RYDER SYSTEM INC, 10-K filed on 2/12/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Jan. 31, 2016
Jun. 30, 2015
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, 2015 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2015 
 
 
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
 
 
$ 4,653,524,571 
Entity Common Stock, Shares Outstanding
 
53,493,748 
 
Consolidated Statements of Earnings (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement [Abstract]
 
 
 
Lease and rental revenues
$ 3,121,553 
$ 2,939,422 
$ 2,770,026 
Services revenue
2,912,063 
2,911,465 
2,819,673 
Fuel services revenue
538,277 
787,887 
829,586 
Total revenues
6,571,893 
6,638,774 
6,419,285 
Cost of lease and rental
2,153,450 
2,036,881 
1,925,546 
Cost of services
2,413,156 
2,447,867 
2,359,880 
Cost of fuel services
519,843 
768,292 
814,058 
Other operating expenses
135,038 
126,572 
131,659 
Selling, general and administrative expenses
844,497 
816,975 
790,681 
Pension lump sum settlement expense
97,231 
Gains on vehicles sales, net
(117,809)
(126,824)
(96,175)
Interest expense
150,434 
144,739 
140,463 
Miscellaneous income, net
(10,156)
(13,613)
(15,372)
Restructuring and other charges (recoveries), net
14,225 
2,387 
(470)
Total expenses
6,102,678 
6,300,507 
6,050,270 
Earnings from continuing operations before income taxes
469,215 
338,267 
369,015 
Provision for income taxes
163,226 
118,042 
125,740 
Earnings from continuing operations
305,989 
220,225 
243,275 
Loss from discontinued operations, net of tax
(1,221)
(1,884)
(5,404)
Net earnings
$ 304,768 
$ 218,341 
$ 237,871 
Earnings (loss) per common share — Basic
 
 
 
Continuing operations (in dollars per share)
$ 5.78 
$ 4.18 
$ 4.67 
Discontinued operations (in dollars per share)
$ (0.02)
$ (0.04)
$ (0.10)
Net earnings (in dollars per share)
$ 5.75 
$ 4.14 
$ 4.57 
Earnings (loss) per common share — Diluted
 
 
 
Continuing operations (in dollars per share)
$ 5.73 
$ 4.14 
$ 4.63 
Discontinued operations (in dollars per share)
$ (0.02)
$ (0.03)
$ (0.10)
Net earnings (in dollars per share)
$ 5.71 
$ 4.11 
$ 4.53 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
Net earnings
$ 304,768 
$ 218,341 
$ 237,871 
Other comprehensive (loss) income:
 
 
 
Changes in cumulative translation adjustment and other
(99,933)
(71,962)
(21,985)
Amortization of pension and postretirement items
27,731 
18,601 
33,219 
Income tax expense related to amortization of pension and postretirement items
(9,637)
(6,411)
(11,739)
Amortization of pension and postretirement items, net of tax
18,094 
12,190 
21,480 
Reclassification of net actuarial loss from pension settlement
97,231 
Change in net actuarial loss and prior service credit
(23,979)
(281,173)
236,855 
Income tax benefit (expense) related to change in net actuarial loss and prior service credit
13,353 
61,692 
(86,979)
Change in net actuarial loss and prior service credit, net of taxes
(10,626)
(122,250)
149,876 
Other comprehensive (loss) income, net of taxes
(92,465)
(182,022)
149,371 
Comprehensive income
$ 212,303 
$ 36,319 
$ 387,200 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 60,945 
$ 50,092 
Receivables, net
835,489 
794,864 
Inventories
63,725 
66,007 
Prepaid expenses and other current assets
138,143 
132,681 
Total current assets
1,098,302 
1,043,644 
Revenue earning equipment, net
8,184,735 
7,201,900 
Operating property and equipment, net
714,970 
699,594 
Goodwill
389,135 
393,029 
Intangible assets
55,192 
66,619 
Direct financing leases and other assets
525,475 
446,099 
Total assets
10,967,809 
9,850,871 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
634,530 
36,284 
Accounts payable
502,373 
560,852 
Accrued expenses and other current liabilities
543,352 
513,679 
Total current liabilities
1,680,255 
1,110,815 
Long-term debt
4,883,326 
4,694,335 
Other non-current liabilities
829,595 
783,342 
Deferred income taxes
1,587,522 
1,443,292 
Total liabilities
8,980,698 
8,031,784 
Shareholders’ equity:
 
 
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, December 31, 2015 or 2014
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, December 31, 2015 — 53,490,603; December 31, 2014 — 53,039,688
26,745 
26,520 
Additional paid-in capital
1,006,021 
962,328 
Retained earnings
1,667,080 
1,450,509 
Accumulated other comprehensive loss
(712,735)
(620,270)
Total shareholders’ equity
1,987,111 
1,819,087 
Total liabilities and shareholders’ equity
$ 10,967,809 
$ 9,850,871 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value (in dollars per share)
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
Common stock, par value (in dollars per share)
$ 0.50 
$ 0.50 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
53,490,603 
53,039,688 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities of continuing operations:
 
 
 
Net earnings
$ 304,768 
$ 218,341 
$ 237,871 
Less: Loss from discontinued operations, net of tax
(1,221)
(1,884)
(5,404)
Earnings from continuing operations
305,989 
220,225 
243,275 
Depreciation expense
1,139,922 
1,057,813 
983,610 
Gains on vehicles sales, net
(117,809)
(126,824)
(96,175)
Share-based compensation expense
21,181 
20,905 
19,310 
Pension lump sum settlement expense
97,231 
Amortization expense and other non-cash charges, net
70,762 
47,263 
56,389 
Deferred income tax expense
154,042 
104,713 
113,621 
Changes in operating assets and liabilities, net of acquisitions:
 
 
 
Receivables
(40,323)
(20,687)
(14,272)
Inventories
1,448 
(2,153)
(841)
Prepaid expenses and other assets
(292)
(16,040)
(23,114)
Accounts payable
(74,381)
53,481 
34,431 
Accrued expenses and other non-current liabilities
(18,751)
(53,109)
(64,423)
Net cash provided by operating activities from continuing operations
1,441,788 
1,382,818 
1,251,811 
Cash flows from financing activities from continuing operations:
 
 
 
Net change in commercial paper borrowings and revolving credit facilities
323,359 
(221,082)
146,382 
Debt proceeds
1,283,223 
965,533 
556,989 
Debt repaid, including capital lease obligations
(798,311)
(293,488)
(379,189)
Dividends on common stock
(83,201)
(74,871)
(67,720)
Common stock issued
23,635 
46,568 
90,646 
Common stock repurchased
(6,141)
(106,286)
Excess tax benefits from share-based compensation and other items
(3,175)
700 
5,151 
Debt issuance costs
(7,904)
(5,424)
(5,189)
Net cash provided by financing activities from continuing operations
731,485 
311,650 
347,070 
Cash flows from investing activities from continuing operations:
 
 
 
Purchases of property and revenue earning equipment
(2,667,978)
(2,259,164)
(2,122,628)
Sales of revenue earning equipment
423,605 
493,477 
445,589 
Sales of operating property and equipment
3,891 
3,486 
6,782 
Acquisitions
(9,972)
(1,858)
Collections on direct finance leases
70,980 
65,517 
70,677 
Changes in restricted cash
8,147 
3,396 
(10,553)
Insurance recoveries and other
(1,250)
8,173 
Net cash used in investing activities from continuing operations
(2,161,355)
(1,704,510)
(1,603,818)
Effect of exchange rates on cash
37 
297 
5,558 
Increase (decrease) in cash and cash equivalents from continuing operations
11,955 
(9,745)
621 
Decrease in cash and cash equivalents from discontinued operations
(1,102)
(1,725)
(5,451)
Increase (decrease) in cash and cash equivalents
10,853 
(11,470)
(4,830)
Cash and cash equivalents at January 1
50,092 
61,562 
66,392 
Cash and cash equivalents at December 31
$ 60,945 
$ 50,092 
$ 61,562 
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
Beginning balance at Dec. 31, 2012
$ 1,467,255 
$ 0 
$ 25,686 
$ 808,230 
$ 1,220,958 
$ (587,619)
Beginning balance, shares at Dec. 31, 2012
 
 
51,371,696 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive income
387,200 
 
 
 
237,871 
149,371 
Common stock dividends declared and paid
(68,226)
 
 
 
(68,226)
 
Common stock issued under employee stock option and stock purchase plans1
87,168 
 
956 
86,212 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
1,913,067 
 
 
 
Benefit plan stock sales, shares2
 
 
50,623 
 
 
 
Benefit plan stock sales2
3,478 
 
25 
3,453 
 
 
Share-based compensation
19,310 
 
 
19,310 
 
 
Tax benefits from share-based compensation
334 
 
 
334 
 
 
Ending balance at Dec. 31, 2013
1,896,561 
26,667 
917,539 
1,390,603 
(438,248)
Ending balance, shares at Dec. 31, 2013
 
 
53,335,386 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive income
36,319 
 
 
 
218,341 
(182,022)
Common stock dividends declared and paid
(75,631)
 
 
 
(75,631)
 
Common stock issued under employee stock option and stock purchase plans1
45,882 
 
511 
45,371 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
1,019,341 
 
 
 
Benefit plan stock sales, shares2
 
 
8,239 
 
 
 
Benefit plan stock sales2
686 
 
682 
 
 
Common stock repurchases
(106,286)
 
(662)
(22,820)
(82,804)
 
Common stock repurchases, shares
 
 
(1,300,000)
 
 
 
Share-based compensation
20,905 
 
 
20,905 
 
 
Tax benefits from share-based compensation
651 
 
 
651 
 
 
Ending balance at Dec. 31, 2014
1,819,087 
26,520 
962,328 
1,450,509 
(620,270)
Ending balance, shares at Dec. 31, 2014
53,039,688 
 
53,039,688 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive income
212,303 
 
 
 
304,768 
(92,465)
Common stock dividends declared and paid
(83,306)
 
 
 
(83,306)
 
Common stock issued under employee stock option and stock purchase plans1
23,552 
 
260 
23,292 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
519,271 
 
 
 
Benefit plan stock sales, shares
 
 
751 
 
 
 
Benefit plan stock sales2
83 
 
83 
 
 
Common stock repurchases
(6,141)
 
(35)
(1,215)
(4,891)
 
Common stock repurchases, shares
 
 
(69,107)
 
 
 
Share-based compensation
21,181 
 
 
21,181 
 
 
Tax benefits from share-based compensation
352 
 
 
352 
 
 
Ending balance at Dec. 31, 2015
$ 1,987,111 
$ 0 
$ 26,745 
$ 1,006,021 
$ 1,667,080 
$ (712,735)
Ending balance, shares at Dec. 31, 2015
53,490,603 
 
53,490,603 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
 
 
 
Common stock dividends declared and paid, (in dollars per share)
$ 1.56 
$ 1.42 
$ 1.30 
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 have been eliminated in consolidation.
During the first quarter of 2015, our management structure changed within the supply chain business. We created the role of President of Dedicated Transportation Solutions (DTS) for the dedicated product offering which was within Supply Chain Solutions (SCS). Beginning with the current year, we reported our financial performance based on our new segments: (1) Fleet Management Solutions (FMS), which provides full service leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. Dedicated services provided as part of an integrated, multi-service, supply chain solution continue to be reported in the SCS business segment. Prior period amounts have been recast to conform to the new presentation. This change impacted Note 10, "Goodwill," and Note 29, "Segment Reporting," with no impact on consolidated revenues, net income or cash flows.
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), 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.
 
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 the price 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. A full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues.
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines.
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL).

The majority of our leases and all of our rental arrangements are classified as operating leases and, therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs.

The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term.

Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point that 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 uncertainty is removed. Cash receipts on impaired direct finance lease receivables are first applied to 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 DTS and SCS revenues.
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and provide 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 proportionate maintenance-related labor costs relative to all product lines.
Revenue from DTS and 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 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 trailing 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.

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 (including tire replacement or repair) 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 recognized throughout the Consolidated Statement of Earnings 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 lives 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.
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.”

Goodwill and Other Intangible Assets
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows.
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized.
Our valuation of fair value for certain reporting units is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. For certain reporting units, fair value is determined based on the application of current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital based on our industry and capital structure adjusted for equity and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our DTS reporting unit and SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to our DTS reporting unit or one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss.
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. 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.



Self-Insurance Accruals
We retain a portion of the accident risk under auto liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts generally up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets.
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets.
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 Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we determine whether the benefits of our tax positions 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 accruals 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. We adjust these reserves, including any impact on the related interest and penalties, in light of changing facts and circumstances, such as the progress of a tax audit.
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 recognize 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 is included in "Restructuring and other charges (recoveries), net” in the Consolidated Statements of Earnings. Severance costs that are not part of a restructuring plan are recognized 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 recognize 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 recognized 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 recognized when recovery is deemed probable.
Derivative Instruments and Hedging Activities
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default.
On the date a derivative contract is executed, 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 unrealized gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized immediately 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 recognized 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 recognized net of tax 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 recognized 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 recognized in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings.

Foreign Currency Translation
Our foreign operations generally use 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. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is presented in “Changes in cumulative translation adjustment and other” in the Consolidated Statements of Comprehensive Income (Loss). 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 recognized in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Share-Based Compensation
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits.
Earnings Per Share
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Restricted stock units are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Share Repurchases
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase.

Defined Benefit Pension and Postretirement Benefit Plans
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and reported as a prepaid pension asset. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and reported as a pension and postretirement benefit liability.
The current portion of pension and postretirement benefit liabilities represents the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recognized 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. 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 losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service credit, net of tax" in the Consolidated Statements of Comprehensive Income (Loss). 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.
The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturities of these financial instruments. 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 and derivatives 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.
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS

Deferred Tax Balance Sheet Classification

On November 20, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires an entity to present all deferred tax assets and liabilities as non-current in a classified balance sheet. The update becomes effective January 1, 2017. We early adopted ASU 2015-17 for the periods presented. Adoption of this update resulted in a reclassification of $22 million and $33 million in current deferred tax assets to non-current in our Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively.

Accounting for Measurement Period Adjustments

On September 25, 2015, the FASB issued ASU No. 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments, which requires an acquirer to recognize adjustments identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adjustment must include the cumulative effect of the adjustment as if the accounting had been completed on the acquisition date. The update should be applied prospectively and becomes effective January 1, 2016. Early application is permitted. The adoption of ASU 2015-16 will not have an impact on our consolidated financial position, results of operations or cash flows.

Inventory Valuation

On July 22, 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which applies to inventory that is measured using first-in, first-out or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out. The update becomes effective January 1, 2017 and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The adoption of ASU 2015-11 will not have an impact on our consolidated financial position, results of operations or cash flows.

Presentation of Debt Issuance Costs
     
On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires an entity to present debt issuance costs as a direct reduction from the carrying amount of the related debt liability on the balance sheet. On August 30, 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which clarifies the treatment of debt issuance costs from line-of-credit arrangements after adoption of ASU 2015-03. The SEC Staff announced they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The update requires retrospective application and represents a change in accounting principle. The update becomes effective January 1, 2016. Based on the balances as of December 31, 2015, we expect to reclassify $15 million of unamortized debt issuance costs from "Direct financing leases and other assets" to "Long-term debt."


Revenue Recognition

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance. The update was originally effective January 1, 2017. On August 12, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year to January 1, 2018. Early application is permitted but not before January 1, 2017. The standard permits the use of either the modified retrospective or cumulative effect transition methods.

In connection with the FASB’s project on leases, the proposal stage literature would require the lease component of our full service lease product line to be accounted for under the proposed lease accounting guidance, when issued, and the maintenance and other elements of this product line will be accounted for under the new revenue guidance. The final ASU on leases is expected to be issued in the first quarter of 2016 and will be effective for fiscal years beginning after December 15, 2018. Because of the interrelationship of these issued and proposed standards on our full service lease product line and since the final ASU on leases has not been issued, we have not yet selected a transition method. We are in the process of determining the effect on our consolidated financial position, results of operations and cash flows.
Revisions of Prior Period Financial Statements
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

We periodically enter into sale and leaseback transactions to lower the total cost of funding our operations and to diversify funding among different classes of investors and among different types of funding instruments. These transactions historically resulted in a reduction of revenue earning equipment and debt on the balance sheet, as proceeds from the sale of revenue earning equipment were used to repay debt. During the second quarter of 2015, we reviewed and evaluated the structure of these transactions and determined they should be accounted for as issuances of financial interests that do not qualify for deconsolidation. We evaluated the materiality of this revision, quantitatively and qualitatively, and concluded it was not material to any of our previously issued consolidated financial statements. However, we elected to revise previously issued financial statements to avoid inconsistencies in our financial statements. Accordingly, we revised previously reported results for the years ended December 31, 2014, 2013 and 2012 as well as previously reported results for the three and nine months ended September 30, 2014, the three and six months ended June 30, 2014, and the three months ended March 31, 2015 and 2014 in our Form 10-Q for the quarter ended June 30, 2015. The effects of this revision for periods presented in this Annual Report on Form 10-K are presented in the tables below. Adjustments may not be additive and may have minor differences within the tables due to rounding.

The effects of this revision on our Consolidated Statements of Earnings were as follows (in millions except per share amounts):
 
Year ended December 31, 2014
 
Year ended December 31, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Cost of lease and rental (1)
$
2,039.3

(2.4
)
2,036.9

 
$
1,928.9

(3.4
)
1,925.5

Interest expense
142.1

2.6

144.7

 
137.2

3.3

140.5

Earnings from continuing operations before income taxes
338.5

(0.2
)
338.3

 
368.9

0.1

369.0

Provision for income taxes
118.1

(0.1
)
118.0

 
125.7


125.7

Earnings from continuing operations
220.5

(0.3
)
220.2

 
243.2

0.1

243.3

Net earnings
218.6

(0.3
)
218.3

 
237.8

0.1

237.9


(1) Includes revised rent expense disclosed in Note 15, "Leases." 


The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions):
 
Comprehensive Income
 
As Previously Reported
Adjustment
As Revised
Year ended December 31, 2014
$
36.6

(0.2
)
36.3

Year ended December 31, 2013
387.2

0.1

387.2




The effects of this revision on our Consolidated Balance Sheet as of December 31, 2014 were as follows (in millions):
 
As Previously Reported
Adjustment
As Revised
Revenue earning equipment, net
$
6,994.4

207.5

7,201.9

Total assets (1)
9,676.0

174.9

9,850.9

Short-term debt and current portion of long-term debt
12.2

24.1

36.3

Accrued expenses and other current liabilities
520.5

(6.8
)
513.7

Total current liabilities
1,093.6

17.2

1,110.8

Long-term debt
4,500.3

194.0

4,694.3

Other non-current liabilities
786.7

(3.4
)
783.3

Deferred income taxes (1)
1,476.0

(32.7
)
1,443.3

Total liabilities (1)
7,856.5

175.3

8,031.8

Retained earnings
1,450.9

(0.4
)
1,450.5

Total shareholders’ equity
1,819.5

(0.4
)
1,819.1

Total liabilities and shareholders’ equity (1)
9,676.0

174.9

9,850.9


_______________ 
(1) Adjustment includes reclassification of current deferred tax assets to non-current as discussed in Note 2, "Recent Accounting Pronouncements."  

The effects of this revision on the individual line items within our Consolidated Statements of Cash Flows were as follows (in millions):
 
Year ended December 31, 2014
 
Year ended December 31, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Net earnings
$
218.6

(0.3
)
218.3

 
$
237.8

0.1

237.9

Depreciation expense
1,040.3

17.6

1,057.8

 
957.1

26.5

983.6

Accrued expenses and other non-current liabilities
(48.7
)
(4.4
)
(53.1
)
 
(66.6
)
2.2

(64.4
)
Net cash provided by operating activities from continuing operations
1,370.0

12.8

1,382.8

 
1,223.1

28.7

1,251.8

Debt proceeds
839.7

125.8

965.5

 
557.0


557.0

Debt repaid, including capital lease obligations
(280.7
)
(12.8
)
(293.5
)
 
(332.6
)
(46.6
)
(379.2
)
Net cash provided by financing activities from continuing operations
198.7

113.0

311.7

 
393.6

(46.5
)
347.1

Purchases of property and revenue earning equipment
(2,259.2
)

(2,259.2
)
 
(2,140.5
)
17.9

(2,122.6
)
Sale and leaseback of revenue earning equipment
125.8

(125.8
)

 



Net cash used in investing activities from continuing operations
(1,578.7
)
(125.8
)
(1,704.5
)
 
(1,621.7
)
17.9

(1,603.8
)
Acquisitions
ACQUISITIONS
ACQUISITIONS

On August 1, 2014, we acquired all of the common stock of Bullwell Trailer Solutions, Ltd, a U.K.-based trailer repair and maintenance company for a purchase price of approximately $15 million, net of cash acquired. The acquisition complements our FMS business segment coverage in the U.K. The purchase accounting for this acquisition resulted in goodwill and customer relationship intangible assets of $12 million and $2 million, respectively, with the remaining amount allocated to tangible assets, less liabilities assumed. Transaction costs related to the acquisition were not material. Approximately $12 million of the stock purchase price has been paid as of December 31, 2015.

The purchase price included $6 million in contingent consideration to be paid to the seller provided certain milestones were met. During 2015, we paid $4 million as a result of certain milestones being met. As of December 31, 2015, the fair value of the remaining contingent consideration has been reflected in "Accrued expenses and other current liabilities" in our Consolidated Balance Sheets.
Restructuring and Other Charges (Recoveries)
RESTRUCTURING AND OTHER CHARGES (RECOVERIES)
RESTRUCTURING AND OTHER CHARGES (RECOVERIES)
In the fourth quarters of 2015 and 2014, we approved plans to reduce our workforce in multiple locations as a result of cost containment actions, resulting in charges of $9 million and $2 million in 2015 and 2014, respectively. In addition, in the fourth quarter of 2015, we committed to a plan to divest our Ryder Canadian Retail Shippers Association Logistics (CRSAL) operations and shutdown our Ryder Container Terminals (RCT) business in Canada. In January 2016, we entered into an agreement to sell CRSAL to a third party for approximately $2 million. The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2016. In connection with the decisions to sell CRSAL and shut-down RCT, we recognized charges in the fourth quarter of 2015 for employee termination costs of $3 million and asset impairment of $2 million to adjust assets held for sale, including goodwill and intangible assets, to fair value less costs to sell.
The following table summarizes the activities within, and components of, restructuring liabilities for 2015, 2014 and 2013 (in thousands): 
 
 
Employee Termination Costs
 
Other Charges
 
Total
Balance as of December 31, 2012
 
$
3,147

 
1,728

 
4,875

Workforce reduction charges
 
84

 

 
84

Utilization (1)
 
(2,891
)
 
(1,409
)
 
(4,300
)
Balance as of December 31, 2013
 
340

 
319

 
659

Workforce reduction charges
 
2,387

 

 
2,387

Utilization (1)
 
(241
)
 
(319
)
 
(560
)
Balance as of December 31, 2014
 
2,486

 

 
2,486

Workforce reduction charges
 
8,830

 

 
8,830

CRSAL divestiture and RCT shut-down
 
3,225

 

 
3,225

Utilization (1)
 
(2,208
)
 

 
(2,208
)
Balance as of December 31, 2015 (2)
 
$
12,333

 

 
12,333


_________________ 
Note: The restructuring liabilities shown above are included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets.

(1) Principally represents cash payments.
(2) The majority of the balance remaining for employee termination costs is expected to be paid by the end of 2016.


