credits), 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 vehicles sales, net
 
$
(62,496
)
 
(383
)
 
—

 
—

 
(62,879
)
Other non-cash charges (credits), 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

2010
 
 
 
 
 
 
 
 
 

Share-based compensation expense
 
$
5,011

 
3,430

 
8,102

 
—

 
16,543

Depreciation expense (1)
 
$
812,588

 
20,285

 
968

 
—

 
833,841

Gains on vehicle sales, net
 
$
(28,765
)
 
38

 
—

 
—

 
(28,727
)
Other non-cash charges, net (2)
 
$
19,351

 
1,021

 
20,528

 
—

 
40,900

Interest expense (income) (3)
 
$
130,742

 
(759
)
 
11

 
—

 
129,994

Capital expenditures paid (4)
 
$
1,043,280

 
16,345

 
10,467

 
—

 
1,070,092

Total assets
 
$
5,944,971

 
791,791

 
106,906

 
(191,294
)
 
6,652,374

____________ 
(1)
Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $12 million, $9 million, and $9 million during 2012, 2011, and 2010, 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 $5 million, $362 million, and $212 million in 2012, 2011, and 2010, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information.

Geographic Information 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
United States
 
$
5,231,899

 
5,075,432

 
4,313,483

Foreign:
 
 
 
 
 
 
Canada
 
477,495

 
481,593

 
466,405

Europe
 
384,105

 
324,214

 
219,508

Mexico
 
143,282

 
147,464

 
122,312

Asia
 
20,186

 
21,831

 
14,727

 
 
1,025,068

 
975,102

 
822,952

Total
 
$
6,256,967

 
6,050,534

 
5,136,435

Long-lived assets:
 
 
 
 
 
 
United States
 
$
5,261,622

 
4,708,086

 
4,098,735

Foreign:
 
 
 
 
 
 
Canada
 
557,351

 
481,139

 
468,062

Europe
 
534,728

 
463,848

 
219,178

Mexico
 
24,973

 
19,931

 
21,194

Asia
 
787

 
847

 
892

 
 
1,117,839

 
965,765

 
709,326

Total
 
$
6,379,461

 
5,673,851

 
4,808,061


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 2012, 2011 and 2010, the automotive industry accounted for approximately 30%, 27% and 31%, 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)
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,425,376

 
25,857

 
25,125

 
0.50

 
0.50

 
0.49

 
0.48

Second quarter
 
1,513,344

 
40,914

 
40,033

 
0.80

 
0.79

 
0.78

 
0.77

Third quarter
 
1,570,720

 
56,933

 
56,524

 
1.11

 
1.10

 
1.10

 
1.10

Fourth quarter
 
1,541,094

 
47,664

 
48,095

 
0.93

 
0.92

 
0.94

 
0.93

Full year
 
$
6,050,534

 
171,368

 
169,777

 
3.34

 
3.31

 
3.31

 
3.28


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 Charges,” and Note 26, “Other Items Impacting Comparability,” for items included in earnings during 2012 and 2011.
Earnings in the first quarter of 2012 included an income tax benefit of $5 million, or $0.10 per diluted common share, related 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.
Earnings in the second quarter of 2011 included an income tax charge of $5 million, or $0.10 per diluted common share, related to a tax law change in Michigan. Earnings in the third quarter of 2011 included an income tax benefit of $1 million, or $0.01 per diluted common share, associated with the deduction of acquisition-related transaction costs incurred in a prior year.
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)
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

2010
 
 
 
 
 
 
 
 
 
 
Accounts receivable allowance
 
$
13,808

 
4,757

 
—

 
4,698

 
13,867

Direct finance lease allowance
 
$
813

 
399

 
—

 
428

 
784

Self-insurance accruals (3)
 
$
242,905

 
201,236

 
45,470

 
246,363

 
243,248

Reserve for residual value guarantees
 
$
4,049

 
1,643

 
—

 
1,195

 
4,497

Valuation allowance on deferred tax assets
 
$
36,573

 
978

 
—

 
(1,665
)
 
39,216

______________ 
(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. Amount charged to earnings include development in prior year selected loss development factors which benefited earnings by $1 million in 2012, benefited earnings by $4 million in 2011 and reduced earnings by $3 million in 2010.
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2012
Accounting Policies [Abstract]
 
Basis of Consolidation and Presentation
Text Block 
Reclassifications
Text Block 
Use of Estimates
Text Block 
Cash Equivalents
Text Block 
Restricted Cash
Text Block 
Revenue Recognition
Text Block 
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
Text Block 
Revenue Earning Equipment, Operating Property and Equipment, and Depreciation
Text Block 
Goodwill and Other Intangible Assets
Text Block 
Impairment of Long-Lived Assets Other than Goodwill
Text Block 
Debt Issuance Costs
Text Block 
Contract Incentives
Text Block 
Self-Insurance Accruals
Text Block 
Residual Value Guarantees and Deferred Gains
Text Block 
Income Taxes
Text Block 
Severance and Contract Termination Costs
Text Block 
Environmental Expenditures
Text Block 
Asset Retirement Obligations
Text Block 
Derivative Instruments and Hedging Activities
Text Block 
Foreign Currency Translation
Text Block 
Share-Based Compensation
Text Block 
Defined Benefit Pension and Postretirement Benefit Plans
Text Block 
Fair Value Measurements
Text Block 
Earnings Per Share
Text Block 
Share Repurchases
Text Block 
Comprehensive Income (Loss)
Text Block 
Basis of Consolidation and Presentation 
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.
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. Our total comprehensive income (loss) presently consists of net earnings, currency translation adjustments associated with foreign operations that use the local currency as their functional currency, adjustments for derivative instruments accounted for as cash flow hedges and various pension and other postretirement benefits related items.
Reclassifications 
In 2012, we changed our business segments and our primary measure of segment operating performance. We operate in two business segments: Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS). Prior to 2012, Dedicated Contract Carriage (DCC) was reported as a separate business segment. In 2012, SCS and DCC were combined as a result of changing our internal reporting to coincide with how we operate our business. Our primary measurement of segment operating performance, “Earnings Before Taxes” (EBT) from continuing operations, was also changed in 2012 to exclude the non-operating components of pension costs in order to more accurately reflect the operating performance of the business segments. Prior year amounts have been reclassified to conform to the current period presentation.
Use of Estimates 
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
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
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 
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 equipment. 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 equipment 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 rent. 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 generally 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 mechanical 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
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, 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 and Other Intangible Assets
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.
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 
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 
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 
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 
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.”
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.”
Residual Value Guarantees and Deferred Gains 
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 
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 
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 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 
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
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 as well as the revisions to either the timing or amount of expected cash flows.
Derivative Instruments and Hedging Activities 
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 (primarily J.P. Morgan) 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 
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 “Accumulated other comprehensive loss” 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 
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. 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.
Defined Benefit Pension and Postretirement Benefit Plans 
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 12 months 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 a component of accumulated other comprehensive loss, net of tax in the Consolidated Statements of Shareholders’ Equity. 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 
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
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. 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 
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.
Comprehensive Income (Loss) 

Acquisitions (Tables)
Summary of purchase price allocations 
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

Summary of acquisitions 
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
Summary estimated fair values of the assets acquired and the liabilities 
The following table provides the final allocated fair values of the assets acquired and the liabilities assumed at the date of the TLC acquisition:
Assets:
 
(In thousands)

Current assets
 
$
24,588

Operating property and equipment
 
73,135

Goodwill
 
131,911

Customer relationships and other intangibles
 
34,980

Other assets
 
816

 
 
265,430

Liabilities:
 
 
Current liabilities
 
(26,875
)
Deferred income taxes and other liabilities
 
(31,432
)
 
 
(58,307
)
Net assets acquired
 
$
207,123

Schedule of unaudited proforma information 
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 and the TLC acquisition had been included in operations commencing January 1, 2009. 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.
 
 
Years ended December 31,
 
 
2011
 
2010
 
 
(In thousands, except per share amounts)
Revenue — As reported
 
$
6,050,534

 
5,136,435

Revenue — Pro forma
 
$
6,118,104

 
5,538,824

 
 
 
 
 
Net earnings — As reported
 
$
169,777

 
118,170

Net earnings — Pro forma
 
$
184,849

 
149,501

 
 
 
 
 
Net earnings per common share:
 
 
 
 
Basic — As reported
 
$
3.31

 
2.25

Basic — Pro forma
 
$
3.60

 
2.85

 
 
 
 
 
Diluted — As reported
 
$
3.28

 
2.25

Diluted — Pro forma
 
$
3.58

 
2.84

Discontinued Operations (Tables)
Loss from discontinued operations 
Summarized results of discontinued operations were as follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Pre-tax loss from discontinued operations
 
$
(2,226
)
 
$
(1,185
)
 
$
(7,525
)
Income tax benefit (expense)
 
11,306

 
(406
)
 
1,087

Earnings (loss) from discontinued operations, net of tax
 
$
9,080

 
$
(1,591
)
 
$
(6,438
)
Summary of assets and liabilities of discontinued operations 
The following is a summary of assets and liabilities of discontinued operations:
 
 
December 31, 2012
 
December 31, 2011
 
 
(In thousands)
Total assets, primarily deposits
 
$
4,460

 
$
4,600

Total liabilities, primarily contingent accruals
 
$
5,329

 
$
6,502

Restructuring and Other Charges (Tables)
Components of restructuring and other charges, net 
The components of restructuring and other charges, net in 2012, 2011 and 2010 were as follows: 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Restructuring charges, net:
 
 
 
 
 
 
Severance and employee-related costs
 
$
7,205

 
3,162

 
—

Contract termination costs
 
865

 
493

 
—

 
 
8,070

 
3,655

 
—

Restructuring and other charges, net that related to each segment 
As mentioned in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other charges, net. However, the applicable portion of the restructuring and other charges, net that related to each segment in 2012, 2011 and 2010 were as follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Fleet Management Solutions
 
$
6,448

 
3,531

 
—

Supply Chain Solutions
 
1,346

 
124

 
—

Central Support Services
 
276

 
—

 
—

Total
 
$
8,070

 
3,655

 
—

Restructuring reserves 
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, 2012 and 2011:
 
 
 
 
 
 
Deductions
 
 
 
 
 
 
Beginning
Balance
 
Additions
 
Cash
Payments
 
Non-Cash
Reductions(1)
 
Foreign
Translation
Adjustment
 
Ending
Balance
 
 
(In thousands)
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

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
Employee severance and benefits
 
$
234

 
3,290

 
736

 
105

 
(76
)
 
2,607

Contract termination costs
 
3,813

 
493

 
1,557

 
141

 
31

 
2,639

Total
 
$
4,047

 
3,783

 
2,293

 
246

 
(45
)
 
5,246

____________ 
(1)
Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated.
Receivables (Tables)
Receivables
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Trade
 
$
670,717

 
661,592

Direct financing leases
 
76,395

 
68,896

Income tax
 
6,596

 
8,961

Insurance (1)
 
17,345

 
7,619

Vendor rebates
 
5,547

 
8,998

Other
 
14,594

 
13,067

 
 
791,194

 
769,133

Allowance
 
(15,429
)
 
(14,489
)
Total
 
$
775,765

 
754,644


 ____________ 
(1)
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,
 
 
2012
 
2011
 
 
(In thousands)
Current deferred tax asset
 
$
29,129

 
31,426

Restricted cash
 
102

 
17,994

Prepaid vehicle licenses
 
46,784

 
47,045

Prepaid operating taxes
 
13,322

 
12,477

Prepaid real estate rent
 
4,351

 
7,030

Prepaid contract incentives
 
4,789

 
5,612

Prepaid software maintenance costs
 
3,928

 
3,490

Interest rate swap agreement
 
1,313

 
—

Prepaid insurance
 
8,810

 
14,003

Prepaid sales commissions
 
7,908

 
9,385

Other
 
13,498

 
14,583

Total
 
$
133,934

 
163,045

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
 
Estimated
Useful
Lives
 
December 31, 2012
 
December 31, 2011
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
 
$
6,728,746

 
(2,500,786
)
 
4,227,960

 
6,010,335

 
(2,518,830
)
 
3,491,505

Commercial rental
 
4.5 — 12
 
2,041,698

 
(660,356
)
 
1,381,342

 
2,175,003

 
(708,052
)
 
1,466,951

Held for sale
 
 
 
499,074

 
(353,768
)
 
145,306

 
326,692

 
(235,477
)
 
91,215

Total
 
 
 
$
9,269,518

 
(3,514,910
)
 
5,754,608

 
8,512,030

 
(3,462,359
)
 
5,049,671

_______________ 
(1)
Revenue earning equipment, net includes vehicles under capital leases of $56 million, less accumulated depreciation of $17 million, at December 31, 2012 and $61 million, less accumulated depreciation of $14 million, at December 31, 2011.
Operating Property And Equipment (Tables)
Operating Property and Equipment
 
 
Estimated
Useful  Lives
 
December 31,
 
 
2012
 
2011
 
 
(In years)
 
(In thousands)
Land
 
—
 
$
190,357

 
188,617

Buildings and improvements
 
10 — 40
 
716,743

 
699,809

Machinery and equipment
 
3 — 10
 
578,718

 
535,183

Other
 
3 — 10
 
105,255

 
112,288

 
 
 
 
1,591,073

 
1,535,897

Accumulated depreciation
 
 
 
(966,220
)
 
(911,717
)
Total
 
 
 
$
624,853

 
624,180

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, 2011
 
 
 
 
 
 
Goodwill
 
$
202,941

 
182,122

 
385,063

Accumulated impairment losses
 
(10,322
)
 
(18,899
)
 
(29,221
)
 
 
192,619

 
163,223

 
355,842

Acquisitions
 
13,958

 
14,658

 
28,616

Purchase accounting adjustments
 
(185
)
 
(6,613
)
 
(6,798
)
Foreign currency translation adjustment
 
(155
)
 
(199
)
 
(354
)
Balance at December 31, 2011
 
 
 
 
 
 
Goodwill
 
216,559

 
189,968

 
406,527

Accumulated impairment losses
 
(10,322
)
 
(18,899
)
 
(29,221
)
 
 
206,237

 
171,069

 
377,306

Acquisition
 
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

Intangible Assets (Tables)
Intangible Assets 
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Indefinite lived intangible assets — Trade name
 
$
9,084

 
9,084

Finite lived intangible assets:
 
 
 
 
Customer relationship intangibles
 
95,683

 
92,888

Other intangibles, primarily trade name
 
2,254

 
2,083

Accumulated amortization
 
(27,860
)
 
(19,797
)
 
 
70,077

 
75,174

Foreign currency translation adjustment
 
1,314

 
562

Total
 
$
80,475

 
84,820

Future Amortization Expense of Intangible Assets 
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, 2012:
 
(In thousands)
2013
$
7,510

2014
6,599

2015
6,481

2016
6,474

2017
6,473

 
 
Total
$
33,537

 
 
Direct Financing Leases and Other Assets (Tables)
Direct financing leases and other assets
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Direct financing leases, net
 
$
315,528

 
280,988

Investments held in Rabbi Trusts
 
22,426

 
18,696

Insurance receivables
 
21,695

 
15,488

Debt issuance costs
 
16,323

 
16,106

Prepaid pension asset
 
6,090

 
257

Contract incentives
 
17,613

 
17,524

Interest rate swap agreements
 
15,412

 
21,843

Other
 
19,503

 
22,783

Total
 
$
434,590

 
393,685

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
 
December 31, 2012
 
December 31, 2011
 
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
 
(In thousands)
Salaries and wages
 
$
86,776

 
—

 
86,776

 
121,087

 
—

 
121,087

Deferred compensation
 
1,630

 
24,918

 
26,548

 
1,405

 
21,285

 
22,690

Pension benefits
 
3,309

 
597,275

 
600,584

 
3,120

 
546,681

 
549,801

Other postretirement benefits
 
2,683

 
37,916

 
40,599

 
2,838

 
40,154

 
42,992

Insurance obligations (1)
 
