| Debt
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pre-tax loss from discontinued operations | $ | (256 | ) | (2,809 | ) | $ | (1,534 | ) | (4,008 | ) | |||
Income tax (expense) benefit | (22 | ) | 1 | 54 | (59 | ) | |||||||
Loss from discontinued operations, net of tax | $ | (278 | ) | (2,808 | ) | $ | (1,480 | ) | (4,067 | ) |
September 30, 2014 | December 31, 2013 | |||||
(In thousands) | ||||||
Total assets, primarily deposits | $ | 3,291 | 3,627 | |||
Total liabilities, primarily contingent accruals | $ | 4,029 | 4,501 |
|
September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value(1) | Cost | Accumulated Depreciation | Net Book Value(1) | ||||||||||||||
(In thousands) | |||||||||||||||||||
Held for use: | |||||||||||||||||||
Full service lease | $ | 7,692,678 | (2,558,920 | ) | 5,133,758 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | |||||||||
Commercial rental | 2,447,933 | (815,266 | ) | 1,632,667 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||
Held for sale | 319,302 | (232,349 | ) | 86,953 | 439,983 | (311,742 | ) | 128,241 | |||||||||||
Total | $ | 10,459,913 | (3,606,535 | ) | 6,853,378 | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 |
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $47.9 million, less accumulated depreciation of $21.3 million, at September 30, 2014, and $54.2 million, less accumulated depreciation of $22.0 million, at December 31, 2013. |
|
September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||
(In thousands) | |||||||||||||||||||
Salaries and wages | $ | 99,146 | — | 99,146 | $ | 106,281 | — | 106,281 | |||||||||||
Deferred compensation | 3,033 | 34,876 | 37,909 | 2,505 | 31,896 | 34,401 | |||||||||||||
Other employee benefits | 6,075 | 6,547 | 12,622 | 3,809 | 6,712 | 10,521 | |||||||||||||
Pension benefits | 3,570 | 240,050 | 243,620 | 3,660 | 292,155 | 295,815 | |||||||||||||
Other postretirement benefits | 2,402 | 27,028 | 29,430 | 2,414 | 28,374 | 30,788 | |||||||||||||
Insurance obligations (1) | 132,283 | 191,985 | 324,268 | 125,835 | 186,700 | 312,535 | |||||||||||||
Accrued rent | 8,474 | 1,967 | 10,441 | 4,373 | 3,372 | 7,745 | |||||||||||||
Environmental liabilities | 3,924 | 8,578 | 12,502 | 4,515 | 8,548 | 13,063 | |||||||||||||
Asset retirement obligations | 5,521 | 19,236 | 24,757 | 6,144 | 19,403 | 25,547 | |||||||||||||
Operating taxes | 93,805 | — | 93,805 | 94,188 | — | 94,188 | |||||||||||||
Income taxes | 3,168 | 25,236 | 28,404 | 2,623 | 23,813 | 26,436 | |||||||||||||
Interest | 27,904 | — | 27,904 | 33,654 | — | 33,654 | |||||||||||||
Deposits, mainly from customers | 57,880 | 5,993 | 63,873 | 55,854 | 6,239 | 62,093 | |||||||||||||
Deferred revenue | 12,908 | — | 12,908 | 15,123 | — | 15,123 | |||||||||||||
Acquisition holdbacks | 3,972 | 2,272 | 6,244 | 2,012 | — | 2,012 | |||||||||||||
Other | 35,427 | 11,275 | 46,702 | 33,347 | 9,093 | 42,440 | |||||||||||||
Total | $ | 499,492 | 575,043 | 1,074,535 | $ | 496,337 | 616,305 | 1,112,642 |
|
Weighted-Average Interest Rate | ||||||||||||
September 30, 2014 | December 31, 2013 | Maturities | September 30, 2014 | December 31, 2013 | ||||||||
(In thousands) | ||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||
Short-term debt | 1.08% | 1.70% | 2015 | $ | 2,743 | 1,315 | ||||||
Current portion of long-term debt, including capital leases | 459,569 | 258,123 | ||||||||||
Total short-term debt and current portion of long-term debt | 462,312 | 259,438 | ||||||||||
Long-term debt: | ||||||||||||
U.S. commercial paper (1) | 0.26% | 0.28% | 2018 | 332,968 | 486,939 | |||||||
Canadian commercial paper (1) | —% | 1.13% | 2018 | — | 11,297 | |||||||