As discussed in Note 29, “Segment Reporting,” our primary measure of segment financial performance excludes, among other items, restructuring and other charges (recoveries), net. However, the applicable portion of the restructuring and other charges (recoveries), net that related to each segment in 2015, 2014 and 2013 were as follows:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Fleet Management Solutions
 
$
4,817

 
515

 
(470
)
Dedicated Transportation Solutions
 
250

 
154

 

Supply Chain Solutions
 
7,033

 
797

 

Central Support Services
 
2,125

 
921

 

Total
 
$
14,225

 
2,387

 
(470
)
Receivables
RECEIVABLES
RECEIVABLES
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Trade
 
$
708,832

 
693,114

Direct financing leases
 
90,055

 
85,946

Other, primarily warranty and insurance
 
52,162

 
32,192

 
 
851,049

 
811,252

Allowance
 
(15,560
)
 
(16,388
)
Total
 
$
835,489

 
794,864

Prepaid Expenses and Other Current Assets
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Restricted cash
 
$
5,352

 
13,499

Prepaid vehicle licenses
 
47,806

 
47,561

Prepaid operating taxes
 
18,510

 
15,208

Prepaid sales commission
 
11,446

 
12,255

Other
 
55,029

 
44,158

Total
 
$
138,143

 
132,681

Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT
 
 
Estimated
Useful
Lives
 
December 31, 2015
 
December 31, 2014
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
 
$
8,839,941

 
(2,723,605
)
 
6,116,336

 
8,008,123

 
(2,598,140
)
 
5,409,983

Commercial rental
 
4.5 — 12
 
2,811,715

 
(907,412
)
 
1,904,303

 
2,570,081

 
(864,543
)
 
1,705,538

Held for sale
 
 
 
496,634

 
(332,538
)
 
164,096

 
312,698

 
(226,333
)
 
86,365

Total
 
 
 
$
12,148,290

 
(3,963,555
)
 
8,184,735

 
10,890,902

 
(3,689,016
)
 
7,201,886

_______________ 
(1)
Revenue earning equipment, net includes vehicles under capital leases of $47 million, less accumulated depreciation of $22 million, at December 31, 2015 and $48 million, less accumulated depreciation of $22 million, at December 31, 2014.
Depreciation expense was $1.06 billion, $979 million and $910 million in 2015, 2014 and 2013, respectively. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses on vehicles held for sale for which carrying values exceeded fair value are recognized at the time they arrive at our used truck centers and 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 2015, 2014, and 2013, we recognized losses to reflect changes in fair value of $18 million, $11 million and $16 million, respectively.
The following table presents our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:
 
 
 
 
 
 
Total Losses (2)
 
 
December 31,
 
Year ended December 31,
 
 
2015
 
2014
 
2015
 
2014
Assets held for sale:
 
 
 
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
 
 
 
Trucks
 
$
11,469

 
6,135

 
$
7,660

 
6,274

Tractors
 
19,479

 
4,054

 
7,620

 
3,450

Trailers
 
2,475

 
789

 
2,676

 
1,040

Total assets at fair value
 
$
33,423

 
10,978

 
$
17,956

 
10,764

 
 
 
 
 
 
 
 
 
______________
(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.
Operating Property and Equipment
OPERATING PROPERTY AND EQUIPMENT
OPERATING PROPERTY AND EQUIPMENT
 
 
Estimated
Useful  Lives
 
December 31,
 
 
2015
 
2014
 
 
(In years)
 
(In thousands)
Land
 
 
$
203,543

 
201,089

Buildings and improvements
 
10 — 40
 
776,304

 
766,360

Machinery and equipment
 
3 — 10
 
709,173

 
663,616

Other
 
3 — 10
 
109,554

 
103,557

 
 
 
 
1,798,574

 
1,734,622

Accumulated depreciation
 
 
 
(1,083,604
)
 
(1,035,028
)
Total
 
 
 
$
714,970

 
699,594

 

Depreciation expense was $84 million, $79 million and $73 million in 2015, 2014 and 2013, respectively.
Goodwill
GOODWILL
GOODWILL
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
 
Fleet
Management
Solutions
 
Dedicated Transportation Solutions
 
Supply
Chain
Solutions
 
Total
 
 
(In thousands)
Balance at January 1, 2014
 
 
 
 
 
 
 
 
Goodwill
 
$
223,204

 
40,808

 
148,928

 
412,940

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
212,882

 
40,808

 
130,029

 
383,719

Acquisitions
 
11,839

 

 

 
11,839

Foreign currency translation adjustment
 
(1,826
)
 

 
(703
)
 
(2,529
)
Balance at December 31, 2014
 
 
 
 
 
 
 
 
Goodwill
 
233,217

 
40,808

 
148,225

 
422,250

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
222,895

 
40,808

 
129,326

 
393,029

Reclassification to assets held for sale
 

 

 
(852
)
 
(852
)
Foreign currency translation adjustment
 
(1,859
)
 

 
(1,183
)
 
(3,042
)
Balance at December 31, 2015
 
 
 

 
 
 
 
Goodwill
 
231,358

 
40,808

 
146,190

 
418,356

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
$
221,036

 
40,808

 
127,291

 
389,135



During the first quarter of 2015, our management structure changed. As a result, we reallocated the goodwill balance of our former SCS segment between our current DTS and SCS segments using a relative fair value allocation methodology. We have recast the information above for the prior periods to reflect the reallocation between the segments.
We assess goodwill for impairment on April 1st of each year or more often if deemed necessary. In the second quarter of 2015, we completed our annual goodwill impairment test. We performed quantitative tests on four of our reporting units and determined there was no impairment. We performed a qualitative test for one reporting unit, which considered individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our historical and expected future financial performance. After performing the qualitative assessment, we concluded it is more likely than not that fair value is greater than the carrying value and determined there was no impairment.
In connection with the plan to divest CRSAL, as discussed in Note 5, "Restructuring and Other Charges (Recoveries)", we reclassified approximately $1 million of goodwill to assets held for sale using a relative fair value methodology.
Intangible Assets
INTANGIBLE ASSETS
INTANGIBLE ASSETS
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Indefinite lived intangible assets — Trade name
 
$
8,731

 
9,084

Finite lived intangible assets:
 
 
 
 
Customer relationship intangibles
 
91,523

 
97,922

Other intangibles, primarily trade name
 
2,367

 
2,367

Accumulated amortization
 
(45,736
)
 
(42,374
)
 
 
48,154

 
57,915

Foreign currency translation adjustment
 
(1,693
)
 
(380
)
Total
 
$
55,192

 
66,619


 
In connection with the plan to divest CRSAL, as discussed in Note 5, "Restructuring and Other Charges (Recoveries)", we reclassified $7 million of customer relationship and trade name intangible assets and $3 million of accumulated amortization to assets held for sale.

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 7-19 years. We recognized amortization expense associated with finite lived intangible assets of approximately $7 million in each of 2015 and 2014 and $8 million in 2013. The future amortization expense for each of the five succeeding years related to all intangible assets that are currently reported in the Consolidated Balance Sheets is estimated to range from $4 - $6 million per year for 2016 - 2020.
Direct Financing Leases and Other Assets
DIRECT FINANCING LEASES AND OTHER ASSETS
DIRECT FINANCING LEASES AND OTHER ASSETS
 

December 31,
 

2015

2014
 

(In thousands)
Direct financing leases, net

$
347,703


331,065

Investments held in Rabbi Trusts

41,720


38,681

Contract incentives

23,691


21,475

Insurance receivables

28,999


13,957

Debt issuance costs
 
18,594

 
16,503

Prepaid pension asset
 
44,124

 
2,698

Interest rate swap agreements
 
5,421

 
4,565

Other
 
15,223

 
17,155

Total
 
$
525,475

 
446,099


Investments held in Rabbi Trusts are assets measured at fair value on a recurring basis, all of which are considered Level 1 of the fair value hierarchy. The following table presents the asset classes at December 31, 2015 and 2014:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Cash and cash equivalents
 
$
5,214

 
4,418

U.S. equity mutual funds
 
24,824

 
23,589

Foreign equity mutual funds
 
4,713

 
4,724

Fixed income mutual funds
 
6,969

 
5,950

Total Investments held in Rabbi Trusts
 
$
41,720

 
38,681

Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES
 
 
December 31, 2015
 
December 31, 2014
 
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
 
(In thousands)
Salaries and wages
 
$
99,032

 

 
99,032

 
114,446

 

 
114,446

Deferred compensation
 
2,252

 
41,691

 
43,943

 
3,209

 
37,093

 
40,302

Pension benefits
 
3,790

 
484,892

 
488,682

 
3,739

 
444,657

 
448,396

Other postretirement benefits
 
1,624

 
20,002

 
21,626

 
2,112

 
26,889

 
29,001

Other employee benefits
 
8,956

 
9,706

 
18,662

 
7,172

 
19,276

 
26,448

Insurance obligations (1)
 
157,014

 
213,256

 
370,270

 
132,246

 
189,431

 
321,677

Environmental liabilities
 
3,791

 
6,554

 
10,345

 
3,877

 
8,002

 
11,879

Operating taxes
 
101,649

 

 
101,649

 
92,330

 

 
92,330

Income taxes
 
3,378

 
22,366

 
25,744

 
5,066

 
22,843

 
27,909

Interest
 
31,218

 

 
31,218

 
33,509

 

 
33,509

Deposits, mainly from customers
 
61,869

 
5,085

 
66,954

 
59,388

 
5,929

 
65,317

Deferred revenue
 
13,038

 

 
13,038

 
11,759

 

 
11,759

Acquisition holdbacks
 
2,081

 

 
2,081

 
3,817

 
2,187

 
6,004

Other
 
53,660

 
26,043

 
79,703

 
41,009

 
27,035

 
68,044

Total
 
$
543,352

 
829,595

 
1,372,947

 
513,679

 
783,342

 
1,297,021

_________________
(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 primarily based 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 2015, we recognized a charge within earnings from continuing operations of $4 million from development of estimated prior years’ self-insured loss reserves for the reasons noted above as well as a settlement of a customer-extended insurance claim. In 2014 and 2013, we recognized benefits within earnings from continuing operations of $14 million and $5 million, respectively, from development of 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,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Earnings from continuing operations before income taxes:
 
 
 
 
 
 
United States
 
$
408,757

 
275,630

 
302,809

Foreign
 
60,458

 
62,637

 
66,206

Total
 
$
469,215

 
338,267

 
369,015

Current tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal (1)
 
$
(1,836
)
 
(230
)
 
234

State (1)
 
5,748

 
6,396

 
4,194

Foreign
 
5,272

 
7,163

 
7,691

 
 
9,184

 
13,329

 
12,119

Deferred tax expense from continuing operations:
 
 
 
 
 
 
Federal
 
135,585

 
90,056

 
98,076

State
 
20,111

 
12,429

 
15,399

Foreign
 
(1,654
)
 
2,228

 
146

 
 
154,042

 
104,713

 
113,621

Provision for income taxes from continuing operations
 
$
163,226

 
118,042

 
125,740

______________ 
(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,
 
 
2015
 
2014
 
2013
 
 
(Percentage of pre-tax earnings)
Federal statutory tax rate
 
35.0

 
35.0

 
35.0

Impact on deferred taxes for changes in tax rates
 
(0.9
)
 
(0.9
)
 
0.1

State income taxes, net of federal income tax benefit
 
5.0

 
5.2

 
4.0

Foreign rates varying from federal statutory tax rate
 
(3.3
)
 
(3.7
)
 
(4.1
)
Tax reviews and audits
 
(1.3
)
 
(1.1
)
 
(0.8
)
Other, net
 
0.3

 
0.4

 
(0.1
)
Effective tax rate
 
34.8

 
34.9

 
34.1


 

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 increases (decreases) to net earnings from continuing operations from changes in tax laws by tax jurisdiction:
Tax Jurisdiction
 
Enactment Date
 
Net Earnings
 
 
 
 
(in thousands)
2015
 
 
 
 
Connecticut
 
June 30, 2015
 
$1,616
Other Jurisdictions
 
April 13, 2015 - November 18, 2015
 
$497
 
 
 
 
 
2014
 
 
 
 
New York
 
March 31, 2014
 
$1,776
Rhode Island
 
June 19, 2014
 
$626
 
 
 
 
 
2013
 
 
 
 
Puerto Rico
 
June 30, 2013
 
$(503)
United Kingdom
 
July 17, 2013
 
$485


Deferred Income Taxes
The components of the net deferred income tax liability were as follows:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Deferred income tax assets:
 
 
 
 
Self-insurance accruals
 
$
93,352

 
81,908

Net operating loss carryforwards
 
429,458

 
377,740

Alternative minimum taxes
 
10,727

 
10,727

Accrued compensation and benefits
 
76,363

 
68,626

Federal benefit on state tax positions
 
18,912

 
18,847

Pension benefits
 
148,671

 
157,082

Miscellaneous other accruals
 
32,763

 
33,090

 
 
810,246

 
748,020

Valuation allowance
 
(14,991
)
 
(24,742
)
 
 
795,255

 
723,278

Deferred income tax liabilities:
 
 
 
 
Property and equipment bases difference
 
(2,362,194
)
 
(2,149,574
)
Other
 
(20,583
)
 
(16,996
)
 
 
(2,382,777
)
 
(2,166,570
)
Net deferred income tax liability
 
$
(1,587,522
)
 
(1,443,292
)

 
U.S. deferred income taxes have not been provided on certain undistributed earnings of foreign subsidiaries, which were $712 million at December 31, 2015. The determination of the amount of the related unrecognized deferred tax liability is not practicable because of the complexities associated with the hypothetical calculations. We have historically reinvested such earnings overseas in foreign operations indefinitely and expect future earnings will also be reinvested overseas indefinitely.

At December 31, 2015, we had U.S. federal tax effected net operating loss carryforwards of $386 million and various U.S. subsidiaries had state tax effected net operating loss carryforwards of $29 million both expiring through tax year 2034. We also had foreign tax effected net operating losses of $14 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 of $11 million at December 31, 2015, which are available to reduce future income tax liabilities. The alternative minimum tax credits may be carried forward indefinitely.
Uncertain Tax Positions
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 2008 in Canada, 2010 in Brazil, 2010 in Mexico and 2013 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,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Balance at January 1
 
$
60,482

 
56,813

 
52,271

Additions based on tax positions related to the current year
 
4,220

 
6,896

 
7,606

Reductions due to lapse of applicable statutes of limitation
 
(3,962
)
 
(3,227
)
 
(3,064
)
Gross balance at December 31
 
60,740

 
60,482

 
56,813

Interest and penalties
 
4,912

 
5,125

 
5,756

Balance at December 31
 
$
65,652

 
65,607

 
62,569


Of the total unrecognized tax benefits, $47 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 includes $4 million of interest and penalties, at each December 31, 2015 and 2014, respectively, net of the federal benefit on state issues. For 2015, 2014 and 2013, we recognized an income tax benefit related to interest and penalties of $1 million in each period, within “Provision for income taxes” in our Consolidated Statements of Earnings. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $3 million by December 31, 2016, if audits are completed or tax years close during 2016.
 

Like-Kind Exchange Program
We have a like-kind exchange program for certain of our U.S.-based revenue earning equipment. Pursuant to the program, we dispose of vehicles and acquire replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, we exchange through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing us to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes, and a decrease in cash taxes in periods when we are not in a net operating loss (NOL) position. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. Due to the structure utilized to facilitate the like-kind exchanges, the qualified intermediary that holds the proceeds from the sales of eligible vehicles and the entity that holds the vehicles to be acquired under the program are required to be consolidated in the accompanying Consolidated Financial Statements in accordance with U.S. GAAP. The total assets, primarily revenue earning equipment, and the total liabilities, primarily vehicle accounts payable, held by these consolidated entities are equal in value as these entities are solely structured to facilitate the like-kind exchanges. At December 31, 2015 and 2014, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable, of $237 million and $205 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,
 
 
2015
 
2014
 
 
(In thousands)
Total minimum lease payments receivable
 
$
684,600

 
659,551

Less: Executory costs
 
(205,865
)
 
(210,241
)
Minimum lease payments receivable
 
478,735

 
449,310

Less: Allowance for uncollectibles
 
(243
)
 
(288
)
Net minimum lease payments receivable
 
478,492

 
449,022

Unguaranteed residuals
 
52,885

 
55,992

Less: Unearned income
 
(93,619
)
 
(88,003
)
Net investment in direct financing and sales-type leases
 
437,758

 
417,011

Current portion
 
(90,055
)
 
(85,946
)
Non-current portion
 
$
347,703

 
331,065


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) history of late payments; ii) open lawsuits, liens or judgments; iii) in business less than three years; and iv) 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, 2015:
 
December 31,
 
2015
 
2014
 
(In thousands)
Very low risk to low risk
$
203,388

 
198,496

Moderate
197,484

 
158,790

Moderately high to high risk
77,863

 
92,024

 
$
478,735

 
449,310



As of December 31, 2015 and 2014, 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 these receivables.

Leases as Lessee
We lease facilities and office equipment. None of our leasing arrangements contain restrictive financial covenants.
During 2015, 2014 and 2013, rent expense (including rent of facilities and contingent rentals) was $132 million, $128 million and $123 million, respectively.

Lease Payments
Future minimum payments for leases in effect at December 31, 2015 were as follows:
 
 
As Lessor (1)
 
As Lessee
 
 
Operating
Leases
 
Direct
Financing
Leases
 
Operating
Leases
 
 
(In thousands)
2016
 
$
1,049,766

 
111,116

 
74,103

2017
 
857,397

 
93,215

 
39,265

2018
 
678,150

 
76,073

 
21,675

2019
 
481,790

 
60,062

 
14,066

2020
 
298,659

 
50,402

 
6,896

Thereafter
 
241,589

 
87,867

 
17,420

Total
 
$
3,607,351

 
478,735

 
173,425

____________________
(1)
Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue were $329 million in 2015 and $318 million in both 2014 and 2013. Contingent rentals from direct financing leases included in revenue were $12 million in 2015 and $11 million in each of 2014 and 2013 .

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 and 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,
 
 
2015
 
2014
 
Maturities
 
2015
 
2014
 
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
2.26
%
 
1.30
%
 

 
$
35,947

 
3,773

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
598,583

 
32,511

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
 
634,530

 
36,284

Total long-term debt:
 
 
 
 
 
 
 
 
 
 
U.S. commercial paper(1)
 
0.55
%
 
0.35
%
 
2020
 
547,130

 
276,694

Global revolving credit facility
 
2.31
%
 
1.60
%
 
2020
 
25,291

 
11,190

Unsecured U.S. notes – Medium-term notes(1)
 
2.84
%
 
3.29
%
 
2016-2025
 
4,112,519

 
3,772,159

Unsecured U.S. obligations, principally bank term loans
 
1.73
%
 
0.76
%
 
2018
 
50,000

 
110,500

Unsecured foreign obligations
 
1.92
%
 
2.01
%
 
2016-2020
 
275,661

 
295,776

Asset backed U.S. obligations(2)
 
1.81
%
 
1.81
%
 
2016-2022
 
434,001

 
218,137

Capital lease obligations
 
3.31
%
 
3.65
%
 
2016-2022
 
32,054

 
37,560

Total before fair market value adjustment
 
 
 
 
 
 
 
5,476,656

 
4,722,016

Fair market value adjustment on notes subject to hedging(3)
 
 
 
 
 
 
 
5,253

 
4,830

 
 
 
 
 
 
 
 
5,481,909

 
4,726,846

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
(598,583
)
 
(32,511
)
Long-term debt
 
 
 
 
 
 
 
4,883,326

 
4,694,335

Total debt
 
 
 
 
 
 
 
$
5,517,856

 
4,730,619

_________________ 
(1)
We had unamortized original issue discounts of $8 million at December 31, 2015 and 2014.
(2)
Asset-backed U.S. obligations are related to financing transactions involving revenue earning equipment. See Note 3, "Revision of Prior Period Financial Statements" for further information related to our evaluation of accounting for these transactions.
(3)
The notional amount of the executed interest rate swaps designated as fair value hedges was $825 million and $600 million at December 31, 2015 and 2014, respectively. Refer to Note 17, "Derivatives", for additional information.
 
Maturities of total debt are as follows:
 
 
Capital Leases
 
Debt
 
 
(In thousands)
2016
 
$
8,469

 
928,722

2017
 
9,550

 
750,009

2018
 
7,135

 
783,177

2019
 
6,132

 
1,060,365

2020
 
639

 
1,645,441

Thereafter
 
2,241

 
312,835

Total
 
34,166

 
5,480,549

Imputed interest
 
(2,112
)
 
 
Present value of minimum capitalized lease payments
 
32,054

 
 
Current portion
 
(7,720
)
 
 
Long-term capitalized lease obligation
 
$
24,334

 
 



Debt Facilities
We maintain a $1.2 billion 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, Lloyds Bank Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. The facility matures in January 2020. The agreement provides for annual facility fees which range from 7.5 basis points to 25 basis points based on Ryder’s long-term credit ratings. The annual facility fee is currently 10 basis points, which applies to the total facility size of $1.2 billion.
The credit facility is used primarily to finance working capital but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at December 31, 2015). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions and certain affirmative and negative covenants.
In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. Net worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at December 31, 2015 was 215%. At December 31, 2015, there was $591 million available under the credit facility, net of outstanding commercial paper borrowings.
Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. In addition, we have the intent and ability to refinance the current portion of long-term debt on a long-term basis. At December 31, 2015, we classified $547 million of short-term commercial paper and $300 million of the current portion of long-term debt as long-term debt. At December 31, 2014, we classified $277 million of short-term commercial paper, $60 million of trade receivables borrowings and $699 million of the current portion of long-term debt as long-term debt.
In September and April 2015, we received $93 million and $156 million, respectively, from financing transactions backed by a portion of our revenue earning equipment. The proceeds from these transactions were used to fund capital expenditures. We have provided end of term guarantees for the residual value of the revenue earning equipment in these transactions. The transaction proceeds, along with the end of term residual value guarantees, have been included within "asset-backed U.S. obligations" in the preceding table.
In August 2015, we issued $300 million of unsecured medium-term notes maturing in September 2020. In May 2015, we issued $300 million of unsecured medium-term notes maturing in May 2020. In February 2015, we issued $400 million of unsecured medium-term notes maturing in March 2020. The proceeds from these notes were used to payoff maturing debt and for general corporate purposes. If these notes are downgraded below investment grade 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 principal plus accrued and unpaid interest.
We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. In October 2015, 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 21, 2016. The program contained provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. No amounts were outstanding under the program at December 31, 2015. There was $60 million outstanding under the program at December 31, 2014. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets.
The total fair value of debt (excluding capital lease and asset backed U.S. obligations) was $5.08 billion at December 31, 2015 and $4.59 billion at December 31, 2014. 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.
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, 2015, 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. As of December 31, 2015, we had interest rate swaps outstanding with a total notional value of $825 million and maturities through 2020. Interest rate swaps are measured at fair value on a recurring basis using Level 2 fair value inputs. The fair value of these interest rate swaps was approximately $5 million as of December 31, 2015, and was presented in "Direct financing leases and other assets" in our Consolidated Balance Sheets. Changes in the fair value of our interest rate swaps were offset by changes in the fair value of the debt instrument. Accordingly, there was no ineffectiveness related to the interest rate swaps.
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, 2015 and 2014, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Letters of credit
 
$
241,022

 
234,482

Surety bonds
 
104,632

 
99,831

Share Repurchase Programs
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS

In December 2015, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our employee stock plans.  Under the December 2015 program, management is authorized to repurchase (i) up to 1.5 million shares of common stock, the sum of  which will not exceed the number of shares issued to employees under the Company’s employee stock plans from December 1, 2015 to December 9, 2017  plus (ii) 0.5 million shares issued to employees that were not repurchased under the Company’s previous share repurchase program.  The December 2015 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock.  Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management may establish prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2015 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan.  As of December 31, 2015, we have not repurchased any shares under the 2015 program.

During 2015 and 2014, we repurchased and retired 0.1 million and 1.3 million shares under the previous program for $6 million and $106 million, respectively. We did not repurchase any shares in 2013.
Accumulated Other Comprehensive Loss
ACCUMULATED OTHER COMPREHENSIVE LOSS
 ACCUMULATED OTHER COMPREHENSIVE LOSS
Comprehensive income (loss) presents a measure of all changes in shareholders’ equity except for changes resulting from transactions with shareholders in their capacity as shareholders. The following summary sets forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
Currency
Translation
Adjustments and Other
 
Net Actuarial
Loss (1)
 
Prior Service
Credit (1)
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
January 1, 2013
 
$
57,860

 
(648,113
)
 
2,634

 
(587,619
)
Amortization
 

 
22,820

 
(1,340
)
 
21,480

Other current period change
 
(21,985
)
 
147,410

 
2,466

 
127,891

December 31, 2013
 
35,875

 
(477,883
)
 
3,760

 
(438,248
)
Amortization
 

 
14,866

 
(2,676
)
 
12,190

Pension lump sum settlement expense
 

 
61,333

 

 
61,333

Other current period change
 
(71,962
)
 
(184,257
)
 
674

 
(255,545
)
December 31, 2014
 
(36,087
)
 
(585,941
)
 
1,758

 
(620,270
)
Amortization
 

 
19,505

 
(1,411
)
 
18,094

Other current period change
 
(99,933
)
 
(10,557
)
 
(69
)
 
(110,559
)
December 31, 2015
 
$
(136,020
)
 
(576,993
)
 
278

 
(712,735
)
_______________________ 
(1)
These amounts are included in the computation of net periodic pension cost and pension settlement charge. See Note 23, "Employee Benefit Plans," for further information. 

The losses from currency translation adjustments of $100 million and $72 million in 2015 and 2014, respectively, were due primarily to the weakening of the Canadian Dollar and British Pound against the U.S. Dollar. The net loss from currency translation adjustments of $22 million in 2013 was due to the weakening of the Canadian Dollar compared to the U.S. Dollar, which was partially offset by the strengthening of the British Pound.
Earnings Per Share
EARNINGS PER SHARE
EARNINGS PER SHARE
The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
305,989

 
220,225

 
243,275

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(877
)
 
(858
)
 
(2,173
)
Earnings from continuing operations available to common shareholders — Basic
 
$
305,112

 
219,367

 
241,102

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
52,814

 
52,536

 
51,617

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
5.78

 
4.18

 
4.67

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
305,989

 
220,225

 
243,275

Less: Distributed and undistributed earnings allocated to unvested stock
 
(872
)
 
(853
)
 
(2,159
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
305,117

 
219,372

 
241,116

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
52,814

 
52,536

 
51,617

Effect of dilutive equity awards
 
446

 
500

 
454

Weighted average common shares outstanding— Diluted
 
53,260

 
53,036

 
52,071

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
5.73

 
4.14

 
4.63

Anti-dilutive equity awards and market-based restrictive stock rights not included above
 
392

 
161

 
785

Share-Based Compensation Plans
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS
The following table provides information on share-based compensation expense and related income tax benefits recognized in 2015, 2014 and 2013:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Stock option and stock purchase plans
 
$
8,048

 
9,023

 
8,303

Unvested stock awards
 
13,133

 
11,882

 
11,007

Share-based compensation expense
 
21,181

 
20,905

 
19,310

Income tax benefit
 
(7,271
)
 
(7,300
)
 
(6,224
)
Share-based compensation expense, net of tax
 
$
13,910

 
13,605

 
13,086


Total unrecognized pre-tax compensation expense related to share-based compensation arrangements at December 31, 2015 was $21 million and is expected to be recognized over a weighted-average period of approximately 1.6 years. The total fair value of equity awards vested during 2015, 2014 and 2013 were $16 million, $18 million and $12 million, respectively.
 