133,459

 
178,714

 
312,173

 
120,045

 
157,390

 
277,435

Residual value guarantees
 
1,505

 
130

 
1,635

 
3,093

 
1,125

 
4,218

Accrued rent
 
9,244

 
9,405

 
18,649

 
4,088

 
14,686

 
18,774

Environmental liabilities
 
4,201

 
8,415

 
12,616

 
4,368

 
9,171

 
13,539

Asset retirement obligations
 
3,642

 
17,116

 
20,758

 
5,702

 
12,364

 
18,066

Operating taxes
 
91,419

 
—

 
91,419

 
81,820

 
—

 
81,820

Income taxes
 
8,288

 
57,590

 
65,878

 
4,160

 
74,147

 
78,307

Interest
 
35,798

 
—

 
35,798

 
30,410

 
—

 
30,410

Deposits, mainly from customers
 
51,671

 
6,236

 
57,907

 
50,951

 
7,544

 
58,495

Deferred revenue
 
21,557

 
—

 
21,557

 
20,698

 
476

 
21,174

Acquisition holdbacks
 
1,637

 
2,673

 
4,310

 
7,422

 
—

 
7,422

Other
 
48,888

 
8,544

 
57,432

 
46,423

 
11,564

 
57,987

Total
 
$
505,707

 
948,932

 
1,454,639

 
507,630

 
896,587

 
1,404,217

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

Income Taxes (Tables)
Components of earnings from continuing operations before 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,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Earnings from continuing operations before income taxes:
 
 
 
 
 
 
United States
 
$
241,672

 
223,209

 
156,123

Foreign
 
61,445

 
56,178

 
30,182

Total
 
$
303,117

 
279,387

 
186,305

Current tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal (1)
 
$
(4,157
)
 
1,615

 
4,536

State (1)
 
11,514

 
7,785

 
4,468

Foreign
 
7,759

 
8,603

 
11,596

 
 
15,116

 
18,003

 
20,600

Deferred tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal
 
77,819

 
67,849

 
38,179

State
 
3,871

 
17,247

 
7,198

Foreign
 
5,412

 
4,920

 
(4,280
)
 
 
87,102

 
90,016

 
41,097

Provision for income taxes from continuing operations
 
$
102,218

 
108,019

 
61,697

______________ 
(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.”
Reconciliation of federal statutory tax rate with effective tax rate 
A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(Percentage of pre-tax earnings)
Federal statutory tax rate
 
35.0

 
35.0

 
35.0

Impact on deferred taxes for changes in tax rates
 
0.5

 
2.6

 
0.4

State income taxes, net of federal income tax benefit
 
4.4

 
3.9

 
4.6

Tax reviews and audits
 
(2.9
)
 
(0.9
)
 
(7.0
)
Miscellaneous items, net
 
(3.3
)
 
(1.9
)
 
0.1

Effective tax rate
 
33.7

 
38.7

 
33.1

Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share 
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)
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)
 
 
 
 
 
2010
 
 
 
 
United Kingdom
 
July 27, 2010
 
$400
Components of deferred income tax assets and liabilities 
The components of the net deferred income tax liability were as follows:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Deferred income tax assets:
 
 
 
 
Self-insurance accruals
 
$
52,177

 
37,296

Net operating loss carryforwards
 
258,808

 
275,124

Alternative minimum taxes
 
9,679

 
9,679

Accrued compensation and benefits
 
61,095

 
67,323

Federal benefit on state tax positions
 
17,925

 
18,847

Pension benefits
 
204,069

 
179,159

Miscellaneous other accruals
 
39,708

 
38,588

 
 
643,461

 
626,016

Valuation allowance
 
(38,182
)
 
(41,324
)
 
 
605,279

 
584,692

Deferred income tax liabilities:
 
 
 
 
Property and equipment bases difference
 
(1,734,508
)
 
(1,649,494
)
Other items
 
(18,716
)
 
(25,265
)
 
 
(1,753,224
)
 
(1,674,759
)
Net deferred income tax liability (1)
 
$
(1,147,945
)
 
(1,090,067
)
______________ 
(1)
Deferred tax assets of $29 million and $31 million have been included in “Prepaid expenses and other current assets” at December 31, 2012 and 2011, respectively.
Unrecognized tax benefits 
The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
 
 
December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Balance at January 1
 
$
62,247

 
61,236

 
69,494

Additions based on tax positions related to the current year
 
3,980

 
3,776

 
4,233

Settlements
 
—

 
—

 
(8,280
)
Reductions due to lapse of applicable statute of limitations
 
(13,956
)
 
(2,765
)
 
(4,211
)
Gross balance at December 31
 
52,271

 
62,247

 
61,236

Interest and penalties
 
5,319

 
6,933

 
5,858

Balance at December 31
 
$
57,590

 
69,180

 
67,094

Leases (Tables)
Net investment in direct financing and sales-type leases 
The net investment in direct financing and sales-type leases consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Total minimum lease payments receivable
 
$
629,919

 
561,772

Less: Executory costs
 
(201,777
)
 
(181,820
)
Minimum lease payments receivable
 
428,142

 
379,952

Less: Allowance for uncollectibles
 
(703
)
 
(903
)
Net minimum lease payments receivable
 
427,439

 
379,049

Unguaranteed residuals
 
60,764

 
63,472

Less: Unearned income
 
(96,280
)
 
(92,637
)
Net investment in direct financing and sales-type leases
 
391,923

 
349,884

Current portion
 
(76,395
)
 
(68,896
)
Non-current portion
 
$
315,528

 
280,988

Credit risk profile by creditworthiness category of direct financing lease receivables 
The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2012:
 
December 31,
 
2012
 
2011
 
(In thousands)
Very low risk to low risk
$
193,123

 
121,836

Moderate
177,400

 
190,070

Moderately high to high risk
57,619

 
68,046

 
 
 
 
 
$
428,142

 
$
379,952

 
 
 
 
Allowance for credit losses on direct financing lease receivables 
The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the twelve months ended December 31, 2012:
 
(In thousands)
Balance at December 31, 2010
$
784

Charged to earnings
867

Deductions
(748
)
Balance at December 31, 2011
903

Charged to earnings
812

Deductions
(1,012
)
 
 
Balance at December 31, 2012
$
703

 
 
Future minimum payments for leases 
Future minimum payments for leases in effect at December 31, 2012 were as follows:
 
 
As Lessor (1)
 
As Lessee
 
 
Operating
Leases
 
Direct
Financing
Leases
 
Operating
Leases
 
 
(In thousands)
2013
 
$
823,369

 
107,890

 
106,688

2014
 
620,533

 
87,459

 
96,402

2015
 
475,226

 
73,507

 
54,414

2016
 
348,897

 
60,254

 
34,261

2017
 
230,016

 
40,109

 
21,365

Thereafter
 
172,756

 
58,923

 
58,765

Total
 
$
2,670,797

 
428,142

 
371,895

____________________
(1)
Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles of use or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue during 2012, 2011 and 2010 were $319 million, $303 million, and $294 million, respectively. Contingent rentals from direct financing leases included in revenue during 2012, 2011, and 2010 were $11 million, $11 million, and $12 million, respectively.
Debt (Tables)
Debt 
 
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
 
December 31,
 
 
 
December 31,
 
 
2012
 
2011
 
Maturities
 
2012
 
2011
 
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
2.27
%
 
1.45
%
 
2013
 
$
9,820

 
5,091

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
358,155

 
269,275

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
 
367,975

 
274,366

Long-term debt:
 
 
 
 
 
 
 
 
 
 
U.S. commercial paper(1)
 
0.41
%
 
0.40
%
 
2016
 
329,925

 
415,936

Canadian commercial paper(1)
 
1.14
%
 
—
%
 
2016
 
23,165

 
—

Global revolving credit facility
 
1.58
%
 
1.52
%
 
2016
 
8,924

 
1,000

Unsecured U.S. notes – Medium-term notes(1)
 
4.01
%
 
4.49
%
 
2013-2025
 
2,971,313

 
2,484,712

Unsecured U.S. obligations, principally bank term loans
 
1.56
%
 
1.78
%
 
2013-2017
 
105,500

 
105,000

Unsecured foreign obligations
 
1.91
%
 
2.71
%
 
2014-2016
 
313,406

 
300,516

Capital lease obligations
 
4.08
%
 
4.24
%
 
2013-2019
 
42,018

 
48,047

Total before fair market value adjustment
 
 
 
 
 
 
 
3,794,251

 
3,355,211

Fair market value adjustment on notes subject to hedging(2)
 
 
 
 
 
 
 
16,725

 
21,843

 
 
 
 
 
 
 
 
3,810,976

 
3,377,054

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
(358,155
)
 
(269,275
)
Long-term debt
 
 
 
 
 
 
 
3,452,821

 
3,107,779

Total debt
 
 
 
 
 
 
 
$
3,820,796

 
3,382,145

_________________ 
(1)
We had unamortized original issue discounts of $9 million at December 31, 2012 and 2011.
(2)
The notional amount of the executed interest rate swaps designated as fair value hedges was $550 million at December 31, 2012 and 2011.
Maturities of debt 
Maturities of total debt are as follows:
 
 
Capital Leases
 
Debt
 
 
(In thousands)
2013
 
$
8,210

 
359,821

2014
 
7,710

 
339,339

2015
 
6,910

 
727,897

2016
 
5,771

 
1,117,289

2017
 
7,140

 
704,062

Thereafter
 
10,942

 
513,645

Total
 
46,683

 
3,762,053

Imputed interest
 
(4,665
)
 
 
Present value of minimum capitalized lease payments
 
42,018

 
 
Current portion
 
(6,841
)
 
 
Long-term capitalized lease obligation
 
$
35,177

 
 
Fair Value Measurements (Tables)
Assets and liabilities measured at fair value on recurring basis 
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, 2012 Using
 
 
 
 
Balance Sheet Location    
 
Level 1
 
Level 2
 
Level 3
 
Total    
 
 
 
 
(In thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
Interest rate swap
 
Prepaid expenses and other current assets
 
$
—

 
1,313

 
—

 
1,313

Interest rate swaps
 
DFL and other assets
 
—

 
15,412

 
—

 
15,412

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
4,055

 
—

 
—

 
4,055

U.S. equity mutual funds
 
 
 
10,871

 
—

 
—

 
10,871

Foreign equity mutual funds
 
 
 
2,974

 
—

 
—

 
2,974

Fixed income mutual funds
 
 
 
4,526

 
—

 
—

 
4,526

Investments held in Rabbi Trusts
 
DFL and other assets
 
22,426

 
—

 
—

 
22,426

Total assets at fair value
 
 
 
$
22,426

 
16,725

 
—

 
39,151

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
Other non-current liabilities
 
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
 
$
—

 
—

 
478

 
478

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
At December 31, 2011 Using
 
 
 
 
Balance Sheet Location
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
(In thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
DFL and other assets
 
$
—

 
21,843

 
—

 
21,843

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
3,783

 
—

 
—

 
3,783

U.S. equity mutual funds
 
 
 
8,850

 
—

 
—

 
8,850

Foreign equity mutual funds
 
 
 
2,526

 
—

 
—

 
2,526

Fixed income mutual funds
 
 
 
3,537

 
—

 
—

 
3,537

Investments held in Rabbi Trusts
 
DFL and other assets
 
18,696

 
—

 
—

 
18,696

Total assets at fair value
 
 
 
$
18,696

 
21,843

 
—

 
40,539

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
Accrued Expenses
 
$
—

 
—

 
1,000

 
1,000

Total liabilities at fair value
 
 
 
$
—

 
—

 
1,000

 
1,000

Assets and liabilities measured at fair value on nonrecurring basis 
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, 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

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
    At December 31, 2011 Using    
 
Year ended
December 31, 2011
 
 
Level 1
 
Level 2
 
Level 3
 
Total Losses (2)
Assets held for sale:
 
 
 
 
 
 
 
 
Revenue earning equipment (1)
 
 
 
 
 
 
 
 
Trucks
 
$
—

 
—

 
6,147

 
$
5,556

Tractors
 
—

 
—

 
3,040

 
1,982

Trailers
 
—

 
—

 
296

 
1,353

Total assets at fair value
 
$
—

 
—

 
9,483

 
$
8,891

______________
(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)
Schedule of Derivative Instruments 
The following table provides a detail of the swaps outstanding and the related hedged items as of December 31, 2012:
 
 
 
 
 
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
 
2012
 
2011
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.62%
 
1.84%
February 2011
 
March 2015
 
$350,000
 
$150,000
 
3.15%
 
1.66%
 
1.43%
February 2008
 
March 2013
 
$250,000
 
$250,000
 
6.00%
 
2.84%
 
2.61%
Impact on the Consolidated Condensed Statements of Earnings related to Fair Value Hedges 
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
 
 
2012
 
2011
 
2010
 
 
 
 
(In thousands)
Derivative: Interest rate swap
 
Interest expense
 
$
(5,118
)
 
6,414

 
3,328

Hedged item: Fixed-rate debt
 
Interest expense
 
5,118

 
(6,414
)
 
(3,328
)
Total
 
 
 
$
—

 
—

 
—

Guarantees (Tables)
Maximum determinable exposure of each type of guarantee and the corresponding liability 
At December 31, 2012 and 2011, 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, 2012
 
December 31, 2011
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)
 
$
24,544

 
—

 
—

 
—

Vehicle residual value guarantees — finance lease programs
 
14

 
11

 
805

 
244

Standby letters of credit
 
6,234

 
6,234

 
7,520

 
7,520

Total
 
$
30,792

 
6,245

 
8,325

 
7,764

________________
(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, 2012 and 2011, our maximum exposure for such guarantees was approximately $183 million and $91 million, respectively, with $2 million and $4 million recorded as a liability at December 31, 2012 and 2011, respectively.
Letters of credit and surety bonds outstanding 
At December 31, 2012 and 2011, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Letters of credit
 
$
198,227

 
196,671

Surety bonds
 
95,856

 
74,280

Accumulated Other Comprehensive Loss (Tables)
Summary of components of accumulated other comprehensive loss, net of tax
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 (Loss)
on  Derivatives
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
January 1, 2010
 
$
32,978

 
(419,445
)
 
7,482

 
52

 
14

 
(378,919
)
Amortization
 
—

 
12,416

 
(1,570
)
 
(18
)
 
—

 
10,828

Pension curtailment
 
—

 
1,074

 
—

 
—

 
—

 
1,074

Current period change
 
13,009

 
(22,577
)
 
—

 
—

 
(14
)
 
(9,582
)
December 31, 2010
 
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
)
_______________________ 
(1)
Amounts pertain to our pension and/or postretirement benefit plans. 