Global revolving credit facility | 1.23% | —% | 2018 | 3,000 | — | |||||||
Unsecured U.S. notes — Medium-term notes (1) | 3.29% | 3.76% | 2016-2025 | 3,771,695 | 3,271,734 | |||||||
Unsecured U.S. obligations, principally bank term loans | 1.44% | 1.45% | 2015-2018 | 50,500 | 55,500 | |||||||
Unsecured foreign obligations | 2.01% | 1.99% | 2015-2016 | 307,709 | 315,558 | |||||||
Capital lease obligations | 3.62% | 3.81% | 2014-2019 | 35,695 | 38,911 | |||||||
Total before fair market value adjustment | 4,501,567 | 4,179,939 | ||||||||||
Fair market value adjustment on notes subject to hedging (2) | 3,247 | 8,171 | ||||||||||
4,504,814 | 4,188,110 | |||||||||||
Current portion of long-term debt, including capital leases | (459,569 | ) | (258,123 | ) | ||||||||
Long-term debt | 4,045,245 | 3,929,987 | ||||||||||
Total debt | $ | 4,507,557 | 4,189,425 |
(1) | We had unamortized original issue discounts of $8.3 million and $8.3 million at September 30, 2014 and December 31, 2013, respectively. |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $600 million and $400 million at September 30, 2014 and December 31, 2013, respectively. |
|
Total Losses (2) | |||||||||||
2014 | Three months ended | Nine months ended | |||||||||
(In thousands) | |||||||||||
Assets held for sale: | |||||||||||
Revenue earning equipment: (1) | |||||||||||
Trucks | $ | 8,437 | $ | 1,527 | $ | 4,981 | |||||
Tractors | 4,666 | 530 | 2,824 | ||||||||
Trailers | 682 | 320 | 762 | ||||||||
Total assets at fair value | $ | 13,785 | $ | 2,377 | $ | 8,567 |
Total Losses (2) | |||||||||||
2013 | Three months ended | Nine months ended | |||||||||
(In thousands) | |||||||||||
Assets held for sale: | |||||||||||
Revenue earning equipment (1) | |||||||||||
Trucks | $ | 10,546 | $ | 2,042 | $ | 7,518 | |||||
Tractors | 15,332 | 1,677 | 4,185 | ||||||||
Trailers | 671 | 275 | 1,242 | ||||||||
Total assets at fair value | $ | 26,549 | $ | 3,994 | $ | 12,945 |
(1) | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. |
(2) | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value. |
|
Maturity date | Face value of medium-term notes | Aggregate notional amount of interest rate swaps | Fixed interest rate | Weighted-average variable interest rate on hedged debt as of September 30, | ||||||||
Issuance date | 2014 | 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.28% | 1.34% | ||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.42% | 1.51% | ||||||
November 2013 | November 2018 | $300,000 | $100,000 | 2.45% | 1.18% | —% | ||||||
February 2014 | June 2019 | $350,000 | $100,000 | 2.55% | 1.10% | —% | ||||||
May 2014 | September 2019 | $400,000 | $100,000 | 2.45% | 0.86% | —% |
Fair Value Hedging Relationship | Location of Gain (Loss) Recognized in Income | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Derivatives: Interest rate swaps | Interest expense | $ | (4,607 | ) | 44 | $ | (4,924 | ) | (6,323 | ) | ||||||
Hedged items: Fixed-rate debt | Interest expense | 4,607 | (44 | ) | 4,924 | 6,323 | ||||||||||
Total | $ | — | — | $ | — | — |
Balance Sheet Location | September 30, 2014 | December 31, 2013 | ||||||
(In thousands) | ||||||||
Prepaid expenses and other current assets | $ | 1,173 | $ | — | ||||
Direct financing leases and other assets | 4,480 | 9,333 | ||||||
Other non-current liabilities | (2,406 | ) | (1,162 | ) |
|
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2013 | $ | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||
Amortization | — | 11,183 | (2,008 | ) | 9,175 | ||||||||
Other current period change | (35,198 | ) | (2,043 | ) | (109 | ) | (37,350 | ) | |||||
September 30, 2014 | $ | 677 | (468,743 | ) | 1,643 | (466,423 | ) |