Share-Based Incentive Awards

Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Awards under the Plans principally include at-the-money stock options, unvested stock and cash awards. Unvested stock awards include grants of market-based, performance-based, and time-vested restricted stock rights. Under the terms of our Plans, dividends may be paid on our unvested stock awards. Dividends on unvested stock are not paid unless the award vests. Upon vesting, the amount of the dividends paid is equal to the aggregate dividends declared on common shares during the period from the date of grant of the award until the date the shares underlying the award are delivered. There are 1.1 million shares authorized and available to be granted under the Plans as of December 31, 2015. There are 1.2 million unused shares available to be granted under the Plans as of December 31, 2015.
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. Stock options granted since 2013 have contractual terms of ten years.
Restricted stock awards are unvested stock rights that are granted to employees and entitle the holder to shares of common stock as the award vests. Time-vested restricted stock rights typically vest in three years regardless of company performance. The fair value of the time-vested awards is determined and fixed based on Ryder’s stock price on the date of grant.
Performance-based restricted stock awards (PBRSRs) include a performance-based vesting condition. The awards are segmented into three one-year performance periods. For these awards, up to 125% of the awards may be earned based on Ryder's one-year adjusted return on capital (ROC) measured against an annual ROC target. If earned, employees will receive the grant of stock three years after the grant date, provided they continue to be employed with Ryder, subject to Compensation Committee approval. For accounting purposes, the awards are not considered granted until the Compensation Committee approves the annual ROC target. During 2015, 2014 and 2013, 42,000, 23,000 and 16,000 PBRSRs, respectively, were considered granted for accounting purposes. The fair value of the PBRSRs is determined and fixed on the grant date based on Ryder’s stock price on the date of grant. Share-based compensation expense is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met.
Market-based restricted stock awards include a market-based vesting provision. The awards are segmented into three performance periods of one, two and three years. At the end of each performance period, up to 125% of the award may be earned based on Ryder's total shareholder return (TSR) compared to the target TSR of a peer group over the applicable performance period. The awards compared Ryder's TSR to the TSR of a custom peer group. If earned, employees will receive the grant of stock at the end of the relevant three year performance period provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the market-based awards was determined on the date of grant using a Monte-Carlo valuation model. Share-based compensation expense is recognized on a straight-line basis over the vesting period and is recognized regardless of whether the awards vest.
Certain employees also received 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 awards granted in the respective years. The cash awards are accounted for as liability awards as they are based upon our own stock performance 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 market-based 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 $1 million and $4 million at December 31, 2015 and 2014, 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
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Cash awards
 
$
532

 
1,900

 
996




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 based on Ryder’s stock price on the date of grant. A board member receives the RSUs upon departure from the Board. The initial grant of RSUs will not vest unless the director has served a minimum of one year. When a board member receives 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, 2015:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
1,269

 
$
58.03

 
 
 
 
Granted
 
363

 
93.55

 
 
 
 
Exercised
 
(282
)
 
54.26

 
 
 
 
Forfeited or expired
 
(87
)
 
71.63

 
 
 
 
Options outstanding at December 31
 
1,263

 
$
68.13

 
6.6
 
$
3,326

Vested and expected to vest at December 31
 
1,238

 
$
67.63

 
6.1
 
$
3,358

Exercisable at December 31
 
588

 
$
53.72

 
4.4
 
$
3,339


The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the close 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 if all options were exercised at year-end. This amount fluctuates based on the fair market value of our stock.

Restricted Stock Awards
The following is a summary of the status of Ryder’s unvested restricted stock awards as of and for the year ended December 31, 2015:
 
 
Time-Vested
 
Market-Based
 
Performance-Based
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Unvested stock outstanding at January 1
 
514
 
$
61.83

 
94
 
$
50.27

 
47
 
$
68.29

Granted (1)
 
90
 
91.84

 
19
 
89.40

 
42
 
93.05

Vested (1)
 
(102)
 
53.95

 
(46)
 
43.38

 
 

Forfeited (2)
 
(29)
 
74.06

 
(5)
 
56.98

 
(13)
 
60.57

Unvested stock outstanding at December 31
 
473
 
$
68.50

 
62
 
$
66.97

 
76
 
$
83.31


 
(1) Includes awards attained above target.
(2) Includes awards canceled due to performance and market conditions not being achieved.





Stock Purchase Plan
We maintain an Employee Stock Purchase Plan (ESPP) that 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 of our stock. Beginning with the second quarter of 2015, we amended the ESPP to calculate the exercise price based only on the fair market value of the stock on the last trading day of the quarter. Prior to the second quarter of 2015, the exercise price was based on the lower of the fair market value on the first or last trading day of the quarter. Stock purchased under the ESPP must be held for 90 days. The amount of shares authorized to be issued under the existing ESPP was 4.5 million at December 31, 2015. There were 0.1 million shares available to be purchased under the ESPP at December 31, 2015.
During 2015, 178,000 shares with a weighted average exercise price of $63.93 were granted and exercised. During 2014, 150,000 shares with a weighted average exercise price of $82.27 were granted and exercised. During 2013, 194,000 shares with a weighted average exercise price of $48.72 were granted and exercised.

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,
  
 
2015
 
2014
 
2013
Option plans:
 
 
 
 
 
 
Expected dividends
 
1.6%
 
1.9%
 
2.1%
Expected volatility
 
26.4%
 
29.1%
 
35.1%
Risk-free rate
 
1.4%
 
1.3%
 
0.7%
Expected term in years
 
4.3 years
 
4.3 years
 
4.3 years
Grant-date fair value
 
$18.47
 
$14.99
 
$13.97


Exercise of Employee Stock Options and Purchase Plans
The total intrinsic value of options exercised during 2015, 2014 and 2013 was $11 million, $28 million and $30 million, respectively. The total cash received from employees under all share-based employee compensation arrangements for 2015, 2014 and 2013 was $24 million, $46 million and $87 million, respectively. In connection with these exercises, the tax benefits generated from share-based employee compensation arrangements were $0.4 million, $1 million and $5 million for 2015, 2014 and 2013, respectively.
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS
Pension Plans
We historically sponsored several defined benefit pension plans covering most employees not covered by union-administered plans, including certain employees in foreign countries. These plans generally provided participants with benefits based on years of service and career-average compensation levels. 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 $51 million at each of December 31, 2015 and 2014.
The retirement benefits for non-grandfathered and certain non-union employees in the U.S., Canada and the United Kingdom (U.K.) are frozen. 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. 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.

Pension Expense
Pension expense from continuing operations was as follows:
  
 
Years ended December 31,
  
 
2015
 
2014
 
2013
 
 
(In thousands)
Company-administered plans:
 
 
 
 
 
 
Service cost
 
$
13,820

 
13,023

 
15,991

Interest cost
 
88,013

 
100,909

 
89,682

Expected return on plan assets
 
(98,892
)
 
(115,410
)
 
(106,150
)
Pension lump sum settlement expense
 

 
97,231

 

Census data adjustment
 

 

 
3,905

Amortization of:
 
 
 
 
 
 
Net actuarial loss
 
30,741

 
23,573

 
35,282

Prior service credit
 
(306
)
 
(1,788
)
 
(1,818
)
 
 
33,376

 
117,538

 
36,892

Union-administered plans
 
8,328

 
21,118

 
11,226

Net pension expense
 
$
41,704

 
138,656

 
48,118

 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
U.S.
 
$
34,986

 
118,797

 
37,636

Foreign
 
(1,610
)
 
(1,259
)
 
(744
)
 
 
33,376

 
117,538

 
36,892

Union-administered plans
 
8,328

 
21,118

 
11,226

 
 
$
41,704

 
138,656

 
48,118


 
            
    

During 2014, we offered former vested employees in our U.S. defined benefit plan a one-time option to receive a lump sum distribution of their benefits. We made payments totaling $224 million from the U.S. defined benefit plan assets, which resulted in a settlement of $259 million, representing approximately 12% of our U.S. pension plan obligations. We recognized pension lump sum settlement expense of $97 million for unrecognized actuarial losses as a result of the partial settlement of our pension plan liability. The amount of the lump sum settlement expense is based on the proportionate amount of unrecognized U.S. actuarial net losses equal to the settled percentage of our pension benefit obligation.

During 2013, we determined certain census data used to actuarially determine the value of our pension benefit obligation for the years 1998 to 2012 was inaccurate. We recognized a one-time, non-cash charge of $4 million to adjust our pension benefit obligation for prior year census data in "Selling, general and administrative expenses" in our Consolidated Statement of Earnings.

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,
 
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Discount rate
 
4.15%
 
5.00%
 
4.10%
 
3.70%
 
4.57%
 
4.43%
Rate of increase in compensation levels
 
3.00%
 
3.00%
 
4.00%
 
3.10%
 
3.09%
 
3.55%
Expected long-term rate of return on plan assets
 
5.95%
 
6.50%
 
6.80%
 
5.50%
 
5.94%
 
6.57%
Gain and loss amortization period (years)
 
23
 
23
 
23
 
27
 
27
 
26

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.


Obligations and Funded Status
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:  
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Change in benefit obligations:
 
 
 
 
Benefit obligations at January 1
 
$
2,221,115

 
2,104,749

Service cost
 
13,820

 
13,023

Interest cost
 
88,013

 
100,909

Actuarial (gain) loss
 
(98,996
)
 
380,595

Pension settlement
 

 
(259,319
)
Benefits paid
 
(98,528
)
 
(87,020
)
Foreign currency exchange rate changes
 
(33,580
)
 
(31,822
)
Benefit obligations at December 31
 
2,091,844

 
2,221,115

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at January 1
 
1,775,417

 
1,832,490

Actual return on plan assets
 
(29,024
)
 
178,061

Employer contribution
 
33,746

 
107,483

Benefits paid
 
(98,528
)
 
(87,020
)
Pension settlement
 

 
(223,654
)
Foreign currency exchange rate changes
 
(34,325
)
 
(31,943
)
Fair value of plan assets at December 31
 
1,647,286

 
1,775,417

Funded status
 
$
(444,558
)
 
(445,698
)
Funded percent
 
79
%
 
80
%

The funded status of our pension plans was presented in the Consolidated Balance Sheets as follows:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Noncurrent asset
 
$
44,124

 
2,698

Current liability
 
(3,790
)
 
(3,739
)
Noncurrent liability
 
(484,892
)
 
(444,657
)
Net amount recognized
 
$
(444,558
)
 
(445,698
)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Prior service credit
 
$

 
(195
)
Net actuarial loss
 
905,944

 
905,976

Net amount recognized
 
$
905,944

 
905,781


In 2016, we expect to recognize $32 million of net actuarial loss amortization 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,
 
 
2015
 
2014
 
2015
 
2014
Discount rate
 
4.50%
 
4.15%
 
4.00%
 
3.70%
Rate of increase in compensation levels
 
3.00%
 
3.00%
 
3.10%
 
3.10%

At December 31, 2015 and 2014, 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,
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
 
(In thousands)
Total accumulated benefit obligations
 
$
1,640,844

 
1,689,191

 
423,555

 
487,604

 
2,064,399

 
2,176,795

Plans with pension obligations in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
1,671,949

 
1,728,643

 
7,916

 
9,172

 
1,679,865

 
1,737,815

ABO
 
1,640,844

 
1,689,191

 
6,793

 
5,620

 
1,647,637

 
1,694,811

Fair value of plan assets
 
1,191,182

 
1,289,621

 

 

 
1,191,182

 
1,289,621


Plan Assets 
Our pension investment strategy is to reduce the effects of future volatility on the fair value of our pension assets relative to our pension liabilities. We increase our allocation of high quality, longer-term fixed income securities and reduce our allocation of equity investments as the funded status of the plans improve. 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 72% 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.
    

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, 2015 and 2014:
 
 
 
Fair Value Measurements at
December 31, 2015
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. common collective trusts
 
$
387,123

 

 
387,123

 

Foreign common collective trusts
 
374,858

 

 
374,858

 

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
64,834

 

 
64,834

 

Common collective trusts
 
719,840

 

 
719,840

 

Private equity and hedge funds
 
100,631

 

 

 
100,631

Total
 
$
1,647,286

 

 
1,546,655

 
100,631

 
 
 
Fair Value Measurements at
December 31, 2014
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. common collective trusts
 
$
421,185

 

 
421,185

 

Foreign common collective trusts
 
405,224

 

 
405,224

 

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
70,999

 

 
70,999

 

Common collective trusts
 
788,282

 

 
788,282

 

Private equity and hedge funds
 
89,727

 

 

 
89,727

Total
 
$
1,775,417

 

 
1,685,690

 
89,727



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, 2015 and 2014: 
 
 
2015
 
2014
 
 
(In thousands)
Beginning balance at January 1
 
$
89,727

 
76,499

Return on plan assets:
 
 
 
 
Relating to assets still held at the reporting date
 
5,399

 
4,903

Relating to assets sold during the period
 
226

 
1,882

Purchases, sales, settlements and expenses
 
5,279

 
6,443

Ending balance at December 31
 
$
100,631

 
89,727


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)

2016
$
100,116

2017
102,692

2018
107,483

2019
112,019

2020
115,863

2021-2025
632,110


For 2016, required pension contributions to our pension plans are estimated to be $80 million.
 

Multi-employer Plans
We participate in multi-employer plans that provide defined benefits to certain employees covered by collective-bargaining agreements. Such plans are usually administered by a board of trustees comprised of the management of the participating companies and labor representatives. The net pension cost of these plans is equal to the annual contribution determined in accordance with the provisions of negotiated labor contracts. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following respects: 1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees and former employees of other participating employers; 2) if a participating employer is no longer able to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers at annual contribution rates under the collective bargaining agreements; 3) if there is a mass withdrawal of substantially all employers from the plan, we may be required to pay the plan an annual contribution based on historical contribution levels as prescribed by federal statute; and 4) if we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability.
During 2015, we recognized a benefit of $1 million for adjustments to previously recognized estimated pension settlement charges related to our exit from U.S. multi-employer pension plans. During 2014, we recognized estimated pension settlement charges of $13 million related to the transition of employees from two U.S. multi-employer plans into another multi-employer plan in which we participate, and our exit from two U.S. multi-employer pension plans. These adjustments were included in "Selling, general, and administrative expenses" in our Consolidated Statement of Earnings and are a component of Union-administered plans expense.
Our participation in these plans is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2015 and 2014 is for the plan years ended December 31, 2014 and December 31, 2013, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded.

 
 
 
 
Pension Protection Act Zone Status
 
 
 
Ryder Contributions
 
 
 
Expiration Date(s) of Collective-Bargaining Agreement(s)
Pension Fund
 
Employer Identification Number
 
2015
 
2014
 
FIP/RP Status Pending/ Implemented (1)
 
2015
 
2014
 
2013
 
Surcharge Imposed
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Western Conference Teamsters
 
91-6145047
 
Green
 
Green
 
No
 
$
2,430

 
2,315

 
2,180

 
No
 
1/12/18 to 6/30/19
IAM National
 
51-6031295
 
Green
 
Green
 
No
 
3,801

 
3,311

 
2,987

 
No
 
3/31/16 to 9/30/19
Automobile Mechanics
Local No. 701
 
36-6042061
 
Red
 
Red
 
RP Adopted
 
1,902

 
1,632

 
1,530

 
Yes
 
5/31/16 to 10/31/17
Other funds
 
 
 
 
 
 
 
 
 
704

 
1,296

 
1,709

 
 
 
 
Total contributions
 
 
 
 
 
 
 
 
 
8,837

 
8,554

 
8,406

 
 
 
 
Pension settlement (benefit) charges
 
 
 
 
 
 
 
 
 
(509
)
 
12,564

 
2,820

 
 
 
 
Union-administered plans
 
 
 
 
 
 
 
 
 
$
8,328

 
21,118

 
11,226

 
 
 
 
_____________ 
(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.


Our contributions are impacted by changes in contractual contributions rates as well as changes in the number of employees covered by each plan.

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 $38 million in 2015 and $35 million in each of 2014 and 2013.
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 $44 million and $40 million at December 31, 2015 and 2014, 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 were $43 million and $41 million at December 31, 2015 and 2014, 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 $1 million and $2 million in our common stock at December 31, 2015 and 2014, respectively, is reflected at historical cost and included in shareholders’ equity.
Other Postretirement Benefits
We sponsor plans that provide retired U.S. and Canadian employees with certain healthcare and life insurance benefits. Substantially all U.S. and Canadian employees not covered by union-administered health and welfare plans are eligible for the healthcare benefits. Healthcare benefits for our principal plan are generally provided to qualified retirees under age 65 and eligible dependents. This plan requires employee contributions that vary based on years of service and include provisions that limit our contributions. Effective January 1, 2014, we made amendments to our healthcare benefits for early retirees which modified future eligibility requirements for non-grandfathered retirees in the U.S. The post-retirement medical plan was closed to participants who were not at least age 52 with 12 years of service as of December 31, 2013.

Total postretirement benefit expense was as follows: 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Service cost
 
$
363

 
446

 
981

Interest cost
 
1,097

 
1,421

 
1,580

Amortization of:
 
 
 
 
 
 
Net actuarial gain
 
(1,773
)
 
(725
)
 
(14
)
Prior service credit
 
(1,083
)
 
(2,459
)
 
(231
)
Postretirement benefit (income) expense
 
$
(1,396
)
 
(1,317
)
 
2,316

 
 
 
 
 
 
 
U.S.
 
$
(1,887
)
 
(1,839
)
 
1,625

Foreign
 
491

 
522

 
691

 
 
$
(1,396
)
 
(1,317
)
 
2,316



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,
 
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Discount rate
 
4.15%
 
5.00%
 
4.10%
 
4.00%
 
4.80%
 
4.00%

 
Our postretirement benefit plans are not funded. The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Benefit obligations at January 1
 
$
29,001

 
30,788

Service cost
 
363

 
446

Interest cost
 
1,097

 
1,421

Actuarial gain
 
(6,164
)
 
(1,010
)
Benefits paid
 
(1,468
)
 
(1,989
)
Foreign currency exchange rate changes
 
(1,203
)
 
(655
)
Benefit obligations at December 31
 
$
21,626

 
29,001


Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Current liability
 
$
1,624

 
2,112

Noncurrent liability
 
20,002

 
26,889

Amount recognized
 
$
21,626

 
29,001



Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Prior service credit
 
$
(616
)
 
(2,527
)
Net actuarial gain
 
(11,825
)
 
(5,933
)
Net amount recognized
 
$
(12,441
)
 
(8,460
)

In 2016, we expect to recognize approximately $2 million of the net actuarial gain as a component of postretirement benefit expense. The amount of prior service credit we expect to recognize in 2016 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,
 
 
2015
 
2014
 
2015
 
2014
Discount rate
 
4.50
%
 
4.15
%
 
4.00
%
 
4.00
%
Rate of increase in compensation levels
 
3.00
%
 
3.00
%
 
3.00
%
 
3.00
%
Healthcare cost trend rate assumed for next year
 
6.75
%
 
7.00
%
 
5.50
%
 
6.00
%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
 
2023

 
2023

 
2017

 
2017


Changing the assumed healthcare cost trend rates by 1% in each year would not have a material effect on the accumulated postretirement benefit obligation at December 31, 2015 or annual postretirement benefit expense for 2015.
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)

2016
$
1,646

2017
1,640

2018
1,631

2019
1,620

2020
1,591

2021-2025
7,464

Environmental Matters
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS
Our operations involve storing and dispensing petroleum products, primarily diesel fuel, regulated under environmental protection laws. These laws require us to eliminate or mitigate the effect of such substances on the environment. In response to these requirements, we continually upgrade our operating facilities and implement various programs to detect and minimize contamination. In addition, we have received notices from the Environmental Protection Agency (EPA) and others that we have been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and Reauthorization Act and similar state statutes and may be required to share in the cost of cleanup of 19 identified disposal sites.
Our environmental expenses which are presented within “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 $9 million, $7 million and $9 million in 2015, 2014 and 2013, respectively. The carrying amount of our environmental liabilities was $10 million and $12 million at December 31, 2015 and 2014, respectively. Our asset retirement obligations related to fuel tanks to be removed are not included above and are included in “Accrued expenses and other current liabilities” and “Other non-current liabilities” in our Consolidated Balance Sheets.
The ultimate cost of our environmental liabilities cannot presently be projected with certainty due to the presence of several unknown factors, primarily the level of contamination, the effectiveness of selected remediation methods, the stage of investigation at individual sites, the determination of our liability in proportion to other responsible parties and the recoverability of such costs from third parties. Based on information presently available, we believe that the ultimate disposition of these matters, although potentially material to the results of operations in any one year, will not have a material adverse effect on our financial condition or liquidity.
Other Items Impacting Comparability
OTHER ITEMS IMPACTING COMPARABILITY
OTHER ITEMS IMPACTING COMPARABILITY
Our primary measure of segment performance as shown in Note 29, "Segment Reporting", 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:
 
Years ended December 31,

 
2015
 
2014
 
2013
 
 
 
(In thousands)
 
 
Pension lump sum settlement loss (1)
$

 
(97,231
)
 

Pension settlement benefit (charges) (1)
509

 
(12,564
)
 
(2,820
)
Restructuring and other (charges) recoveries, net (2)
(14,225
)
 
(2,387
)
 
470

Acquisition-related tax adjustment

 
(1,808
)
 

Acquisition transaction costs

 
(566
)
 

Consulting fees
(3,843
)
 
(400
)
 

Foreign currency translation benefit

 

 
1,904

Superstorm Sandy vehicle-related recoveries

 

 
600

Restructuring and other (charges) recoveries, net and other items
$
(17,559
)
 
(114,956
)
 
154

_______________
(1) Refer to Note 23, "Employee Benefit Plans," for additional information. 
(2) Refer to Note 5, "Restructuring and Other Charges (Recoveries)," for additional information. 

During 2015 and 2014, we incurred charges of $4 million and $0.4 million, respectively, in "Selling, general and administrative expenses" in our Consolidated Statements of Earnings related to consulting fees associated with cost savings initiatives.
During 2014, we incurred charges of $2 million related to tax adjustments for the 2011 Hill Hire acquisition. We reported the cumulative adjustment within “Selling, general and administrative expenses” in our Consolidated Statements of Earnings.
During 2013, we recognized a benefit of $2 million in “Miscellaneous income, net” in our Consolidated Statements of Earnings from the recognition of the accumulated currency translation adjustment from an FMS foreign operation which substantially liquidated its net assets.
Other Matters
OTHER MATTERS
OTHER MATTERS
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 established 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.
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 established 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 in prior years for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We successfully overturned these federal tax assessments in the lower courts; however, there is a reasonable possibility that these rulings could be reversed and we would be required to pay the assessments. We believe it is more likely than not that our position will ultimately be sustained if appealed and no amounts have been reserved for these matters. We are entitled to indemnification for a portion of any resulting liability on these federal tax claims which, if honored, would reduce the estimated loss.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information was as follows:  
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Interest paid
 
$
144,973

 
139,595

 
132,946

Income taxes paid
 
13,379

 
11,382

 
13,063

Changes in accounts payable related to purchases of revenue earning equipment
 
28,134

 
39,071

 
43,745

Operating and revenue earning equipment acquired under capital leases
 
5,959

 
7,972

 
5,698

Miscellaneous Income, Net
MISCELLANEOUS INCOME, NET
 
Years ended December 31,
 
2015
 
2014
 
2013
 
 
Gains on sales of operating property and equipment
$
3,045

 
2,909

 
1,020

Business interruption insurance recoveries

 
808

 
2,743

Contract settlement
55

 
3,014

 

Foreign currency translation benefit (1)

 

 
1,904

Foreign currency transaction gains/(losses)
1,945

 
(210
)
 
40

Rabbi trust investment income
632

 
2,726

 
4,475

Other, net
4,479

 
4,366

 
5,190

Total
$
10,156

 
13,613

 
15,372

____________________________
(1) Refer to Note 25, "Other Items Impacting Comparability," for additional information
Segment Reporting
SEGMENT REPORTING
SEGMENT REPORTING

Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. During the first quarter of 2015, our management structure changed within the supply chain business. We created the role of President of DTS for the dedicated product offering which previously was within SCS. We are now reporting our financial performance as follows: (1) FMS, which provides full service leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S.; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. Dedicated transportation services provided as part of an integrated, multi-service, supply chain solution to SCS customers are reported in the SCS business segment.
Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs, restructuring and other charges (recoveries), net discussed in Note 5, "Restructuring and Other Charges (Recoveries)" and items discussed in Note 25, "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, marketing and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS, DTS 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 under various methods, 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 DTS and SCS segments. Inter-segment revenue and EBT are accounted for at rates similar to those executed with third parties. EBT related to inter-segment equipment and services billed to customers (equipment contribution) are included in both FMS and the business segment which served the customer 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,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
Fleet Management Solutions:
 
 
 
 
 
 
Full service lease
 
$
2,220,929

 
2,102,703

 
2,016,570

Commercial rental
 
900,624

 
836,719

 
753,456

Full service lease and commercial rental
 
3,121,553

 
2,939,422

 
2,770,026

Contract maintenance
 
190,989

 
182,411

 
178,001

Contract-related maintenance
 
200,148

 
196,841

 
186,580

Other
 
77,625

 
71,064

 
72,029

Fuel services revenue
 
538,277

 
787,887

 
829,586

Total Fleet Management Solutions from external customers
 
4,128,592

 
4,177,625

 
4,036,222

Inter-segment revenue
 
417,100

 
478,133

 
458,464

Fleet Management Solutions
 
4,545,692

 
4,655,758

 
4,494,686

Dedicated Transportation Solutions
 
895,538

 
899,802

 
831,599

Supply Chain Solutions
 
1,547,763

 
1,561,347

 
1,551,464

Eliminations
 
(417,100
)
 
(478,133
)
 
(458,464
)
Total revenue
 
$
6,571,893

 
6,638,774

 
6,419,285

 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
Fleet Management Solutions
 
$
462,109

 
433,736

 
344,169

Dedicated Transportation Solutions
 
45,800

 
44,556

 
40,926

Supply Chain Solutions
 
93,754

 
77,800

 
89,033

Eliminations
 
(47,193
)
 
(41,361
)
 
(35,489
)
 
 
$
554,470

 
514,731

 
438,639

Unallocated Central Support Services
 
(48,510
)
 
(51,740
)
 
(45,493
)
Non-operating pension costs
 
(19,186
)
 
(9,768
)
 
(24,285
)
Restructuring and other (charges) recoveries, net and other items(1)
 
(17,559
)
 
(114,956
)
 
154

Earnings before income taxes from continuing operations
 
$
469,215

 
338,267

 
369,015

______________ 
(1)
See Note 25, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.

The following table sets forth share-based compensation expense, depreciation expense, gains on vehicle sales, net, amortization expense and other non-cash charges, net, interest expense (income), capital expenditures paid and total assets for the years ended December 31, 2015, 2014 and 2013 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments. The table reflects the reclassification of current deferred tax assets to non-current as discussed in Note 2, "Recent Accounting Pronouncements":
 
 
 
FMS
 
DTS
 
SCS
 
CSS
 
Eliminations
 
Total
 
 
(In thousands)
2015
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
5,672

 
1,155

 
3,400

 
10,954

 

 
21,181

Depreciation expense (1)
 
$
1,110,706

 
3,184

 
25,721

 
311

 

 
1,139,922

Gains on vehicles sales, net
 
$
(117,714
)
 
(54
)
 
(41
)
 

 

 
(117,809
)
Amortization expense and other non-cash charges, net
 
$
36,348

 
1,878

 
2,971

 
29,565

 

 
70,762

Interest expense (income) (2)
 
$
154,276

 
(1,597
)
 
(2,174
)
 
(71
)
 

 
150,434

Capital expenditures paid
 
$
2,595,961

 
3,570

 
27,841

 
40,606

 

 
2,667,978

Total assets
 
$
10,076,321

 
275,634

 
636,647

 
202,129

 
(222,922
)
 
10,967,809

2014
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
4,895

 
720

 
3,661

 
11,629

 

 
20,905

Depreciation expense (1)
 
$
1,028,781

 
3,211

 
25,636

 
185

 

 
1,057,813

Gains on vehicles sales, net
 
$
(126,410
)
 
5

 
(419
)
 

 

 
(126,824
)
Pension lump sum settlement expense
 
$
76,239

 
3,335

 
3,277

 
14,380

 

 
97,231

Amortization expense and other non-cash charges, net
 
$
19,936

 
516

 
1,309

 
25,502

 

 
47,263

Interest expense (income) (2)
 
$
147,247

 
(1,520
)
 
(807
)
 
(181
)
 

 
144,739

Capital expenditures paid (3)
 
$
2,166,319

 
1,883

 
20,941

 
70,021

 

 
2,259,164

Total assets
 
$
9,011,883

 
211,388

 
673,876

 
193,484

 
(239,760
)
 
9,850,871

2013
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
4,979

 
851

 
4,083

 
9,397

 

 
19,310

Depreciation expense (1)
 
$
953,193

 
3,335

 
26,225

 
857

 

 
983,610

Gains on vehicle sales, net
 
$
(96,011
)
 
(117
)
 
(47
)
 

 

 
(96,175
)
Amortization expense and other non-cash charges, net
 
$
19,071

 
946

 
2,694

 
33,678

 

 
56,389

Interest expense (income) (2)
 
$
142,555

 
(1,316
)
 
(548
)
 
(228
)
 

 
140,463

Capital expenditures paid (3)
 
$
2,074,708

 
1,563

 
21,114

 
25,243

 

 
2,122,628

Total assets
 
$
8,404,606

 
203,563

 
640,837

 
154,024

 
(234,690
)
 
9,168,340

____________ 
(1)
Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $22 million, $21 million and $14 million during 2015, 2014 and 2013, respectively, associated with CSS assets was allocated to other business segments.
(2)
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 income was also reflected in DTS and SCS based on targeted segment leverage ratios.
(3)
Excludes acquisition payments of $10 million and $2 million in 2014 and 2013, respectively. See Note 4, “Acquisitions,” for additional information.