The following summary sets forth the taxes related to items of other comprehensive (loss) income:

 
 
2012
 
2011
 
2010
 
 
(In thousands)
Tax benefit (expense) on change in unrealized components of defined benefit plans:
 
 
 
 
 
 
Tax benefit on net actuarial loss arising during the period
 
$
41,012



98,642

 
13,242

Tax expense on amortization of actuarial loss, transition obligation and prior service credit
 
(10,016
)


(6,414
)
 
(6,037
)
Tax expense on settlements and other
 
—

—

—

 
(413
)
Tax benefit on other comprehensive loss
 
$
30,996

 
92,228

 
6,792

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,
 
 
2012
 
2011
 
2010
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
200,899

 
171,368

 
124,608

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,566
)
 
(2,751
)
 
(1,759
)
Earnings from continuing operations available to common shareholders — Basic
 
$
198,333

 
168,617

 
122,849

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
50,449

 
50,500

 
51,717

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
3.93

 
3.34

 
2.38

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
200,899

 
171,368

 
124,608

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(2,556
)
 
(2,737
)
 
(1,756
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
198,343

 
168,631

 
122,852

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
50,449

 
50,500

 
51,717

Effect of dilutive equity awards
 
291

 
378

 
167

Weighted average common shares outstanding— Diluted
 
50,740

 
50,878

 
51,884

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
3.91

 
3.31

 
2.37

Anti-dilutive equity awards and market-based restrictive stocks rights not included above
 
2,278

 
1,514

 
1,654

Share-Based Compensation Plans (Tables)
Share-based compensation expense and income tax benefits recognized during the periods 
The following table provides information on share-based compensation expense and income tax benefits recognized in 2012, 2011 and 2010:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Stock option and stock purchase plans
 
$
9,469

 
9,497

 
9,069

Nonvested stock
 
9,395

 
7,926

 
7,474

Share-based compensation expense
 
18,864

 
17,423

 
16,543

Income tax benefit
 
(6,309
)
 
(5,794
)
 
(5,572
)
Share-based compensation expense, net of tax
 
$
12,555

 
11,629

 
10,971

Summary of share-based compensation expense recognized related to cash awards 
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
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Cash awards
 
$
1,099

 
1,882

 
2,052

Summary of stock option activity 
The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2012:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
3,297

 
$
44.25

 
 
 
 
Granted
 
456

 
53.63

 
 
 
 
Exercised
 
(508
)
 
38.68

 
 
 
 
Forfeited or expired
 
(97
)
 
48.92

 
 
 
 
Options outstanding at December 31
 
3,148

 
$
46.36

 
3.6
 
$
18,566

Vested and expected to vest at December 31
 
3,077

 
$
46.31

 
3.1
 
$
18,313

Exercisable at December 31
 
2,032

 
$
45.76

 
2.6
 
$
14,106

Information about options in various price ranges 
Information about options in various price ranges at December 31, 2012 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
 
1,131
 
3.4
 
$
33.82

 
881
 
$
34.05

45.00-50.00
 
617
 
5.1
 
49.38

 
204
 
49.38

50.00-55.00
 
897
 
3.6
 
53.04

 
452
 
52.48

55.00 and over
 
503
 
2.2
 
58.96

 
495
 
58.96

Total
 
3,148
 
3.6
 
$
46.36

 
2,032
 
$
45.76

Summary of Nonvested 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, 2012:
 
 
Time-Vested
 
Market-Based Vested
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Nonvested stock outstanding at January 1
 
373
 
$
46.72

 
476
 
$
18.69

Granted
 
129
 
52.38

 
93
 
43.39

Vested
 
(47)
 
39.10

 
—
 
—

Forfeited
 
(15)
 
49.76

 
(182)
 
32.20

Nonvested stock outstanding at December 31
 
440
 
$
49.16

 
387
 
$
25.35

Summary of Employee Stock Purchase Plan 
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
 
268

 
33.72

 
 
 
 
Exercised
 
(268
)
 
33.72

 
 
 
 
Forfeited or expired
 
—

 
—

 
 
 
 
Outstanding at December 31
 
—

 
$
—

 
—

 
$
—

Exercisable at December 31
 
—

 
$
—

 
—

 
$
—

Weighted-average assumptions used for options granted 
The following table presents the weighted-average assumptions used for options granted:
 
 
Years ended December 31,
  
 
2012
 
2011
 
2010
Option plans:
 
 
 
 
 
 
Expected dividends
 
2.2%
 
2.2%
 
3.0%
Expected volatility
 
40.7%
 
38.7%
 
43.9%
Risk-free rate
 
0.6%
 
1.7%
 
1.7%
Expected term in years
 
3.7 years
 
3.6 years
 
3.4 years
Grant-date fair value
 
$14.07
 
$12.88
 
$8.93
Purchase plan:
 
 
 
 
 
 
Expected dividends
 
2.7%
 
2.4%
 
2.5%
Expected volatility
 
32.7%
 
32.8%
 
35.6%
Risk-free rate
 
0.1%
 
0.1%
 
0.2%
Expected term in years
 
0.25 years
 
0.25 years
 
0.25 years
Grant-date fair value
 
$9.53
 
$10.21
 
$8.95
Employee Benefit Plans (Tables)
Expense from continuing operations 
Pension expense from continuing operations was as follows:
  
 
Years ended December 31,
  
 
2012
 
2011
 
2010
 
 
(In thousands)
Company-administered plans:
 
 
 
 
 
 
Service cost
 
$
15,479

 
14,719

 
15,239

Interest cost
 
94,605

 
97,526

 
96,125

Expected return on plan assets
 
(96,342
)
 
(101,803
)
 
(93,135
)
Settlement loss
 
—

 
—

 
1,487

Amortization of:
 
 
 
 
 
 
Transition obligation
 
—

 
(31
)
 
(25
)
Net actuarial loss
 
31,200

 
20,226

 
19,025

Prior service credit
 
(2,275
)
 
(2,278
)
 
(2,256
)
 
 
42,667

 
28,359

 
36,460

Union-administered plans
 
6,746

 
5,988

 
5,199

Net pension expense
 
$
49,413

 
34,347

 
41,659

 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
U.S.
 
$
38,992

 
28,974

 
33,733

Foreign
 
3,675

 
(615
)
 
2,727

 
 
42,667

 
28,359

 
36,460

Union-administered plans
 
6,746

 
5,988

 
5,199

 
 
$
49,413

 
34,347

 
41,659

Summary of benefit obligation, plan assets and funded status 
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:
 
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Change in benefit obligations:
 
 
 
 
Benefit obligations at January 1
 
$
1,967,586

 
1,744,233

Service cost
 
15,479

 
14,719

Interest cost
 
94,605

 
97,526

Actuarial loss
 
189,936

 
187,390

Benefits paid
 
(76,742
)
 
(71,910
)
Foreign currency exchange rate changes
 
16,557

 
(4,372
)
Benefit obligations at December 31
 
2,207,421

 
1,967,586

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at January 1
 
1,418,042

 
1,428,784

Actual return on plan assets
 
174,650

 
(1,431
)
Employer contribution
 
81,116

 
65,224

Participants’ contributions
 
52

 
61

Benefits paid
 
(76,742
)
 
(71,910
)
Foreign currency exchange rate changes
 
15,809

 
(2,686
)
Fair value of plan assets at December 31
 
1,612,927

 
1,418,042

Funded status
 
$
(594,494
)
 
(549,544
)
Amounts recognized in the Consolidated Balance Sheets 
Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Noncurrent asset
 
$
6,090

 
257

Current liability
 
(3,309
)
 
(3,120
)
Noncurrent liability
 
(597,275
)
 
(546,681
)
Net amount recognized
 
$
(594,494
)
 
(549,544
)
Amounts recognized in accumulated other comprehensive loss (pre-tax) 
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Transition obligation
 
$
(20
)
 
(20
)
Prior service credit
 
(3,077
)
 
(5,352
)
Net actuarial loss
 
1,007,315

 
927,004

Net amount recognized
 
$
1,004,218

 
921,632

Summary of pension obligations greater than fair value of related plan assets 
At December 31, 2012 and 2011, 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,
 
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
 
(In thousands)
Accumulated benefit obligations
 
$
1,747,610

 
1,551,211

 
418,245

 
378,768

 
2,165,855

 
1,929,979

Plans with ABO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
$
1,786,025

 
1,586,341

 
83,618

 
380,330

 
1,869,643

 
1,966,671

ABO
 
$
1,747,610

 
1,551,211

 
80,468

 
377,854

 
1,828,078

 
1,929,065

Fair value of plan assets
 
$
1,202,565

 
1,063,386

 
66,494

 
353,484

 
1,269,059

 
1,416,870

Plans with PBO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
$
1,786,025

 
1,586,341

 
83,618

 
380,330

 
1,869,643

 
1,966,671

ABO
 
$
1,747,610

 
1,551,211

 
80,648

 
377,854

 
1,828,258

 
1,929,065

Fair value of plan assets
 
$
1,202,565

 
1,063,386

 
66,494

 
353,484

 
1,269,059

 
1,416,870

Fair value of each major category of pension plan assets and the level of inputs used to measure fair value 
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, 2012 and 2011:
 
 
 
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

 
 
 
Fair Value Measurements at
December 31, 2011
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. companies
 
$
63,069

 
63,069

 
—

 
—

U.S. common collective trusts
 
500,298

 
—

 
500,298

 
—

Foreign common collective trusts
 
337,185

 
—

 
337,185

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
53,424

 
—

 
53,424

 
—

Common collective trusts
 
394,714

 
—

 
394,714

 
—

Other (primarily mortgage-backed securities)
 
809

 
—

 
809

 
—

Private equity funds
 
68,543

 
—

 
—

 
68,543

Total
 
$
1,418,042

 
63,069

 
1,286,430

 
68,543

 
Summary of changes in fair value of the pension plans Level 3 assets 
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, 2012 and 2011: 
 
 
2012
 
2011
 
 
(In thousands)
Beginning balance at January 1
 
$
68,543

 
17,745

Return on plan assets:
 
 
 
 
Relating to assets still held at the reporting date
 
(551
)
 
(2,277
)
Relating to assets sold during the period
 
5,990

 
3,051

Purchases, sales, settlements and expenses
 
(2,775
)
 
50,024

Ending balance at December 31
 
$
71,207

 
68,543

Benefits expected to be paid 
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)

2013
$
89,652

2014
93,336

2015
98,442

2016
103,940

2017
108,462

2018-2022
619,205

Weighted-average discount rates used in determining annual postretirement benefit expense 
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,
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Discount rate
 
4.90
%
 
5.70
%
 
6.20
%
 
4.50
%
 
5.25
%
 
6.00
%
Schedule of Multi-employer plan 
 
 
 
 
Pension Protection Act Zone Status
 
 
 
Ryder Contributions
 
 
 
Date of Collective-Bargaining Agreement
Pension Fund
 
Employer Identification Number
 
2012
 
2011
 
FIP/RP Status Pending/ Implemented (1)
 
2012
 
2011
 
2010
 
Surcharge Imposed
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Western Conference Teamsters
 
91-6145047
 
Green
 
Green
 
No
 
$
1,943

 
1,855

 
1,494

 
No
 
6/30/14 to 3/31/16
IAM National
 
51-6031295
 
Green
 
Green
 
No
 
2,038

 
1,794

 
1,573

 
No
 
4/30/13 to 3/31/17
Automobile Mechanics
Local No. 701
 
36-6042061
 
Red
 
Red
 
FIP Adopted
 
1,527

 
1,203

 
1,076

 
Yes
 
5/31/13 to 10/31/14
International Association of Machinists Motor City
 
38-6237143
 
Red (2)
 
Red (2)
 
RP adopted
 
437

 
392

 
372

 
No
 
1/31/14 to 3/31/16
Central States Southeast and Southwest Areas
 
36-6044243
 
Red
 
Red
 
RP adopted
 
226

 
182

 
158

 
No
 
6/1/12 to 5/31/17
Other Funds
 
 
 
 
 
 
 
 
 
575

 
562

 
526

 
 
 
 
Total contributions:
 
 
 
 
 
 
 
 
 
$
6,746

 
5,988

 
5,199

 
 
 
 
_____________ 
(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.
Summary of weighted-average actuarial assumptions 
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,
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Discount rate
 
4.90
%
 
5.70
%
 
6.20
%
 
4.76
%
 
5.55
%
 
5.93
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
4.00
%
 
3.54
%
 
3.55
%
 
3.54
%
Expected long-term rate of return on plan assets
 
7.05
%
 
7.45
%
 
7.65
%
 
6.00
%
 
6.84
%
 
7.04
%
Transition amortization in years
 
—

 
—

 
—

 
1

 
1

 
2

Gain and loss amortization in years
 
24

 
25

 
26

 
27

 
27

 
28

Summary of weighted-average actuarial assumptions 
The following table sets forth the weighted-average actuarial assumptions used in determining funded status:
 
 
 
U.S. Plans
December 31,
 
Foreign Plans
December 31,
 
 
2012
 
2011
 
2012
 
2011
Discount rate
 
4.10
%
 
4.90
%
 
4.43
%
 
4.76
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
3.55
%
 
3.54
%
Expense from continuing operations 
Total postretirement benefit expense was as follows:
 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Service cost
 
$
1,095

 
1,294

 
1,374

Interest cost
 
1,980

 
2,503

 
2,722

Amortization of:
 
 
 
 
 
 
Net actuarial (gain) loss
 
(20
)
 
231

 
352

Prior service credit
 
(231
)
 
(231
)
 
(231
)
Postretirement benefit expense
 
$
2,824

 
3,797

 
4,217

 
 
 
 
 
 
 
U.S.
 
$
2,142

 
3,155

 
3,134

Foreign
 
682

 
642

 
1,083

 
 
$
2,824

 
3,797

 
4,217

Amounts recognized in the Consolidated Balance Sheets 
Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Current liability
 
$
(2,683
)
 
(2,838
)
Noncurrent liability
 
(37,916
)
 
(40,154
)
Amount recognized
 
$
(40,599
)
 
(42,992
)
Amounts recognized in accumulated other comprehensive loss (pre-tax) 
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Prior service credit
 
$
(1,307
)
 
(1,538
)
Net actuarial (gain) loss
 
(859
)
 
867

Net amount recognized
 
$
(2,166
)
 
(671
)
Summary of weighted-average actuarial assumptions 
Assumptions used in determining accrued postretirement benefit obligations were as follows:
 
 
U.S. Plan
December 31,
 
Foreign Plan
December 31,
 
 
2012
 
2011
 
2012
 
2011
Discount rate
 
4.10
%
 
4.90
%
 
4.00
%
 
4.50
%
Rate of increase in compensation levels
 
4.00
%
 
4.00
%
 
3.50
%
 
3.50
%
Healthcare cost trend rate assumed for next year
 
7.50
%
 
8.00
%
 
7.00
%
 
7.50
%
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

 
2018

 
2017

 
2017

Benefits expected to be paid 
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)

2013
$
2,728

2014
2,852

2015
3,016

2016
3,120

2017
3,165

2018-2022
15,943

Benefit obligations associated with postretirement benefit plans 
Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
December 31,
 
 
2012
 
2011
 
 
(In thousands)
Benefit obligations at January 1
 
$
42,992

 
47,169

Service cost
 
1,095

 
1,294

Interest cost
 
1,980

 
2,503

Actuarial gain
 
(1,746
)
 
(5,754
)
Benefits paid
 
(3,947
)
 
(2,023
)
Foreign currency exchange rate changes
 
225

 
(197
)
Benefit obligations at December 31
 
$
40,599

 
42,992

Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:  
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Interest paid
 
$
126,764

 
126,916

 
120,184

Income taxes paid
 
11,613

 
21,541

 
4,906

Changes in accounts payable related to purchases of revenue earning equipment
 
27,528

 
61,290

 
17,559

Operating and revenue earning equipment acquired under capital leases (1)
 
20,670

 
39,279

 
137

Fair value of debt assumed on acquisition
 
379

 
—

 
—


(1) Includes 19.9 million of capital leases assumed in the Euroway acquisition.