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2012 | $ | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||
Amortization | — | 17,176 | (1,020 | ) | 16,156 | ||||||||
Other current period change | (18,379 | ) | (3,714 | ) | — | (22,093 | ) | ||||||
September 30, 2013 | $ | 39,481 | (634,651 | ) | 1,614 | (593,556 | ) |
(1) | These amounts are included in the computation of net periodic benefit cost. See Note (N), "Employee Benefit Plans," for further information. |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pension Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 3,297 | 3,994 | $ | 9,892 | 12,002 | |||||||
Interest cost | 25,280 | 22,418 | 75,990 | 67,153 | |||||||||
Expected return on plan assets | (28,900 | ) | (26,498 | ) | (86,916 | ) | (79,335 | ) | |||||
Amortization of: | |||||||||||||
Net actuarial loss | 5,900 | 8,782 | 17,714 | 26,347 | |||||||||
Prior service credit | (445 | ) | (454 | ) | (1,340 | ) | (1,363 | ) | |||||
5,132 | 8,242 | 15,340 | 24,804 | ||||||||||
Union-administered plans | 3,475 | 3,388 | 7,744 | 7,418 | |||||||||
Net periodic benefit cost | $ | 8,607 | 11,630 | $ | 23,084 | 32,222 | |||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 5,389 | 8,424 | $ | 16,190 | 25,317 | |||||||
Non-U.S. | (257 | ) | (182 | ) | (850 | ) | (513 | ) | |||||
5,132 | 8,242 | 15,340 | 24,804 | ||||||||||
Union-administered plans | 3,475 | 3,388 | 7,744 | 7,418 | |||||||||
$ | 8,607 | 11,630 | $ | 23,084 | 32,222 | ||||||||
Postretirement Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 112 | 245 | $ | 336 | 738 | |||||||
Interest cost | 356 | 392 | 1,069 | 1,179 | |||||||||
Amortization of: | |||||||||||||
Net actuarial credit | (181 | ) | (4 | ) | (544 | ) | (11 | ) | |||||
Prior service credit | (616 | ) | (58 | ) | (1,844 | ) | (173 | ) | |||||
Net periodic benefit cost | $ | (329 | ) | 575 | $ | (983 | ) | 1,733 | |||||
Company-administered plans: | |||||||||||||
U.S. | $ | (460 | ) | 402 | $ | (1,379 | ) | 1,210 | |||||
Non-U.S. | 131 | 173 | 396 | 523 | |||||||||
$ | (329 | ) | 575 | $ | (983 | ) | 1,733 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pension settlement charges (1) | $ | 1,262 | 1,258 | $ | 1,262 | 1,258 | |||||||
Superstorm Sandy recoveries | — | (600 | ) | — | (600 | ) | |||||||
Restructuring and other recoveries, net | — | (298 | ) | — | (298 | ) | |||||||
Foreign currency translation benefit | — | — | — | (1,904 | ) | ||||||||
Acquisition transaction costs (2) | 566 | — | 566 | — | |||||||||
Restructuring and other charges, net and other items | $ | 1,828 | 360 | $ | 1,828 | (1,544 | ) |
(1) | See Note (N), "Employee Benefit Plans," for additional information. |
(2) | See Note (C), "Acquisitions," for additional information. |
|
Nine months ended September 30, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Interest paid | $ | 109,332 | 109,699 | |||
Income taxes paid | 9,878 | 8,900 | ||||
Changes in accounts payable related to purchases of revenue earning equipment | 3,902 | 1,670 | ||||
Operating and revenue earning equipment acquired under capital leases | 3,788 | 5,500 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Contract settlement | $ | 64 | — | $ | 2,972 | — | |||||||
Gains on sales of operating property and equipment | 135 | 96 | 2,725 | 636 | |||||||||
Business interruption insurance recoveries | — | 819 | 756 | 2,624 | |||||||||
Foreign currency translation benefit (1) | — | — | — | 1,904 | |||||||||
Rabbi trust investment (expense) income | (177 | ) | 1,247 | 1,400 | 2,878 | ||||||||
Other, net | 974 | 1,285 | 3,353 | 3,550 | |||||||||
Total | $ | 996 | 3,447 | $ | 11,206 | 11,592 |
|
