RYDER SYSTEM INC, 10-Q filed on 10/22/2015
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2015
Document and Entity Information [Abstract]
 
Entity Registrant Name
RYDER SYSTEM INC 
Entity Central Index Key
0000085961 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Document Type
10-Q 
Document Period End Date
Sep. 30, 2015 
Document Fiscal Year Focus
2015 
Document Fiscal Period Focus
Q3 
Amendment Flag
false 
Entity Common Stock, Shares Outstanding
53,425,097 
Consolidated Condensed Statements of Earnings (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]
 
 
 
 
Lease and rental revenues
$ 802,881 
$ 756,733 
$ 2,310,951 
$ 2,180,178 
Services revenue
734,803 
732,049 
2,165,677 
2,183,175 
Fuel services revenue
131,382 
198,368 
422,522 
619,105 
Total revenues
1,669,066 
1,687,150 
4,899,150 
4,982,458 
Cost of lease and rental
550,541 
522,202 
1,600,271 
1,522,394 
Cost of services
606,364 
607,530 
1,792,182 
1,839,035 
Cost of fuel services
129,562 
194,926 
408,027 
605,744 
Other operating expenses
31,286 
28,889 
98,864 
96,541 
Selling, general and administrative expenses
203,093 
202,001 
624,566 
594,133 
Gains on vehicle sales, net
(29,294)
(33,691)
(92,110)
(96,874)
Interest expense
38,986 
36,681 
114,863 
107,948 
Miscellaneous income, net
(1,372)
(996)
(5,037)
(11,206)
Total expenses
1,529,166 
1,557,542 
4,541,626 
4,657,715 
Earnings from continuing operations before income taxes
139,900 
129,608 
357,524 
324,743 
Provision for income taxes
49,089 
45,713 
127,470 
116,001 
Earnings from continuing operations
90,811 
83,895 
230,054 
208,742 
Loss from discontinued operations, net of tax
(192)
(278)
(1,487)
(1,480)
Net earnings
$ 90,619 
$ 83,617 
$ 228,567 
$ 207,262 
Earnings (loss) per common share — Basic
 
 
 
 
Continuing operations (in dollars per share)
$ 1.71 
$ 1.60 
$ 4.35 
$ 3.96 1
Discontinued operations (in dollars per share)
$ 0.00 1
$ (0.01)1
$ (0.03)1
$ (0.03)1
Net earnings (in dollars per share)
$ 1.71 1
$ 1.59 1
$ 4.32 1
$ 3.93 1
Earnings (loss) per common share — Diluted
 
 
 
 
Continuing operations (in dollars per share)
$ 1.70 
$ 1.58 
$ 4.31 
$ 3.92 1
Discontinued operations (in dollars per share)
$ 0.00 1
$ (0.01)1
$ (0.03)1
$ (0.03)1
Net earnings (in dollars per share)
$ 1.69 1
$ 1.57 1
$ 4.28 1
$ 3.89 1
Cash dividends declared per common share (in dollars per share)
$ 0.41 
$ 0.37 
$ 1.15 
$ 1.05 
Consolidated Condensed Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net earnings
$ 90,619 
$ 83,617 
$ 228,567 
$ 207,262 
Other comprehensive loss:
 
 
 
 
Changes in cumulative translation adjustment and other
(42,748)
(46,879)
(73,093)
(35,198)
Amortization of pension and postretirement items
6,873 
4,658 
20,765 
13,986 
Income tax expense related to amortization of pension and postretirement items
(2,412)
(1,603)
(7,226)
(4,811)
Amortization of pension and postretirement items, net of taxes
4,461 
3,055 
13,539 
9,175 
Change in net actuarial loss
(148)
(8,526)
(3,292)
Income tax benefit related to change in net actuarial loss
44 
3,205 
1,140 
Change in net actuarial loss, net of taxes
(104)
(5,321)
(2,152)
Other comprehensive loss, net of taxes
(38,287)
(43,928)
(64,875)
(28,175)
Comprehensive income
$ 52,332 
$ 39,689 
$ 163,692 
$ 179,087 
Consolidated Condensed Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 75,387 
$ 50,092 
Receivables, net of allowance of $17,708 and $16,388, respectively
814,160 
794,864 
Inventories
64,087 
66,007 
Prepaid expenses and other current assets
163,893 
165,234 
Total current assets
1,117,527 
1,076,197 
Revenue earning equipment, net of accumulated depreciation of $3,876,682 and $3,689,016 respectively
8,036,710 
7,201,886 
Operating property and equipment, net of accumulated depreciation of $1,078,471 and $1,035,028, respectively
712,169 
699,594 
Goodwill
390,853 
393,029 
Intangible assets
60,551 
66,619 
Direct financing leases and other assets
502,376 
446,099 
Total assets
10,820,186 
9,883,424 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
305,759 
36,284 
Accounts payable
550,305 
560,852 
Accrued expenses and other current liabilities
511,198 
513,679 
Total current liabilities
1,367,262 
1,110,815 
Long-term debt
5,144,938 
4,694,335 
Other non-current liabilities
780,415 
783,342 
Deferred income taxes
1,575,507 
1,475,845 
Total liabilities
8,868,122 
8,064,337 
Shareholders’ equity:
 