Segment Reporting (Tables)
Financial information of business segments 
Business segment revenue and EBT from continuing operations is as follows:
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
Fleet Management Solutions:
 
 
 
 
 
 
Full service lease
 
$
1,956,812

 
1,862,304

 
1,804,420

Commercial rental
 
738,564

 
691,573

 
505,396

Full service lease and commercial rental
 
2,695,376

 
2,553,877

 
2,309,816

Contract maintenance
 
169,769

 
169,678

 
168,293

Contract-related maintenance
 
184,703

 
164,334

 
139,173

Other
 
71,955

 
69,124

 
67,448

Fuel services revenue
 
854,578

 
887,483

 
716,871

Total Fleet Management Solutions from external customers
 
3,976,381

 
3,844,496

 
3,401,601

Inter-segment revenue
 
428,944

 
373,834

 
310,552

Fleet Management Solutions
 
4,405,325

 
4,218,330

 
3,712,153

Supply Chain Solutions from external customers
 
2,280,586

 
2,206,038

 
1,734,834

Eliminations
 
(428,944
)
 
(373,834
)
 
(310,552
)
Total revenue
 
$
6,256,967

 
6,050,534

 
5,136,435

 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
Fleet Management Solutions
 
$
307,628

 
265,691

 
194,909

Supply Chain Solutions
 
115,193

 
104,898

 
81,683

Eliminations
 
(29,265
)
 
(24,212
)
 
(19,275
)
 
 
$
393,556

 
346,377

 
257,317

Unallocated Central Support Services
 
(42,348
)
 
(42,549
)
 
(41,310
)
Non-operating pension costs
 
(31,423
)
 
(18,652
)
 
(26,551
)
Restructuring and other charges, net and other items(1)
 
(16,668
)
 
(5,789
)
 
(3,151
)
Earnings before income taxes from continuing operations
 
$
303,117

 
279,387

 
186,305

______________ 
(1)
See Note 26, “Other Items Impacting Comparability,” for a discussion of items, in addition to restructuring and other charges, net that are excluded from our primary measure of segment performance.
Share-based compensation, depreciation expense, gains on vehicle sales, net, other non-cash charges (credits), net, interest expense (income), capital expenditures and total assets to the segment 
The following table sets forth share-based compensation, depreciation expense, (gains) losses on vehicle sales, net, other non-cash charges (credits), net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2012, 2011 and 2010 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
 
 
 
FMS
 
SCS
 
CSS
 
Eliminations
 
Total
 
 
(In thousands)
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 (credits), 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 vehicles sales, net
 
$
(62,496
)
 
(383
)
 
—

 
—

 
(62,879
)
Other non-cash charges (credits), 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

2010
 
 
 
 
 
 
 
 
 

Share-based compensation expense
 
$
5,011

 
3,430

 
8,102

 
—

 
16,543

Depreciation expense (1)
 
$
812,588

 
20,285

 
968

 
—

 
833,841

Gains on vehicle sales, net
 
$
(28,765
)
 
38

 
—

 
—

 
(28,727
)
Other non-cash charges, net (2)
 
$
19,351

 
1,021

 
20,528

 
—

 
40,900

Interest expense (income) (3)
 
$
130,742

 
(759
)
 
11

 
—

 
129,994

Capital expenditures paid (4)
 
$
1,043,280

 
16,345

 
10,467

 
—

 
1,070,092

Total assets
 
$
5,944,971

 
791,791

 
106,906

 
(191,294
)
 
6,652,374

____________ 
(1)
Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $12 million, $9 million, and $9 million during 2012, 2011, and 2010, 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 $5 million, $362 million, and $212 million in 2012, 2011, and 2010, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information.
Geographic Information 
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
United States
 
$
5,231,899

 
5,075,432

 
4,313,483

Foreign:
 
 
 
 
 
 
Canada
 
477,495

 
481,593

 
466,405

Europe
 
384,105

 
324,214

 
219,508

Mexico
 
143,282

 
147,464

 
122,312

Asia
 
20,186

 
21,831

 
14,727

 
 
1,025,068

 
975,102

 
822,952

Total
 
$
6,256,967

 
6,050,534

 
5,136,435

Long-lived assets:
 
 
 
 
 
 
United States
 
$
5,261,622

 
4,708,086

 
4,098,735

Foreign:
 
 
 
 
 
 
Canada
 
557,351

 
481,139

 
468,062

Europe
 
534,728

 
463,848

 
219,178

Mexico
 
24,973

 
19,931

 
21,194

Asia
 
787

 
847

 
892

 
 
1,117,839

 
965,765

 
709,326

Total
 
$
6,379,461

 
5,673,851

 
4,808,061

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)
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,425,376

 
25,857

 
25,125

 
0.50

 
0.50

 
0.49

 
0.48

Second quarter
 
1,513,344

 
40,914

 
40,033

 
0.80

 
0.79

 
0.78

 
0.77

Third quarter
 
1,570,720

 
56,933

 
56,524

 
1.11

 
1.10

 
1.10

 
1.10

Fourth quarter
 
1,541,094

 
47,664

 
48,095

 
0.93

 
0.92

 
0.94

 
0.93

Full year
 
$
6,050,534

 
171,368

 
169,777

 
3.34

 
3.31

 
3.31

 
3.28

Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
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 
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
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]
Vehicle
Person
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
$ 9 
$ 91 
$ 14 
Acquisitions (Details 2) (Total Logistic Control [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2010
Total Logistic Control [Member]
 
Assets:
 
Current assets
$ 24,588 
Operating property and equipment
73,135 
Goodwill
131,911 
Customer relationships and other intangibles
34,980 
Other assets
816 
Assets
265,430 
Liabilities:
 
Current liabilities
(26,875)
Deferred income taxes and other liabilities
(31,432)
Liabilities
58,307 
Net asset acquired
$ 207,123 
Acquisitions (Details 3) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Schedule of unaudited proforma information
 
 
 
 
 
 
 
 
 
 
 
Revenue - As reported
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 1,541,094 
$ 1,570,720 
$ 1,513,344 
$ 1,425,376 
$ 6,256,967 
$ 6,050,534 
$ 5,136,435 
Revenue - Pro forma
 
 
 
 
 
 
 
 
 
6,118,104 
5,538,824 
Net earnings - As reported
53,844 
75,091 
46,723 
34,321 
48,095 
56,524 
40,033 
25,125 
209,979 
169,777 
118,170 
Net earnings - Pro forma
 
 
 
 
 
 
 
 
 
$ 184,849 
$ 149,501 
Net earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic - As reported (USD per share)
$ 1.05 
$ 1.47 
$ 0.92 
$ 0.67 
$ 0.94 
$ 1.10 
$ 0.78 
$ 0.49 
$ 4.11 
$ 3.31 
$ 2.25 
Basic - Pro forma (USD per share)
 
 
 
 
 
 
 
 
 
$ 3.60 
$ 2.85 
Diluted - As reported (USD per share)
$ 1.05 
$ 1.47 
$ 0.91 
$ 0.67 
$ 0.93 
$ 1.10 
$ 0.77 
$ 0.48 
$ 4.09 
$ 3.28 
$ 2.25 
Diluted - Pro forma (USD per share)
 
 
 
 
 
 
 
 
 
$ 3.58 
$ 2.84 
Acquisitions (Details Textual) (USD $)
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Euroway Ltd. [Member]
Aug. 1, 2012
Euroway Ltd. [Member]
Vehicle
Dec. 31, 2012
Hill Hire [Member]
Dec. 31, 2011
Hill Hire [Member]
Jun. 8, 2011
Hill Hire [Member]
Trailer
Vehicle
Lease
Person
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]
Dec. 31, 2010
Other Acquisitions [Member]
Dec. 31, 2011
Total Logistic Control [Member]
Dec. 31, 2010
Total Logistic Control [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 
 
 
 
 
207,000,000 
Fair value of debt assumed on acquisition
 
 
 
 
 
 
 
 
379,000 
0 
0 
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 
 
 
 
 
131,911,000 
Finite-Lived Customer Relationships, Gross
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000,000 
 
 
 
 
 
Acquisitions
 
 
 
 
 
 
 
 
(5,113,000)
(361,921,000)
(211,897,000)
(1,000,000)
 
 
 
 
(2,883,000)
(107,000,000)
(1,073,000)
(1,000,000)
(8,000,000)
(3,000,000)
 
Business Acquisition, Contingent Consideration, at Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
478,000 
 
 
 
 
 
 
 
 
 
 
Revenue
1,583,536,000 
1,573,295,000 
1,563,860,000 
1,536,276,000 
1,541,094,000 
1,570,720,000 
1,513,344,000 
1,425,376,000 
6,256,967,000 
6,050,534,000 
5,136,435,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
53,844,000 
75,091,000 
46,723,000 
34,321,000 
48,095,000 
56,524,000 
40,033,000 
25,125,000 
209,979,000 
169,777,000 
118,170,000 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction in purchase price due to contractual adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,000,000 
 
Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Loss from discontinued operations
 
 
 
Pre-tax loss from discontinued operations
$ (2,226)
$ (1,185)
$ (7,525)
Income tax (expense) benefit
11,306 
(406)
1,087 
Loss from discontinued operations, net of tax
9,080 
(1,591)
(6,438)
Summary of assets and liabilities of discontinued operations
 
 
 
Total assets, primarily deposits
4,460 
4,600 
 
Total liabilities, primarily contingent accruals
$ 5,329 
$ 6,502 
 
Discontinued Operations (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
South American operations [Member]
Dec. 31, 2011
South American operations [Member]
Dec. 31, 2010
South American operations [Member]
Dec. 31, 2012
European operations [Member]
Dec. 31, 2010
European operations [Member]
Dec. 31, 2012
Brazil Federal and Social Contribution tax [Member]
Dec. 31, 2012
Brazil state operating tax [Member]
Dec. 31, 2012
Brazil tax due on sale of business [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
Tax Amounts Assessed But Not Reserved
 
 
 
 
 
 
 
$ 5 
$ 6 
$ 16 
Discontinued Operation Loss From Discontinued Operation Before Income Tax, adverse legal and professional fees
 
 
3 
2 
4 
 
 
 
 
 
Loss from discontinued operations before income taxes
 
 
 
 
 
1 
(3)
 
 
 
Discontinued Operation Loss From Discontinued Operation Before Income Tax, insurance related
 
1 
 
 
 
 
 
 
 
 
Discontinued Operation, Tax Effect of Discontinued Operation
$ 11 
 
 
 
 
 
 
 
 
 
Restructuring and Other Charges (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
$ 8,070 
$ 3,655 
$ 0 
Employee severance and benefits [Member]
 
 
 
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
7,205 
3,162 
0 
Contract termination costs [Member]
 
 
 
Restructuring charges, net:
 
 
 
Restructuring and other charges, net
$ 865 
$ 493 
$ 0 
Restructuring and Other Charges (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
$ 8,070 
$ 3,655 
$ 0 
Fleet Management Solutions [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
6,448 
3,531 
0 
Supply Chain Solutions [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
1,346 
124 
0 
Central Support Services [Member]
 
 
 
Restructuring and other charges, net that related to each segment
 
 
 
Restructuring and other charges, net
$ 276 
$ 0 
$ 0 
Restructuring and Other Charges (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
$ 5,246 
$ 4,047 
Additions
9,544 
3,783 
Cash Payments
8,230 
2,293 
Non-Cash Reductions
1,882 
246 
Foreign Translation Adjustment
197 
(45)
Restructuring Reserves, Ending Balance
4,875 
5,246 
Employee severance and benefits [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
2,607 
234 
Additions
8,460 
3,290 
Cash Payments
6,711 
736 
Non-Cash Reductions
1,307 
105 
Foreign Translation Adjustment
98 
(76)
Restructuring Reserves, Ending Balance
3,147 
2,607 
Contract termination costs [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
2,639 
3,813 
Additions
1,084 
493 
Cash Payments
1,519 
1,557 
Non-Cash Reductions
575 
141 
Foreign Translation Adjustment
99 
31 
Restructuring Reserves, Ending Balance
$ 1,728 
$ 2,639 
Restructuring and Other Charges (Details Textual) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2012
employees
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
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
 
8,070,000 
3,655,000 
0 
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, 2012
Dec. 31, 2011
Receivables
 
 
Trade
$ 670,717 
$ 661,592 
Direct financing leases
76,395 
68,896 
Income tax
6,596 
8,961 
Insurance
17,345 
7,619 
Vendor rebates
5,547 
8,998 
Other
14,594 
13,067 
Receivables, gross
791,194 
769,133 
Allowance
(15,429)
(14,489)
Total
775,765 
754,644 
Superstorm Sandy [Member]
 
 
Receivables
 
 
Insurance
$ 7,000 
 
Prepaid Expenses and Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Prepaid expenses and other current assets
 
 
Current deferred tax asset
$ 29,129 
$ 31,426 
Restricted cash
102 
17,994 
Prepaid vehicle licenses
46,784 
47,045 
Prepaid operating taxes
13,322 
12,477 
Prepaid real estate rent
4,351 
7,030 
Prepaid contract incentives
4,789 
5,612 
Prepaid software maintenance costs
3,928 
3,490 
Prepaid benefits
1,313 
0 
Prepaid insurance
8,810 
14,003 
Prepaid sales commissions
7,908 
9,385 
Other
13,498 
14,583 
Total
$ 133,934 
$ 163,045 
Revenue Earning Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Y
Dec. 31, 2011
Summary of revenue earning equipment
 
 
Cost
$ 9,269,518 
$ 8,512,030 
Accumulated depreciation on revenue earning equipment
(3,514,910)
(3,462,359)
Net Book Value
5,754,608 
5,049,671 
Held for use: Full service lease [Member]
 
 
Summary of revenue earning equipment
 
 
Estimated Useful Life, Minimum
3 
 
Estimated Useful Life, Maximum
12 
 
Cost
6,728,746 
6,010,335 
Accumulated depreciation on revenue earning equipment
(2,500,786)
(2,518,830)
Net Book Value
4,227,960 
3,491,505 
Held for use: Commercial rental [Member]
 
 
Summary of revenue earning equipment
 
 
Estimated Useful Life, Minimum
4.5 
 
Estimated Useful Life, Maximum
12 
 
Cost
2,041,698 
2,175,003 
Accumulated depreciation on revenue earning equipment
(660,356)
(708,052)
Net Book Value
1,381,342 
1,466,951 
Held-for-sale [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
499,074 
326,692 
Accumulated depreciation on revenue earning equipment
(353,768)
(235,477)
Net Book Value
$ 145,306 
$ 91,215 
Revenue Earning Equipment (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Revenue Earning Equipment (Textual) [Abstract]
 
 
 
Cost
$ 9,269,518,000 
$ 8,512,030,000 
 
Accumulated Depreciation
3,514,910,000 
3,462,359,000 
 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
18,000,000 
5,000,000 
14,000,000 
Assets held under capital leases [Member]
 
 
 
Revenue Earning Equipment (Textual) [Abstract]
 
 
 
Cost
56,000,000 
61,000,000 
 
Accumulated Depreciation
$ 17,000,000 
$ 14,000,000 
 
Operating Property And Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Minimum [Member]
Land [Member]
Dec. 31, 2012
Minimum [Member]
Buildings and improvements [Member]
Dec. 31, 2012
Minimum [Member]
Machinery and equipment [Member]
Dec. 31, 2012
Minimum [Member]
Other [Member]
Dec. 31, 2012
Maximum [Member]
Land [Member]
Dec. 31, 2012
Maximum [Member]
Buildings and improvements [Member]
Dec. 31, 2012
Maximum [Member]
Machinery and equipment [Member]
Dec. 31, 2012
Maximum [Member]
Other [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
 
 
 
Minimum estimated useful lives
 
 
0 years 
10 years 
3 years 
3 years 
0 years 
40 years 
10 years 
10 years 
Operating Property and Equipment
 
 
 
 
 
 
 
 
 
 
Land
$ 190,357 
$ 188,617 
 
 
 
 
 
 
 
 
Buildings and improvements
716,743 
699,809 
 
 
 
 
 
 
 
 
Machinery and equipment
578,718 
535,183 
 
 
 
 
 
 
 
 
Other
105,255 
112,288 
 
 
 
 
 
 
 
 
Gross
1,591,073 
1,535,897 
 
 
 
 
 
 
 
 
Accumulated depreciation
(966,220)
(911,717)
 
 
 
 
 
 
 
 
Total
$ 624,853 
$ 624,180 
 
 
 
 
 
 
 