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the three months ended September 30, 2014 | |||||||||||||
Revenue from external customers | $ | 1,069,333 | 617,817 | — | 1,687,150 | ||||||||
Inter-segment revenue | 117,589 | — | (117,589 | ) | — | ||||||||
Total revenue | $ | 1,186,922 | 617,817 | (117,589 | ) | 1,687,150 | |||||||
Segment EBT | $ | 120,980 | 36,152 | (9,564 | ) | 147,568 | |||||||
Unallocated CSS | (13,564 | ) | |||||||||||
Non-operating pension costs | (2,455 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (1,828 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 129,721 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 470,552 | 7,484 | — | 478,036 | ||||||||
Unallocated CSS | 7,915 | ||||||||||||
Capital expenditures paid | $ | 485,951 | |||||||||||
For the three months ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 1,023,790 | 610,750 | — | 1,634,540 | ||||||||
Inter-segment revenue | 114,427 | — | (114,427 | ) | — | ||||||||
Total revenue | $ | 1,138,217 | 610,750 | (114,427 | ) | 1,634,540 | |||||||
Segment EBT | $ | 96,428 | 39,607 | (9,134 | ) | 126,901 | |||||||
Unallocated CSS | (10,053 | ) | |||||||||||
Non-operating pension costs | (5,090 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (360 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 111,398 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 538,453 | 3,896 | — | 542,349 | ||||||||
Unallocated CSS | 5,361 | ||||||||||||
Capital expenditures paid | $ | 547,710 |
(1) | See Note (O), "Other Items Impacting Comparability," for additional information. |
(2) | Excludes revenue earning equipment acquired under capital leases. |
(3) | Excludes acquisition payments of $8.1 million and $0.5 million during the three months ended September 30, 2014 and 2013, respectively. |
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||
Revenue from external customers | $ | 3,139,721 | 1,842,737 | — | 4,982,458 | ||||||||
Inter-segment revenue | 363,510 | — | (363,510 | ) | — | ||||||||
Total revenue | $ | 3,503,231 | 1,842,737 | (363,510 | ) | 4,982,458 | |||||||
Segment EBT | $ | 311,480 | 88,664 | (29,715 | ) | 370,429 | |||||||
Unallocated CSS | (36,518 | ) | |||||||||||
Non-operating pension costs | (7,313 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (1,828 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 324,770 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 1,661,929 | 15,605 | — | 1,677,534 | ||||||||
Unallocated CSS | 63,639 | ||||||||||||
Capital expenditures paid | $ | 1,741,173 | |||||||||||
For the nine months ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 3,017,150 | 1,784,406 | — | 4,801,556 | ||||||||
Inter-segment revenue | 342,057 | — | (342,057 | ) | — | ||||||||
Total revenue | $ | 3,359,207 | 1,784,406 | (342,057 | ) | 4,801,556 | |||||||
Segment EBT | $ | 245,840 | 97,011 | (25,782 | ) | 317,069 | |||||||
Unallocated CSS | (32,012 | ) | |||||||||||
Non-operating pension costs | (15,333 | ) | |||||||||||
Restructuring and other recoveries, net and other items (1) | 1,544 | ||||||||||||
Earnings from continuing operations before income taxes | $ | 271,268 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 1,462,095 | 14,713 | — | 1,476,808 | ||||||||
Unallocated CSS | 19,016 | ||||||||||||
Capital expenditures paid | $ | 1,495,824 |
(1) | See Note (O), "Other Items Impacting Comparability," for additional information. |
(2) | Excludes revenue earning equipment acquired under capital leases. |
(3) | Excludes acquisition payments of $9.8 million and $1.9 million during the nine months ended September 30, 2014, and 2013, respectively. |
|