 
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, September 30, 2015 or December 31, 2014
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, September 30, 2015 — 53,425,097; December 31, 2014 — 53,039,688
26,712 
26,520 
Additional paid-in capital
997,753 
962,328 
Retained earnings
1,612,744 
1,450,509 
Accumulated other comprehensive loss
(685,145)
(620,270)
Total shareholders’ equity
1,952,064 
1,819,087 
Total liabilities and shareholders’ equity
$ 10,820,186 
$ 9,883,424 
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets:
 
 
Allowance for doubtful accounts, current
$ 17,708 
$ 16,388 
Revenue earning equipment, accumulated depreciation
3,876,682 
3,689,016 
Operating property and equipment, accumulated depreciation
$ 1,078,471 
$ 1,035,028 
Shareholders’ equity:
 
 
Common stock, par value
$ 0.50 
$ 0.50 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
53,425,097 
53,039,688 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities from continuing operations:
 
 
Net earnings
$ 228,567 
$ 207,262 
Less: Loss from discontinued operations, net of tax
(1,487)
(1,480)
Earnings from continuing operations
230,054 
208,742 
Depreciation expense
838,100 
781,367 
Gains on vehicle sales, net
(92,110)
(96,874)
Share-based compensation expense
16,112 
15,446 
Amortization expense and other non-cash charges, net
46,272 
35,850 
Deferred income tax expense
111,609 
99,418 
Changes in operating assets and liabilities:
 
 
Receivables
(23,751)
(37,408)
Inventories
1,275 
(731)
Prepaid expenses and other assets
(33,334)
(23,385)
Accounts payable
(19,506)
44,976 
Accrued expenses and other non-current liabilities
(3,385)
(46,357)
Net cash provided by operating activities from continuing operations
1,071,336 
981,044 
Cash flows from financing activities from continuing operations:
 
 
Net change in commercial paper borrowings
184,750 
(164,944)
Debt proceeds
1,329,810 
895,733 
Debt repaid
(795,837)
(284,811)
Dividends on common stock
(61,436)
(55,408)
Common stock issued
20,397 
38,990 
Common stock repurchased
(6,141)
(92,343)
Excess tax benefits from share-based compensation
723 
514 
Debt issuance costs
(7,483)
(5,230)
Net cash provided by financing activities from continuing operations
664,783 
332,501 
Cash flows from investing activities from continuing operations:
 
 
Purchases of property and revenue earning equipment
(2,087,294)
(1,741,173)
Sales of revenue earning equipment
319,766 
392,572 
Sales of operating property and equipment
1,203 
3,091 
Acquisitions
(9,785)
Collections on direct finance leases
51,166 
48,920 
Changes in restricted cash
7,781 
10,344 
Other
(1,250)
Net cash used in investing activities from continuing operations
(1,707,378)
(1,297,281)
Effect of exchange rate changes on cash
(2,006)
(1,210)
Increase in cash and cash equivalents from continuing operations
26,735 
15,054 
Decrease in cash and cash equivalents from discontinued operations
(1,440)
(1,614)
Increase in cash and cash equivalents
25,295 
13,440 
Cash and cash equivalents at beginning of period
50,092 
61,562 
Cash and cash equivalents at end of period
$ 75,387 
$ 75,002 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2014
$ 1,819,087 
$ 0 
$ 26,520 
$ 962,328 
$ 1,450,509 
$ (620,270)
Beginning balance, shares at Dec. 31, 2014
53,039,688 
 