 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
$ 406,527 
$ 385,063 
Accumulated impairment losses, Beginning Balance
(29,221)
(29,221)
Goodwill, Beginning Balance
377,306 
355,842 
Acquisitions
6,033 
28,616 
Purchase accounting adjustment
312 
(6,798)
Foreign currency translation adjustment
565 
(354)
Goodwill, Gross, Ending Balance
413,437 
406,527 
Accumulated impairment losses, Ending Balance
(29,221)
(29,221)
Goodwill, Ending Balance
384,216 
377,306 
Fleet Management Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
216,559 
202,941 
Accumulated impairment losses, Beginning Balance
(10,322)
(10,322)
Goodwill, Beginning Balance
206,237 
192,619 
Acquisitions
6,033 
13,958 
Purchase accounting adjustment
215 
(185)
Foreign currency translation adjustment
322 
(155)
Goodwill, Gross, Ending Balance
223,129 
216,559 
Accumulated impairment losses, Ending Balance
(10,322)
(10,322)
Goodwill, Ending Balance
212,807 
206,237 
Supply Chain Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross, Beginning Balance
189,968 
182,122 
Accumulated impairment losses, Beginning Balance
(18,899)
(18,899)
Goodwill, Beginning Balance
171,069 
163,223 
Acquisitions
0 
14,658 
Purchase accounting adjustment
97 
(6,613)
Foreign currency translation adjustment
243 
(199)
Goodwill, Gross, Ending Balance
190,308 
189,968 
Accumulated impairment losses, Ending Balance
(18,899)
(18,899)
Goodwill, Ending Balance
$ 171,409 
$ 171,069 
Intangible Assets Intangible Assets (Details) (Trade Names [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
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, 2012
Dec. 31, 2011
Finite lived intangible assets
 
 
Accumulated amortization
$ (27,860)
$ (19,797)
Total
70,077 
75,174 
Foreign currency translation adjustment
1,314 
562 
Total
80,475 
84,820 
Customer relationship intangibles [Member]
 
 
Finite lived intangible assets
 
 
Customer relationship intangibles
95,683 
92,888 
Other intangible assets [Member]
 
 
Finite lived intangible assets
 
 
Customer relationship intangibles
$ 2,254 
$ 2,083 
Intangible Assets (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Future Amortization Expense of Intangible Assets
 
2013
$ 7,510 
2014
6,599 
2015
6,481 
2016
6,474 
2017
6,473 
Total
$ 33,537 
Intangible Assets (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Intangible Assets (Textual) [Abstract]
 
 
 
Amortization Expense Associated With Finite Lived Intangible Assets Amortization Expense
$ 8 
$ 8 
$ 3 
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, 2012
Dec. 31, 2011
Direct Financing Leases And Other Assets [Abstract]
 
 
Direct financing leases, net
$ 315,528 
$ 280,988 
Investments held in Rabbi Trusts
22,426 
18,696 
Insurance receivables
21,695 
15,488 
Debt issuance costs
16,323 
16,106 
Prepaid pension asset
6,090 
257 
Contract incentives
17,613 
17,524 
Interest rate swap agreement
15,412 
21,843 
Other
19,503 
22,783 
Total
$ 434,590 
$ 393,685 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Accrued Expenses and Other Liabilities
 
 
Salaries and wages, Accrued Expenses
$ 86,776 
$ 121,087 
Salaries and wages, Non-Current Liabilities
0 
0 
Salaries and wages, Total
86,776 
121,087 
Deferred compensation, Accrued Expenses
1,630 
1,405 
Deferred compensation, Non-Current Liabilities
24,918 
21,285 
Deferred compensation, Total
26,548 
22,690 
Pension benefits, Accrued Expenses
3,309 
3,120 
Pension benefits, Non-Current Liabilities
597,275 
546,681 
Pension benefits, Total
600,584 
549,801 
Other postretirement benefits, Accrued Expenses
2,683 
2,838 
Other postretirement benefits, Non-Current Liabilities
37,916 
40,154 
Other postretirement benefits, Total
40,599 
42,992 
Insurance obligations, primarily self-insurance, Accrued Expenses
133,459 
120,045 
Insurance obligations, primarily self-insurance, Non-Current Liabilities
178,714 
157,390 
Insurance obligations, primarily self-insurance, Total
312,173 
277,435 
Residual value guarantees, Accrued Expenses
1,505 
3,093 
Residual value guarantees, Non-Current Liabilities
130 
1,125 
Residual value guarantees, Total
1,635 
4,218 
Deferred rent, Accrued Expenses
9,244 
4,088 
Deferred rent, Non-Current Liabilities
9,405 
14,686 
Deferred rent, Total
18,649 
18,774 
Environmental liabilities, Accrued Expenses
4,201 
4,368 
Environmental liabilities, Non-Current Liabilities
8,415 
9,171 
Environmental liabilities, Total
12,616 
13,539 
Asset retirement obligations, Accrued Expenses
3,642 
5,702 
Asset retirement obligations, Non-Current Liabilities
17,116 
12,364 
Asset retirement obligations, Total
20,758 
18,066 
Operating taxes, Accrued Expenses
91,419 
81,820 
Operating taxes, Non-Current Liabilities
0 
0 
Operating taxes, Total
91,419 
81,820 
Income taxes, Accrued Expenses
8,288 
4,160 
Income taxes, Non-Current Liabilities
57,590 
74,147 
Income taxes, Total
65,878 
78,307 
Interest, Accrued Expenses
35,798 
30,410 
Interest, Non-Current Liabilities
0 
0 
Interest, Total
35,798 
30,410 
Deposits, mainly from customers, Accrued Expenses
51,671 
50,951 
Deposits, mainly from customers, Non-Current Liabilities
6,236 
7,544 
Deposits, mainly from customers, Total
57,907 
58,495 
Deferred revenue, Accrued Expenses
21,557 
20,698 
Deferred revenue, Non-Current Liabilities
0 
476 
Deferred revenue, Total
21,557 
21,174 
Acquisition holdbacks, Accrued Expenses
1,637 
7,422 
Acquisition holdbacks, Non-Current Liabilities
2,673 
0 
Acquisition holdbacks, Total
4,310 
7,422 
Other, Accrued Expenses
48,888 
46,423 
Other, Non-Current Liabilities
8,544 
11,564 
Other, Total
57,432 
57,987 
Total Accrued Expenses
505,707 
507,630 
Total, Non-Current Liabilities
948,932 
896,587 
Total
$ 1,454,639 
$ 1,404,217 
Accrued Expenses and Other Liabilities (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Accrued Expenses and Other Liabilities (Textual) (Abstract)
 
 
 
Benefit (charge) within operating expense
$ 1 
$ 4 
$ (3)
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Earnings from continuing operations before income taxes:
 
 
 
United States
$ 241,672 
$ 223,209 
$ 156,123 
Foreign
61,445 
56,178 
30,182 
Earnings from continuing operations before income taxes
303,117 
279,387 
186,305 
Current tax expense (benefit) from continuing operations:
 
 
 
Federal
(4,157)
1,615 
4,536 
State
11,514 
7,785 
4,468 
Foreign
7,759 
8,603 
11,596 
Total current tax expense (benefit) from continuing operations
15,116 
18,003 
20,600 
Deferred tax expense (benefit) from continuing operations:
 
 
 
Federal
77,819 
67,849 
38,179 
State
3,871 
17,247 
7,198 
Foreign
5,412 
4,920 
(4,280)
Total Deferred tax expense (benefit) from continuing operations
87,102 
90,016 
41,097 
Provision for income taxes from continuing operations
$ 102,218 
$ 108,019 
$ 61,697 
Income Taxes (Details 1)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
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
0.50% 
2.60% 
0.40% 
State income taxes, net of federal income tax benefit
4.40% 
3.90% 
4.60% 
Tax reviews and audits
(2.90%)
(0.90%)
(7.00%)
Miscellaneous items, net
(3.30%)
(1.90%)
0.10% 
Effective tax rate
33.70% 
38.70% 
33.10% 
Income Taxes (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
State of Michigan [Member]
Dec. 31, 2011
State of Illinois [Member]
Dec. 31, 2012
United Kingdom [Member]
Dec. 31, 2010
United Kingdom [Member]
Dec. 31, 2012
Canada [Member]
Changes in tax laws on net earnings from continuing operations and net earnings per diluted common share
 
 
 
 
 
Tax Jurisdiction
State of Michigan 
State of Illinois 
United Kingdom 
United Kingdom 
Canada 
Enactment Date
May 25, 2011 
Jan. 13, 2011 
Jul. 17, 2012 
Jul. 27, 2010 
Jun. 20, 2012 
Net Earnings
$ (5,350)
$ (1,221)
$ (856)
$ 400 
$ (671)
Income Taxes (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Deferred income tax assets:
 
 
Self-insurance accruals
$ 52,177 
$ 37,296 
Net operating loss carryforwards
258,808 
275,124 
Alternative minimum taxes
9,679 
9,679 
Accrued compensation and benefits
61,095 
67,323 
Federal benefit on state tax positions
17,925 
18,847 
Pension benefits
204,069 
179,159 
Miscellaneous other accruals
39,708 
38,588 
Deferred tax assets gross
643,461 
626,016 
Valuation allowance
(38,182)
(41,324)
Deferred tax assets net
605,279 
584,692 
Deferred income tax liabilities:
 
 
Property and equipment bases difference
(1,734,508)
(1,649,494)
Other items
(18,716)
(25,265)
Deferred tax liabilities
(1,753,224)
(1,674,759)
Net deferred income tax liability
$ (1,147,945)
$ (1,090,067)
Income Taxes (Details 4) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance at January 1
$ 62,247 
$ 61,236 
$ 69,494 
Additions based on tax positions related to the current year
3,980 
3,776 
4,233 
Settlements
0 
0 
(8,280)
Reductions due to lapse of applicable statute of limitations
(13,956)
(2,765)
(4,211)
Gross balance at December 31
52,271 
62,247 
61,236 
Interest and penalties
5,319 
6,933 
5,858 
Balance at December 31
$ 57,590 
$ 69,180 
$ 67,094 
Income Taxes (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Tax Examination [Line Items]
 
 
 
Deferred tax assets included in prepaid expenses and other current assets
$ 29,129,000 
$ 31,426,000 
 
Undistributed foreign earnings
544,000,000 
 
 
Net operating loss carryforwards
258,808,000 
275,124,000 
 
Alternative minimum taxes
9,679,000 
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
40,000,000 
 
 
Deferred income tax accrued interest and penalties
4,000,000 
5,000,000 
 
Income tax related to interest and penalties
(1,000,000)
(1,000,000)
(2,000,000)
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions
2,000,000 
 
 
Total Assets of Variable Interest Entities
26,000,000 
142,000,000 
 
Total Liabilities of Variable Interest Entities
26,000,000 
142,000,000 
 
Domestic Country [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Net operating loss carryforwards
178,000,000 
 
 
Foreign Country [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Net operating loss carryforwards
34,000,000 
 
 
State and Local Jurisdiction [Member]
 
 
 
Income Tax Examination [Line Items]
 
 
 
Net operating loss carryforwards
$ 47,000,000 
 
 
Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Net investment in direct financing and sales-type leases
 
 
 
Total minimum lease payments receivable
$ 629,919 
$ 561,772 
 
Less: Executory costs
(201,777)
(181,820)
 
Minimum lease payments receivable
428,142 
379,952 
 
Less: Allowance for uncollectibles
(703)
(903)
(784)
Net minimum lease payments receivable
427,439 
379,049 
 
Unguaranteed residuals
60,764 
63,472 
 
Less: Unearned income
(96,280)
(92,637)
 
Net investment in direct financing and sales-type leases
391,923 
349,884 
 
Current portion
(76,395)
(68,896)
 
Non-current portion
$ 315,528 
$ 280,988 
 
Leases (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 428,142 
$ 379,952 
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
193,123 
121,836 
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
177,400 
190,070 
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
$ 57,619 
$ 68,046 
Leases (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Allowance for Loan and Lease Losses [Roll Forward]
 
 
Beginning Balance
$ 903 
$ 784 
Charged to earnings
812 
867 
Deductions
(1,012)
(748)
Ending Balance
$ 703 
$ 903 
Leases (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Future minimum payments for leases
 
Future minimum payments, Operating Leases (As Lessor), 2013
$ 823,369 
Future minimum payments, Direct Financing Leases (as Lessor), 2013
107,890 
Future minimum payments, Operating Leases (As Lessee), 2013
106,688 
Future minimum payments, Operating Leases (As Lessor), 2014
620,533 
Future minimum payments, Direct Financing Leases (as Lessor), 2014
87,459 
Future minimum payments, Operating Leases (As Lessee), 2014
96,402 
Future minimum payments, Operating Leases (As Lessor), 2015
475,226 
Future minimum payments, Direct Financing Leases (as Lessor), 2015
73,507 
Future minimum payments, Operating Leases (As Lessee), 2015
54,414 
Future minimum payments, Operating Leases (As Lessor), 2016
348,897 
Future minimum payments, Direct Financing Leases (as Lessor), 2016
60,254 
Future minimum payments, Operating Leases (As Lessee), 2016
34,261 
Future minimum payments, Operating Leases (As Lessor), 2017
230,016 
Future minimum payments, Direct Financing Leases (as Lessor), 2017
40,109 
Future minimum payments, Operating Leases (As Lessee), 2017
21,365 
Future minimum payments, Operating Leases (As Lessor), Thereafter
172,756 
Future minimum payments, Direct Financing Leases (as Lessor), Thereafter
58,923 
Future minimum payments, Operating Leases (As Lessee), Thereafter
58,765 
Future minimum payments, Operating Leases (As Lessor), Total
2,670,797 
Future minimum payments, Direct Financing Leases (As Lessor), Total
428,142 
Future minimum payments, Operating Leases (As Lessee), Total
$ 371,895 
Leases (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Operating Leased Assets [Line Items]
 
 
 
Factor which may result in customer being classified as high risk
less than 3 years 
 
 
Impaired direct financing receivables
$ 0 
$ 0 
 
Proceeds from sale-leaseback transaction
130,184,000 
37,395,000 
0 
Rent expense
148,000,000 
154,000,000 
156,000,000 
Contingent rentals from operating leases
319,000,000 
303,000,000 
294,000,000 
Operating Leases [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Contingent rental income
(1,000,000)
(2,000,000)
(2,000,000)
Direct Financing Leases [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Contingent rental income
$ (11,000,000)
$ (11,000,000)
$ (12,000,000)
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 $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Short-term debt and current portion of long-term debt:
 
 
Short-term debt
$ 9,820 
$ 5,091 
Current portion of long-term debt, including capital leases
358,155 
269,275 
Total short-term debt and current portion of long-term debt
$ 367,975 
$ 274,366 
Short-term debt [Member]
 
 
Short-term debt and current portion of long-term debt:
 
 
Short-term debt, Weighted Average Interest Rate
2.27% 
1.45% 
Maturity date range, start
Jan. 01, 2013 
 
Debt (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Long-term debt:
 
 
Unsecured U.S. notes - Medium-term notes
$ 2,971,313 
$ 2,484,712 
Unsecured U.S. obligations, principally bank term loans
105,500 
105,000 
Unsecured foreign obligations
313,406 
300,516 
Capital lease obligations
42,018 
48,047 
Total before fair market value adjustment
3,794,251 
3,355,211 
Fair market value adjustment on notes subject to hedging
16,725 
21,843 
Total after fair market value adjustment
3,810,976 
3,377,054 
Current portion of long-term debt, including capital leases
(358,155)
(269,275)
Long-term debt
3,452,821 
3,107,779 
Total debt
3,820,796 
3,382,145 
U.S Commercial Paper, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.41% 
0.40% 
Commercial Paper
329,925 
415,936 
Maturity date range, start
Jan. 01, 2016 
 
Canadian Commerial Paper [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.14% 
0.00% 
Commercial Paper
23,165 
0 
Maturity date range, start
Jan. 01, 2016 
 
Global Revolving Credit Facility [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.58% 
1.52% 
Maturity date range, start
Jan. 01, 2016 
 