Geographic Information 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
United States
 
$
5,603,697

 
5,614,037

 
5,411,376

Foreign:
 
 
 
 
 
 
Canada
 
408,325

 
435,280

 
455,440

Europe
 
391,339

 
400,853

 
372,209

Mexico
 
139,583

 
158,481

 
161,279

Asia
 
28,949

 
30,123

 
18,981

 
 
968,196

 
1,024,737

 
1,007,909

Total
 
$
6,571,893

 
6,638,774

 
6,419,285

Long-lived assets:
 
 
 
 
 
 
United States
 
$
7,817,628

 
6,790,946

 
6,098,635

Foreign:
 
 
 
 
 
 
Canada
 
504,027

 
530,316

 
529,880

Europe
 
545,630

 
553,467

 
568,850

Mexico
 
31,993

 
26,230

 
29,008

Asia
 
427

 
521

 
279

 
 
1,082,077

 
1,110,534

 
1,128,017

Total
 
$
8,899,705

 
7,901,480

 
7,226,652


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 2015, 2014 and 2013, the automotive industry accounted for approximately 41%, 43% and 44%, 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)
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,567,153

 
53,326

 
52,789

 
1.01

 
1.00

 
1.00

 
0.99

Second quarter
 
1,662,931

 
85,917

 
85,159

 
1.62

 
1.61

 
1.61

 
1.59

Third quarter
 
1,669,066

 
90,811

 
90,619

 
1.71

 
1.70

 
1.71

 
1.69

Fourth quarter
 
1,672,743

 
75,935

 
76,201

 
1.43

 
1.42

 
1.44

 
1.43

Full year
 
$
6,571,893

 
305,989

 
304,768

 
5.78

 
5.73

 
5.75

 
5.71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,610,737

 
49,126

 
48,260

 
0.93

 
0.92

 
0.91

 
0.90

Second quarter
 
1,684,571

 
75,721

 
75,385

 
1.43

 
1.42

 
1.43

 
1.41

Third quarter
 
1,687,150

 
83,895

 
83,617

 
1.60

 
1.58

 
1.59

 
1.57

Fourth quarter
 
1,656,316

 
11,483

 
11,079

 
0.22

 
0.22

 
0.21

 
0.21

Full year
 
$
6,638,774

 
220,225

 
218,341

 
4.18

 
4.14

 
4.14

 
$
4.11



Note: EPS amounts may not be additive due to rounding.

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. During 2015, we determined that the structure of our sale and leaseback transactions did not qualify for deconsolidation and should not be treated as off-balance sheet operating leases. 2014 consolidated financial information has been revised to conform to the 2015 presentation.
See Note 5, “Restructuring and Other Charges (Recoveries),” and Note 25, “Other Items Impacting Comparability,” for items included in earnings during 2015 and 2014.
Valuation and Qualifying Accounts
VALUATION AND QUALIFYING ACCOUNTS
 
 
 
 
Additions
 
 
 
 
Description
 
Balance at
Beginning
of Period
 
Charged to
Earnings
 
Transferred
from Other
Accounts (1)
 
Deductions (2)
 
Balance
at End
of Period
 
 
(In thousands)
2015
 
 
 
 
 
 
 
 
 
 
Accounts receivable allowance
 
$
16,388

 
11,172

 

 
12,000

 
15,560

Direct finance lease allowance
 
$
288

 
1,495

 

 
1,540

 
243

Self-insurance accruals (3)
 
$
300,994

 
308,026

 
68,999

 
366,198

 
311,821

Valuation allowance on deferred tax assets
 
$
24,742

 
(1,150
)
 

 
8,601

 
14,991

2014
 
 
 
 
 
 
 
 
 
 
Accounts receivable allowance
 
$
16,955

 
7,086

 

 
7,653

 
16,388

Direct finance lease allowance
 
$
501

 
47

 

 
260

 
288

Self-insurance accruals (3)
 
$
290,255

 
273,509

 
62,548

 
325,318

 
300,994

Valuation allowance on deferred tax assets
 
$
33,793

 
(976
)
 

 
8,075

 
24,742

2013
 
 
 
 
 
 
 
 
 
 
Accounts receivable allowance
 
$
15,429

 
7,561

 

 
6,035

 
16,955

Direct finance lease allowance
 
$
703

 
205

 

 
407

 
501

Self-insurance accruals (3)
 
$
279,157

 
266,314

 
60,235

 
315,451

 
290,255

Valuation allowance on deferred tax assets
 
$
38,182

 
1,627

 

 
6,016

 
33,793

______________ 
(1)
Transferred from other accounts includes employee contributions made to the medical and dental self-insurance plans.
(2)
Deductions represent write-offs, lease termination payments, insurance claim payments during the period and net foreign currency translation adjustments.
(3)
Self-insurance accruals include vehicle liability, workers’ compensation, property damage, cargo and medical and dental, which comprise our self-insurance programs. Amounts charged to earnings include developments in prior year selected loss development factors which charged earnings by $4 million in 2015, and benefited earnings by $14 million and $5 million in 2014 and 2013, respectively.
Summary of Significant Accounting Policies (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 have been eliminated in consolidation.
During the first quarter of 2015, our management structure changed within the supply chain business. We created the role of President of Dedicated Transportation Solutions (DTS) for the dedicated product offering which was within Supply Chain Solutions (SCS). Beginning with the current year, we reported our financial performance based on our new segments: (1) Fleet Management Solutions (FMS), which provides full service leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Asia. Dedicated services provided as part of an integrated, multi-service, supply chain solution continue to be reported in the SCS business segment. Prior period amounts have been recast to conform to the new presentation. This change impacted Note 10, "Goodwill," and Note 29, "Segment Reporting," with no impact on consolidated revenues, net income or cash flows.
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), 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.
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 the price 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. A full service lease is marketed, priced and managed as a bundled lease arrangement, which includes equipment, service and financing components. We do not offer a stand-alone unbundled finance lease of vehicles. For these reasons, both the lease and service components of our full service leases are included within lease and rental revenues.
Our full service lease arrangements include lease deliverables such as the lease of a vehicle and the executory agreement for the maintenance, insurance, taxes and other services related to the leased vehicles during the lease term. Arrangement consideration is allocated between lease deliverables and non-lease deliverables based on management’s best estimate of the relative fair value of each deliverable. The arrangement consideration allocated to lease deliverables is accounted for pursuant to accounting guidance on leases. Our full service lease arrangements provide for a fixed charge billing and a variable charge billing based on mileage or time usage. Fixed charges are typically billed at the beginning of the month for the services to be provided that month. Variable charges are typically billed a month in arrears. Costs associated with the activities performed under our full service leasing arrangements are primarily comprised of labor, parts, outside work, depreciation, licenses, insurance, operating taxes and vehicle financing. These costs are expensed as incurred except for depreciation. Refer to “Summary of Significant Accounting Policies – Revenue Earning Equipment, Operating Property and Equipment, and Depreciation” for information regarding our depreciation policies. Non-chargeable maintenance costs have been allocated and reflected within “Cost of lease and rental” based on the maintenance-related labor costs relative to all product lines.
Revenue from lease and rental agreements is recognized based on the classification of the arrangement, typically as either an operating or direct finance lease (DFL).

The majority of our leases and all of our rental arrangements are classified as operating leases and, therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs.

The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term.

Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Recognition of income on direct finance leases is suspended when management determines that collection of future income is not probable, which is at the point that 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 uncertainty is removed. Cash receipts on impaired direct finance lease receivables are first applied to 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 DTS and SCS revenues.
Under our contract maintenance arrangements, we provide maintenance and repairs required to keep a vehicle in good operating condition, schedule preventive maintenance inspections and provide 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 proportionate maintenance-related labor costs relative to all product lines.
Revenue from DTS and 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 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 trailing 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.
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 (including tire replacement or repair) 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 recognized throughout the Consolidated Statement of Earnings 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 lives 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.
Gains and losses on sales of operating property and equipment are reflected in “Miscellaneous income, net.”
Goodwill and Other Intangible Assets
Goodwill on acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in our acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) our strategies for growth in sales, income and cash flows.
Goodwill and other intangible assets with indefinite useful lives are not amortized, but rather, are tested for impairment at least annually (April 1st). In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether further impairment testing is necessary. Among other relevant events and circumstances that affect the fair value of reporting units, we consider individual factors such as macroeconomic conditions, changes in our industry and the markets in which we operate as well as our reporting units' historical and expected future financial performance. If we conclude that it is more likely than not that a reporting unit's fair value is less than its carrying value, recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of each of our reporting units with its carrying amount. If a reporting unit’s carrying amount exceeds its fair value, the second step is performed. The second step involves a comparison of the implied fair value and carrying value of that reporting unit’s goodwill. To the extent that a reporting unit’s carrying amount exceeds the implied fair value of its goodwill, an impairment loss is recognized.
Our valuation of fair value for certain reporting units is determined based on an average of discounted future cash flow models that use ten years of projected cash flows and various terminal values based on multiples, book value or growth assumptions. For certain reporting units, fair value is determined based on the application of current trading multiples for comparable publicly-traded companies and the historical pricing multiples for comparable merger and acquisition transactions that have occurred in our industry. Rates used to discount cash flows are dependent upon interest rates and the cost of capital based on our industry and capital structure adjusted for equity and size risk premiums based on market capitalization. Estimates of future cash flows are dependent on our knowledge and experience about past and current events and assumptions about conditions we expect to exist, including long-term growth rates, capital requirements and useful lives. Our estimates of cash flows are also based on historical and future operating performance, economic conditions and actions we expect to take. In addition to these factors, our DTS reporting unit and SCS reporting units are dependent on several key customers or industry sectors. The loss of a key customer may have a significant impact to our DTS reporting unit or one of our SCS reporting units, causing us to assess whether or not the event resulted in a goodwill impairment loss.
In making our assessments of fair value, we rely on our knowledge and experience about past and current events and assumptions about conditions we expect to exist in the future. These assumptions are based on a number of factors including future operating performance, economic conditions, actions we expect to take, and present value techniques. 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.
Self-Insurance Accruals
We retain a portion of the accident risk under auto liability, workers’ compensation and other insurance programs. Under our insurance programs, we retain the risk of loss in various amounts generally up to $3 million on a per occurrence basis. Self-insurance accruals are based primarily on an actuarially estimated, undiscounted cost of claims, which includes claims incurred but not reported. Such liabilities are based on estimates. Historical loss development factors are utilized to project the future development of incurred losses, and these amounts are adjusted based upon actual claim experience and settlements. While we believe that the amounts are adequate, there can be no assurance that changes to our actuarial estimates may not occur due to limitations inherent in the estimation process. Changes in the actuarial estimates of these accruals are charged or credited to earnings in the period determined. Amounts estimated to be paid within the next year have been classified as “Accrued expenses and other current liabilities” with the remainder included in “Other non-current liabilities” in our Consolidated Balance Sheets.
We also maintain additional insurance at certain amounts in excess of our respective underlying retention. Amounts recoverable from insurance companies are not offset against the related accrual as our insurance policies do not extinguish or provide legal release from the obligation to make payments related to such risk-related losses. Amounts expected to be received within the next year from insurance companies have been included within “Receivables, net” with the remainder included in “Direct financing leases and other assets” and are recognized only when realization of the claim for recovery is considered probable. The accrual for the related claim has been classified within “Accrued expenses and other current liabilities” if it is estimated to be paid within the next year, otherwise it has been classified in “Other non-current liabilities” in our Consolidated Balance Sheets.
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 Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we determine whether the benefits of our tax positions 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 accruals 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. We adjust these reserves, including any impact on the related interest and penalties, in light of changing facts and circumstances, such as the progress of a tax audit.
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 recognize 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 is included in "Restructuring and other charges (recoveries), net” in the Consolidated Statements of Earnings. Severance costs that are not part of a restructuring plan are recognized 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 recognize 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 recognized 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 recognized when recovery is deemed probable.
Derivative Instruments and Hedging Activities
We use financial instruments, including forward exchange contracts, futures, swaps and cap agreements to manage our exposures to movements in interest rates and foreign currency exchange rates. The use of these financial instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We do not enter into derivative financial instruments for trading purposes. We limit our risk that counterparties to the derivative contracts will default and not make payments by entering into derivative contracts only with counterparties comprised of large banks and financial institutions that meet established credit criteria. We do not expect to incur any losses as a result of counterparty default.
On the date a derivative contract is executed, 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 unrealized gain or loss on a derivative instrument not designated as an accounting hedging instrument is recognized immediately 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 recognized 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 recognized net of tax 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 recognized 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 recognized in earnings and reported in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Foreign Currency Translation
Our foreign operations generally use 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. Items in the Consolidated Statements of Earnings are translated at the average exchange rates for the year. The impact of currency fluctuations is presented in “Changes in cumulative translation adjustment and other” in the Consolidated Statements of Comprehensive Income (Loss). 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 recognized in “Miscellaneous income, net” in the Consolidated Statements of Earnings.
Share-Based Compensation
The fair value of stock option awards and nonvested stock awards other than restricted stock units (RSUs), is expensed on a straight-line basis over the vesting period of the awards. RSUs are expensed in the year they are granted. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows on an award-by-award basis. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to additional paid-in capital in the Consolidated Balance Sheets. Realized tax shortfalls are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. Tax shortfalls are classified as operating cash flows on an award-by-award basis, with no netting of amounts credited to equity from windfall tax benefits.
Earnings Per Share
Earnings per share is computed using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Restricted stock units are considered participating securities since the share-based awards contain a non-forfeitable right to dividend equivalents irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.
Diluted earnings per common share reflect the dilutive effect of potential common shares from stock options and other nonparticipating nonvested stock. The dilutive effect of stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Share Repurchases
Repurchases of shares of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. The cost of share repurchases is allocated between common stock and retained earnings based on the amount of additional paid-in capital at the time of the share repurchase.
Defined Benefit Pension and Postretirement Benefit Plans
The funded status of our defined benefit pension plans and postretirement benefit plans are recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. The fair value of plan assets represents the current market value of contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. For postretirement benefit plans, the benefit obligation represents the actuarial present value of postretirement benefits attributed to employee services already rendered. Overfunded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and reported as a prepaid pension asset. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and reported as a pension and postretirement benefit liability.
The current portion of pension and postretirement benefit liabilities represents the actuarial present value of benefits payable within the next year exceeding the fair value of plan assets (if funded), measured on a plan-by-plan basis. These liabilities are recognized 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. 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 losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Net actuarial loss and prior service credit not recognized as a component of pension and postretirement benefit expense as they arise are recognized as "Change in net actuarial loss and prior service credit, net of tax" in the Consolidated Statements of Comprehensive Income (Loss). 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.
The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturities of these financial instruments. 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 and derivatives 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.
Revisions of Prior Period Financial Statements (Tables)
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
The effects of this revision on the individual line items within our Consolidated Statements of Cash Flows were as follows (in millions):
 
Year ended December 31, 2014
 
Year ended December 31, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Net earnings
$
218.6

(0.3
)
218.3

 
$
237.8

0.1

237.9

Depreciation expense
1,040.3

17.6

1,057.8

 
957.1

26.5

983.6

Accrued expenses and other non-current liabilities
(48.7
)
(4.4
)
(53.1
)
 
(66.6
)
2.2

(64.4
)
Net cash provided by operating activities from continuing operations
1,370.0

12.8

1,382.8

 
1,223.1

28.7

1,251.8

Debt proceeds
839.7

125.8

965.5

 
557.0


557.0

Debt repaid, including capital lease obligations
(280.7
)
(12.8
)
(293.5
)
 
(332.6
)
(46.6
)
(379.2
)
Net cash provided by financing activities from continuing operations
198.7

113.0

311.7

 
393.6

(46.5
)
347.1

Purchases of property and revenue earning equipment
(2,259.2
)

(2,259.2
)
 
(2,140.5
)
17.9

(2,122.6
)
Sale and leaseback of revenue earning equipment
125.8

(125.8
)

 



Net cash used in investing activities from continuing operations
(1,578.7
)
(125.8
)
(1,704.5
)
 
(1,621.7
)
17.9

(1,603.8
)
The effects of this revision on our Consolidated Statements of Earnings were as follows (in millions except per share amounts):
 
Year ended December 31, 2014
 
Year ended December 31, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Cost of lease and rental (1)
$
2,039.3

(2.4
)
2,036.9

 
$
1,928.9

(3.4
)
1,925.5

Interest expense
142.1

2.6

144.7

 
137.2

3.3

140.5

Earnings from continuing operations before income taxes
338.5

(0.2
)
338.3

 
368.9

0.1

369.0

Provision for income taxes
118.1

(0.1
)
118.0

 
125.7


125.7

Earnings from continuing operations
220.5

(0.3
)
220.2

 
243.2

0.1

243.3

Net earnings
218.6

(0.3
)
218.3

 
237.8

0.1

237.9


(1) Includes revised rent expense disclosed in Note 15, "Leases."
The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions):
 
Comprehensive Income
 
As Previously Reported
Adjustment
As Revised
Year ended December 31, 2014
$
36.6

(0.2
)
36.3

Year ended December 31, 2013
387.2

0.1

387.2

The effects of this revision on our Consolidated Balance Sheet as of December 31, 2014 were as follows (in millions):
 
As Previously Reported
Adjustment
As Revised
Revenue earning equipment, net
$
6,994.4

207.5

7,201.9

Total assets (1)
9,676.0

174.9

9,850.9

Short-term debt and current portion of long-term debt
12.2

24.1

36.3

Accrued expenses and other current liabilities
520.5

(6.8
)
513.7

Total current liabilities
1,093.6

17.2

1,110.8

Long-term debt
4,500.3

194.0

4,694.3

Other non-current liabilities
786.7

(3.4
)
783.3

Deferred income taxes (1)
1,476.0

(32.7
)
1,443.3

Total liabilities (1)
7,856.5

175.3

8,031.8

Retained earnings
1,450.9

(0.4
)
1,450.5

Total shareholders’ equity
1,819.5

(0.4
)
1,819.1

Total liabilities and shareholders’ equity (1)
9,676.0

174.9

9,850.9


_______________ 
(1) Adjustment includes reclassification of current deferred tax assets to non-current as discussed in Note 2, "Recent Accounting Pronouncements."  

Restructuring and Other Charges (Recoveries) (Tables)
The following table summarizes the activities within, and components of, restructuring liabilities for 2015, 2014 and 2013 (in thousands): 
 
 
Employee Termination Costs
 
Other Charges
 
Total
Balance as of December 31, 2012
 
$
3,147

 
1,728

 
4,875

Workforce reduction charges
 
84

 

 
84

Utilization (1)
 
(2,891
)
 
(1,409
)
 
(4,300
)
Balance as of December 31, 2013
 
340

 
319

 
659

Workforce reduction charges
 
2,387

 

 
2,387

Utilization (1)
 
(241
)
 
(319
)
 
(560
)
Balance as of December 31, 2014
 
2,486

 

 
2,486

Workforce reduction charges
 
8,830

 

 
8,830

CRSAL divestiture and RCT shut-down
 
3,225

 

 
3,225

Utilization (1)
 
(2,208
)
 

 
(2,208
)
Balance as of December 31, 2015 (2)
 
$
12,333

 

 
12,333


_________________ 
Note: The restructuring liabilities shown above are included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets.

(1) Principally represents cash payments.
(2) The majority of the balance remaining for employee termination costs is expected to be paid by the end of 2016.
However, the applicable portion of the restructuring and other charges (recoveries), net that related to each segment in 2015, 2014 and 2013 were as follows:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Fleet Management Solutions
 
$
4,817

 
515

 
(470
)
Dedicated Transportation Solutions
 
250

 
154

 

Supply Chain Solutions
 
7,033

 
797

 

Central Support Services
 
2,125

 
921

 

Total
 
$
14,225

 
2,387

 
(470
)
Receivables (Tables)
Schedule of receivables
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Trade
 
$
708,832

 
693,114

Direct financing leases
 
90,055

 
85,946

Other, primarily warranty and insurance
 
52,162

 
32,192

 
 
851,049

 
811,252

Allowance
 
(15,560
)
 
(16,388
)
Total
 
$
835,489

 
794,864

Prepaid Expenses and Other Current Assets (Tables)
Prepaid expenses and other current assets
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Restricted cash
 
$
5,352

 
13,499

Prepaid vehicle licenses
 
47,806

 
47,561

Prepaid operating taxes
 
18,510

 
15,208

Prepaid sales commission
 
11,446

 
12,255

Other
 
55,029

 
44,158

Total
 
$
138,143

 
132,681

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
 
Estimated
Useful
Lives
 
December 31, 2015
 
December 31, 2014
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
 
$
8,839,941

 
(2,723,605
)
 
6,116,336

 
8,008,123

 
(2,598,140
)
 
5,409,983

Commercial rental
 
4.5 — 12
 
2,811,715

 
(907,412
)
 
1,904,303

 
2,570,081

 
(864,543
)
 
1,705,538

Held for sale
 
 
 
496,634

 
(332,538
)
 
164,096

 
312,698

 
(226,333
)
 
86,365

Total
 
 
 
$
12,148,290

 
(3,963,555
)
 
8,184,735

 
10,890,902

 
(3,689,016
)
 
7,201,886

_______________ 
(1)
Revenue earning equipment, net includes vehicles under capital leases of $47 million, less accumulated depreciation of $22 million, at December 31, 2015 and $48 million, less accumulated depreciation of $22 million, at December 31, 2014.
Operating Property And Equipment (Tables)
Schedule of operating property and equipment
 
 
Estimated
Useful  Lives
 
December 31,
 
 
2015
 
2014
 
 
(In years)
 
(In thousands)
Land
 
 
$
203,543

 
201,089

Buildings and improvements
 
10 — 40
 
776,304

 
766,360

Machinery and equipment
 
3 — 10
 
709,173

 
663,616

Other
 
3 — 10
 
109,554

 
103,557

 
 
 
 
1,798,574

 
1,734,622

Accumulated depreciation
 
 
 
(1,083,604
)
 
(1,035,028
)
Total
 
 
 
$
714,970

 
699,594

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
 
Dedicated Transportation Solutions
 
Supply
Chain
Solutions
 
Total
 
 
(In thousands)
Balance at January 1, 2014
 
 
 
 
 
 
 
 
Goodwill
 
$
223,204

 
40,808

 
148,928

 
412,940

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
212,882

 
40,808

 
130,029

 
383,719

Acquisitions
 
11,839

 

 

 
11,839

Foreign currency translation adjustment
 
(1,826
)
 

 
(703
)
 
(2,529
)
Balance at December 31, 2014
 
 
 
 
 
 
 
 
Goodwill
 
233,217

 
40,808

 
148,225

 
422,250

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
222,895

 
40,808

 
129,326

 
393,029

Reclassification to assets held for sale
 

 

 
(852
)
 
(852
)
Foreign currency translation adjustment
 
(1,859
)
 

 
(1,183
)
 
(3,042
)
Balance at December 31, 2015
 
 
 

 
 
 
 
Goodwill
 
231,358

 
40,808

 
146,190

 
418,356

Accumulated impairment losses
 
(10,322
)
 

 
(18,899
)
 
(29,221
)
 
 
$
221,036

 
40,808

 
127,291

 
389,135

Intangible Assets (Tables)
Schedule of intangible assets
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Indefinite lived intangible assets — Trade name
 
$
8,731

 
9,084

Finite lived intangible assets:
 
 
 
 
Customer relationship intangibles
 
91,523

 
97,922

Other intangibles, primarily trade name
 
2,367

 
2,367

Accumulated amortization
 
(45,736
)
 
(42,374
)
 
 
48,154

 
57,915

Foreign currency translation adjustment
 
(1,693
)
 
(380
)
Total
 
$
55,192

 
66,619

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

December 31,
 

2015

2014
 

(In thousands)
Direct financing leases, net

$
347,703


331,065

Investments held in Rabbi Trusts

41,720


38,681

Contract incentives

23,691


21,475

Insurance receivables

28,999


13,957

Debt issuance costs
 
18,594

 
16,503

Prepaid pension asset
 
44,124

 
2,698

Interest rate swap agreements
 
5,421

 
4,565

Other
 
15,223

 
17,155

Total
 
$
525,475

 
446,099


Investments held in Rabbi Trusts are assets measured at fair value on a recurring basis, all of which are considered Level 1 of the fair value hierarchy. The following table presents the asset classes at December 31, 2015 and 2014:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Cash and cash equivalents
 