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pre-tax loss from discontinued operations | $ | (256 | ) | (2,809 | ) | $ | (1,534 | ) | (4,008 | ) | |||
Income tax (expense) benefit | (22 | ) | 1 | 54 | (59 | ) | |||||||
Loss from discontinued operations, net of tax | $ | (278 | ) | (2,808 | ) | $ | (1,480 | ) | (4,067 | ) |
September 30, 2014 | December 31, 2013 | |||||
(In thousands) | ||||||
Total assets, primarily deposits | $ | 3,291 | 3,627 | |||
Total liabilities, primarily contingent accruals | $ | 4,029 | 4,501 |
|
September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value(1) | Cost | Accumulated Depreciation | Net Book Value(1) | ||||||||||||||
(In thousands) | |||||||||||||||||||
Held for use: | |||||||||||||||||||
Full service lease | $ | 7,692,678 | (2,558,920 | ) | 5,133,758 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | |||||||||
Commercial rental | 2,447,933 | (815,266 | ) | 1,632,667 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||
Held for sale | 319,302 | (232,349 | ) | 86,953 | 439,983 | (311,742 | ) | 128,241 | |||||||||||
Total | $ | 10,459,913 | (3,606,535 | ) | 6,853,378 | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 |
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $47.9 million, less accumulated depreciation of $21.3 million, at September 30, 2014, and $54.2 million, less accumulated depreciation of $22.0 million, at December 31, 2013. |
|
September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||
(In thousands) | |||||||||||||||||||
Salaries and wages | $ | 99,146 | — | 99,146 | $ | 106,281 | — | 106,281 | |||||||||||
Deferred compensation | 3,033 | 34,876 | 37,909 | 2,505 | 31,896 | 34,401 | |||||||||||||
Other employee benefits | 6,075 | 6,547 | 12,622 | 3,809 | 6,712 | 10,521 | |||||||||||||
Pension benefits | 3,570 | 240,050 | 243,620 | 3,660 | 292,155 | 295,815 | |||||||||||||
Other postretirement benefits | 2,402 | 27,028 | 29,430 | 2,414 | 28,374 | 30,788 | |||||||||||||
Insurance obligations (1) | 132,283 | 191,985 | 324,268 | 125,835 | 186,700 | 312,535 | |||||||||||||
Accrued rent | 8,474 | 1,967 | 10,441 | 4,373 | 3,372 | 7,745 | |||||||||||||
Environmental liabilities | 3,924 | 8,578 | 12,502 | 4,515 | 8,548 | 13,063 | |||||||||||||
Asset retirement obligations | 5,521 | 19,236 | 24,757 | 6,144 | 19,403 | 25,547 | |||||||||||||
Operating taxes | 93,805 | — | 93,805 | 94,188 | — | 94,188 | |||||||||||||
Income taxes | 3,168 | 25,236 | 28,404 | 2,623 | 23,813 | 26,436 | |||||||||||||
Interest | 27,904 | — | 27,904 | 33,654 | — | 33,654 | |||||||||||||
Deposits, mainly from customers | 57,880 | 5,993 | 63,873 | 55,854 | 6,239 | 62,093 | |||||||||||||
Deferred revenue | 12,908 | — | 12,908 | 15,123 | — | 15,123 | |||||||||||||
Acquisition holdbacks | 3,972 | 2,272 | 6,244 | 2,012 | — | 2,012 | |||||||||||||
Other | 35,427 | 11,275 | 46,702 | 33,347 | 9,093 | 42,440 | |||||||||||||
Total | $ | 499,492 | 575,043 | 1,074,535 | $ | 496,337 | 616,305 | 1,112,642 |
|
Weighted-Average Interest Rate | ||||||||||||
September 30, 2014 | December 31, 2013 | Maturities | September 30, 2014 | December 31, 2013 | ||||||||
(In thousands) | ||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||
Short-term debt | 1.08% | 1.70% | 2015 | $ | 2,743 | 1,315 | ||||||
Current portion of long-term debt, including capital leases | 459,569 | 258,123 | ||||||||||
Total short-term debt and current portion of long-term debt | 462,312 | 259,438 | ||||||||||
Long-term debt: | ||||||||||||
U.S. commercial paper (1) | 0.26% | 0.28% | 2018 | 332,968 | 486,939 | |||||||
Canadian commercial paper (1) | —% | 1.13% | 2018 | — | 11,297 | |||||||
Global revolving credit facility | 1.23% | —% | 2018 | 3,000 | — | |||||||