Long-term Line of Credit, Noncurrent
$ 8,924 
$ 1,000 
Unsecured U.S. notes - Medium-term notes, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
4.01% 
4.49% 
Maturity date range, start
Jan. 01, 2013 
 
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
1.56% 
1.78% 
Maturity date range, start
Jan. 01, 2013 
 
Maturity date range, end
Dec. 31, 2017 
 
Unsecured Foreign Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.91% 
2.71% 
Maturity date range, start
Jan. 01, 2013 
 
Maturity date range, end
Dec. 31, 2016 
 
Capital Lease Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
4.08% 
4.24% 
Maturity date range, start
Jan. 01, 2013 
 
Maturity date range, end
Dec. 31, 2018 
 
Debt (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Maturities of debt
 
Debt, 2013
$ 359,821 
Capital leases, 2013
8,210 
Debt, 2014
339,339 
Capital leases, 2014
7,710 
Debt, 2015
727,897 
Capital leases, 2015
6,910 
Debt, 2016
1,117,289 
Capital leases, 2016
5,771 
Debt, 2017
704,062 
Capital leases, 2017
7,140 
Debt, Thereafter
513,645 
Capital leases, Thereafter
10,942 
Debt, Total
3,762,053 
Capital leases, Total
46,683 
Imputed interest
(4,665)
Present value of minimum capitalized lease payments
42,018 
Current portion
(6,841)
Long-term capitalized lease obligation
$ 35,177 
Debt (Details Textual) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Institutions
Dec. 31, 2011
Dec. 31, 2012
Commercial paper [Member]
Dec. 31, 2011
Commercial paper [Member]
Dec. 31, 2012
Medium-term Notes [Member]
Feb. 28, 2012
350 million unsecured medium-term notes due 2017 [Member]
Dec. 31, 2012
350 million unsecured medium-term notes due 2018 [Member]
Aug. 31, 2012
350 million unsecured medium-term notes due 2018 [Member]
Jun. 30, 2011
Letter of Credit [Member]
Jun. 30, 2011
Global Revolving Credit Facility [Member]
Debt (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discounts
$ 8,765,000 
$ 9,351,000 
 
 
 
 
 
 
 
 
Aggregate notional amount of interest rate swaps
550,000,000 
550,000,000 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under global revolving credit facility
 
 
 
 
 
 
 
 
75,000,000 
900,000,000 
Number of lending institutions
12 
 
 
 
 
 
 
 
 
 
Letter of credit outstanding amount
0 
 
 
 
 
 
 
 
 
 
Annual facility fees minimum
0.10% 
 
 
 
 
 
 
 
 
 
Annual facility fees maximum
0.325% 
 
 
 
 
 
 
 
 
 
Current annual facility fee
0.15% 
 
 
 
 
 
 
 
 
 
Total facility size
 
900,000,000 
 
 
 
 
 
 
 
 
Global revolving credit facility covenant terms, debt to consolidated tangible net worth ratio
less than or equal to 300% 
 
 
 
 
 
 
 
 
 
Debt to consolidated tangible net worth ratio
180.00% 
 
 
 
 
 
 
 
 
 
Amount available under the global revolving credit facility
538,000,000 
 
 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
 
 
353,090,000 
415,936,000 
 
 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
350,000,000 
 
350,000,000 
 
 
Repurchase price condition of notes
 
 
 
 
101% of Principal Plus Accrued And Unpaid Interest 
 
101% 
 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
 
 
Number of days under trade trade receivables purchase and sale program
364 days 
 
 
 
 
 
 
 
 
 
Amount outstanding under trade receivables purchase and sale program
$ 0 
$ 0 
 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
$ 22,426 
$ 18,696 
Interest rate swaps, assets
15,412 
21,843 
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
39,151 
40,539 
Total liabilities at fair value
478 
1,000 
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
4,055 
3,783 
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
10,871 
8,850 
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
2,974 
2,526 
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
4,526 
3,537 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
22,426 
18,696 
Total liabilities at fair value
0 
0 
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
4,055 
3,783 
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
10,871 
8,850 
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
2,974 
2,526 
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
4,526 
3,537 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
16,725 
21,843 
Total liabilities at fair value
0 
0 
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
0 
0 
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
0 
0 
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
0 
0 
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
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
0 
0 
Total liabilities at fair value
478 
1,000 
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
0 
0 
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
0 
0 
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
0 
0 
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
0 
0 
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
0 
 
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
0 
 
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
22,426 
18,696 
Interest rate swaps, assets
15,412 
21,843 
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
 
18,696 
Interest rate swaps, assets
0 
0 
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
0 
0 
Interest rate swaps, assets
15,412 
21,843 
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
0 
0 
Interest rate swaps, assets
0 
0 
Other noncurrent liabilities [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
478 
 
Other noncurrent liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
0 
 
Other noncurrent liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
0 
 
Other noncurrent liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
478 
 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
1,000 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
0 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
0 
Accrued Expenses [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
$ 1,000 
Fair Value Measurements (Details 1) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2010
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2011
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, Tractors [Member]
Dec. 31, 2011
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, Trailers [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2011
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, Tractors [Member]
Dec. 31, 2011
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, Trailers [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Dec. 31, 2011
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2011
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, Tractors [Member]
Dec. 31, 2011
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, Trailers [Member]
Dec. 31, 2011
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 
$ 26,467,000 
$ 9,483,000 
$ 14,263,000 
$ 6,147,000 
$ 11,619,000 
$ 3,040,000 
$ 585,000 
$ 296,000 
Total Losses
23,000,000 
 
 
18,400,000 
8,891,000 
12,853,000 
5,556,000 
4,058,000 
1,982,000 
1,489,000 
1,353,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Textual) (Abstract)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total debt
 
3,990,000,000 
3,510,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss to reflect changes in fair value
$ 23,000,000 
 
 
$ 18,400,000 
$ 8,891,000 
$ 12,853,000 
$ 5,556,000 
$ 4,058,000 
$ 1,982,000 
$ 1,489,000 
$ 1,353,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
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
1.62% 
1.84% 
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
1.66% 
1.43% 
Interest rate swaps maturing March 2013 [Member]
 
 
Summarized details of swaps outstanding and the related hedged items
 
 
Issuance date
Feb. 01, 2008 
 
Maturity date
Mar. 01, 2013 
 
Face value of medium - term notes
250,000 
 
Aggregate notional amount of interest rate swaps
$ 250,000 
 
Fixed interest rate
6.00% 
 
Weighted-average variable interest rate on hedged debt
2.84% 
2.61% 
Derivatives (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
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
(5,118)
6,414 
3,328 
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
$ 5,118 
$ (6,414)
$ (3,328)
Guarantees (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
$ 30,792 
$ 8,325 
Carrying Amount of Liability
6,245 
7,764 
Vehicle Residual Value Guarnatees Operating Lease Programs [Member]
 
 
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
24,544 
0 
Carrying Amount of Liability
0 
0 
Vehicle Residual Value Guarantees Finance Lease Programs [Member]
 
 
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
14 
805 
Carrying Amount of Liability
11 
244 
Standby letters of credit [Member]
 
 
Maximum determinable exposure of each type of guarantee and the corresponding liability
 
 
Maximum Exposure of Guarantee
6,234 
7,520 
Carrying Amount of Liability
$ 6,234 
$ 7,520 
Guarantees (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Letters of credit and surety bonds outstanding
 
 
Letters of credit
$ 198,227 
$ 196,671 
Surety bonds
$ 95,856 
$ 74,280 
Guarantees (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
$ 30,792,000 
$ 8,325,000 
Carrying Amount of Liability
6,245,000 
7,764,000 
Guarantees (Textual) [Abstract]
 
 
Customer finance leases expire periodically
Jan. 01, 2019 
 
Estimated outstanding assumed claims
6,000,000 
 
Outstanding letter of credit provided by the purchaser
0 
 
Contingent rentals associated with residual value guarantees [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
183,000,000 
91,000,000 
Carrying Amount of Liability
2,000,000 
4,000,000 
Lease Term Residual Value Guarantees [Member]
 
 
Guarantor Obligations [Line Items]
 
 
Maximum Exposure of Guarantee
$ 25,000,000 
 
Share Repurchase Programs (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member]
Dec. 31, 2010
February 2010 Discretionary Share Repurchase Program [Member]
Feb. 28, 2010
February 2010 Discretionary Share Repurchase Program [Member]
Dec. 31, 2011
December 2009 Anti-Dilutive Share Repurchase Program [Member]
Dec. 31, 2010
December 2009 Anti-Dilutive Share Repurchase Program [Member]
Dec. 31, 2012
December 2009 Anti-Dilutive Share Repurchase Program [Member]
Dec. 31, 2012
Common Stock [Member]
Dec. 31, 2011
Common Stock [Member]
Dec. 31, 2010
Common Stock [Member]
Share Repurchase Programs (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Share Repurchase Program Authorization
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
Maximum period of discretionary share repurchase program
 
 
 
 
 
2 years 
 
 
 
 
 
 
Repurchased and retired shares
 
 
 
 
2,420,390 
 
 
561,656 
 
543,923 
1,175,783 
2,982,046 
Aggregate cost of repurchased and retired
$ 26,343,000 
$ 59,102,000 
$ 123,170,000 
$ 26,000,000 
$ 100,000,000 
 
$ 59,000,000 
$ 23,000,000 
 
$ 272,000 
$ 588,000 
$ 1,491,000 
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, 2012
Dec. 31, 2011
Dec. 31, 2010
Summary of components of accumulated other comprehensive loss, net of tax
 
 
 
Currency Translation Adjustment, Beginning Balance
$ 28,219 
$ 45,987 
$ 32,978 
Net Actuarial Loss, Beginning Balance
(599,687)
(428,532)
(419,445)
Prior Service Credit, Beginning Balance
4,291 
5,912 
7,482 
Transition Obligation, Beginning Balance
12 
34 
52 
Unrealized (Loss) Gain on Derivatives, Beginning Balance
0 
0 
14 
Accumulated other comprehensive loss, Beginning Balance
(567,165)
(376,599)
(378,919)
Amortization of Net Actuarial Loss
20,315 
13,146 
12,416 
Amortization of Prior Service Credit
(1,657)
(1,621)
(1,570)
Amortization of Transition Obligation
0 
(22)
(18)
Amortization of Accumulated Other Comprehensive Loss
18,658 
11,503 
10,828 
Pension curtailment/ settlement, Net Actuarial Loss
 
 
1,074 
Pension curtailment/settlement, Prior Service Credit
 
 
0 
Pension curtailment/settlement, Accumulated Other Comprehensive Loss
 
 
1,074 
Current period change, Currency Translation Adjustments
29,629 
(17,768)
13,009 
Current period change, Net Actuarial Loss
(68,753)
(184,301)
(22,577)
Current period change, Unrealized Gain (Loss) on Derivatives
12 
0 
(14)
Current period change, Accumulated Other Comprehensive Loss
(39,112)
(202,069)
(9,582)
Currency Translation Adjustment, Ending Balance
57,848 
28,219 
45,987 
Net Actuarial Loss, Ending Balance
(648,125)
(599,687)
(428,532)
Prior Service Credit, Ending Balance
2,634 
4,291 
5,912 
Transition Obligation, Ending Balance
12 
12 
34 
Unrealized (Loss) Gain on Derivatives, Ending Balance
12 
0 
0 
Accumulated other comprehensive loss, Ending Balance
$ (587,619)
$ (567,165)
$ (376,599)
Accumulated Other Comprehensive Income - Tax Amounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Tax benefit (expense) on change in unrealized components of defined benefit plans:
 
 
 
Tax benefit on net actuarial loss arising during the period
$ 41,012 
$ 98,642 
$ 13,242 
Other comprehensive income (loss), tax effect from pension and OPEB amortization
(10,016)
(6,414)
(6,037)
Tax expense on settlements and other
0 
0 
(413)
Tax benefit on other comprehensive loss
$ 30,996 
$ 92,228 
$ 6,792 
Earnings Per Share Information (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Earnings per share - Basic:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
$ 54,945 
$ 64,311 
$ 46,767 
$ 34,876 
$ 47,664 
$ 56,933 
$ 40,914 
$ 25,857 
$ 200,899 
$ 171,368 
$ 124,608 
Less: Distributed and undistributed earnings allocated to nonvested stock
 
 
 
 
 
 
 
 
(2,566)
(2,751)
(1,759)
Earnings from continuing operations available to common shareholders - Basic
 
 
 
 
 
 
 
 
198,333 
168,617 
122,849 
Weighted average common shares outstanding - Basic
 
 
 
 
 
 
 
 
50,449 
50,500 
51,717 
Earnings from continuing operations per common share - Basic (USD per share)
$ 1.07 
$ 1.26 
$ 0.92 
$ 0.68 
$ 0.93 
$ 1.11 
$ 0.80 
$ 0.50 
$ 3.93 
$ 3.34 
$ 2.38 
Earnings per share - Diluted:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
54,945 
64,311 
46,767 
34,876 
47,664 
56,933 
40,914 
25,857 
200,899 
171,368 
124,608 
Less: Distributed and undistributed earnings allocated to nonvested stock
 
 
 
 
 
 
 
 
(2,556)
(2,737)
(1,756)
Earnings from continuing operations available to common shareholders - Diluted
 
 
 
 
 
 
 
 
$ 198,343 
$ 168,631 
$ 122,852 
Weighted average common shares outstanding - Basic
 
 
 
 
 
 
 
 
50,449 
50,500 
51,717 
Effect of dilutive options (shares)
 
 
 
 
 
 
 
 
291 
378 
167 
Weighted average common shares outstanding - Diluted
 
 
 
 
 
 
 
 
50,740 
50,878 
51,884 
Earnings from continuing operations per common share - Diluted (USD per share)
$ 1.07 
$ 1.26 
$ 0.91 
$ 0.68 
$ 0.92 
$ 1.10 
$ 0.79 
$ 0.50 
$ 3.91 
$ 3.31 
$ 2.37 
Anti-dilutive options not included above (shares)
 
 
 
 
 
 
 
 
2,278 
1,514 
1,654 
Share-Based Compensation Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 18,864 
$ 17,423 
$ 16,543 
Income tax benefit
(6,309)
(5,794)
(5,572)
Share-based compensation expense, net of tax
12,555 
11,629 
10,971 
Summary of compensation expense recognized related to cash awards
 
 
 
Cash awards
1,099 
1,882 
2,052 
Stock option and stock purchase plan [Member]
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
9,469 
9,497 
9,069 
Nonvested stock [Member]
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 9,395 
$ 7,926 
$ 7,474 
Share-Based Compensation Plans (Details 1) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Summary of stock option activity
 
Outstanding Ending Balance, Shares
3,148 
Exercisable, Shares
2,032 
Outstanding weighted average exercise price, Ending Balance
$ 46.36 
Exercisable, weighted average exercise price
$ 45.76 
Outstanding, weighted average remaining contractual term (years)
3 years 7 months 2 days 
Stock options [Member]
 
Summary of stock option activity
 
Outstanding Beginning Balance, Shares
3,297 
Granted, Shares
456 
Exercised, Shares
(508)
Forfeited or expired, Shares
(97)
Vested or expected to vest, Shares
3,077 
Outstanding, weighted average exercise price, Beginning Balance
$ 44.25 
Granted, weighted average exercise price
$ 53.63 
Exercised, weighted average exercise price
$ 38.68 
Forfeited or expired, weighted average exercise price
$ 48.92 
Vested or expected, weighted average exercise price
$ 46.31 
Vested or expected to vest, weighted average remaining contractual term (years)
3 years 1 month 6 days 
Exercisable, weighted average remaining contractual term (years)
2 years 7 months 6 days 
Outstanding, Aggregate Intrinsic Value, of In-The-Money Options
$ 18,566 
Vested or expected to vest, Aggregate Intrinsic Value of In-The-Money Options
18,313 
Exercisable, Aggregate Intrinsic Value of In-The-Money Options
$ 14,106 
Share-Based Compensation Plans (Details 2) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Information about options in various price ranges
 