$
5,214

 
4,418

U.S. equity mutual funds
 
24,824

 
23,589

Foreign equity mutual funds
 
4,713

 
4,724

Fixed income mutual funds
 
6,969

 
5,950

Total Investments held in Rabbi Trusts
 
$
41,720

 
38,681

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
 
December 31, 2015
 
December 31, 2014
 
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
 
(In thousands)
Salaries and wages
 
$
99,032

 

 
99,032

 
114,446

 

 
114,446

Deferred compensation
 
2,252

 
41,691

 
43,943

 
3,209

 
37,093

 
40,302

Pension benefits
 
3,790

 
484,892

 
488,682

 
3,739

 
444,657

 
448,396

Other postretirement benefits
 
1,624

 
20,002

 
21,626

 
2,112

 
26,889

 
29,001

Other employee benefits
 
8,956

 
9,706

 
18,662

 
7,172

 
19,276

 
26,448

Insurance obligations (1)
 
157,014

 
213,256

 
370,270

 
132,246

 
189,431

 
321,677

Environmental liabilities
 
3,791

 
6,554

 
10,345

 
3,877

 
8,002

 
11,879

Operating taxes
 
101,649

 

 
101,649

 
92,330

 

 
92,330

Income taxes
 
3,378

 
22,366

 
25,744

 
5,066

 
22,843

 
27,909

Interest
 
31,218

 

 
31,218

 
33,509

 

 
33,509

Deposits, mainly from customers
 
61,869

 
5,085

 
66,954

 
59,388

 
5,929

 
65,317

Deferred revenue
 
13,038

 

 
13,038

 
11,759

 

 
11,759

Acquisition holdbacks
 
2,081

 

 
2,081

 
3,817

 
2,187

 
6,004

Other
 
53,660

 
26,043

 
79,703

 
41,009

 
27,035

 
68,044

Total
 
$
543,352

 
829,595

 
1,372,947

 
513,679

 
783,342

 
1,297,021

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

Income Taxes (Tables)
The components of earnings from continuing operations before income taxes and the provision for income taxes from continuing operations were as follows:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Earnings from continuing operations before income taxes:
 
 
 
 
 
 
United States
 
$
408,757

 
275,630

 
302,809

Foreign
 
60,458

 
62,637

 
66,206

Total
 
$
469,215

 
338,267

 
369,015

Current tax expense (benefit) from continuing operations:
 
 
 
 
 
 
Federal (1)
 
$
(1,836
)
 
(230
)
 
234

State (1)
 
5,748

 
6,396

 
4,194

Foreign
 
5,272

 
7,163

 
7,691

 
 
9,184

 
13,329

 
12,119

Deferred tax expense from continuing operations:
 
 
 
 
 
 
Federal
 
135,585

 
90,056

 
98,076

State
 
20,111

 
12,429

 
15,399

Foreign
 
(1,654
)
 
2,228

 
146

 
 
154,042

 
104,713

 
113,621

Provision for income taxes from continuing operations
 
$
163,226

 
118,042

 
125,740

______________ 
(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,
 
 
2015
 
2014
 
2013
 
 
(Percentage of pre-tax earnings)
Federal statutory tax rate
 
35.0

 
35.0

 
35.0

Impact on deferred taxes for changes in tax rates
 
(0.9
)
 
(0.9
)
 
0.1

State income taxes, net of federal income tax benefit
 
5.0

 
5.2

 
4.0

Foreign rates varying from federal statutory tax rate
 
(3.3
)
 
(3.7
)
 
(4.1
)
Tax reviews and audits
 
(1.3
)
 
(1.1
)
 
(0.8
)
Other, net
 
0.3

 
0.4

 
(0.1
)
Effective tax rate
 
34.8

 
34.9

 
34.1

The following provides a summary of the increases (decreases) to net earnings from continuing operations from changes in tax laws by tax jurisdiction:
Tax Jurisdiction
 
Enactment Date
 
Net Earnings
 
 
 
 
(in thousands)
2015
 
 
 
 
Connecticut
 
June 30, 2015
 
$1,616
Other Jurisdictions
 
April 13, 2015 - November 18, 2015
 
$497
 
 
 
 
 
2014
 
 
 
 
New York
 
March 31, 2014
 
$1,776
Rhode Island
 
June 19, 2014
 
$626
 
 
 
 
 
2013
 
 
 
 
Puerto Rico
 
June 30, 2013
 
$(503)
United Kingdom
 
July 17, 2013
 
$485
The components of the net deferred income tax liability were as follows:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Deferred income tax assets:
 
 
 
 
Self-insurance accruals
 
$
93,352

 
81,908

Net operating loss carryforwards
 
429,458

 
377,740

Alternative minimum taxes
 
10,727

 
10,727

Accrued compensation and benefits
 
76,363

 
68,626

Federal benefit on state tax positions
 
18,912

 
18,847

Pension benefits
 
148,671

 
157,082

Miscellaneous other accruals
 
32,763

 
33,090

 
 
810,246

 
748,020

Valuation allowance
 
(14,991
)
 
(24,742
)
 
 
795,255

 
723,278

Deferred income tax liabilities:
 
 
 
 
Property and equipment bases difference
 
(2,362,194
)
 
(2,149,574
)
Other
 
(20,583
)
 
(16,996
)
 
 
(2,382,777
)
 
(2,166,570
)
Net deferred income tax liability
 
$
(1,587,522
)
 
(1,443,292
)

The following table summarizes the activity related to unrecognized tax benefits (excluding the federal benefit received from state positions):
 
 
December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Balance at January 1
 
$
60,482

 
56,813

 
52,271

Additions based on tax positions related to the current year
 
4,220

 
6,896

 
7,606

Reductions due to lapse of applicable statutes of limitation
 
(3,962
)
 
(3,227
)
 
(3,064
)
Gross balance at December 31
 
60,740

 
60,482

 
56,813

Interest and penalties
 
4,912

 
5,125

 
5,756

Balance at December 31
 
$
65,652

 
65,607

 
62,569

Leases (Tables)
The net investment in direct financing and sales-type leases consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Total minimum lease payments receivable
 
$
684,600

 
659,551

Less: Executory costs
 
(205,865
)
 
(210,241
)
Minimum lease payments receivable
 
478,735

 
449,310

Less: Allowance for uncollectibles
 
(243
)
 
(288
)
Net minimum lease payments receivable
 
478,492

 
449,022

Unguaranteed residuals
 
52,885

 
55,992

Less: Unearned income
 
(93,619
)
 
(88,003
)
Net investment in direct financing and sales-type leases
 
437,758

 
417,011

Current portion
 
(90,055
)
 
(85,946
)
Non-current portion
 
$
347,703

 
331,065

The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2015:
 
December 31,
 
2015
 
2014
 
(In thousands)
Very low risk to low risk
$
203,388

 
198,496

Moderate
197,484

 
158,790

Moderately high to high risk
77,863

 
92,024

 
$
478,735

 
449,310

Future minimum payments for leases in effect at December 31, 2015 were as follows:
 
 
As Lessor (1)
 
As Lessee
 
 
Operating
Leases
 
Direct
Financing
Leases
 
Operating
Leases
 
 
(In thousands)
2016
 
$
1,049,766

 
111,116

 
74,103

2017
 
857,397

 
93,215

 
39,265

2018
 
678,150

 
76,073

 
21,675

2019
 
481,790

 
60,062

 
14,066

2020
 
298,659

 
50,402

 
6,896

Thereafter
 
241,589

 
87,867

 
17,420

Total
 
$
3,607,351

 
478,735

 
173,425

____________________
(1)
Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue were $329 million in 2015 and $318 million in both 2014 and 2013. Contingent rentals from direct financing leases included in revenue were $12 million in 2015 and $11 million in each of 2014 and 2013 .
Debt (Tables)
 
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
 
December 31,
 
 
 
December 31,
 
 
2015
 
2014
 
Maturities
 
2015
 
2014
 
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
2.26
%
 
1.30
%
 

 
$
35,947

 
3,773

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
598,583

 
32,511

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
 
634,530

 
36,284

Total long-term debt:
 
 
 
 
 
 
 
 
 
 
U.S. commercial paper(1)
 
0.55
%
 
0.35
%
 
2020
 
547,130

 
276,694

Global revolving credit facility
 
2.31
%
 
1.60
%
 
2020
 
25,291

 
11,190

Unsecured U.S. notes – Medium-term notes(1)
 
2.84
%
 
3.29
%
 
2016-2025
 
4,112,519

 
3,772,159

Unsecured U.S. obligations, principally bank term loans
 
1.73
%
 
0.76
%
 
2018
 
50,000

 
110,500

Unsecured foreign obligations
 
1.92
%
 
2.01
%
 
2016-2020
 
275,661

 
295,776

Asset backed U.S. obligations(2)
 
1.81
%
 
1.81
%
 
2016-2022
 
434,001

 
218,137

Capital lease obligations
 
3.31
%
 
3.65
%
 
2016-2022
 
32,054

 
37,560

Total before fair market value adjustment
 
 
 
 
 
 
 
5,476,656

 
4,722,016

Fair market value adjustment on notes subject to hedging(3)
 
 
 
 
 
 
 
5,253

 
4,830

 
 
 
 
 
 
 
 
5,481,909

 
4,726,846

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
 
(598,583
)
 
(32,511
)
Long-term debt
 
 
 
 
 
 
 
4,883,326

 
4,694,335

Total debt
 
 
 
 
 
 
 
$
5,517,856

 
4,730,619

_________________ 
(1)
We had unamortized original issue discounts of $8 million at December 31, 2015 and 2014.
(2)
Asset-backed U.S. obligations are related to financing transactions involving revenue earning equipment. See Note 3, "Revision of Prior Period Financial Statements" for further information related to our evaluation of accounting for these transactions.
(3)
The notional amount of the executed interest rate swaps designated as fair value hedges was $825 million and $600 million at December 31, 2015 and 2014, respectively. Refer to Note 17, "Derivatives", for additional information.
Maturities of total debt are as follows:
 
 
Capital Leases
 
Debt
 
 
(In thousands)
2016
 
$
8,469

 
928,722

2017
 
9,550

 
750,009

2018
 
7,135

 
783,177

2019
 
6,132

 
1,060,365

2020
 
639

 
1,645,441

Thereafter
 
2,241

 
312,835

Total
 
34,166

 
5,480,549

Imputed interest
 
(2,112
)
 
 
Present value of minimum capitalized lease payments
 
32,054

 
 
Current portion
 
(7,720
)
 
 
Long-term capitalized lease obligation
 
$
24,334

 
 
Guarantees (Tables)
Letters of credit and surety bonds outstanding
At December 31, 2015 and 2014, we had letters of credit and surety bonds outstanding, which primarily guarantee various insurance activities as noted in the following table:
 
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Letters of credit
 
$
241,022

 
234,482

Surety bonds
 
104,632

 
99,831

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 and Other
 
Net Actuarial
Loss (1)
 
Prior Service
Credit (1)
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
January 1, 2013
 
$
57,860

 
(648,113
)
 
2,634

 
(587,619
)
Amortization
 

 
22,820

 
(1,340
)
 
21,480

Other current period change
 
(21,985
)
 
147,410

 
2,466

 
127,891

December 31, 2013
 
35,875

 
(477,883
)
 
3,760

 
(438,248
)
Amortization
 

 
14,866

 
(2,676
)
 
12,190

Pension lump sum settlement expense
 

 
61,333

 

 
61,333

Other current period change
 
(71,962
)
 
(184,257
)
 
674

 
(255,545
)
December 31, 2014
 
(36,087
)
 
(585,941
)
 
1,758

 
(620,270
)
Amortization
 

 
19,505

 
(1,411
)
 
18,094

Other current period change
 
(99,933
)
 
(10,557
)
 
(69
)
 
(110,559
)
December 31, 2015
 
$
(136,020
)
 
(576,993
)
 
278

 
(712,735
)
_______________________ 
(1)
These amounts are included in the computation of net periodic pension cost and pension settlement charge. See Note 23, "Employee Benefit Plans," for further information.
Earnings Per Share (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,
 
 
2015
 
2014
 
2013
 
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
Earnings from continuing operations
 
$
305,989

 
220,225

 
243,275

Less: Distributed and undistributed earnings allocated to nonvested stock
 
(877
)
 
(858
)
 
(2,173
)
Earnings from continuing operations available to common shareholders — Basic
 
$
305,112

 
219,367

 
241,102

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
52,814

 
52,536

 
51,617

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
 
$
5.78

 
4.18

 
4.67

 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
Earnings from continuing operations
 
$
305,989

 
220,225

 
243,275

Less: Distributed and undistributed earnings allocated to unvested stock
 
(872
)
 
(853
)
 
(2,159
)
Earnings from continuing operations available to common shareholders — Diluted
 
$
305,117

 
219,372

 
241,116

 
 
 
 
 
 
 
Weighted average common shares outstanding— Basic
 
52,814

 
52,536

 
51,617

Effect of dilutive equity awards
 
446

 
500

 
454

Weighted average common shares outstanding— Diluted
 
53,260

 
53,036

 
52,071

 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
 
$
5.73

 
4.14

 
4.63

Anti-dilutive equity awards and market-based restrictive stock rights not included above
 
392

 
161

 
785

Share-Based Compensation Plans (Tables)
The following table provides information on share-based compensation expense and related income tax benefits recognized in 2015, 2014 and 2013:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Stock option and stock purchase plans
 
$
8,048

 
9,023

 
8,303

Unvested stock awards
 
13,133

 
11,882

 
11,007

Share-based compensation expense
 
21,181

 
20,905

 
19,310

Income tax benefit
 
(7,271
)
 
(7,300
)
 
(6,224
)
Share-based compensation expense, net of tax
 
$
13,910

 
13,605

 
13,086

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
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Cash awards
 
$
532

 
1,900

 
996

The following is a summary of option activity under our stock option plans as of and for the year ended December 31, 2015:
 
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic  Value
 
 
(In thousands)
 
 
 
(In years)
 
(In thousands)
Options outstanding at January 1
 
1,269

 
$
58.03

 
 
 
 
Granted
 
363

 
93.55

 
 
 
 
Exercised
 
(282
)
 
54.26

 
 
 
 
Forfeited or expired
 
(87
)
 
71.63

 
 
 
 
Options outstanding at December 31
 
1,263

 
$
68.13

 
6.6
 
$
3,326

Vested and expected to vest at December 31
 
1,238

 
$
67.63

 
6.1
 
$
3,358

Exercisable at December 31
 
588

 
$
53.72

 
4.4
 
$
3,339

The following is a summary of the status of Ryder’s unvested restricted stock awards as of and for the year ended December 31, 2015:
 
 
Time-Vested
 
Market-Based
 
Performance-Based
 
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
 
(In thousands)
 
 
 
(In thousands)
 
 
 
(In thousands)
 
 
Unvested stock outstanding at January 1
 
514
 
$
61.83

 
94
 
$
50.27

 
47
 
$
68.29

Granted (1)
 
90
 
91.84

 
19
 
89.40

 
42
 
93.05

Vested (1)
 
(102)
 
53.95

 
(46)
 
43.38

 
 

Forfeited (2)
 
(29)
 
74.06

 
(5)
 
56.98

 
(13)
 
60.57

Unvested stock outstanding at December 31
 
473
 
$
68.50

 
62
 
$
66.97

 
76
 
$
83.31


 
(1) Includes awards attained above target.
(2) Includes awards canceled due to performance and market conditions not being achieved.
The following table presents the weighted-average assumptions used for options granted:
 
 
Years ended December 31,
  
 
2015
 
2014
 
2013
Option plans:
 
 
 
 
 
 
Expected dividends
 
1.6%
 
1.9%
 
2.1%
Expected volatility
 
26.4%
 
29.1%
 
35.1%
Risk-free rate
 
1.4%
 
1.3%
 
0.7%
Expected term in years
 
4.3 years
 
4.3 years
 
4.3 years
Grant-date fair value
 
$18.47
 
$14.99
 
$13.97
Employee Benefit Plans (Tables)
Pension expense from continuing operations was as follows:
  
 
Years ended December 31,
  
 
2015
 
2014
 
2013
 
 
(In thousands)
Company-administered plans:
 
 
 
 
 
 
Service cost
 
$
13,820

 
13,023

 
15,991

Interest cost
 
88,013

 
100,909

 
89,682

Expected return on plan assets
 
(98,892
)
 
(115,410
)
 
(106,150
)
Pension lump sum settlement expense
 

 
97,231

 

Census data adjustment
 

 

 
3,905

Amortization of:
 
 
 
 
 
 
Net actuarial loss
 
30,741

 
23,573

 
35,282

Prior service credit
 
(306
)
 
(1,788
)
 
(1,818
)
 
 
33,376

 
117,538

 
36,892

Union-administered plans
 
8,328

 
21,118

 
11,226

Net pension expense
 
$
41,704

 
138,656

 
48,118

 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
U.S.
 
$
34,986

 
118,797

 
37,636

Foreign
 
(1,610
)
 
(1,259
)
 
(744
)
 
 
33,376

 
117,538

 
36,892

Union-administered plans
 
8,328

 
21,118

 
11,226

 
 
$
41,704

 
138,656

 
48,118

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,
 
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Discount rate
 
4.15%
 
5.00%
 
4.10%
 
3.70%
 
4.57%
 
4.43%
Rate of increase in compensation levels
 
3.00%
 
3.00%
 
4.00%
 
3.10%
 
3.09%
 
3.55%
Expected long-term rate of return on plan assets
 
5.95%
 
6.50%
 
6.80%
 
5.50%
 
5.94%
 
6.57%
Gain and loss amortization period (years)
 
23
 
23
 
23
 
27
 
27
 
26
The following table sets forth the weighted-average actuarial assumptions used in determining funded status:
 
 
U.S. Plans
December 31,
 
Foreign Plans
December 31,
 
 
2015
 
2014
 
2015
 
2014
Discount rate
 
4.50%
 
4.15%
 
4.00%
 
3.70%
Rate of increase in compensation levels
 
3.00%
 
3.00%
 
3.10%
 
3.10%
The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:  
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Change in benefit obligations:
 
 
 
 
Benefit obligations at January 1
 
$
2,221,115

 
2,104,749

Service cost
 
13,820

 
13,023

Interest cost
 
88,013

 
100,909

Actuarial (gain) loss
 
(98,996
)
 
380,595

Pension settlement
 

 
(259,319
)
Benefits paid
 
(98,528
)
 
(87,020
)
Foreign currency exchange rate changes
 
(33,580
)
 
(31,822
)
Benefit obligations at December 31
 
2,091,844

 
2,221,115

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at January 1
 
1,775,417

 
1,832,490

Actual return on plan assets
 
(29,024
)
 
178,061

Employer contribution
 
33,746

 
107,483

Benefits paid
 
(98,528
)
 
(87,020
)
Pension settlement
 

 
(223,654
)
Foreign currency exchange rate changes
 
(34,325
)
 
(31,943
)
Fair value of plan assets at December 31
 
1,647,286

 
1,775,417

Funded status
 
$
(444,558
)
 
(445,698
)
Funded percent
 
79
%
 
80
%
The funded status of our pension plans was presented in the Consolidated Balance Sheets as follows:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Noncurrent asset
 
$
44,124

 
2,698

Current liability
 
(3,790
)
 
(3,739
)
Noncurrent liability
 
(484,892
)
 
(444,657
)
Net amount recognized
 
$
(444,558
)
 
(445,698
)
Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Prior service credit
 
$

 
(195
)
Net actuarial loss
 
905,944

 
905,976

Net amount recognized
 
$
905,944

 
905,781

At December 31, 2015 and 2014, 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,
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
 
(In thousands)
Total accumulated benefit obligations
 
$
1,640,844

 
1,689,191

 
423,555

 
487,604

 
2,064,399

 
2,176,795

Plans with pension obligations in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
PBO
 
1,671,949

 
1,728,643

 
7,916

 
9,172

 
1,679,865

 
1,737,815

ABO
 
1,640,844

 
1,689,191

 
6,793

 
5,620

 
1,647,637

 
1,694,811

Fair value of plan assets
 
1,191,182

 
1,289,621

 

 

 
1,191,182

 
1,289,621

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, 2015 and 2014:
 
 
 
Fair Value Measurements at
December 31, 2015
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. common collective trusts
 
$
387,123

 

 
387,123

 

Foreign common collective trusts
 
374,858

 

 
374,858

 

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
64,834

 

 
64,834

 

Common collective trusts
 
719,840

 

 
719,840

 

Private equity and hedge funds
 
100,631

 

 

 
100,631

Total
 
$
1,647,286

 

 
1,546,655

 
100,631

 
 
 
Fair Value Measurements at
December 31, 2014
Asset Category
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Equity securities:
 
 
 
 
 
 
 
 
U.S. common collective trusts
 
$
421,185

 

 
421,185

 

Foreign common collective trusts
 
405,224

 

 
405,224

 

Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds
 
70,999

 

 
70,999

 

Common collective trusts
 
788,282

 

 
788,282

 

Private equity and hedge funds
 
89,727

 

 

 
89,727

Total
 
$
1,775,417

 

 
1,685,690

 
89,727


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, 2015 and 2014: 
 
 
2015
 
2014
 
 
(In thousands)
Beginning balance at January 1
 
$
89,727

 
76,499

Return on plan assets:
 
 
 
 
Relating to assets still held at the reporting date
 
5,399

 
4,903

Relating to assets sold during the period
 
226

 
1,882

Purchases, sales, settlements and expenses
 
5,279

 
6,443

Ending balance at December 31
 
$
100,631

 
89,727

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)

2016
$
100,116

2017
102,692

2018
107,483

2019
112,019

2020
115,863

2021-2025
632,110

Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded.

 
 
 
 
Pension Protection Act Zone Status
 
 
 
Ryder Contributions
 
 
 
Expiration Date(s) of Collective-Bargaining Agreement(s)
Pension Fund
 
Employer Identification Number
 
2015
 
2014
 
FIP/RP Status Pending/ Implemented (1)
 
2015
 
2014
 
2013
 
Surcharge Imposed
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Western Conference Teamsters
 
91-6145047
 
Green
 
Green
 
No
 
$
2,430

 
2,315

 
2,180

 
No
 
1/12/18 to 6/30/19
IAM National
 
51-6031295
 
Green
 
Green
 
No
 
3,801

 
3,311

 
2,987

 
No
 
3/31/16 to 9/30/19
Automobile Mechanics
Local No. 701
 
36-6042061
 
Red
 
Red
 
RP Adopted
 
1,902

 
1,632

 
1,530

 
Yes
 
5/31/16 to 10/31/17
Other funds
 
 
 
 
 
 
 
 
 
704

 
1,296

 
1,709

 
 
 
 
Total contributions
 
 
 
 
 
 
 
 
 
8,837

 
8,554

 
8,406

 
 
 
 
Pension settlement (benefit) charges
 
 
 
 
 
 
 
 
 
(509
)
 
12,564

 
2,820

 
 
 
 
Union-administered plans
 
 
 
 
 
 
 
 
 
$
8,328

 
21,118

 
11,226

 
 
 
 
_____________ 
(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.

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,
 
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Discount rate
 
4.15%
 
5.00%
 
4.10%
 
4.00%
 
4.80%
 
4.00%
Total postretirement benefit expense was as follows: 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Service cost
 
$
363

 
446

 
981

Interest cost
 
1,097

 
1,421

 
1,580

Amortization of:
 
 
 
 
 
 
Net actuarial gain
 
(1,773
)
 
(725
)
 
(14
)
Prior service credit
 
(1,083
)
 
(2,459
)
 
(231
)
Postretirement benefit (income) expense
 
$
(1,396
)
 
(1,317
)
 
2,316

 
 
 
 
 
 
 
U.S.
 