53,039,688 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive income (loss)
163,692 
 
 
 
228,567 
(64,875)
Common stock dividends declared — $1.15 per share
(61,441)
 
 
 
(61,441)
 
Common stock issued under employee stock option and stock purchase plans1
20,308 
 
227 
20,081 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
453,555 
 
 
 
Benefit plan stock sales2
89 
 
89 
 
 
Benefit plan stock sales, shares2
 
 
961 
 
 
 
Common stock repurchases
(6,141)
 
(35)
(1,215)
(4,891)
 
Common stock repurchases, shares
 
 
(69,107)
 
 
 
Share-based compensation
16,112 
 
 
16,112 
 
Tax benefits from share-based compensation
358 
 
 
358 
 
 
Ending balance at Sep. 30, 2015
$ 1,952,064 
$ 0 
$ 26,712 
$ 997,753 
$ 1,612,744 
$ (685,145)
Ending balance, shares at Sep. 30, 2015
53,425,097 
 
53,425,097 
 
 
 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Statement of Stockholders' Equity [Abstract]
 
 
 
 
Cash dividends declared per common share (in dollars per share)
$ 0.41 
$ 0.37 
$ 1.15 
$ 1.05 
General
GENERAL
Interim Financial Statements

The accompanying unaudited Consolidated Condensed 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) required to be consolidated in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with the accounting policies described in our 2014 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals and items referenced under "Revision of Prior Period Financial Statements") considered necessary for a fair statement have been included and the disclosures herein are adequate. The operating results for interim periods are unaudited and are not necessarily indicative of the results that can be expected for a full year.

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 previously within Supply Chain Solutions (SCS). We are now reporting our financial performance as follows: (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 transportation services provided as part of an integrated, multi-service, supply chain solution to SCS customers are reported in the SCS business segment. Prior period amounts have been recast to conform to the new presentation. This change impacted Note (P), "Segment Reporting," with no impact on consolidated revenues, net income or cash flows.

Revision of Prior Period Financial Statements

The Company periodically enters 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 that 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 the three and nine months ended September 30, 2014, and as of December 31, 2014 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 Condensed Statements of Earnings were as follows (in millions):
 
Three months ended September 30, 2014
 
Nine months ended September 30, 2014
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Cost of lease and rental
$
522.9

(0.7
)
522.2

 
$
1,524.0

(1.6
)
1,522.4

Interest expense
35.9

0.8

36.7

 
106.3

1.6

107.9

Earnings from continuing operations before income taxes
129.7

(0.1
)
129.6

 
324.8

(0.1
)
324.7

Provision for income taxes
45.8

(0.1
)
45.7

 
116.0


116.0

Earnings from continuing operations
84.0

(0.1
)
83.9

 
208.8

(0.1
)
208.7

Net earnings
83.7

(0.1
)
83.6

 
207.3


207.3






The effects of this revision on our Consolidated Condensed Statements of Comprehensive Income were as follows (in millions):
 
Comprehensive Income
 
As Previously Reported
Adjustment
As Revised
Three months ended September 30, 2014
$
39.8

(0.1
)
39.7

Nine months ended September 30, 2014
179.1


179.1


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

207.4

7,201.9

Total assets
9,676.0

207.4

9,883.4

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
1,476.0

(0.2
)
1,475.8

Total liabilities
7,856.5

207.8

8,064.3

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
9,676.0

207.4

9,883.4


The effects of this revision on the individual line items within our Consolidated Condensed Statements of Cash Flows were as follows (in millions):
 
Nine months ended September 30, 2014
 
As Previously Reported
Adjustment
As Revised
Net earnings
$
207.3


207.3

Depreciation expense
770.1

11.3

781.4

Accrued expenses and other non-current liabilities
(41.5
)
(4.9
)
(46.4
)
Net cash provided by operating activities from continuing operations
974.7

6.3

981.0

Debt proceeds
769.9

125.8

895.7

Debt repaid
(278.4
)
(6.4
)
(284.8
)
Net cash provided by financing activities from continuing operations
213.1

119.4

332.5

Sale and leaseback of revenue earning equipment
125.8

(125.8
)

Net cash used in investing activities from continuing operations
(1,171.5
)
(125.8
)
(1,297.3
)
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS

Accounting for Measurement Period Adjustments

On September 25, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 prices 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. We are in the process of determining the effect of the standard on our consolidated financial position and results of operations.