Unsecured U.S. notes — Medium-term notes (1) | 3.29% | 3.76% | 2016-2025 | 3,771,695 | 3,271,734 | |||||||
Unsecured U.S. obligations, principally bank term loans | 1.44% | 1.45% | 2015-2018 | 50,500 | 55,500 | |||||||
Unsecured foreign obligations | 2.01% | 1.99% | 2015-2016 | 307,709 | 315,558 | |||||||
Capital lease obligations | 3.62% | 3.81% | 2014-2019 | 35,695 | 38,911 | |||||||
Total before fair market value adjustment | 4,501,567 | 4,179,939 | ||||||||||
Fair market value adjustment on notes subject to hedging (2) | 3,247 | 8,171 | ||||||||||
4,504,814 | 4,188,110 | |||||||||||
Current portion of long-term debt, including capital leases | (459,569 | ) | (258,123 | ) | ||||||||
Long-term debt | 4,045,245 | 3,929,987 | ||||||||||
Total debt | $ | 4,507,557 | 4,189,425 |
(1) | We had unamortized original issue discounts of $8.3 million and $8.3 million at September 30, 2014 and December 31, 2013, respectively. |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $600 million and $400 million at September 30, 2014 and December 31, 2013, respectively. |
|
Total Losses (2) | |||||||||||
2014 | Three months ended | Nine months ended | |||||||||
(In thousands) | |||||||||||
Assets held for sale: | |||||||||||
Revenue earning equipment: (1) | |||||||||||
Trucks | $ | 8,437 | $ | 1,527 | $ | 4,981 | |||||
Tractors | 4,666 | 530 | 2,824 | ||||||||
Trailers | 682 | 320 | 762 | ||||||||
Total assets at fair value | $ | 13,785 | $ | 2,377 | $ | 8,567 |
Total Losses (2) | |||||||||||
2013 | Three months ended | Nine months ended | |||||||||
(In thousands) | |||||||||||
Assets held for sale: | |||||||||||
Revenue earning equipment (1) | |||||||||||
Trucks | $ | 10,546 | $ | 2,042 | $ | 7,518 | |||||
Tractors | 15,332 | 1,677 | 4,185 | ||||||||
Trailers | 671 | 275 | 1,242 | ||||||||
Total assets at fair value | $ | 26,549 | $ | 3,994 | $ | 12,945 |
(1) | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. |
(2) | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value. |
|
Maturity date | Face value of medium-term notes | Aggregate notional amount of interest rate swaps | Fixed interest rate | Weighted-average variable interest rate on hedged debt as of September 30, | ||||||||
Issuance date | 2014 | 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.28% | 1.34% | ||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.42% | 1.51% | ||||||
November 2013 | November 2018 | $300,000 | $100,000 | 2.45% | 1.18% | —% | ||||||
February 2014 | June 2019 | $350,000 | $100,000 | 2.55% | 1.10% | —% | ||||||
May 2014 | September 2019 | $400,000 | $100,000 | 2.45% | 0.86% | —% |
Fair Value Hedging Relationship | Location of Gain (Loss) Recognized in Income | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Derivatives: Interest rate swaps | Interest expense | $ | (4,607 | ) | 44 | $ | (4,924 | ) | (6,323 | ) | ||||||
Hedged items: Fixed-rate debt | Interest expense | 4,607 | (44 | ) | 4,924 | 6,323 | ||||||||||
Total | $ | — | — | $ | — | — |
Balance Sheet Location | September 30, 2014 | December 31, 2013 | ||||||
(In thousands) | ||||||||
Prepaid expenses and other current assets | $ | 1,173 | $ | — | ||||
Direct financing leases and other assets | 4,480 | 9,333 | ||||||
Other non-current liabilities | (2,406 | ) | (1,162 | ) |
|
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2013 | $ | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||
Amortization | — | 11,183 | (2,008 | ) | 9,175 | ||||||||
Other current period change | (35,198 | ) | (2,043 | ) | (109 | ) | (37,350 | ) | |||||
September 30, 2014 | $ | 677 | (468,743 | ) | 1,643 | (466,423 | ) |