$
(1,887
)
 
(1,839
)
 
1,625

Foreign
 
491

 
522

 
691

 
 
$
(1,396
)
 
(1,317
)
 
2,316

Assumptions used in determining accrued postretirement benefit obligations were as follows:
 
 
U.S. Plan
December 31,
 
Foreign Plan
December 31,
 
 
2015
 
2014
 
2015
 
2014
Discount rate
 
4.50
%
 
4.15
%
 
4.00
%
 
4.00
%
Rate of increase in compensation levels
 
3.00
%
 
3.00
%
 
3.00
%
 
3.00
%
Healthcare cost trend rate assumed for next year
 
6.75
%
 
7.00
%
 
5.50
%
 
6.00
%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
 
2023

 
2023

 
2017

 
2017

Amounts recognized in the Consolidated Balance Sheets consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Current liability
 
$
1,624

 
2,112

Noncurrent liability
 
20,002

 
26,889

Amount recognized
 
$
21,626

 
29,001

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Prior service credit
 
$
(616
)
 
(2,527
)
Net actuarial gain
 
(11,825
)
 
(5,933
)
Net amount recognized
 
$
(12,441
)
 
(8,460
)
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)

2016
$
1,646

2017
1,640

2018
1,631

2019
1,620

2020
1,591

2021-2025
7,464

The following table sets forth the benefit obligations associated with our postretirement benefit plans:
 
 
December 31,
 
 
2015
 
2014
 
 
(In thousands)
Benefit obligations at January 1
 
$
29,001

 
30,788

Service cost
 
363

 
446

Interest cost
 
1,097

 
1,421

Actuarial gain
 
(6,164
)
 
(1,010
)
Benefits paid
 
(1,468
)
 
(1,989
)
Foreign currency exchange rate changes
 
(1,203
)
 
(655
)
Benefit obligations at December 31
 
$
21,626

 
29,001

Other Items Impacting Comparability (Tables)
Other Items Impacting Comparability
Excluding these items from our segment measure of performance allows for better year over year comparison:
 
Years ended December 31,

 
2015
 
2014
 
2013
 
 
 
(In thousands)
 
 
Pension lump sum settlement loss (1)
$

 
(97,231
)
 

Pension settlement benefit (charges) (1)
509

 
(12,564
)
 
(2,820
)
Restructuring and other (charges) recoveries, net (2)
(14,225
)
 
(2,387
)
 
470

Acquisition-related tax adjustment

 
(1,808
)
 

Acquisition transaction costs

 
(566
)
 

Consulting fees
(3,843
)
 
(400
)
 

Foreign currency translation benefit

 

 
1,904

Superstorm Sandy vehicle-related recoveries

 

 
600

Restructuring and other (charges) recoveries, net and other items
$
(17,559
)
 
(114,956
)
 
154

_______________
(1) Refer to Note 23, "Employee Benefit Plans," for additional information. 
(2) Refer to Note 5, "Restructuring and Other Charges (Recoveries)," for additional information.
Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:  
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Interest paid
 
$
144,973

 
139,595

 
132,946

Income taxes paid
 
13,379

 
11,382

 
13,063

Changes in accounts payable related to purchases of revenue earning equipment
 
28,134

 
39,071

 
43,745

Operating and revenue earning equipment acquired under capital leases
 
5,959

 
7,972

 
5,698



Miscellaneous Income, Net (Tables)
Schedule of miscellaneous income, net
 
Years ended December 31,
 
2015
 
2014
 
2013
 
 
Gains on sales of operating property and equipment
$
3,045

 
2,909

 
1,020

Business interruption insurance recoveries

 
808

 
2,743

Contract settlement
55

 
3,014

 

Foreign currency translation benefit (1)

 

 
1,904

Foreign currency transaction gains/(losses)
1,945

 
(210
)
 
40

Rabbi trust investment income
632

 
2,726

 
4,475

Other, net
4,479

 
4,366

 
5,190

Total
$
10,156

 
13,613

 
15,372

____________________________
(1) Refer to Note 25, "Other Items Impacting Comparability," for additional information
Segment Reporting (Tables)
Business segment revenue and EBT from continuing operations is as follows:
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
Fleet Management Solutions:
 
 
 
 
 
 
Full service lease
 
$
2,220,929

 
2,102,703

 
2,016,570

Commercial rental
 
900,624

 
836,719

 
753,456

Full service lease and commercial rental
 
3,121,553

 
2,939,422

 
2,770,026

Contract maintenance
 
190,989

 
182,411

 
178,001

Contract-related maintenance
 
200,148

 
196,841

 
186,580

Other
 
77,625

 
71,064

 
72,029

Fuel services revenue
 
538,277

 
787,887

 
829,586

Total Fleet Management Solutions from external customers
 
4,128,592

 
4,177,625

 
4,036,222

Inter-segment revenue
 
417,100

 
478,133

 
458,464

Fleet Management Solutions
 
4,545,692

 
4,655,758

 
4,494,686

Dedicated Transportation Solutions
 
895,538

 
899,802

 
831,599

Supply Chain Solutions
 
1,547,763

 
1,561,347

 
1,551,464

Eliminations
 
(417,100
)
 
(478,133
)
 
(458,464
)
Total revenue
 
$
6,571,893

 
6,638,774

 
6,419,285

 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
Fleet Management Solutions
 
$
462,109

 
433,736

 
344,169

Dedicated Transportation Solutions
 
45,800

 
44,556

 
40,926

Supply Chain Solutions
 
93,754

 
77,800

 
89,033

Eliminations
 
(47,193
)
 
(41,361
)
 
(35,489
)
 
 
$
554,470

 
514,731

 
438,639

Unallocated Central Support Services
 
(48,510
)
 
(51,740
)
 
(45,493
)
Non-operating pension costs
 
(19,186
)
 
(9,768
)
 
(24,285
)
Restructuring and other (charges) recoveries, net and other items(1)
 
(17,559
)
 
(114,956
)
 
154

Earnings before income taxes from continuing operations
 
$
469,215

 
338,267

 
369,015

______________ 
(1)
See Note 25, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.
The following table sets forth share-based compensation expense, depreciation expense, gains on vehicle sales, net, amortization expense and other non-cash charges, net, interest expense (income), capital expenditures paid and total assets for the years ended December 31, 2015, 2014 and 2013 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments. The table reflects the reclassification of current deferred tax assets to non-current as discussed in Note 2, "Recent Accounting Pronouncements":
 
 
 
FMS
 
DTS
 
SCS
 
CSS
 
Eliminations
 
Total
 
 
(In thousands)
2015
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
5,672

 
1,155

 
3,400

 
10,954

 

 
21,181

Depreciation expense (1)
 
$
1,110,706

 
3,184

 
25,721

 
311

 

 
1,139,922

Gains on vehicles sales, net
 
$
(117,714
)
 
(54
)
 
(41
)
 

 

 
(117,809
)
Amortization expense and other non-cash charges, net
 
$
36,348

 
1,878

 
2,971

 
29,565

 

 
70,762

Interest expense (income) (2)
 
$
154,276

 
(1,597
)
 
(2,174
)
 
(71
)
 

 
150,434

Capital expenditures paid
 
$
2,595,961

 
3,570

 
27,841

 
40,606

 

 
2,667,978

Total assets
 
$
10,076,321

 
275,634

 
636,647

 
202,129

 
(222,922
)
 
10,967,809

2014
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
4,895

 
720

 
3,661

 
11,629

 

 
20,905

Depreciation expense (1)
 
$
1,028,781

 
3,211

 
25,636

 
185

 

 
1,057,813

Gains on vehicles sales, net
 
$
(126,410
)
 
5

 
(419
)
 

 

 
(126,824
)
Pension lump sum settlement expense
 
$
76,239

 
3,335

 
3,277

 
14,380

 

 
97,231

Amortization expense and other non-cash charges, net
 
$
19,936

 
516

 
1,309

 
25,502

 

 
47,263

Interest expense (income) (2)
 
$
147,247

 
(1,520
)
 
(807
)
 
(181
)
 

 
144,739

Capital expenditures paid (3)
 
$
2,166,319

 
1,883

 
20,941

 
70,021

 

 
2,259,164

Total assets
 
$
9,011,883

 
211,388

 
673,876

 
193,484

 
(239,760
)
 
9,850,871

2013
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
$
4,979

 
851

 
4,083

 
9,397

 

 
19,310

Depreciation expense (1)
 
$
953,193

 
3,335

 
26,225

 
857

 

 
983,610

Gains on vehicle sales, net
 
$
(96,011
)
 
(117
)
 
(47
)
 

 

 
(96,175
)
Amortization expense and other non-cash charges, net
 
$
19,071

 
946

 
2,694

 
33,678

 

 
56,389

Interest expense (income) (2)
 
$
142,555

 
(1,316
)
 
(548
)
 
(228
)
 

 
140,463

Capital expenditures paid (3)
 
$
2,074,708

 
1,563

 
21,114

 
25,243

 

 
2,122,628

Total assets
 
$
8,404,606

 
203,563

 
640,837

 
154,024

 
(234,690
)
 
9,168,340

____________ 
(1)
Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $22 million, $21 million and $14 million during 2015, 2014 and 2013, respectively, associated with CSS assets was allocated to other business segments.
(2)
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 income was also reflected in DTS and SCS based on targeted segment leverage ratios.
(3)
Excludes acquisition payments of $10 million and $2 million in 2014 and 2013, respectively. See Note 4, “Acquisitions,” for additional information.
Geographic Information 
 
 
Years ended December 31,
 
 
2015
 
2014
 
2013
 
 
(In thousands)
Revenue:
 
 
 
 
 
 
United States
 
$
5,603,697

 
5,614,037

 
5,411,376

Foreign:
 
 
 
 
 
 
Canada
 
408,325

 
435,280

 
455,440

Europe
 
391,339

 
400,853

 
372,209

Mexico
 
139,583

 
158,481

 
161,279

Asia
 
28,949

 
30,123

 
18,981

 
 
968,196

 
1,024,737

 
1,007,909

Total
 
$
6,571,893

 
6,638,774

 
6,419,285

Long-lived assets:
 
 
 
 
 
 
United States
 
$
7,817,628

 
6,790,946

 
6,098,635

Foreign:
 
 
 
 
 
 
Canada
 
504,027

 
530,316

 
529,880

Europe
 
545,630

 
553,467

 
568,850

Mexico
 
31,993

 
26,230

 
29,008

Asia
 
427

 
521

 
279

 
 
1,082,077

 
1,110,534

 
1,128,017

Total
 
$
8,899,705

 
7,901,480

 
7,226,652

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)
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,567,153

 
53,326

 
52,789

 
1.01

 
1.00

 
1.00

 
0.99

Second quarter
 
1,662,931

 
85,917

 
85,159

 
1.62

 
1.61

 
1.61

 
1.59

Third quarter
 
1,669,066

 
90,811

 
90,619

 
1.71

 
1.70

 
1.71

 
1.69

Fourth quarter
 
1,672,743

 
75,935

 
76,201

 
1.43

 
1.42

 
1.44

 
1.43

Full year
 
$
6,571,893

 
305,989

 
304,768

 
5.78

 
5.73

 
5.75

 
5.71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First quarter
 
$
1,610,737

 
49,126

 
48,260

 
0.93

 
0.92

 
0.91

 
0.90

Second quarter
 
1,684,571

 
75,721

 
75,385

 
1.43

 
1.42

 
1.43

 
1.41

Third quarter
 
1,687,150

 
83,895

 
83,617

 
1.60

 
1.58

 
1.59

 
1.57

Fourth quarter
 
1,656,316

 
11,483

 
11,079

 
0.22

 
0.22

 
0.21

 
0.21

Full year
 
$
6,638,774

 
220,225

 
218,341

 
4.18

 
4.14

 
4.14

 
$
4.11



Note: EPS amounts may not be additive due to rounding.
Summary of Significant Accounting Policies (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]
 
Maximum amount of insurance risk of loss retained per occurrence
$ 3,000,000 
Recent Accounting Pronouncements (Details) (New Accounting Pronouncement, Early Adoption, Effect, USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
New Accounting Pronouncement, Early Adoption, Effect
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Deferred tax liabilities
$ 22 
$ 33 
Unamortized debt issuance costs
$ 15 
 
Revisions of Prior Period Financial Statements Consolidated Statement of Earnings (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cost of lease and rental
 
 
 
 
 
 
 
 
$ 2,153,450 
$ 2,036,881 
$ 1,925,546 
Interest expense
 
 
 
 
 
 
 
 
150,434 
144,739 
140,463 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
469,215 
338,267 
369,015 
Provision for income taxes
 
 
 
 
 
 
 
 
163,226 
118,042 
125,740 
Earnings from Continuing Operations
75,935 
90,811 
85,917 
53,326 
11,483 
83,895 
75,721 
49,126 
305,989 
220,225 
243,275 
Net earnings
76,201 
90,619 
85,159 
52,789 
11,079 
83,617 
75,385 
48,260 
304,768 
218,341 
237,871 
Adjustment
 
 
 
 
 
 
 
 
 
 
 
Cost of lease and rental
 
 
 
 
 
 
 
 
 
(2,400)
(3,400)
Interest expense
 
 
 
 
 
 
 
 
 
2,600 
3,300 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
 
(200)
100 
Provision for income taxes
 
 
 
 
 
 
 
 
 
(100)
Earnings from Continuing Operations
 
 
 
 
 
 
 
 
 
(300)
100 
Net earnings
 
 
 
 
 
 
 
 
 
(300)
100 
As Previously Reported
 
 
 
 
 
 
 
 
 
 
 
Cost of lease and rental
 
 
 
 
 
 
 
 
 
2,039,300 
1,928,900 
Interest expense
 
 
 
 
 
 
 
 
 
142,100 
137,200 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
 
338,500 
368,900 
Provision for income taxes
 
 
 
 
 
 
 
 
 
118,100 
125,700 
Earnings from Continuing Operations
 
 
 
 
 
 
 
 
 
220,500 
243,200 
Net earnings
 
 
 
 
 
 
 
 
 
$ 218,600 
$ 237,800 
Revisions of Prior Period Financial Statements Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Comprehensive income
$ 212,303 
$ 36,319 
$ 387,200 
As Previously Reported
 
 
 
Comprehensive income
 
36,600 
387,200 
Adjustment
 
 
 
Comprehensive income
 
$ (200)
$ 100 
Revisions of Prior Period Financial Statements Balance Sheet (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenue earning equipment, net
$ 8,184,735 
$ 7,201,900 
 
 
Total assets
10,967,809 
9,850,871 
9,168,340 
 
Short-term debt and current portion of long-term debt
634,530 
36,284 
 
 
Accrued expenses and other current liabilities
543,352 
513,679 
 
 
Total current liabilities
1,680,255 
1,110,815 
 
 
Long-term debt
4,883,326 
4,694,335 
 
 
Other non-current liabilities
829,595 
783,342 
 
 
Deferred income taxes (1)
1,587,522 
1,443,292 
 
 
Total liabilities
8,980,698 
8,031,784 
 
 
Retained earnings
1,667,080 
1,450,509 
 
 
Total shareholders’ equity
1,987,111 
1,819,087 
1,896,561 
1,467,255 
Total liabilities and shareholders’ equity (1)
10,967,809 
9,850,871 
 
 
As Previously Reported
 
 
 
 
Revenue earning equipment, net
 
6,994,400 
 
 
Total assets
 
9,676,000 
 
 
Short-term debt and current portion of long-term debt
 
12,200 
 
 
Accrued expenses and other current liabilities
 
520,500 
 
 
Total current liabilities
 
1,093,600 
 
 
Long-term debt
 
4,500,300 
 
 
Other non-current liabilities
 
786,700 
 
 
Deferred income taxes (1)
 
1,476,000 
 
 
Total liabilities
 
7,856,500 
 
 
Retained earnings
 
1,450,900 
 
 
Total shareholders’ equity
 
1,819,500 
 
 
Total liabilities and shareholders’ equity (1)
 
9,676,000 
 
 
Adjustment
 
 
 
 
Revenue earning equipment, net
 
207,500 
 
 
Total assets
 
174,900 
 
 
Short-term debt and current portion of long-term debt
 
24,100 
 
 
Accrued expenses and other current liabilities
 
(6,800)
 
 
Total current liabilities
 
17,200 
 
 
Long-term debt
 
194,000 
 
 
Other non-current liabilities
 
(3,400)
 
 
Deferred income taxes (1)
 
(32,700)
 
 
Total liabilities
 
175,300 
 
 
Retained earnings
 
(400)
 
 
Total shareholders’ equity
 
(400)
 
 
Total liabilities and shareholders’ equity (1)
 
$ 174,900 
 
 
Revisions of Prior Period Financial Statements Consolidated Statement of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Net earnings
$ 304,768 
$ 218,341 
$ 237,871 
Depreciation expense
1,139,922 
1,057,813 
983,610 
Accrued expenses and other non-current liabilities
(18,751)
(53,109)
(64,423)
Net cash provided by operating activities from continuing operations
1,441,788 
1,382,818 
1,251,811 
Debt proceeds
1,283,223 
965,533 
556,989 
Debt repaid, including capital lease obligations
(798,311)
(293,488)
(379,189)
Net cash provided by financing activities from continuing operations
731,485 
311,650 
347,070 
Purchases of property and revenue earning equipment
(2,667,978)
(2,259,164)
(2,122,628)
Sale and leaseback of revenue earning equipment
 
Net cash used in investing activities from continuing operations
(2,161,355)
(1,704,510)
(1,603,818)
As Previously Reported
 
 
 
Net earnings
 
218,600 
237,800 
Depreciation expense
 
1,040,300 
957,100 
Accrued expenses and other non-current liabilities
 
(48,700)
(66,600)
Net cash provided by operating activities from continuing operations
 
1,370,000 
1,223,100 
Debt proceeds
 
839,700 
557,000 
Debt repaid, including capital lease obligations
 
(280,700)
(332,600)
Net cash provided by financing activities from continuing operations
 
198,700 
393,600 
Purchases of property and revenue earning equipment
 
(2,259,200)
(2,140,500)
Sale and leaseback of revenue earning equipment
 
125,800 
Net cash used in investing activities from continuing operations
 
(1,578,700)
(1,621,700)
Adjustment
 
 
 
Net earnings
 
(300)
100 
Depreciation expense
 
17,600 
26,500 
Accrued expenses and other non-current liabilities
 
(4,400)
2,200 
Net cash provided by operating activities from continuing operations
 
12,800 
28,700 
Debt proceeds
 
125,800 
Debt repaid, including capital lease obligations
 
(12,800)
(46,600)
Net cash provided by financing activities from continuing operations
 
113,000 
(46,500)
Purchases of property and revenue earning equipment
 
17,900 
Sale and leaseback of revenue earning equipment
 
(125,800)
Net cash used in investing activities from continuing operations
 
$ (125,800)
$ 17,900 
Acquisitions (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Aug. 1, 2014
Bullwell Trailer Solutions, Ltd.
Dec. 31, 2015
Bullwell Trailer Solutions, Ltd.
Aug. 1, 2014
Bullwell Trailer Solutions, Ltd.
Aug. 1, 2014
Bullwell Trailer Solutions, Ltd.
Customer Relationships
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Purchase price
 
 
 
$ 15,000,000 
 
 
 
Payments to acquire businesses
9,972,000 
1,858,000 
 
12,000,000 
 
 
Contingent consideration
 
 
 
 
 
6,000,000 
 
Goodwill acquired
389,135,000 
393,029,000 
383,719,000 
 
 
12,000,000 
 
Customer relationships and other intangibles
 
 
 
 
 
 
2,000,000 
Payments
$ 0 
$ 566,000 
$ 0 
 
$ 4,000,000 
 
 
Restructuring and Other Charges (Recoveries) (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Reserve
$ 12,333,000 
$ 12,333,000 
$ 2,486,000 
$ 659,000 
$ 4,875,000 
Restructuring Charges
 
8,830,000 
2,387,000 
84,000 
 
Payments for Restructuring
 
(2,208,000)
(560,000)
(4,300,000)
 
Goodwill, Impaired, Accumulated Impairment Loss
2,000,000 
 
 
 
 
Employee Termination Costs
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Reserve
12,333,000 
12,333,000 
2,486,000 
340,000 
3,147,000 
Restructuring Charges
 
8,830,000 
2,387,000 
84,000 
 
Payments for Restructuring
 
(2,208,000)
(241,000)
(2,891,000)
 
Other Charges
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Reserve
319,000 
1,728,000 
Restructuring Charges
 
 
Payments for Restructuring
 
(319,000)
(1,409,000)
 
CRSAL [Member]
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Charges
 
3,225,000 
 
 
 
CRSAL [Member] |
Employee Termination Costs
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Charges
3,225,000 
3,225,000 
 
 
 
CRSAL [Member] |
Other Charges
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
Restructuring Charges
 
$ 0 
 
 
 
Restructuring and Other Charges (Recoveries) (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other charges (recoveries), net
$ 14,225 
$ 2,387 
$ (470)
Fleet Management Solutions
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other charges (recoveries), net
4,817 
515 
(470)
Dedicated Transportation Solutions
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other charges (recoveries), net
250 
154 
Supply Chain Solutions
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other charges (recoveries), net
7,033 
797 
Central Support Services
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other charges (recoveries), net
$ 2,125 
$ 921 
$ 0 
Restructuring and Other Charges (Recoveries) (Details Textual) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Employee Severance
Dec. 31, 2014
Employee Severance
Dec. 31, 2013
Employee Severance
Jan. 1, 2016
Subsequent Event [Member]
Dec. 31, 2015
CRSAL [Member]
Dec. 31, 2015
CRSAL [Member]
Employee Severance
Dec. 31, 2015
CRSAL [Member]
Employee Severance
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Pre-tax restructuring charge
 
$ 9,000,000 
$ 2,000,000 
 
 
 
 
 
 
 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
 
 
2,000,000 
 
 
 
Restructuring Charges
 
8,830,000 
2,387,000 
84,000 
8,830,000 
2,387,000 
84,000 
 
3,225,000 
3,225,000 
3,225,000 
Goodwill and Intangible Asset Impairment
$ 2,000,000 
 
 
 
 
 
 
 
 
 
 
Receivables (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Receivables [Abstract]
 
 
Trade
$ 708,832 
$ 693,114 
Direct financing leases
90,055 
85,946 
Other, primarily warranty and insurance
52,162 
32,192 
Receivables, gross
851,049 
811,252 
Allowance
(15,560)
(16,388)
Total
$ 835,489 
$ 794,864 
Prepaid Expenses and Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Restricted cash
$ 5,352 
$ 13,499 
Prepaid vehicle licenses
47,806 
47,561 
Prepaid operating taxes
18,510 
15,208 
Prepaid sales commission
11,446 
12,255 
Other
55,029 
44,158 
Total
$ 138,143 
$ 132,681 
Revenue Earning Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue Earning Equipment [Line Items]
 
 
 
Cost
$ 12,148,290 
$ 10,890,902 
 
Accumulated Depreciation
(3,963,555)
(3,689,016)
 
Net Book Value
8,184,735 
7,201,900 
 
Full service lease
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Cost
8,839,941 
8,008,123 
 
Accumulated Depreciation
(2,723,605)
(2,598,140)
 
Net Book Value
6,116,336 
5,409,983 
 
Estimated Useful Life, Minimum
3 years 
 
 
Estimated Useful Life, Maximum
12 years 
 
 
Commercial rental
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Cost
2,811,715 
2,570,081 
 
Accumulated Depreciation
(907,412)
(864,543)
 
Net Book Value
1,904,303 
1,705,538 
 
Estimated Useful Life, Minimum
4 years 6 months 
 
 
Estimated Useful Life, Maximum
12 years 
 
 
Held-for-sale
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Cost
496,634 
312,698 
 
Accumulated Depreciation
(332,538)
(226,333)
 
Net Book Value
164,096 
86,365 
 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Assets Held For Sale Fair Value Disclosure
33,423 
10,978 
 
Loss to reflect changes in fair value
17,956 
10,764 
16,000 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Trucks [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Assets Held For Sale Fair Value Disclosure
11,469 
6,135 
 
Loss to reflect changes in fair value
7,660 
6,274 
 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Tractors [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Assets Held For Sale Fair Value Disclosure
19,479 
4,054 
 
Loss to reflect changes in fair value
7,620 
3,450 
 
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Trailers
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Assets Held For Sale Fair Value Disclosure
2,475 
789 
 
Loss to reflect changes in fair value
$ 2,676 
$ 1,040 
 
Revenue Earning Equipment (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue Earning Equipment [Line Items]
 
 
 
Cost
$ 12,148,290,000 
$ 10,890,902,000 
 
Accumulated Depreciation
3,963,555,000 
3,689,016,000 
 
Revenue earning equipment depreciation expense
1,060,000,000 
979,000,000 
910,000,000 
Assets held under capital leases
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Cost
47,000,000 
48,000,000 
 
Accumulated Depreciation
22,000,000 
22,000,000 
 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Loss to reflect changes in fair value
$ 17,956,000 
$ 10,764,000 
$ 16,000,000 
Operating Property And Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
 
Land
$ 203,543,000 
$ 201,089,000 
 
Buildings and improvements
776,304,000 
766,360,000 
 
Machinery and equipment
709,173,000 
663,616,000 
 
Other
109,554,000 
103,557,000 
 
Gross
1,798,574,000 
1,734,622,000 
 
Accumulated depreciation
(1,083,604,000)
(1,035,028,000)
 
Total
714,970,000 
699,594,000 
 
Operating equipment depreciation expense
$ 84,000,000 
$ 79,000,000 
$ 73,000,000 
Minimum |
Buildings and improvements
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
10 years 
 
 
Minimum |
Machinery and equipment
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
3 years 
 
 
Minimum |
Other
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
3 years 
 
 
Maximum |
Buildings and improvements
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
40 years 
 
 
Maximum |
Machinery and equipment
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
10 years 
 
 
Maximum |
Other
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Estimated Useful Lives
10 years 
 
 
Goodwill (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Goodwill [Line Items]
 
 
 
Goodwill, Impairment
$ 0 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill
 
422,250,000 
412,940,000 
Accumulated impairment losses
 
(29,221,000)
(29,221,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
393,029,000 
383,719,000 
Acquisitions
 
 
11,839,000 
Reclassification to assets held for sale
 
(852,000)
 
Foreign currency translation adjustment
 
(3,042,000)
(2,529,000)
Goodwill
 
418,356,000 
422,250,000 
Accumulated impairment losses
 
(29,221,000)
(29,221,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
389,135,000 
393,029,000 
Qualitative Test
 
 
 
Goodwill [Line Items]
 
 
 
Number of segment reporting units
 
 
Quantitative
 
 
 
Goodwill [Line Items]
 
 
 
Number of segment reporting units
 
 
Fleet Management Solutions [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill
 
233,217,000 
223,204,000 
Accumulated impairment losses
 
(10,322,000)
(10,322,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
222,895,000 
212,882,000 
Acquisitions
 
 
11,839,000 
Reclassification to assets held for sale
 
 
Foreign currency translation adjustment
 
(1,859,000)
(1,826,000)
Goodwill
 
231,358,000 
233,217,000 
Accumulated impairment losses
 
(10,322,000)
(10,322,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
221,036,000 
222,895,000 
Dedicated Transportation Solutions
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill
 
40,808,000 
40,808,000 
Accumulated impairment losses
 
Goodwill, Impaired, Accumulated Impairment Loss
 
40,808,000 
40,808,000 
Acquisitions
 
 
Reclassification to assets held for sale
 
 
Foreign currency translation adjustment
 
Goodwill
 
40,808,000 
40,808,000 
Accumulated impairment losses
 
Goodwill, Impaired, Accumulated Impairment Loss
 
40,808,000 
40,808,000 
Supply Chain Solutions [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill
 
148,225,000 
148,928,000 
Accumulated impairment losses
 
(18,899,000)
(18,899,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
129,326,000 
130,029,000 
Acquisitions
 
 
Reclassification to assets held for sale
 
(852,000)
 
Foreign currency translation adjustment
 
(1,183,000)
(703,000)
Goodwill
 
146,190,000 
148,225,000 
Accumulated impairment losses
 
(18,899,000)
(18,899,000)
Goodwill, Impaired, Accumulated Impairment Loss
 
127,291,000 
129,326,000 
CRSAL [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Reclassification to assets held for sale
 
$ (852,000)
 
Intangible Assets (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Finite lived intangible assets:
 
 
Accumulated amortization
$ (45,736)
$ (42,374)
Total finite lived intangible assets
48,154 
57,915 
Foreign currency translation adjustment
(1,693)
(380)
Total
55,192 
66,619 
Customer relationship intangibles
 
 
Finite lived intangible assets:
 
 
Customer relationship intangibles
91,523 
97,922 
Other intangibles, primarily trade name
 
 
Finite lived intangible assets:
 
 
Customer relationship intangibles
2,367 
2,367 
Trade Names
 
 
Intangible Assets
 
 
Indefinite lived intangible assets
$ 8,731 
$ 9,084 
Intangible Assets (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
$ 45,736,000 
$ 42,374,000 
 