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 September 30, 2015, we expect to reclassify $20.0 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 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. We have not yet selected a transition method. We are in the process of determining the effect of the standard on our consolidated financial position and results of operations.
Share-Based Compensation Plans
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS

Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Awards under the Plans principally include at-the-money stock options, nonvested stock and cash awards. Nonvested stock awards include grants of market-based, performance-based and time-vested restricted stock rights. Under the terms of our Plans, dividends may be paid on our nonvested stock awards but 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 grant date of the award until the date the shares underlying the award are delivered.

The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Stock option and stock purchase plans
$
1,948

 
2,353

 
$
6,205

 
6,831

Nonvested stock
2,995

 
3,104

 
9,907

 
8,615

Share-based compensation expense
4,943

 
5,457

 
16,112

 
15,446

Income tax benefit
(1,652
)
 
(1,864
)
 
(5,395
)
 
(5,253
)
Share-based compensation expense, net of tax
$
3,291

 
3,593

 
$
10,717

 
10,193



The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Cash awards
$
197

 
389

 
$
661

 
1,655



Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at September 30, 2015 was $24.5 million and is expected to be recognized over a weighted-average period of 1.8 years.

The following table is a summary of the awards granted under the Plans during the periods presented:
 
Nine months ended September 30,
 
2015
 
2014
 
(In thousands)
 
 
 
 
Stock options
362

 
406

Market-based restricted stock rights
19

 
22

Performance-based restricted stock rights
42

 
30

Time-vested restricted stock rights
87

 
184

Total
510

 
642

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:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
 
Earnings from continuing operations
$
90,811

 
83,895

 
$
230,054

 
208,742

Less: Distributed and undistributed earnings allocated to nonvested stock
(266
)
 
(275
)
 
(654
)
 
(879
)
Earnings from continuing operations available to common shareholders — Basic
$
90,545

 
83,620

 
$
229,400

 
207,863

 
 
 
 
 
 
 
 
Weighted average common shares outstanding — Basic
52,888

 
52,459

 
52,770

 
52,559

 
 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
$
1.71

 
1.60

 
$
4.35

 
3.96

 
 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
 
Earnings from continuing operations
$
90,811

 
83,895

 
$
230,054

 
208,742

Less: Distributed and undistributed earnings allocated to nonvested stock
(265
)
 
(273
)
 
(649
)
 
(873
)
Earnings from continuing operations available to common shareholders — Diluted
$
90,546

 
83,622

 
$
229,405

 
207,869

 
 
 
 
 
 
 
 
Weighted average common shares outstanding — Basic
52,888

 
52,459

 
52,770

 
52,559

Effect of dilutive equity awards
445

 
515

 
476

 
487

Weighted average common shares outstanding — Diluted
53,333

 
52,974

 
53,246

 
53,046

 
 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
$
1.70

 
1.58

 
$
4.31

 
3.92

 
 
 
 
 
 
 
 
Anti-dilutive equity awards not included above
352

 
8

 
300

 
212

Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT
 
September 30, 2015
 
December 31, 2014
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
(In thousands)
Held for use:
 
Full service lease
$
8,612,790

 
(2,699,055
)
 
5,913,735

 
$
8,008,122

 
(2,598,140
)
 
5,409,982

Commercial rental
2,932,196

 
(924,004
)
 
2,008,192

 
2,570,081

 
(864,543
)
 
1,705,538

Held for sale
368,406

 
(253,623
)
 
114,783

 
312,699

 
(226,333
)
 
86,366

Total
$
11,913,392

 
(3,876,682
)
 
8,036,710

 
$
10,890,902

 
(3,689,016
)
 
7,201,886

 ————————————
(1)
Revenue earning equipment, net includes vehicles acquired under capital leases of $47.5 million, less accumulated depreciation of $21.0 million, at September 30, 2015, and $47.8 million, less accumulated depreciation of $22.5 million, at December 31, 2014.

