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• | The majority of our leases and all of our rental arrangements are classified as operating leases and, therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs. |
• | The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term. |
• | Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest 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. |
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3 | Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
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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 |
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 |
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 |
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 | ) |
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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 |
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 | ) |
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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 |
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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 |
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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. |
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. |
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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 |
|
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 |
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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 |
|
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 |
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 |
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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 |
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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.” |
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 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 |
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 | ) |
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 |
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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 |
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 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 . |
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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. |
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 |
|
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December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Letters of credit | $ | 241,022 | 234,482 | ||||
Surety bonds | 104,632 | 99,831 |
|
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. |
|
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 |
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 |
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 | % |
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 | ) |
December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Prior service credit | $ | — | (195 | ) | |||
Net actuarial loss | 905,944 | 905,976 | |||||
Net amount recognized | $ | 905,944 | 905,781 |
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% |
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 |
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 |
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 |
(In thousands) | |||
2016 | $ | 100,116 | |
2017 | 102,692 | ||
2018 | 107,483 | ||
2019 | 112,019 | ||
2020 | 115,863 | ||
2021-2025 | 632,110 |
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. |
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 |
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% |
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 |
December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Current liability | $ | 1,624 | 2,112 | ||||
Noncurrent liability | 20,002 | 26,889 | |||||
Amount recognized | $ | 21,626 | 29,001 |
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 | ) |
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 |
(In thousands) | |||
2016 | $ | 1,646 | |
2017 | 1,640 | ||
2018 | 1,631 | ||
2019 | 1,620 | ||
2020 | 1,591 | ||
2021-2025 | 7,464 |
|
|
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 |
|
|
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 |
|
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 |
|
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. |
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. |
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 |
|
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 |
|
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. |
|
• | 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. |
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. |
|
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 | ) |
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 |
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 |
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 |
|
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 |
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 | ) |
|
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 |
|
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 |
|
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. |
|
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 |
|
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 |
|
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 |
|
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 |
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 |
|
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 |
|
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.” |
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 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 |
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 | ) |
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 |
|
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 |
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 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 . |
|
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. |
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 |
|
December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Letters of credit | $ | 241,022 | 234,482 | ||||
Surety bonds | 104,632 | 99,831 |
|
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. |
|
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 |
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 |
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% |
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 | % |
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 | ) |
December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Prior service credit | $ | — | (195 | ) | |||
Net actuarial loss | 905,944 | 905,976 | |||||
Net amount recognized | $ | 905,944 | 905,781 |
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 |
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 |
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 |
(In thousands) | |||
2016 | $ | 100,116 | |
2017 | 102,692 | ||
2018 | 107,483 | ||
2019 | 112,019 | ||
2020 | 115,863 | ||
2021-2025 | 632,110 |
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. |
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% |
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 |
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 |
December 31, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Current liability | $ | 1,624 | 2,112 | ||||
Noncurrent liability | 20,002 | 26,889 | |||||
Amount recognized | $ | 21,626 | 29,001 |
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 thousands) | |||
2016 | $ | 1,646 | |
2017 | 1,640 | ||
2018 | 1,631 | ||
2019 | 1,620 | ||
2020 | 1,591 | ||
2021-2025 | 7,464 |
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 |
|
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 |
|
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 |
|
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 |
|
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. |
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. |
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 |
|
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 |
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