Amortization expense associated with finite lived intangible assets
7,000,000 
7,000,000 
8,000,000 
Minimum
 
 
 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
2016
4,000,000 
 
 
2017
4,000,000 
 
 
2018
4,000,000 
 
 
2019
4,000,000 
 
 
2020
4,000,000 
 
 
Maximum
 
 
 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
2016
6,000,000 
 
 
2017
6,000,000 
 
 
2018
6,000,000 
 
 
2019
6,000,000 
 
 
2020
6,000,000 
 
 
Customer relationship intangibles |
Minimum
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Estimated useful lives
7 years 
 
 
Customer relationship intangibles |
Maximum
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Estimated useful lives
19 years 
 
 
CRSAL [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Assets Held-for-sale, Long Lived, Fair Value Disclosure
7,000,000 
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
$ 3,000,000 
 
 
Direct Financing Leases and Other Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Direct financing leases, net
$ 347,703 
$ 331,065 
Investments held in Rabbi Trusts
41,720 
38,681 
Contract incentives
23,691 
21,475 
Insurance receivables
28,999 
13,957 
Debt issuance costs
18,594 
16,503 
Prepaid pension asset
44,124 
2,698 
Interest rate swap agreements
5,421 
4,565 
Other
15,223 
17,155 
Total
525,475 
446,099 
Cash and Cash Equivalents [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Investments held in Rabbi Trusts
5,214 
4,418 
U S Equity Mutual Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Investments held in Rabbi Trusts
24,824 
23,589 
Foreign Equity Mutual Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Investments held in Rabbi Trusts
4,713 
4,724 
Common collective trusts |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Investments held in Rabbi Trusts
$ 6,969 
$ 5,950 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Accrued Expenses
 
 
Salaries and wages
$ 99,032 
$ 114,446 
Deferred compensation
2,252 
3,209 
Pension benefits
3,790 
3,739 
Other postretirement benefits
1,624 
2,112 
Other employee benefits
8,956 
7,172 
Insurance obligations
157,014 
132,246 
Environmental liabilities
3,791 
3,877 
Operating taxes
101,649 
92,330 
Income taxes
3,378 
5,066 
Interest
31,218 
33,509 
Deposits, mainly from customers
61,869 
59,388 
Deferred revenue
13,038 
11,759 
Acquisition holdbacks
2,081 
3,817 
Other
53,660 
41,009 
Total
543,352 
513,679 
Non-Current Liabilities
 
 
Salaries and wages
Deferred compensation
41,691 
37,093 
Pension benefits
484,892 
444,657 
Other postretirement benefits
20,002 
26,889 
Other employee benefits
9,706 
19,276 
Insurance obligations
213,256 
189,431 
Environmental liabilities
6,554 
8,002 
Operating taxes
Income taxes
22,366 
22,843 
Interest
Deposits, mainly from customers
5,085 
5,929 
Deferred revenue
Acquisition holdbacks
2,187 
Other
26,043 
27,035 
Total
829,595 
783,342 
Total
 
 
Salaries and wages
99,032 
114,446 
Deferred compensation
43,943 
40,302 
Pension benefits
488,682 
448,396 
Other postretirement benefits
21,626 
29,001 
Other employee benefits
18,662 
26,448 
Insurance obligations
370,270 
321,677 
Environmental liabilities
10,345 
11,879 
Operating taxes
101,649 
92,330 
Income taxes
25,744 
27,909 
Interest
31,218 
33,509 
Deposits, mainly from customers
66,954 
65,317 
Deferred revenue
13,038 
11,759 
Acquisition holdbacks
2,081 
6,004 
Other
79,703 
68,044 
Total
$ 1,372,947 
$ 1,297,021 
Accrued Expenses and Other Liabilities (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Accrued Liabilities and Other Liabilities [Abstract]
 
 
 
Benefit (charge) within operating expense
$ (4)
$ 14 
$ 5 
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Earnings from continuing operations before income taxes:
 
 
 
United States
$ 408,757 
$ 275,630 
$ 302,809 
Foreign
60,458 
62,637 
66,206 
Earnings from continuing operations before income taxes
469,215 
338,267 
369,015 
Current tax expense (benefit) from continuing operations:
 
 
 
Federal
(1,836)
(230)
234 
State
5,748 
6,396 
4,194 
Foreign
5,272 
7,163 
7,691 
Total
9,184 
13,329 
12,119 
Deferred tax expense from continuing operations:
 
 
 
Federal
135,585 
90,056 
98,076 
State
20,111 
12,429 
15,399 
Foreign
(1,654)
2,228 
146 
Total
154,042 
104,713 
113,621 
Provision for income taxes from continuing operations
$ 163,226 
$ 118,042 
$ 125,740 
Income Taxes (Details 1)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
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
(0.90%)
(0.90%)
0.10% 
State income taxes, net of federal income tax benefit
5.00% 
5.20% 
4.00% 
Foreign rates varying from federal statutory tax rate
(3.30%)
(3.70%)
(4.10%)
Tax reviews and audits
1.30% 
1.10% 
0.80% 
Other, net
0.30% 
0.40% 
(0.10%)
Effective tax rate
34.80% 
34.90% 
34.10% 
Income Taxes (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Connecticut
Dec. 31, 2015
Other Jurisdictions
Dec. 31, 2014
New York
Dec. 31, 2014
Rhode Island
Dec. 31, 2013
Puerto Rico
Dec. 31, 2013
United Kingdom
Income Tax Examination [Line Items]
 
 
 
 
 
 
Net Earnings
$ 1,616 
$ 497 
$ 1,776 
$ 626 
$ (503)
$ 485 
Income Taxes (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred income tax assets:
 
 
Self-insurance accruals
$ 93,352 
$ 81,908 
Net operating loss carryforwards
429,458 
377,740 
Alternative minimum taxes
10,727 
10,727 
Accrued compensation and benefits
76,363 
68,626 
Federal benefit on state tax positions
18,912 
18,847 
Pension benefits
148,671 
157,082 
Miscellaneous other accruals
32,763 
33,090 
Deferred tax assets gross
810,246 
748,020 
Valuation allowance
(14,991)
(24,742)
Deferred tax assets net
795,255 
723,278 
Deferred income tax liabilities:
 
 
Property and equipment bases difference
(2,362,194)
(2,149,574)
Other
(20,583)
(16,996)
Deferred Tax Liabilities, Gross
(2,382,777)
(2,166,570)
Net deferred income tax liability
$ (1,587,522)
$ (1,443,292)
Income Taxes (Details 4) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance at January 1
$ 60,482 
$ 56,813 
$ 52,271 
Additions based on tax positions related to the current year
4,220 
6,896 
7,606 
Reductions due to lapse of applicable statutes of limitation
(3,962)
(3,227)
(3,064)
Gross balance at December 31
60,740 
60,482 
56,813 
Interest and penalties
4,912 
5,125 
5,756 
Balance at December 31
$ 65,652 
$ 65,607 
$ 62,569 
Income Taxes (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Domestic Country
Dec. 31, 2015
Other Jurisdictions
Dec. 31, 2015
Foreign Country
Dec. 31, 2016
Scenario, Forecast
Income Tax Examination [Line Items]
 
 
 
 
 
 
 
Undistributed foreign earnings
$ 712,000,000 
 
 
 
 
 
 
Net operating loss carryforwards
429,458,000 
377,740,000 
 
386,000,000 
29,000,000 
14,000,000 
 
Alternative minimum taxes
10,727,000 
10,727,000 
 
 
 
 
 
Unrecognized tax benefits that would affect the effective tax rate in future periods
47,000,000 
 
 
 
 
 
 
Deferred income tax accrued interest and penalties
 
4,000,000 
 
 
 
 
 
Income tax related to interest and penalties
(1,000,000)
(1,000,000)
(1,000,000)
 
 
 
 
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions
 
 
 
 
 
 
3,000,000 
Total assets of variable interest entities
237,000,000 
237,000,000 
 
 
 
 
 
Total liabilities of variable interest entities
$ 205,000,000 
$ 205,000,000 
 
 
 
 
 
Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Net investment in direct financing and sales-type leases
 
 
Total minimum lease payments receivable
$ 684,600 
$ 659,551 
Less: Executory costs
(205,865)
(210,241)
Minimum lease payments receivable
478,735 
449,310 
Less: Allowance for uncollectibles
(243)
(288)
Net minimum lease payments receivable
478,492 
449,022 
Unguaranteed residuals
52,885 
55,992 
Less: Unearned income
(93,619)
(88,003)
Net investment in direct financing and sales-type leases
437,758 
417,011 
Current portion
(90,055)
(85,946)
Non-current portion
$ 347,703 
$ 331,065 
Leases (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 478,735 
$ 449,310 
Very low risk to low risk
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
203,388 
198,496 
Moderate
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
197,484 
158,790 
Moderately high to high risk
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 77,863 
$ 92,024 
Leases (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
As Lessor - Operating Leases
 
2016
$ 1,049,766 
2017
857,397 
2018
678,150 
2019
481,790 
2020
298,659 
Thereafter
241,589 
Total
3,607,351 
As Lessor - Direct Financing Leases
 
2016
111,116 
2017
93,215 
2018
76,073 
2019
60,062 
2020
50,402 
Thereafter
87,867 
Total
478,735 
As Lessee - Operating Leases
 
2016
74,103 
2017
39,265 
2018
21,675 
2019
14,066 
2020
6,896 
Thereafter
17,420 
Total
$ 173,425 
Leases (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating Leased Assets [Line Items]
 
 
 
Impaired direct financing receivables
$ 0 
$ 0 
 
Rent expense
132,000,000 
128,000,000 
123,000,000 
Contingent rentals from operating leases
329,000,000 
318,000,000 
318,000,000 
Direct Financing Leases
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Contingent rental income
$ 12,000,000 
$ 11,000,000 
$ 11,000,000 
Trucks and Tractors
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Minimum lease term of revenue earning equipment
3 years 
 
 
Maximum lease term of revenue earning equipment
7 years 
 
 
Trailers
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Maximum lease term of revenue earning equipment
10 years 
 
 
Debt (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Short-term Debt [Line Items]
 
 
Current portion of long-term debt, including capital leases
$ 598,583 
$ 32,511 
Short-term debt and current portion of long-term debt
634,530 
36,284 
Total before fair market value adjustment
5,476,656 
4,722,016 
Fair market value adjustment on notes subject to hedging(3)
5,253 
4,830 
Total after fair market value adjustment
5,481,909 
4,726,846 
Long-term debt
4,883,326 
4,694,335 
Total debt
5,517,856 
4,730,619 
Short-term debt
 
 
Short-term Debt [Line Items]
 
 
Short-term debt, Weighted-Average Interest Rate
2.26% 
1.30% 
Short-term debt
35,947 
3,773 
U.S. commercial paper
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
0.55% 
0.35% 
Commercial paper
547,130 
276,694 
Global revolving credit facility
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
2.31% 
1.60% 
Global revolving credit facility
25,291 
11,190 
Unsecured U.S. notes – Medium-term notes
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
2.84% 
3.29% 
Unsecured U.S. notes - Medium-term notes
4,112,519 
3,772,159 
Unsecured U.S. obligations, principally bank term loans
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
1.73% 
0.76% 
Unsecured U.S. obligations, principally bank term loans
50,000 
110,500 
Unsecured foreign obligations
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
1.92% 
2.01% 
Unsecured foreign obligations
275,661 
295,776 
Asset-Backed US Obligations [Member]
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
1.81% 
1.81% 
Unsecured foreign obligations
434,001 
218,137 
Capital lease obligations
 
 
Short-term Debt [Line Items]
 
 
Long-term debt, Weighted-Average Interest Rate
3.31% 
3.65% 
Capital Lease Obligations
$ 32,054 
$ 37,560 
Debt (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Capital Leases
 
Capital leases, 2016
$ 8,469 
Capital leases, 2017
9,550 
Capital leases, 2018
7,135 
Capital leases, 2019
6,132 
Capital leases, 2020
639 
Capital leases, Thereafter
2,241 
Capital leases, Total
34,166 
Debt
 
Debt, 2016
928,722 
Debt, 2017
750,009 
Debt, 2018
783,177 
Debt, 2019
1,060,365 
Debt, 2020
1,645,441 
Debt, Thereafter
312,835 
Debt, Total
5,480,549 
Maturities of debt
 
Imputed interest
(2,112)
Present value of minimum capitalized lease payments
32,054 
Current portion
(7,720)
Long-term capitalized lease obligation
$ 24,334 
Debt (Details Textual) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Institutions
Sep. 30, 2015
Apr. 30, 2015
Dec. 31, 2014
Dec. 31, 2015
Unsecured Medium Term Notes due March 2017
Dec. 31, 2014
Commercial paper
Aug. 31, 2015
Unsecured Medium Term Notes Due September 2020
May 31, 2015
Unsecured Medium Term Notes Due May 2020
Feb. 28, 2015
Unsecured Medium Term Notes Due March 2020
Dec. 31, 2015
Minimum
Dec. 31, 2015
Maximum
Dec. 31, 2015
Letter of Credit
Dec. 31, 2015
Interest Rate Swap
Dec. 31, 2015
Designated as Hedging Instrument
Fair Value Hedging
Interest Rate Swap
Dec. 31, 2014
Designated as Hedging Instrument
Fair Value Hedging
Interest Rate Swap
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized original issue discounts
$ 8,000,000 
 
 
$ 8,000,000 
 
 
 
 
 
 
 
 
 
 
 
Aggregate notional amount of interest rate swaps
 
 
 
600,000,000 
 
 
 
 
 
 
 
 
825,000,000 
825,000,000 
600,000,000 
Maximum borrowing capacity under global revolving credit facility
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
75,000,000 
 
 
 
Number of lending institutions
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit outstanding amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to consolidated net worth ratio
215.00% 
 
 
 
 
 
 
 
 
 
300.00% 
 
 
 
 
Amount available under the credit facility, net of outstanding commercial paper borrowings
591,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
 
 
 
 
 
277,000,000 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
300,000,000 
 
 
699,000,000 
 
 
 
 
 
 
 
 
 
 
 
Trade receivables borrowings
 
 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
Sale leaseback transaction, amount due
 
93,000,000 
156,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
 
300,000,000 
300,000,000 
400,000,000 
 
 
 
 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instruments Purchase Price Percentage
 
 
 
 
101.00% 
 
 
 
 
 
 
 
 
 
 
Annual facility fee
10.00% 
 
 
 
 
 
 
 
 
0.075% 
0.25% 
 
 
 
 
Debt Instrument, Fair Value Disclosure
$ 5,080,000,000 
 
 
$ 4,590,000,000 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2015
Interest Rate Swap
Summarized details of swaps outstanding and the related hedged items
 
 
Derivative, Notional Amount
$ 600 
$ 825 
Derivative, Fair Value, Net
 
$ 5 
Guarantees (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Guarantees [Abstract]
 
 
Letters of credit
$ 241,022 
$ 234,482 
Surety bonds
$ 104,632 
$ 99,831 
Share Repurchase Programs (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Share Repurchase Programs (Textual) [Abstract]
 
 
Common stock repurchases
$ 6,141 
$ 106,286 
December 2013 Anti-Dilutive Share Repurchase Program
 
 
Share Repurchase Programs (Textual) [Abstract]
 
 
Common stock repurchases
6,000 
106,000 
Common Stock
 
 
Share Repurchase Programs (Textual) [Abstract]
 
 
Repurchased and retired shares
69,107 
1,300,000 
Common stock repurchases
$ 35 
$ 662 
December 2015 Program
 
 
Share Repurchase Programs (Textual) [Abstract]
 
 
Maximum number of share repurchases authorization
1,500,000 
 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
2,000,000 
 
December 2015 Program |
December Two Thousand Thirteen Anti Dilutive Share Repurchase Program
 
 
Share Repurchase Programs (Textual) [Abstract]
 
 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
500,000 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Currency Translation Adjustments and Other
 
 
 
Beginning balance
$ (36,087)
$ 35,875 
$ 57,860 
Other current period change
99,933 
71,962 
21,985 
Ending balance
(136,020)
(36,087)
35,875 
Net Actuarial Loss
 
 
 
Beginning balance
(585,941)
(477,883)
(648,113)
Amortization
19,505 
14,866 
22,820 
Pension lump sum settlement expense
 
61,333 
 
Other current period change
(10,557)
(184,257)
147,410 
Ending balance
(576,993)
(585,941)
(477,883)
Prior Service Credit
 
 
 
Beginning balance
1,758 
3,760 
2,634 
Amortization
1,411 
2,676 
1,340 
Other current period change
(69)
674 
2,466 
Ending balance
278 
1,758 
3,760 
Accumulated Other Comprehensive Loss
 
 
 
Beginning balance
(620,270)
(438,248)
(587,619)
Amortization
18,094 
12,190 
21,480 
Pension lump sum settlement expense
 
61,333 
 
Other current period change
(110,559)
(255,545)
127,891 
Ending balance
$ (712,735)
$ (620,270)
$ (438,248)
Accumulated Other Comprehensive Loss Narrative (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Equity [Abstract]
 
 
 
Loss from currency translation adjustments
$ 99,933 
$ 71,962 
$ 21,985 
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Earnings per share — Basic:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
$ 75,935 
$ 90,811 
$ 85,917 
$ 53,326 
$ 11,483 
$ 83,895 
$ 75,721 
$ 49,126 
$ 305,989 
$ 220,225 
$ 243,275 
Less: Distributed and undistributed earnings allocated to nonvested stock
 
 
 
 
 
 
 
 
(877)
(858)
(2,173)
Earnings from continuing operations available to common shareholders — Basic
 
 
 
 
 
 
 
 
305,112 
219,367 
241,102 
Weighted average common shares outstanding— Basic
 
 
 
 
 
 
 
 
52,814 
52,536 
51,617 
Earnings from continuing operations per common share — Basic (in dollars per share)
$ 1.43 
$ 1.71 
$ 1.62 
$ 1.01 
$ 0.22 
$ 1.60 
$ 1.43 
$ 0.93 
$ 5.78 
$ 4.18 
$ 4.67 
Earnings per share — Diluted:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations
75,935 
90,811 
85,917 
53,326 
11,483 
83,895 
75,721 
49,126 
305,989 
220,225 
243,275 
Less: Distributed and undistributed earnings allocated to unvested stock
 
 
 
 
 
 
 
 
(872)
(853)
(2,159)
Earnings from continuing operations available to common shareholders — Diluted
 
 
 
 
 
 
 
 
$ 305,117 
$ 219,372 
$ 241,116 
Weighted average common shares outstanding— Basic
 
 
 
 
 
 
 
 
52,814 
52,536 
51,617 
Effect of dilutive equity awards
 
 
 
 
 
 
 
 
446 
500 
454 
Weighted average common shares outstanding— Diluted
 
 
 
 
 
 
 
 
53,260 
53,036 
52,071 
Earnings from continuing operations per common share — Diluted (in dollars per share)
$ 1.42 
$ 1.70 
$ 1.61 
$ 1.00 
$ 0.22 
$ 1.58 
$ 1.42 
$ 0.92 
$ 5.73 
$ 4.14 
$ 4.63 
Anti-dilutive equity awards and market-based restrictive stock rights not included above
 
 
 
 
 
 
 
 
392 
161 
785 
Share-Based Compensation Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
award
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
1 year 
 
 
Number of performance periods for which market-based restricted stock will be measured for vesting purposes
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 21,181 
$ 20,905 
$ 19,310 
Income tax benefit
(7,271)
(7,300)
(6,224)
Share-based compensation expense, net of tax
13,910 
13,605 
13,086 
Summary of compensation expense recognized related to cash awards
 
 
 
Cash awards
532 
1,900 
996 
Stock option and stock purchase plans
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
8,048 
9,023 
8,303 
Unvested stock awards
 
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
 
Share-based compensation expense
$ 13,133 
$ 11,882 
$ 11,007 
Share-Based Compensation Plans (Details 2) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Options outstanding at December 31
1,263 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Options outstanding at December 31 (in dollars per share)
$ 68.13 
Summary of stock option activity
 
Exercisable at December 31, Shares
588 
Exercisable at December 31, Weighted-Average Exercise Price
$ 53.72 
Outstanding, weighted average remaining contractual term
6 years 7 months 18 days 
Stock options
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Options outstanding at January 1
1,269 
Granted
363 
Exercised
(282)
Forfeited or expired
(87)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Options outstanding at January 1 (in dollars per share)
$ 58.03 
Granted (in dollars per share)
$ 93.55 
Exercised (in dollars per share)
$ 54.26 
Forfeited or expired (in dollars per share)
$ 71.63 
Summary of stock option activity
 
Vested and expected to vest at December 31, Shares
1,238 
Vested and expected to vest at December 31, Weighted-Average Exercise Price
$ 67.63 
Vested and expected to vest at December 31 in years
6 years 1 month 18 days 
Exercisable at December 31, in years
4 years 4 months 18 days 
Options outstanding at December 31, Aggregate Intrinsic Value
$ 3,326 
Vested and expected to vest at December 31, Aggregate Intrinsic Value
3,358 
Exercisable at December 31, Aggregate Intrinsic Value
$ 3,339 
Share-Based Compensation Plans (Details 3) (USD $)
12 Months Ended
Dec. 31, 2015
Time-Vested
 
Summary of Nonvested stock awards
 
Nonvested stock outstanding at January 1
514,000 
Granted
90,000 
Vested
(102,000)
Forfeited
(29,000)
Nonvested stock outstanding at December 31
473,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Nonvested stock outstanding at January 1, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 61.83 
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 91.84 
Vested,Weighted-Average Grant Date Fair Value (in dollars per share)
$ 53.95 
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 74.06 
Nonvested stock outstanding at December 31, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 68.50 
Market-Based
 
Summary of Nonvested stock awards
 
Nonvested stock outstanding at January 1
94,000 
Granted
19,000 
Vested
(46,000)
Forfeited
(5,000)
Nonvested stock outstanding at December 31
62,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Nonvested stock outstanding at January 1, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 50.27 
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 89.40 
Vested,Weighted-Average Grant Date Fair Value (in dollars per share)
$ 43.38 
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 56.98 
Nonvested stock outstanding at December 31, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 66.97 
Performance-Based
 
Summary of Nonvested stock awards
 
Nonvested stock outstanding at January 1
47,000 
Granted
42,000 
Vested
Forfeited
(13,000)
Nonvested stock outstanding at December 31
76,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Nonvested stock outstanding at January 1, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 68.29 
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 93.05 
Vested,Weighted-Average Grant Date Fair Value (in dollars per share)
$ 0.00 
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 60.57 
Nonvested stock outstanding at December 31, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 83.31 
Share-Based Compensation Plans (Details 4) (Option plans:, USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Option plans:
 
 
 
Weighted-average assumptions used for options granted
 
 
 
Expected dividends
1.60% 
1.90% 
2.10% 
Expected volatility
26.40% 
29.10% 
35.10% 
Risk-free rate
1.40% 
1.30% 
0.70% 
Expected term in years
4 years 3 months 17 days 
4 years 3 months 17 days 
4 years 3 months 17 days 
Grant-date fair value
$ 18.47 
$ 14.99 
$ 13.97 
Share-Based Compensation Plans (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
award
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Total unrecognized pre-tax compensation expense
$ 21,000,000 
 
 
Unrecognized compensation costs weighted-average period
1 year 215 days 
 
 
Total fair value of equity awards
16,000,000 
18,000,000 
12,000,000 
Unused shares
1,200,000 
 
 
Share-based compensation plan, vesting proportion per year
one-third 
 
 
Share-based compensation plan, vesting period
1 year 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term
10 years 
 
 
Number of performance periods for market-based restricted stock
 
 
Performance-based restricted stock awards granted
42,000 
23,000 
16,000 
Share-based compensation arrangement by share-based payment award, exercised
178,000,000 
150,000,000 
194,000,000 
Share-Based Compensation Plans (Textual) [Abstract]
 
 
 
Total intrinsic value of option exercised
11,000,000 
28,000,000 
30,000,000 
Common stock issued
23,635,000 
46,568,000 
90,646,000 
Total cash received exercised stock option
 
46,000,000 
87,000,000 
Tax benefits realized from share based employee compensation arrangements
400,000 
1,000,000 
5,000,000 
Time Vested Restricted Stock
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, vesting period
3 years 
 
 
Market Based Cash Awards
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Liability related to the cash awards
$ 1,000,000 
$ 4,000,000 
 
Stock Option And Nonvested Stock Plan Member
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Unused shares
1,100,000 
 
 
Stock Option
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, vesting period
3 years 
 
 
Restricted Stock Units (RSUs)
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation plan, vesting period
1 year 
 
 
Employee Stock Purchase Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Unused shares
100,000 
 
 
Percentage of payroll deductions of eligible compensation
15.00% 
 
 
Percentage of share purchased fair market value
85.00% 
 
 
Employee stock purchase plan holding period
90 days 
 
 
Share authorized
4,500,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
178,000 
150,000 
194,000 
Granted, Weighted-Average Grant Date Fair Value (in dollars per share)
$ 63.93 
$ 82.27 
$ 48.72 
Maximum |
ROC performance based restricted stock rights, 2013 Grant
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Potential performance award percentage
125.00% 
 
 
Maximum |
Market Based Restricted Stock Rights, 2012 Grant
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Potential performance award percentage
125.00% 
 
 
Employee Benefits Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Pension expense from continuing operations
 
 
 
Pension lump sum settlement expense
$ 0 
$ 97,231 
$ 0 
Amortization of:
 
 
 
Postretirement benefit (income) expense
41,704 
138,656 
48,118 
Company-administered plans:
 
 
 
Pension expense from continuing operations
 
 
 
Service cost
13,820 
13,023 
15,991 
Interest cost
88,013 
100,909 
89,682 
Expected return on plan assets
(98,892)
(115,410)
(106,150)
Pension lump sum settlement expense
97,231 
Census data adjustment
(3,905)
Amortization of:
 
 
 
Net actuarial gain
30,741 
23,573 
35,282 
Prior service credit
(306)
(1,788)
(1,818)
Postretirement benefit (income) expense
33,376 
117,538 
36,892 
Company-administered plans: |
U.S.
 