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2012 | $ | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||
Amortization | — | 17,176 | (1,020 | ) | 16,156 | ||||||||
Other current period change | (18,379 | ) | (3,714 | ) | — | (22,093 | ) | ||||||
September 30, 2013 | $ | 39,481 | (634,651 | ) | 1,614 | (593,556 | ) |
(1) | These amounts are included in the computation of net periodic benefit cost. See Note (N), "Employee Benefit Plans," for further information. |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pension Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 3,297 | 3,994 | $ | 9,892 | 12,002 | |||||||
Interest cost | 25,280 | 22,418 | 75,990 | 67,153 | |||||||||
Expected return on plan assets | (28,900 | ) | (26,498 | ) | (86,916 | ) | (79,335 | ) | |||||
Amortization of: | |||||||||||||
Net actuarial loss | 5,900 | 8,782 | 17,714 | 26,347 | |||||||||
Prior service credit | (445 | ) | (454 | ) | (1,340 | ) | (1,363 | ) | |||||
5,132 | 8,242 | 15,340 | 24,804 | ||||||||||
Union-administered plans | 3,475 | 3,388 | 7,744 | 7,418 | |||||||||
Net periodic benefit cost | $ | 8,607 | 11,630 | $ | 23,084 | 32,222 | |||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 5,389 | 8,424 | $ | 16,190 | 25,317 | |||||||
Non-U.S. | (257 | ) | (182 | ) | (850 | ) | (513 | ) | |||||
5,132 | 8,242 | 15,340 | 24,804 | ||||||||||
Union-administered plans | 3,475 | 3,388 | 7,744 | 7,418 | |||||||||
$ | 8,607 | 11,630 | $ | 23,084 | 32,222 | ||||||||
Postretirement Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 112 | 245 | $ | 336 | 738 | |||||||
Interest cost | 356 | 392 | 1,069 | 1,179 | |||||||||
Amortization of: | |||||||||||||
Net actuarial credit | (181 | ) | (4 | ) | (544 | ) | (11 | ) | |||||
Prior service credit | (616 | ) | (58 | ) | (1,844 | ) | (173 | ) | |||||
Net periodic benefit cost | $ | (329 | ) | 575 | $ | (983 | ) | 1,733 | |||||
Company-administered plans: | |||||||||||||
U.S. | $ | (460 | ) | 402 | $ | (1,379 | ) | 1,210 | |||||
Non-U.S. | 131 | 173 | 396 | 523 | |||||||||
$ | (329 | ) | 575 | $ | (983 | ) | 1,733 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Pension settlement charges (1) | $ | 1,262 | 1,258 | $ | 1,262 | 1,258 | |||||||
Superstorm Sandy recoveries | — | (600 | ) | — | (600 | ) | |||||||
Restructuring and other recoveries, net | — | (298 | ) | — | (298 | ) | |||||||
Foreign currency translation benefit | — | — | — | (1,904 | ) | ||||||||
Acquisition transaction costs (2) | 566 | — | 566 | — | |||||||||
Restructuring and other charges, net and other items | $ | 1,828 | 360 | $ | 1,828 | (1,544 | ) |
(1) | See Note (N), "Employee Benefit Plans," for additional information. |
(2) | See Note (C), "Acquisitions," for additional information. |
|
Nine months ended September 30, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Interest paid | $ | 109,332 | 109,699 | |||
Income taxes paid | 9,878 | 8,900 | ||||
Changes in accounts payable related to purchases of revenue earning equipment | 3,902 | 1,670 | ||||
Operating and revenue earning equipment acquired under capital leases | 3,788 | 5,500 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Contract settlement | $ | 64 | — | $ | 2,972 | — | |||||||
Gains on sales of operating property and equipment | 135 | 96 | 2,725 | 636 | |||||||||
Business interruption insurance recoveries | — | 819 | 756 | 2,624 | |||||||||
Foreign currency translation benefit (1) | — | — | — | 1,904 | |||||||||
Rabbi trust investment (expense) income | (177 | ) | 1,247 | 1,400 | 2,878 | ||||||||
Other, net | 974 | 1,285 | 3,353 | 3,550 | |||||||||
Total | $ | 996 | 3,447 | $ | 11,206 | 11,592 |
|
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the three months ended September 30, 2014 | |||||||||||||