Outstanding Shares
3,148 
Weighted Average Remaining Contractual Term
3 years 7 months 2 days 
Weighted Average Exercise Price
$ 46.36 
Options Exercisable, shares
2,032 
Options Exercisable, weighted average exercise price
$ 45.76 
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
1,131 
Weighted Average Remaining Contractual Term
3 years 4 months 24 days 
Weighted Average Exercise Price
$ 33.82 
Options Exercisable, shares
881 
Options Exercisable, weighted average exercise price
$ 34.05 
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
617 
Weighted Average Remaining Contractual Term
5 years 1 month 6 days 
Weighted Average Exercise Price
$ 49.38 
Options Exercisable, shares
204 
Options Exercisable, weighted average exercise price
$ 49.38 
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
897 
Weighted Average Remaining Contractual Term
3 years 7 months 6 days 
Weighted Average Exercise Price
$ 53.04 
Options Exercisable, shares
452 
Options Exercisable, weighted average exercise price
$ 52.48 
55.00 and over [Member]
 
Information about options in various price ranges
 
55.00 and over
55 and over 
Outstanding Shares
503 
Weighted Average Remaining Contractual Term
2 years 2 months 12 days 
Weighted Average Exercise Price
$ 58.96 
Options Exercisable, shares
495 
Options Exercisable, weighted average exercise price
$ 58.96 
Share-Based Compensation Plans (Details 3) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Time Vested [Member]
 
Summary of Nonvested stock awards
 
Nonvested stock awards outstanding, Beginning balance
373 
Nonvested stock awards granted
129 
Nonvested stock awards vested
(47)
Nonvested stock awards forfeited
(15)
Nonvested stock awards outstanding, Ending balance
440 
Weighted-Average Grant Date, Fair Value, Beginning balance
$ 46.72 
Weighted-Average Grant Date, Fair Value, granted
$ 52.38 
Weighted-Average Grant Date, Fair Value, vested
$ 39.10 
Weighted-Average Grant Date, Fair Value, forfeited
$ 49.76 
Weighted-Average Grant Date, Fair Value, Ending balance
$ 49.16 
Market Based Vested [Member]
 
Summary of Nonvested stock awards
 
Nonvested stock awards outstanding, Beginning balance
476 
Nonvested stock awards granted
93 
Nonvested stock awards vested
0 
Nonvested stock awards forfeited
(182)
Nonvested stock awards outstanding, Ending balance
387 
Weighted-Average Grant Date, Fair Value, Beginning balance
$ 18.69 
Weighted-Average Grant Date, Fair Value, granted
$ 43.39 
Weighted-Average Grant Date, Fair Value, vested
$ 0.00 
Weighted-Average Grant Date, Fair Value, forfeited
$ 32.20 
Weighted-Average Grant Date, Fair Value, Ending balance
$ 25.35 
Share-Based Compensation Plans (Details 4) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Summary of employee stock purchase plan
 
Outstanding Ending Balance, Shares
3,148 
Exercisable, Shares
2,032 
Outstanding weighted average exercise price, Ending Balance
$ 46.36 
Exercisable, weighted average exercise price
$ 45.76 
Outstanding, weighted average remaining contractual term
3 years 7 months 2 days 
Employee Stock Purchase Plan [Member]
 
Summary of employee stock purchase plan
 
Outstanding Beginning Balance, Shares
0 
Granted, Shares
268 
Exercised, Shares
(268)
Forfeited or expired, Shares
0 
Outstanding Ending Balance, Shares
0 
Exercisable, Shares
0 
Outstanding, weighted average exercise price, Beginning Balance
$ 0.00 
Granted, weighted average exercise price
$ 33.72 
Exercised, weighted average exercise price
$ 33.72 
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, 2012
Dec. 31, 2011
Dec. 31, 2010
Stock Option [Member]
 
 
 
Weighted-average assumptions used for options granted
 
 
 
Expected dividends
2.20% 
2.20% 
3.00% 
Expected volatility
40.70% 
38.70% 
43.90% 
Risk-free interest rate
0.60% 
1.70% 
1.70% 
Expected term in years
3 years 8 months 12 days 
3 years 7 months 6 days 
3 years 4 months 24 days 
Grant-date fair value
$ 14.07 
$ 12.88 
$ 8.93 
Employee Stock Purchase Plan [Member]
 
 
 
Weighted-average assumptions used for options granted
 
 
 
Expected dividends
2.70% 
2.40% 
2.50% 
Expected volatility
32.70% 
32.80% 
35.60% 
Risk-free interest rate
0.10% 
0.10% 
0.20% 
Expected term in years
3 months 
3 months 
3 months 
Grant-date fair value
$ 9.53 
$ 10.21 
$ 8.95 
Share-Based Compensation Plans (Details Textual) (USD $)
Share data in Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Plan
Dec. 31, 2011
Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
one-third 
 
 
Share-Based Compensation Plans (Textual) [Abstract]
 
 
 
Total unrecognized pre-tax compensation expense
$ 30,000,000 
 
 
Unrecognized Compensation Costs weighted-average period
1 year 8 months 1 day 
 
 
Total fair value of equity awards
12,000,000 
23,000,000 
11,000,000 
Number of share based compensation plans
3 
 
 
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
6,000,000 
9,000,000 
4,000,000 
Total cash received exercised stock option
28,386,000 
33,359,000 
17,028,000 
Tax benefits realized from share based employee compensation arrangements
703,000 
1,040,000 
1,031,000 
Market-based restricted stock rights [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, Vesting period
3 years 
 
 
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
$ 4,000,000 
$ 3,000,000 
 
Stock Option And Nonvested Stock Plan Member
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share authorized
3.5 
 
 
Unused shares
3.45 
 
 
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
4.5 
 
 
Unused shares
0.70 
 
 
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 
 
 
Employee Benefits Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Pension Expense [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 49,413 
$ 34,347 
$ 41,659 
Company Administered Plan [Member] |
Pension Expense [Member]
 
 
 
Pension expense from continuing operations
 
 
 
Service cost
15,479 
14,719 
15,239 
Interest Cost
94,605 
97,526 
96,125 
Expected Return on Plan Assets
(96,342)
(101,803)
(93,135)
Settlement/curtailment loss
0 
0 
1,487 
Amortization of:
 
 
 
Transition obligation
0 
31 
25 
Net actuarial loss
31,200 
20,226 
19,025 
Prior service credit
(2,275)
(2,278)
(2,256)
Net pension expense
42,667 
28,359 
36,460 
Company Administered Plan [Member] |
Pension Expense U.S. [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
38,992 
28,974 
33,733 
Company Administered Plan [Member] |
Pension Expense Foreign [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
3,675 
(615)
2,727 
Union Administered Plan [Member] |
Pension Expense [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 6,746 
$ 5,988 
$ 5,199 
Employee Benefits Plans (Details 1)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
U.S. Plans [Member]
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
4.90% 
5.70% 
6.20% 
Rate of increase in compensation levels
4.00% 
4.00% 
4.00% 
Expected long-term rate of return on plan assets
7.05% 
7.45% 
7.65% 
Transition amortization in years
0 years 
0 years 
0 years 
Gain and loss amortization in years
24 years 
25 years 
26 years 
Foreign Plans [Member]
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
4.76% 
5.55% 
5.93% 
Rate of increase in compensation levels
3.54% 
3.55% 
3.54% 
Expected long-term rate of return on plan assets
6.00% 
6.84% 
7.04% 
Transition amortization in years
1 year 
1 year 
2 years 
Gain and loss amortization in years
27 years 
27 years 
28 years 
Employee Benefits Plans (Details 2) (Pension Plans [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Pension Plans [Member]
 
 
Change in benefit obligations:
 
 
Benefit obligations at January 1
$ 1,967,586 
$ 1,744,233 
Interest Cost
94,605 
97,526 
Actuarial loss
189,936 
187,390 
Benefits paid
(76,742)
(71,910)
Foreign currency exchange rate changes
16,557 
(4,372)
Benefit obligations at December 31
2,207,421 
1,967,586 
Change in plan assets:
 
 
Fair value of plan assets at January 1
1,418,042 
1,428,784 
Actual return on plan assets
174,650 
(1,431)
Employer contribution
81,116 
65,224 
Participants' contributions
52 
61 
Benefits paid
(76,742)
(71,910)
Foreign currency exchange rate changes
15,809 
(2,686)
Fair value of plan assets at December 31
1,612,927 
1,418,042 
Funded status
$ (594,494)
$ (549,544)
Employee Benefits Plans (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Amounts recognized in the Consolidated Balance Sheets
 
 
Noncurrent asset
$ 6,090 
$ 257 
Pension Plans [Member]
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
Noncurrent asset
6,090 
257 
Current liability
(3,309)
(3,120)
Noncurrent liability
(597,275)
(546,681)
Net amount recognized
(594,494)
(549,544)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
Transition obligation
(20)
(20)
Prior service credit
(3,077)
(5,352)
Net actuarial loss
1,007,315 
927,004 
Net amount recognized
$ 1,004,218 
$ 921,632 
Employee Benefits Plans (Details 4)
Dec. 31, 2012
Dec. 31, 2011
U.S. Plans [Member]
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
4.10% 
4.90% 
Rate of increase in compensation levels
4.00% 
4.00% 
Foreign Plans [Member]
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
4.43% 
4.76% 
Rate of increase in compensation levels
3.55% 
3.54% 
Employee Benefits Plans (Details 5) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
$ 2,165,855 
$ 1,929,979 
Plans with ABO in excess of plan assets:
 
 
PBO
1,869,643 
1,966,671 
ABO
1,828,078 
1,929,065 
Fair value of plan assets
1,269,059 
1,416,870 
Plans with PBO in excess of plan assets:
 
 
PBO
1,869,643 
1,966,671 
ABO
1,828,258 
1,929,065 
Fair value of plan assets
1,269,059 
1,416,870 
U.S. Plans [Member]
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
1,747,610 
1,551,211 
Plans with ABO in excess of plan assets:
 
 
PBO
1,786,025 
1,586,341 
ABO
1,747,610 
1,551,211 
Fair value of plan assets
1,202,565 
1,063,386 
Plans with PBO in excess of plan assets:
 
 
PBO
1,786,025 
1,586,341 
ABO
1,747,610 
1,551,211 
Fair value of plan assets
1,202,565 
1,063,386 
Foreign Plans [Member]
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Accumulated benefit obligations
418,245 
378,768 
Plans with ABO in excess of plan assets:
 
 
PBO
83,618 
380,330 
ABO
80,468 
377,854 
Fair value of plan assets
66,494 
353,484 
Plans with PBO in excess of plan assets:
 
 
PBO
83,618 
380,330 
ABO
80,648 
377,854 
Fair value of plan assets
$ 66,494 
$ 353,484 
Employee Benefits Plans (Details 6) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
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
$ 71,207 
$ 68,543 
$ 17,745 
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
1,612,927 
1,418,042 
1,428,784 
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
76,660 
63,069 
 
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
1,465,060 
1,286,430 
 
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
71,207 
68,543 
 
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
71,207 
68,543 
 
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
0 
0 
 
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
0 
0 
 
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
71,207 
68,543 
 
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
76,660 
63,069 
 
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
76,660 
63,069 
 
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
0 
0 
 
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
0 
0 
 
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
471,504 
500,298 
 
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
0 
0 
 
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
471,504 
500,298 
 
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
0 
0 
 
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
497,315 
337,185 
 
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
0 
0 
 
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
497,315 
337,185 
 
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
0 
0 
 
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
61,571 
53,424 
 
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
0 
0 
 
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
61,571 
53,424 
 
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
0 
0 
 
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
434,670 
394,714 
 
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
0 
0 
 
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
434,670 
394,714 
 
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
0 
0 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Other Securities [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
 
809 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Other Securities [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
 
0 
 
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
 
809 
 
Pension Benefits [Member] |
Fixed income securities [Member] |
Other Securities [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
 
$ 0 
 
Employee Benefits Plans (Details 7) (Level 3 [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Level 3 [Member]
 
 
Summary of changes in fair value of the pension plans' level 3 assets
 
 
Fair value of plan assets at January 1
$ 68,543 
$ 17,745 
Return on plan assets:
 
 
Relating to assets still held at the reporting date
(551)
(2,277)
Relating to assets sold during the period
5,990 
3,051 
Purchases, sales, settlements and expenses
(2,775)
50,024 
Fair value of plan assets at December 31
$ 71,207 
$ 68,543 
Employee Benefits Plans (Details 8) (Pension Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Pension Benefits [Member]
 
Pension benefits expected to be paid
 
2013
$ 89,652 
2014
93,336 
2015
98,442 
2016
103,940 
2017
108,462 
2018-2022
$ 619,205 
Employee Benefits Plans (Details 9) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Contributions
$ 6,746 
$ 5,988 
$ 5,199 
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
1,943 
1,855 
1,494 
Surcharge Imposed
No 
 
 
Expiration Date of Collective Bargaining Agreement
6/30/14 to 3/31/16 
 
 
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
2,038 
1,794 
1,573 
Surcharge Imposed
No 
 
 
Expiration Date of Collective Bargaining Agreement
4/30/13 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
FIP Adopted 
 
 
Contributions
1,527 
1,203 
1,076 
Surcharge Imposed
Yes 
 
 
Expiration Date of Collective Bargaining Agreement
5/31/13 to 10/31/14 
 
 
International Association of Machinists Motor City [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Pension Plan Number
38-6237143 
 
 
Pension Protection Act Zone Status
Red (2) 
Red (2) 
 
FIP/RP Status Pending/ Implemented
RP adopted 
 
 
Contributions
437 
392 
372 
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 
182 
158 
Surcharge Imposed
No 
 
 
Expiration Date of Collective Bargaining Agreement
6/1/12 to 5/31/17 
 
 
Other Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Contributions
$ 575 
$ 562 
$ 526 
Employee Benefits Plans (Details 10) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Other Postretirement Benefits [Member]
 
 
 
Other Postretirement benefit expense
 
 
 
Service cost
$ 1,095 
$ 1,294 
$ 1,374 
Interest Cost
1,980 
2,503 
2,722 
Amortization of:
 
 
 
Net actuarial loss
(20)
231 
352 
Prior service credit
(231)
(231)
(231)
Net pension expense
2,824 
3,797 
4,217 
Other Postretirement benefit expense U.S. [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
2,142 
3,155 
3,134 
Other Postretirement benefit expense Foreign [Member]
 
 
 
Amortization of:
 
 
 
Net pension expense
$ 682 
$ 642 
$ 1,083 
Employee Benefits Plans (Details 11)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Other Postretirement benefit expense U.S. [Member]
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.90% 
5.70% 
6.20% 
Other Postretirement benefit expense Foreign [Member]
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.50% 
5.25% 
6.00% 
Employee Benefits Plans (Details 12) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Other Postretirement Benefits [Member]
 
 
 
Benefit Obligations associated with postretirement benefit plans
 
 
 
Benefit obligations at January 1
$ 42,992 
$ 47,169 
 
Service cost
1,095 
1,294 
1,374 
Interest Cost
1,980 
2,503 
2,722 
Actuarial gain
(1,746)
(5,754)
 
Benefits paid
(3,947)
(2,023)
 
Foreign currency exchange rate changes
225 
(197)
 
Benefit obligations at December 31
$ 40,599 
$ 42,992 
$ 47,169 
Employee Benefits Plans (Details 13) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Other Postretirement Benefits [Member]
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
Current liability
$ (2,683)
$ (2,838)
Noncurrent liability
(37,916)
(40,154)
Net amount recognized
(40,599)
(42,992)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
Prior service credit
(1,307)
(1,538)
Net actuarial loss
(859)
867 
Net amount recognized
$ (2,166)
$ (671)
Employee Benefits Plans (Details 14)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Other Postretirement Benefits U.S [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
4.90% 
5.70% 
6.20% 
Rate of increase in compensation levels
4.00% 
4.00% 
 