 
 
Amortization of:
 
 
 
Postretirement benefit (income) expense
34,986 
118,797 
37,636 
Company-administered plans: |
Foreign
 
 
 
Amortization of:
 
 
 
Postretirement benefit (income) expense
(1,610)
(1,259)
(744)
Union-administered plans
 
 
 
Amortization of:
 
 
 
Postretirement benefit (income) expense
$ 8,328 
$ 21,118 
$ 11,226 
Employee Benefits Plans (Details 1)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
U.S.
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
4.15% 
5.00% 
4.10% 
Rate of increase in compensation levels
3.00% 
3.00% 
4.00% 
Expected long-term rate of return on plan assets
5.95% 
6.50% 
6.80% 
Gain and loss amortization period (years)
23 years 
23 years 
23 years 
Foreign
 
 
 
Summary of weighted-average actuarial assumptions used in determining annual pension expense
 
 
 
Discount rate
3.70% 
4.57% 
4.43% 
Rate of increase in compensation levels
3.10% 
3.09% 
3.55% 
Expected long-term rate of return on plan assets
5.50% 
5.94% 
6.57% 
Gain and loss amortization period (years)
27 years 
27 years 
26 years 
Employee Benefits Plans (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Change in benefit obligations:
 
 
 
Pension settlement
$ 509 
$ (12,564)
$ (2,820)
Change in plan assets:
 
 
 
Defined Benefit Plan, Funded Percentage
79.00% 
80.00% 
 
Pension Plans
 
 
 
Change in benefit obligations:
 
 
 
Benefit obligations at January 1
2,221,115 
2,104,749 
 
Interest cost
88,013 
100,909 
 
Actuarial (gain) loss
(98,996)
380,595 
 
Pension settlement
(259,319)
 
Benefits paid
(98,528)
(87,020)
 
Foreign currency exchange rate changes
(33,580)
(31,822)
 
Benefit obligations at December 31
2,091,844 
2,221,115 
 
Change in plan assets:
 
 
 
Fair value of plan assets at January 1
1,775,417 
1,832,490 
 
Actual return on plan assets
(29,024)
178,061 
 
Employer contribution
33,746 
107,483 
 
Benefits paid
(98,528)
(87,020)
 
Pension settlement
(223,654)
 
Foreign currency exchange rate changes
(34,325)
(31,943)
 
Fair value of plan assets at December 31
1,647,286 
1,775,417 
 
Funded status
$ (444,558)
$ (445,698)
 
Employee Benefits Plans (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Amounts recognized in the Consolidated Balance Sheets
 
 
Noncurrent asset
$ 44,124 
$ 2,698 
Pension Plans
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
Noncurrent asset
44,124 
2,698 
Current liability
(3,790)
(3,739)
Noncurrent liability
(484,892)
(444,657)
Net amount recognized
(444,558)
(445,698)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
Prior service credit
(195)
Net actuarial loss
905,944 
905,976 
Net amount recognized
$ 905,944 
$ 905,781 
Employee Benefits Plans (Details 4)
Dec. 31, 2015
Dec. 31, 2014
U.S.
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
4.50% 
4.15% 
Rate of increase in compensation levels
3.00% 
3.00% 
Foreign
 
 
Summary of weighted-average actuarial assumptions used in determining funded status
 
 
Discount rate
4.00% 
3.70% 
Rate of increase in compensation levels
3.10% 
3.10% 
Employee Benefits Plans (Details 5) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Summary of pension obligations greater than fair value of related plan assets
 
 
Total accumulated benefit obligations
$ 2,064,399 
$ 2,176,795 
Plans with pension obligations in excess of plan assets:
 
 
PBO
1,679,865 
1,737,815 
ABO
1,647,637 
1,694,811 
Fair value of plan assets
1,191,182 
1,289,621 
U.S.
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Total accumulated benefit obligations
1,640,844 
1,689,191 
Plans with pension obligations in excess of plan assets:
 
 
PBO
1,671,949 
1,728,643 
ABO
1,640,844 
1,689,191 
Fair value of plan assets
1,191,182 
1,289,621 
Foreign
 
 
Summary of pension obligations greater than fair value of related plan assets
 
 
Total accumulated benefit obligations
423,555 
487,604 
Plans with pension obligations in excess of plan assets:
 
 
PBO
7,916 
9,172 
ABO
6,793 
5,620 
Fair value of plan assets
$ 0 
$ 0 
Employee Benefits Plans (Details 6) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 100,631 
$ 89,727 
$ 76,499 
Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1,647,286 
1,775,417 
1,832,490 
Pension Plans |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1,546,655 
1,685,690 
 
Pension Plans |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100,631 
89,727 
 
Pension Plans |
Private equity and hedge funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100,631 
89,727 
 
Pension Plans |
Private equity and hedge funds |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Private equity and hedge funds |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Private equity and hedge funds |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100,631 
89,727 
 
Pension Plans |
Equity securities: |
U.S. common collective trusts
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
387,123 
421,185 
 
Pension Plans |
Equity securities: |
U.S. common collective trusts |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Equity securities: |
U.S. common collective trusts |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
387,123 
421,185 
 
Pension Plans |
Equity securities: |
U.S. common collective trusts |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Equity securities: |
Foreign common collective trusts
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
374,858 
405,224 
 
Pension Plans |
Equity securities: |
Foreign common collective trusts |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Equity securities: |
Foreign common collective trusts |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
374,858 
405,224 
 
Pension Plans |
Equity securities: |
Foreign common collective trusts |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Fixed income securities: |
Corporate bonds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
64,834 
70,999 
 
Pension Plans |
Fixed income securities: |
Corporate bonds |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Fixed income securities: |
Corporate bonds |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
64,834 
70,999 
 
Pension Plans |
Fixed income securities: |
Corporate bonds |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Fixed income securities: |
Common collective trusts
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
719,840 
788,282 
 
Pension Plans |
Fixed income securities: |
Common collective trusts |
Level 1
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Pension Plans |
Fixed income securities: |
Common collective trusts |
Level 2
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
719,840 
788,282 
 
Pension Plans |
Fixed income securities: |
Common collective trusts |
Level 3
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 0 
$ 0 
 
Employee Benefits Plans (Details 7) (Level 3, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Level 3
 
 
Summary of changes in fair value of the pension plans' level 3 assets
 
 
Fair value of plan assets at January 1
$ 89,727 
$ 76,499 
Return on plan assets:
 
 
Relating to assets still held at the reporting date
5,399 
4,903 
Relating to assets sold during the period
226 
1,882 
Purchases, sales, settlements and expenses
5,279 
6,443 
Fair value of plan assets at December 31
$ 100,631 
$ 89,727 
Employee Benefits Plans (Details 8) (Pension Plans, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Pension Plans
 
Pension benefits expected to be paid
 
2016
$ 100,116 
2017
102,692 
2018
107,483 
2019
112,019 
2020
115,863 
2021-2025
$ 632,110 
Employee Benefits Plans (Details 9) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Ryder Contributions
$ 8,837 
$ 8,554 
$ 8,406 
Pension settlement (benefit) charges
(509)
12,564 
2,820 
Postretirement benefit (income) expense
41,704 
138,656 
48,118 
Union-administered plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Postretirement benefit (income) expense
8,328 
21,118 
11,226 
Western Conference Teamsters
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer Identification Number
91-6145047 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Ryder Contributions
2,430 
2,315 
2,180 
Surcharge Imposed
No 
 
 
Expiration Date(s) of Collective-Bargaining Agreement(s)
1/12/18 to 6/30/19 
 
 
IAM National
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer Identification Number
51-6031295 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Ryder Contributions
3,801 
3,311 
2,987 
Surcharge Imposed
No 
 
 
Expiration Date(s) of Collective-Bargaining Agreement(s)
3/31/16 to 9/30/19 
 
 
Automobile Mechanics Local No. 701
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer Identification Number
36-6042061 
 
 
Pension Protection Act Zone Status
Red 
Red 
 
FIP/RP Status Pending/ Implemented
RP Adopted 
 
 
Ryder Contributions
1,902 
1,632 
1,530 
Surcharge Imposed
Yes 
 
 
Expiration Date(s) of Collective-Bargaining Agreement(s)
5/31/16 to 10/31/17 
 
 
Other funds
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Ryder Contributions
$ 704 
$ 1,296 
$ 1,709 
Employee Benefits Plans (Details 10) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Amortization of:
 
 
 
Postretirement benefit (income) expense
$ 41,704 
$ 138,656 
$ 48,118 
Other Postretirement Benefits
 
 
 
Other Postretirement benefit expense
 
 
 
Service cost
363 
446 
981 
Interest cost
1,097 
1,421 
1,580 
Amortization of:
 
 
 
Net actuarial gain
(1,773)
(725)
(14)
Prior service credit
(1,083)
(2,459)
(231)
Postretirement benefit (income) expense
(1,396)
(1,317)
2,316 
Other Postretirement benefit expense U.S.
 
 
 
Amortization of:
 
 
 
Postretirement benefit (income) expense
(1,887)
(1,839)
1,625 
Other Postretirement benefit expense Foreign
 
 
 
Amortization of:
 
 
 
Postretirement benefit (income) expense
$ 491 
$ 522 
$ 691 
Employee Benefits Plans (Details 11)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Postretirement benefit expense U.S.
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.15% 
5.00% 
4.10% 
Other Postretirement benefit expense Foreign
 
 
 
Weighted-average discount rates used in determining annual postretirement benefit expense
 
 
 
Discount rate
4.00% 
4.80% 
4.00% 
Employee Benefits Plans (Details 12) (Other Postretirement Benefits, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Postretirement Benefits
 
 
 
Benefit Obligations associated with postretirement benefit plans
 
 
 
Benefit obligations at January 1
$ 29,001 
$ 30,788 
 
Service cost
363 
446 
981 
Interest cost
1,097 
1,421 
1,580 
Actuarial gain
(6,164)
(1,010)
 
Benefits paid
(1,468)
(1,989)
 
Foreign currency exchange rate changes
(1,203)
(655)
 
Benefit obligations at December 31
$ 21,626 
$ 29,001 
$ 30,788 
Employee Benefits Plans (Details 13) (Other Postretirement Benefits, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Other Postretirement Benefits
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
Current liability
$ 1,624 
$ 2,112 
Noncurrent liability
20,002 
26,889 
Net amount recognized
21,626 
29,001 
Amounts recognized in accumulated other comprehensive loss (pre-tax)
 
 
Prior service credit
(616)
(2,527)
Net actuarial gain
(11,825)
(5,933)
Net amount recognized
$ (12,441)
$ (8,460)
Employee Benefits Plans (Details 14)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Other Postretirement benefit expense U.S.
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
Discount rate
4.50% 
4.15% 
Rate of increase in compensation levels
3.00% 
3.00% 
Healthcare cost trend rate assumed for next year
6.75% 
7.00% 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
5.00% 
5.00% 
Year that the rate reaches the ultimate trend rate
2023 
2023 
Other Postretirement benefit expense Foreign
 
 
Summary of actuarial assumptions used in determining accrued postretirement benefit obligations
 
 
Discount rate
4.00% 
4.00% 
Rate of increase in compensation levels
3.00% 
3.00% 
Healthcare cost trend rate assumed for next year
5.50% 
6.00% 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
5.00% 
5.00% 
Year that the rate reaches the ultimate trend rate
2017 
2017 
Employee Benefits Plans (Details 15) (Other Postretirement Benefits, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Other Postretirement Benefits
 
Pension benefits expected to be paid
 
2016
$ 1,646 
2017
1,640 
2018
1,631 
2019
1,620 
2020
1,591 
2021-2025
$ 7,464 
Employee Benefits Plans (Details Textual) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Non-qualified supplemental pension plan
Dec. 31, 2014
Non-qualified supplemental pension plan
Dec. 31, 2015
Pension Plans
Dec. 31, 2014
Pension Plans
Dec. 31, 2015
Other Postretirement Benefits
Age
Dec. 31, 2015
Defined Contribution Savings Plan
Dec. 31, 2014
Defined Contribution Savings Plan
Dec. 31, 2013
Defined Contribution Savings Plan
Dec. 31, 2015
Rabbi Trusts
Dec. 31, 2014
Rabbi Trusts
Dec. 31, 2016
Scenario, Forecast
Dec. 31, 2016
Scenario, Forecast
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension and Other Postretirement Benefit Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,000,000 
 
Pension benefits
488,682,000 
448,396,000 
 
51,000,000 
51,000,000 
 
 
 
 
 
 
 
 
 
 
Payments for postemployment benefits
 
224,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension settlement (benefit) charges
(509,000)
12,564,000 
2,820,000 
 
 
259,319,000 
 
 
 
 
 
 
 
 
Settlement percentage of pension obligation
 
12.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension lump sum settlement expense
97,231,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss to be recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32,000,000 
U.S. pension plan assets percentage of total pension plan assets
72.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Required pension contributions to our pension plans
80,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expense related to defined contribution savings plans
 
 
 
 
 
 
 
 
38,000,000 
35,000,000 
35,000,000 
 
 
 
 
Deferred compensation
43,943,000 
40,302,000 
 
 
 
44,000,000 
40,000,000 
 
 
 
 
 
 
 
 
Assets held in trust
 
 
 
 
 
 
 
 
 
 
 
43,000,000 
41,000,000 
 
 
Value of common stock issued in trust
 
 
 
 
 
 
 
 
 
 
 
$ 1,000,000 
$ 2,000,000 
 
 
Maximum age limit of qualified retirees for health care benefits
 
 
 
 
 
 
 
65 
 
 
 
 
 
 
 
Modified Age Limit Of Qualified Retirees For Health Care Benefits
 
 
 
 
 
 
 
52 
 
 
 
 
 
 
 
Modified years of service required for Qualified Retirees For Health Care Benefits
 
 
 
 
 
 
 
12 years 
 
 
 
 
 
 
 
Assumed change in healthcare cost trend rates in each year
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
Environmental Matters (Details) (USD $)
12 Months Ended
Dec. 31, 2015
DisposalSite
Dec. 31, 2014
Dec. 31, 2013
Environmental Remediation Obligations [Abstract]
 
 
 
Number of disposal sites
19 
 
 
Environmental expenses
$ 9,000,000 
$ 7,000,000 
$ 9,000,000 
Environmental liabilities
$ 10,345,000 
$ 11,879,000 
 
Other Items Impacting Comparability (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
 
 
 
Pension lump sum settlement loss (1)
$ 0 
$ (97,231)
$ 0 
Pension settlement benefit (charges) (1)
509 
(12,564)
(2,820)
Restructuring and other (charges) recoveries, net (2)
(14,225)
(2,387)
470 
Acquisition-related tax adjustment
(1,808)
Acquisition transaction costs
(566)
Consulting fees
(3,843)
(400)
Foreign currency translation benefit
1,904 
Restructuring and other (charges) recoveries, net and other items
(17,559)
(114,956)
154 
Superstorm Sandy
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Superstorm Sandy vehicle-related recoveries
600 
Foreign Currency Gain (Loss)
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Foreign currency translation benefit
 
 
$ 2,000 
Other Matters (Details) (Brazil state operating tax, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Brazil state operating tax
 
Loss Contingencies [Line Items]
 
Tax amounts assessed but not reversed
$ 5 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Supplemental Cash Flow Elements [Abstract]
 
 
 
Interest paid
$ 144,973 
$ 139,595 
$ 132,946 
Income taxes paid
13,379 
11,382 
13,063 
Changes in accounts payable related to purchases of revenue earning equipment
28,134 
39,071 
43,745 
Operating and revenue earning equipment acquired under capital leases
$ 5,959 
$ 7,972 
$ 5,698 
Miscellaneous Income, Net (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Income and Expenses [Abstract]
 
 
 
Gains on sales of operating property and equipment
$ 3,045 
$ 2,909 
$ 1,020 
Business interruption insurance recoveries
808 
2,743 
Contract settlement
55 
3,014 
Foreign currency translation benefit
1,904 
Foreign currency transaction gains/(losses)
1,945 
(210)
40 
Rabbi trust investment income
632 
2,726 
4,475 
Other, net
4,479 
4,366 
5,190 
Total
$ 10,156 
$ 13,613 
$ 15,372 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,672,743 
$ 1,669,066 
$ 1,662,931 
$ 1,567,153 
$ 1,656,316 
$ 1,687,150 
$ 1,684,571 
$ 1,610,737 
$ 6,571,893 
$ 6,638,774 
$ 6,419,285 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
469,215 
338,267 
369,015 
Restructuring and other (charges) recoveries, net (2)
 
 
 
 
 
 
 
 
(14,225)
(2,387)
470 
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
554,470 
514,731 
438,639 
Unallocated Central Support Services
 
 
 
 
 
 
 
 
(48,510)
(51,740)
(45,493)
Non-operating pension costs
 
 
 
 
 
 
 
 
(19,186)
(9,768)
(24,285)
Restructuring and other (charges) recoveries, net (2)
 
 
 
 
 
 
 
 
(17,559)
(114,956)
154 
Intersegment Eliminations
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
(417,100)
(478,133)
(458,464)
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
(47,193)
(41,361)
(35,489)
Fleet Management Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
4,545,692 
4,655,758 
4,494,686 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other (charges) recoveries, net (2)
 
 
 
 
 
 
 
 
(4,817)
(515)
470 
Fleet Management Solutions |
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
4,128,592 
4,177,625 
4,036,222 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
462,109 
433,736 
344,169 
Fleet Management Solutions |
Operating Segments |
Full service lease
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,220,929 
2,102,703 
2,016,570 
Fleet Management Solutions |
Operating Segments |
Commercial rental
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
900,624 
836,719 
753,456 
Fleet Management Solutions |
Operating Segments |
Full service lease and commercial rental
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
3,121,553 
2,939,422 
2,770,026 
Fleet Management Solutions |
Operating Segments |
Contract maintenance
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
190,989 
182,411 
178,001 
Fleet Management Solutions |
Operating Segments |
Contract-related maintenance
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
200,148 
196,841 
186,580 
Fleet Management Solutions |
Operating Segments |
Other
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
77,625 
71,064 
72,029 
Fleet Management Solutions |
Operating Segments |
Fuel services revenue
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
538,277 
787,887 
829,586 
Fleet Management Solutions |
Intersegment Eliminations
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
417,100 
478,133 
458,464 
Dedicated Transportation Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
895,538 
899,802 
831,599 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
45,800 
44,556 
40,926 
Restructuring and other (charges) recoveries, net (2)
 
 
 
 
 
 
 
 
(250)
(154)
Supply Chain Solutions
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,547,763 
1,561,347 
1,551,464 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other (charges) recoveries, net (2)
 
 
 
 
 
 
 
 
(7,033)
(797)
Supply Chain Solutions |
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
EBT:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$ 93,754 
$ 77,800 
$ 89,033 
Segment Reporting (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
$ 21,181 
$ 20,905 
$ 19,310 
Depreciation expense
1,139,922 
1,057,813 
983,610 
Gains on vehicles sales, net
(117,809)
(126,824)
(96,175)
Pension lump sum settlement expense
97,231 
Amortization expense and other non-cash charges, net
70,762 
47,263 
56,389 
Interest expense
150,434 
144,739 
140,463 
Capital expenditures paid
2,667,978 
2,259,164 
2,122,628 
Total assets
10,967,809 
9,850,871 
9,168,340 
Operating Segments |
Fleet Management Solutions
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
5,672 
4,895 
4,979 
Depreciation expense
1,110,706 
1,028,781 
953,193 
Gains on vehicles sales, net
(117,714)
(126,410)
(96,011)
Pension lump sum settlement expense
 
76,239 
 
Amortization expense and other non-cash charges, net
36,348 
19,936 
19,071 
Interest expense
154,276 
147,247 
142,555 
Capital expenditures paid
2,595,961 
2,166,319 
2,074,708 
Total assets
10,076,321 
9,011,883 
8,404,606 
Operating Segments |
Dedicated Transportation Solutions
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
1,155 
720 
851 
Depreciation expense
3,184 
3,211 
3,335 
Gains on vehicles sales, net
(54)
(117)
Pension lump sum settlement expense
 
3,335 
 
Amortization expense and other non-cash charges, net
1,878 
516 
946 
Interest expense
(1,597)
(1,520)
(1,316)
Capital expenditures paid
3,570 
1,883 
1,563 
Total assets
275,634 
211,388 
203,563 
Operating Segments |
Supply Chain Solutions
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
3,400 
3,661 
4,083 
Depreciation expense
25,721 
25,636 
26,225 
Gains on vehicles sales, net
(41)
(419)
(47)
Pension lump sum settlement expense
 
3,277 
 
Amortization expense and other non-cash charges, net
2,971 
1,309 
2,694 
Interest expense
(2,174)
(807)
(548)
Capital expenditures paid
27,841 
20,941 
21,114 
Total assets
636,647 
673,876 
640,837 
Central Support Service
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
10,954 
11,629 
9,397 
Depreciation expense
311 
185 
857 
Gains on vehicles sales, net
Pension lump sum settlement expense
 
14,380 
 
Amortization expense and other non-cash charges, net
29,565 
25,502 
33,678 
Interest expense
(71)
(181)
(228)
Capital expenditures paid
40,606 
70,021 
25,243 
Total assets
202,129 
193,484 
154,024 
Eliminations
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Share-based compensation expense
Depreciation expense
Gains on vehicles sales, net
Pension lump sum settlement expense
 
 
Amortization expense and other non-cash charges, net
Interest expense
Capital expenditures paid
Total assets
$ (222,922)
$ (239,760)
$ (234,690)
Segment Reporting (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,672,743 
$ 1,669,066 
$ 1,662,931 
$ 1,567,153 
$ 1,656,316 
$ 1,687,150 
$ 1,684,571 
$ 1,610,737 
$ 6,571,893 
$ 6,638,774 
$ 6,419,285 
Long-lived assets:
8,899,705 
 
 
 
7,901,480 
 
 
 
8,899,705 
7,901,480 
7,226,652 
United States
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
5,603,697 
5,614,037 
5,411,376 
Long-lived assets:
7,817,628 
 
 
 
6,790,946 
 
 
 
7,817,628 
6,790,946 
6,098,635 
Canada
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
408,325 
435,280 
455,440 
Long-lived assets:
504,027 
 
 
 
530,316 
 
 
 
504,027 
530,316 
529,880 
Europe
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
391,339 
400,853 
372,209 
Long-lived assets:
545,630 
 
 
 
553,467 
 
 
 
545,630 
553,467 
568,850 
Mexico
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
139,583 
158,481 
161,279 
Long-lived assets:
31,993 
 
 
 
26,230 
 
 
 
31,993 
26,230 
29,008 
Asia
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
28,949 
30,123 
18,981 
Long-lived assets:
427 
 
 
 
521 
 
 
 
427 
521 
279 
Foreign
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
968,196 
1,024,737 
1,007,909 
Long-lived assets:
$ 1,082,077 
 
 
 
$ 1,110,534 
 
 
 
$ 1,082,077 
$ 1,110,534 
$ 1,128,017 
Segment Reporting (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Depreciation expense
$ 1,139,922 
$ 1,057,813 
$ 983,610 
Acquisition payments
9,972 
1,858 
Central support service assets depreciation expense allocated to other business segments
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Depreciation expense
$ 22,000 
$ 21,000 
$ 14,000 
Automotive industry |
Supply Chain Solutions
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of total revenue
41.00% 
43.00% 
44.00% 
Quarterly Information (Unaudited) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
QUARTERLY INFORMATION
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,672,743 
$ 1,669,066 
$ 1,662,931 
$ 1,567,153 
$ 1,656,316 
$ 1,687,150 
$ 1,684,571 
$ 1,610,737 
$ 6,571,893 
$ 6,638,774 
$ 6,419,285 
Earnings from Continuing Operations
75,935 
90,811 
85,917 
53,326 
11,483 
83,895 
75,721 
49,126 
305,989 
220,225 
243,275 
Net Earnings
$ 76,201 
$ 90,619 
$ 85,159 
$ 52,789 
$ 11,079 
$ 83,617 
$ 75,385 
$ 48,260 
$ 304,768 
$ 218,341 
$ 237,871 
Earnings from Continuing Operations per Common Share
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic (in dollars per share)
$ 1.43 
$ 1.71 
$ 1.62 
$ 1.01 
$ 0.22 
$ 1.60 
$ 1.43 
$ 0.93 
$ 5.78 
$ 4.18 
$ 4.67 
Earnings from continuing operations per common share — Diluted (in dollars per share)
$ 1.42 
$ 1.70 
$ 1.61 
$ 1.00 
$ 0.22 
$ 1.58 
$ 1.42 
$ 0.92 
$ 5.73 
$ 4.14 
$ 4.63 
Net Earnings per Common Share
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 1.44 
$ 1.71 
$ 1.61 
$ 1.00 
$ 0.21 
$ 1.59 
$ 1.43 
$ 0.91 
$ 5.75 
$ 4.14 
$ 4.57 
Diluted (USD per share)
$ 1.43 
$ 1.69 
$ 1.59 
$ 0.99 
$ 0.21 
$ 1.57 
$ 1.41 
$ 0.90 
$ 5.71 
$ 4.11 
$ 4.53 
Valuation and Qualifying Accounts (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Benefit (charge) within operating expense
$ (4,000,000)
$ 14,000,000 
$ 5,000,000 
Accounts receivable allowance
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
16,388,000 
16,955,000 
15,429,000 
Charged to Earnings
11,172,000 
7,086,000 
7,561,000 
Transferred from (to) Other Accounts
Deductions
12,000,000 
7,653,000 
6,035,000 
Balance at End of Period
15,560,000 
16,388,000 
16,955,000 
Direct finance lease allowance
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
288,000 
501,000 
703,000 
Charged to Earnings
1,495,000 
47,000 
205,000 
Transferred from (to) Other Accounts
Deductions
1,540,000 
260,000 
407,000 
Balance at End of Period
243,000 
288,000 
501,000 
Self-insurance accruals
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
300,994,000 
290,255,000 
279,157,000 
Charged to Earnings
308,026,000 
273,509,000 
266,314,000 
Transferred from (to) Other Accounts
68,999,000 
62,548,000 
60,235,000 
Deductions
366,198,000 
325,318,000 
315,451,000 
Balance at End of Period
311,821,000 
300,994,000 
290,255,000 
Valuation allowance on deferred tax assets
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
24,742,000 
33,793,000 
38,182,000 
Charged to Earnings
(1,150,000)
(976,000)
1,627,000 
Transferred from (to) Other Accounts
Deductions
8,601,000 
8,075,000 
6,016,000 
Balance at End of Period
$ 14,991,000 
$ 24,742,000 
$ 33,793,000