Revenue from external customers | $ | 1,069,333 | 617,817 | — | 1,687,150 | ||||||||
Inter-segment revenue | 117,589 | — | (117,589 | ) | — | ||||||||
Total revenue | $ | 1,186,922 | 617,817 | (117,589 | ) | 1,687,150 | |||||||
Segment EBT | $ | 120,980 | 36,152 | (9,564 | ) | 147,568 | |||||||
Unallocated CSS | (13,564 | ) | |||||||||||
Non-operating pension costs | (2,455 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (1,828 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 129,721 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 470,552 | 7,484 | — | 478,036 | ||||||||
Unallocated CSS | 7,915 | ||||||||||||
Capital expenditures paid | $ | 485,951 | |||||||||||
For the three months ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 1,023,790 | 610,750 | — | 1,634,540 | ||||||||
Inter-segment revenue | 114,427 | — | (114,427 | ) | — | ||||||||
Total revenue | $ | 1,138,217 | 610,750 | (114,427 | ) | 1,634,540 | |||||||
Segment EBT | $ | 96,428 | 39,607 | (9,134 | ) | 126,901 | |||||||
Unallocated CSS | (10,053 | ) | |||||||||||
Non-operating pension costs | (5,090 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (360 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 111,398 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 538,453 | 3,896 | — | 542,349 | ||||||||
Unallocated CSS | 5,361 | ||||||||||||
Capital expenditures paid | $ | 547,710 |
(1) | See Note (O), "Other Items Impacting Comparability," for additional information. |
(2) | Excludes revenue earning equipment acquired under capital leases. |
(3) | Excludes acquisition payments of $8.1 million and $0.5 million during the three months ended September 30, 2014 and 2013, respectively. |
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||
Revenue from external customers | $ | 3,139,721 | 1,842,737 | — | 4,982,458 | ||||||||
Inter-segment revenue | 363,510 | — | (363,510 | ) | — | ||||||||
Total revenue | $ | 3,503,231 | 1,842,737 | (363,510 | ) | 4,982,458 | |||||||
Segment EBT | $ | 311,480 | 88,664 | (29,715 | ) | 370,429 | |||||||
Unallocated CSS | (36,518 | ) | |||||||||||
Non-operating pension costs | (7,313 | ) | |||||||||||
Restructuring and other charges, net and other items (1) | (1,828 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 324,770 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 1,661,929 | 15,605 | — | 1,677,534 | ||||||||
Unallocated CSS | 63,639 | ||||||||||||
Capital expenditures paid | $ | 1,741,173 | |||||||||||
For the nine months ended September 30, 2013 | |||||||||||||
Revenue from external customers | $ | 3,017,150 | 1,784,406 | — | 4,801,556 | ||||||||
Inter-segment revenue | 342,057 | — | (342,057 | ) | — | ||||||||
Total revenue | $ | 3,359,207 | 1,784,406 | (342,057 | ) | 4,801,556 | |||||||
Segment EBT | $ | 245,840 | 97,011 | (25,782 | ) | 317,069 | |||||||
Unallocated CSS | (32,012 | ) | |||||||||||
Non-operating pension costs | (15,333 | ) | |||||||||||
Restructuring and other recoveries, net and other items (1) | 1,544 | ||||||||||||
Earnings from continuing operations before income taxes | $ | 271,268 | |||||||||||
Segment capital expenditures paid (2), (3) | $ | 1,462,095 | 14,713 | — | 1,476,808 | ||||||||
Unallocated CSS | 19,016 | ||||||||||||
Capital expenditures paid | $ | 1,495,824 |
(1) | See Note (O), "Other Items Impacting Comparability," for additional information. |
(2) | Excludes revenue earning equipment acquired under capital leases. |
(3) | Excludes acquisition payments of $9.8 million and $1.9 million during the nine months ended September 30, 2014, and 2013, respectively. |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|