Healthcare cost trend rate assumed for next year
7.50% 
8.00% 
 
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
2023 
2018 
 
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
4.10% 
4.90% 
 
Other Postretirement Benefits Foreign [Member]
 
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
 
Discount rate
4.50% 
5.25% 
6.00% 
Rate of increase in compensation levels
3.50% 
3.50% 
 
Healthcare cost trend rate assumed for next year
7.00% 
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
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
4.00% 
4.50% 
 
Employee Benefits Plans (Details 15) (Other Postretirement Benefits [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Other Postretirement Benefits [Member]
 
Pension benefits expected to be paid
 
2013
$ 2,728 
2014
2,852 
2015
3,016 
2016
3,120 
2017
3,165 
2018-2022
$ 15,943 
Employee Benefits Plans (Details Textual) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2013
Dec. 31, 2011
Dec. 31, 2012
Pension Benefits [Member]
Dec. 31, 2011
Pension Benefits [Member]
Dec. 31, 2010
Pension Benefits [Member]
Dec. 31, 2012
Rabbi Trusts [Member]
Dec. 31, 2011
Rabbi Trusts [Member]
Dec. 31, 2012
Other Postretirement Benefits [Member]
Age
Dec. 31, 2010
2010 Canadian pension plan settlement [Member]
Dec. 31, 2012
Non-qualified supplemental pension plan [Member]
Dec. 31, 2011
Non-qualified supplemental pension plan [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
MEP Contribution Percent
 
17.00% 
 
 
 
 
 
 
 
 
 
 
 
Accrued pension liability
$ 600,584,000 
 
 
$ 549,801,000 
 
 
 
 
 
 
 
$ 46,000,000 
$ 42,000,000 
Pre-tax settlement loss
 
 
 
 
 
 
 
 
 
 
2,000,000 
 
 
Prior service credit to be recognized
 
 
 
 
2,000,000 
 
 
 
 
 
 
 
 
Net actuarial loss to be recognized
 
 
 
 
35,603,000 
 
 
 
 
 
 
 
 
U.S. pension plan assets percentage of total pension plan assets
75.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Required pension contributions to our pension plans
 
 
66,000,000 
 
 
 
 
 
 
 
 
 
 
Expense related to defined contribution savings plans
 
 
 
 
33,000,000 
33,000,000 
27,000,000 
 
 
 
 
 
 
Liability related to the cash awards
26,548,000 
 
 
22,690,000 
27,000,000 
23,000,000 
 
 
 
 
 
 
 
Assets held in trust
 
 
 
 
 
 
 
26,000,000 
23,000,000 
 
 
 
 
Value of common stock issued in trust
 
 
 
 
 
 
 
$ 4,000,000 
$ 4,000,000 
 
 
 
 
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, 2012
DisposalSite
Dec. 31, 2011
Dec. 31, 2010
Environmental Matters (Textual) [Abstract]
 
 
 
Number of disposal sites
19 
 
 
Environmental expenses
$ 7,000,000 
$ 7,000,000 
$ 7,000,000 
Environmental liabilities
12,616,000 
13,539,000 
 
Capital expenditures related to environmental programs
$ 2,000,000 
$ 3,000,000 
$ 2,000,000 
Other Items Impacting Comparability (Details) (USD $)
12 Months Ended
Oct. 28, 2012
Superstorm Sandy [Member]
Dec. 31, 2010
Singapore facility [Member]
Dec. 31, 2012
Euroway Ltd. [Member]
Dec. 31, 2011
Hill Hire [Member]
Dec. 31, 2010
Total Logistic Control [Member]
Other Items Impacting Comparability (Textual) [Abstract]
 
 
 
 
 
Storm damage liability incurred before tax
$ 8,000,000 
 
 
 
 
Transaction costs excluded from segment results
 
 
400,000 
2,000,000 
4,000,000 
Gain on Sale of facility
 
$ 1,000,000 
 
 
 
Other Matters (Details) (Superstorm Sandy [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Oct. 28, 2012
Superstorm Sandy [Member]
 
 
Other Matters [Line Items]
 
 
Storm damage liability incurred before tax
 
$ 8 
Storm damage liability incurred after-tax
 
5 
Carrying value of storm damaged property expected to be recovered
$ 15.7 
 
Supplemental Cash Flow Information (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Supplemental cash flow information
 
 
 
Interest Paid
$ 126,764,000 
$ 126,916,000 
$ 120,184,000 
Income taxes paid (refunded)
11,613,000 
21,541,000 
4,906,000 
Changes in accounts payable related to purchases of revenue earning equipment
27,528,000 
61,290,000 
17,559,000 
Operating and revenue earning equipment acquired under capital leases
20,670,000 
39,279,000 
137,000 
Fair value of debt assumed on acquisition
379,000 
0 
0 
Capital leases assumed
$ 19,900,000 
 
 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 1,541,094 
$ 1,570,720 
$ 1,513,344 
$ 1,425,376 
$ 6,256,967 
$ 6,050,534 
$ 5,136,435 
Unallocated Central Support Services
 
 
 
 
 
 
 
 
(42,348)
(42,549)
(41,310)
Non-operating pension costs
 
 
 
 
 
 
 
 
(31,423)
(18,652)
(26,551)
Restructuring and other charges, net and other items
 
 
 
 
 
 
 
 
(16,668)
(5,789)
(3,151)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
303,117 
279,387 
186,305 
Fleet Management Solutions [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
3,976,381 
3,844,496 
3,401,601 
Inter-segment revenue
 
 
 
 
 
 
 
 
428,944 
373,834 
310,552 
Revenue
 
 
 
 
 
 
 
 
4,405,325 
4,218,330 
3,712,153 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
307,628 
265,691 
194,909 
Fleet Management Solutions [Member] |
Full service lease [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
1,956,812 
1,862,304 
1,804,420 
Fleet Management Solutions [Member] |
Commercial rental [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
738,564 
691,573 
505,396 
Fleet Management Solutions [Member] |
Full service lease and commercial rental [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
2,695,376 
2,553,877 
2,309,816 
Fleet Management Solutions [Member] |
Contract maintenance [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
169,769 
169,678 
168,293 
Fleet Management Solutions [Member] |
Contract-related maintenance [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
184,703 
164,334 
139,173 
Fleet Management Solutions [Member] |
Other Services [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
71,955 
69,124 
67,448 
Fleet Management Solutions [Member] |
Fuel services revenue [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
 
 
 
 
 
 
 
 
854,578 
887,483 
716,871 
Supply Chain Solutions [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,280,586 
2,206,038 
1,734,834 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
115,193 
104,898 
81,683 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
(428,944)
(373,834)
(310,552)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
(29,265)
(24,212)
(19,275)
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Segment NBT
 
 
 
 
 
 
 
 
$ 393,556 
$ 346,377 
$ 257,317 
Segment Reporting (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
$ 18,864 
$ 17,423 
$ 16,543 
Depreciation expense
939,677 
872,262 
833,841 
Gains on vehicle sales, net
(89,108)
(62,879)
(28,727)
Other non-cash charges (credits), net
49,209 
39,928 
40,900 
Interest expense (income)
140,557 
133,164 
129,994 
Capital expenditures paid
2,133,235 
1,698,589 
1,070,092 
Total assets
8,318,979 
7,617,835 
6,652,374 
Fleet Management Solutions [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
5,359 
5,388 
5,011 
Depreciation expense
910,352 
842,094 
812,588 
Gains on vehicle sales, net
(89,075)
(62,496)
(28,765)
Other non-cash charges (credits), net
15,567 
16,271 
19,351 
Interest expense (income)
140,747 
133,245 
130,742 
Capital expenditures paid
2,090,443 
1,653,425 
1,043,280 
Total assets
7,556,509 
6,815,404 
5,944,971 
Supply Chain Solutions [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
4,433 
4,312 
3,430 
Depreciation expense
28,275 
29,118 
20,285 
Gains on vehicle sales, net
(33)
(383)
38 
Other non-cash charges (credits), net
2,768 
3,214 
1,021 
Interest expense (income)
11 
(74)
(759)
Capital expenditures paid
19,278 
30,209 
16,345 
Total assets
807,935 
827,169 
791,791 
Central Support Service [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
9,072 
7,723 
8,102 
Depreciation expense
1,050 
1,050 
968 
Gains on vehicle sales, net
0 
0 
0 
Other non-cash charges (credits), net
30,874 
20,443 
20,528 
Interest expense (income)
(201)
(7)
11 
Capital expenditures paid
23,514 
14,955 
10,467 
Total assets
144,355 
198,476 
106,906 
Eliminations [Member]
 
 
 
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
 
 
 
Share-based compensation
0 
0 
0 
Depreciation expense
0 
0 
0 
Gains on vehicle sales, net
0 
0 
0 
Other non-cash charges (credits), net
0 
0 
0 
Interest expense (income)
0 
0 
0 
Capital expenditures paid
0 
0 
0 
Total assets
$ (189,820)
$ (223,214)
$ (191,294)
Segment Reporting (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,583,536 
$ 1,573,295 
$ 1,563,860 
$ 1,536,276 
$ 1,541,094 
$ 1,570,720 
$ 1,513,344 
$ 1,425,376 
$ 6,256,967 
$ 6,050,534 
$ 5,136,435 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
6,379,461 
 
 
 
5,673,851 
 
 
 
6,379,461 
5,673,851 
4,808,061 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
5,231,899 
5,075,432 
4,313,483 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
5,261,622 
 
 
 
4,708,086 
 
 
 
5,261,622 
4,708,086 
4,098,735 
Foreign [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,025,068 
975,102 
822,952 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
1,117,839 
 
 
 
965,765 
 
 
 
1,117,839 
965,765 
709,326 
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
477,495 
481,593 
466,405 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
557,351 
 
 
 
481,139 
 
 
 
557,351 
481,139 
468,062 
Europe [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
384,105 
324,214 
219,508 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
534,728 
 
 
 
463,848 
 
 
 
534,728 
463,848 
219,178 
Mexico [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
143,282 
147,464 
122,312 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
24,973 
 
 
 
19,931 
 
 
 
24,973 
19,931 
21,194 
Asia [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
20,186 
21,831 
14,727 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
Total
$ 787 
 
 
 
$ 847 
 
 
 
$ 787 
$ 847 
$ 892 
Segment Reporting (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Segments
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting (Textual) [Abstract]
 
 
 
Number of reportable business segments
2 
 
 
Depreciation expense
$ 939,677 
$ 872,262 
$ 833,841 
Acquisitions
5,113 
361,921 
211,897 
Supply Chain Solutions [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Depreciation expense
28,275 
29,118 
20,285 
Central support service assets depreciation expense allocated to other business segments [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Depreciation expense
$ 12,000 
$ 9,000 
$ 9,000 
Automotive industry [Member] |
Supply Chain Solutions [Member]
 
 
 
Segment Reporting (Textual) [Abstract]
 
 
 
Percentage of total revenue
30.00% 
27.00% 
31.00% 
Quarterly Information (Unaudited) (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
QUARTERLY INFORMATION
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,583,536,000 
$ 1,573,295,000 
$ 1,563,860,000 
$ 1,536,276,000 
$ 1,541,094,000 
$ 1,570,720,000 
$ 1,513,344,000 
$ 1,425,376,000 
$ 6,256,967,000 
$ 6,050,534,000 
$ 5,136,435,000 
Earnings from Continuing operations
54,945,000 
64,311,000 
46,767,000 
34,876,000 
47,664,000 
56,933,000 
40,914,000 
25,857,000 
200,899,000 
171,368,000 
124,608,000 
Net earnings
53,844,000 
75,091,000 
46,723,000 
34,321,000 
48,095,000 
56,524,000 
40,033,000 
25,125,000 
209,979,000 
169,777,000 
118,170,000 
Earnings from Continuing operations per Common Share
 
 
 
 
 
 
 
 
 
 
 
Continuing operations (USD per share)
$ 1.07 
$ 1.26 
$ 0.92 
$ 0.68 
$ 0.93 
$ 1.11 
$ 0.80 
$ 0.50 
$ 3.93 
$ 3.34 
$ 2.38 
Continuing operations (USD per share)
$ 1.07 
$ 1.26 
$ 0.91 
$ 0.68 
$ 0.92 
$ 1.10 
$ 0.79 
$ 0.50 
$ 3.91 
$ 3.31 
$ 2.37 
Net earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 1.05 
$ 1.47 
$ 0.92 
$ 0.67 
$ 0.94 
$ 1.10 
$ 0.78 
$ 0.49 
$ 4.11 
$ 3.31 
$ 2.25 
Diluted (USD per share)
$ 1.05 
$ 1.47 
$ 0.91 
$ 0.67 
$ 0.93 
$ 1.10 
$ 0.77 
$ 0.48 
$ 4.09 
$ 3.28 
$ 2.25 
Quarterly Information (Unaudited) (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit per diluted common share
 
 
 
 
 
 
 
 
$ 0.10 
$ 0.01 
 
Income tax benefit
 
 
 
 
 
 
 
 
 
1,000,000 
 
Tax benefit from favorable resolution of a tax item
 
 
 
 
 
 
 
 
5,000,000 
 
 
State Of Michigan [Member]
 
 
 
 
 
 
 
 
 
 
 
Quarterly Information (Unaudited) (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit per diluted common share
 
 
 
 
 
 
 
 
 
$ 0.10 
 
Changes In Tax Law Impact On Net Earnings
 
 
 
 
 
 
 
 
 
(5,350,000)
 
United Kingdom [Member]
 
 
 
 
 
 
 
 
 
 
 
Quarterly Information (Unaudited) (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit per diluted common share
 
 
 
 
 
 
 
 
$ 0.02 
 
 
Changes In Tax Law Impact On Net Earnings
 
 
 
 
 
 
 
 
$ (856,000)
 
$ 400,000 
Valuation and Qualifying Accounts (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Valuation and Qualifying Accounts (Textual) [Abstract]
 
 
 
Benefit (charge) within operating expense
$ 1,000,000 
$ 4,000,000 
$ (3,000,000)
Accounts receivable allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
14,489,000 
13,867,000 
13,808,000 
Charged to Earnings
10,478,000 
7,466,000 
4,757,000 
Transferred from to Other Accounts
0 
0 
0 
Deductions
(9,538,000)
(6,844,000)
(4,698,000)
Ending Balance
15,429,000 
14,489,000 
13,867,000 
Direct finance lease allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
903,000 
784,000 
813,000 
Charged to Earnings
812,000 
867,000 
399,000 
Transferred from to Other Accounts
0 
0 
0 
Deductions
(1,012,000)
(748,000)
(428,000)
Ending Balance
703,000 
903,000 
784,000 
Self-insurance accruals [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
253,424,000 
243,248,000 
242,905,000 
Charged to Earnings
272,357,000 
217,980,000 
201,236,000 
Transferred from to Other Accounts
57,285,000 
54,833,000 
45,470,000 
Deductions
(303,909,000)
(262,637,000)
(246,363,000)
Ending Balance
279,157,000 
253,424,000 
243,248,000 
Reserve For Residual Value Guarantees [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
4,218,000 
4,497,000 
4,049,000 
Charged to Earnings
179,000 
347,000 
1,643,000 
Transferred from to Other Accounts
0 
0 
0 
Deductions
(2,762,000)
(626,000)
(1,195,000)
Ending Balance
1,635,000 
4,218,000 
4,497,000 
Valuation allowance on deferred tax assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Beginning Balance
41,324,000 
39,216,000 
36,573,000 
Charged to Earnings
1,061,000 
672,000 
978,000 
Transferred from to Other Accounts
0 
0 
0 
Deductions
(4,203,000)
1,436,000 
1,665,000 
Ending Balance
$ 38,182,000 
$ 41,324,000 
$ 39,216,000