At the end of 2014, we completed our annual review of residual values and useful lives of revenue earning equipment. Based on the results of our analysis, we adjusted the estimated residual values of certain classes of revenue earning equipment effective January 1, 2015. The change in estimated residual values and useful lives increased pre-tax earnings for the three and nine months ended September 30, 2015 by approximately $10.0 million and $30.0 million, respectively.

We lease revenue earning equipment to customers for periods typically ranging from three to seven years for trucks and tractors and up to ten years for trailers. 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. As of September 30, 2015 and December 31, 2014, the net investment in direct financing and sales-type leases was $442.6 million and $417.0 million, respectively. 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 upon signing of a full service lease contract. 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 vehicles, based on their estimated fair values, which further mitigates our credit risk.

As of September 30, 2015 and December 31, 2014, the amount of direct financing lease receivables past due was not significant, and there were no impaired receivables. Accordingly, we do not believe there is a material risk of default with respect to the direct financing lease receivables. The allowance for credit losses was $0.3 million as of September 30, 2015 and December 31, 2014.
Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES
 
September 30, 2015
 
December 31, 2014
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
(In thousands)
Salaries and wages
$
101,036

 

 
101,036

 
$
114,446

 

 
114,446

Deferred compensation
2,120

 
39,221

 
41,341

 
3,209

 
37,093

 
40,302

Pension benefits
3,644

 
440,800

 
444,444

 
3,739

 
444,657

 
448,396

Other postretirement benefits
2,084

 
25,440

 
27,524

 
2,112

 
26,889

 
29,001

Other employee benefits
9,059

 
9,360

 
18,419

 
7,172

 
19,276

 
26,448

Insurance obligations (1)
134,407

 
202,258

 
336,665

 
132,246

 
189,431

 
321,677

Environmental liabilities
3,836

 
7,177

 
11,013

 
3,877

 
8,002

 
11,879

Operating taxes
95,311

 

 
95,311

 
92,330

 

 
92,330

Income taxes
2,782

 
23,620

 
26,402

 
5,066

 
22,843

 
27,909

Interest
32,460

 

 
32,460

 
33,509

 

 
33,509

Deposits, mainly from customers
65,995

 
6,193

 
72,188

 
59,388

 
5,929

 
65,317

Deferred revenue
13,377

 

 
13,377

 
11,759

 

 
11,759

Acquisition holdbacks
2,134

 

 
2,134

 
3,817

 
2,187

 
6,004

Other
42,953

 
26,346

 
69,299

 
41,009

 
27,035

 
68,044

Total
$
511,198

 
780,415

 
1,291,613

 
$
513,679

 
783,342

 
1,297,021

 ————————————
(1)
Insurance obligations are primarily comprised of self-insured claim liabilities.
Debt
DEBT
DEBT
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
September 30,
2015
 
December 31,
2014
 
Maturities
 
September 30,
2015
 
December 31,
2014
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
Short-term debt
—%
 
1.30%
 

 
$

 
3,773

Current portion of long-term debt
 
 
 
 
 
 
305,759

 
32,511

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
305,759

 
36,284

Long-term debt:
 
 
 
 
 
 
 
 
 
U.S. commercial paper (1)
0.44%
 
0.35%
 
2020
 
461,414

 
276,694

Global revolving credit facility
2.68%
 
1.60%
 
2020
 
43,553

 
11,190

Unsecured U.S. notes — Medium-term notes (1)
2.74%
 
3.29%
 
2016-2025
 
4,112,089

 
3,772,159

Unsecured U.S. obligations
1.51%
 
0.76%
 
2018
 
50,000

 
110,500

Unsecured foreign obligations
1.92%
 
2.01%
 
2015-2020
 
283,433

 
295,776

Asset-backed U.S. obligations (2)
1.81%
 
1.81%
 
2018-2022
 
448,331

 
218,137

Capital lease obligations
1.92%
 
1.73%
 
2015-2022
 
36,083

 
37,560

Total before fair market value adjustment
 
 
 
 
 
 
5,434,903

 
4,722,016

Fair market value adjustment on notes subject to hedging (3)
 
 
 
 
 
15,794

 
4,830

 
 
 
 
 
 
 
5,450,697

 
4,726,846

Current portion of long-term debt
 
 
 
 
 
 
(305,759
)
 
(32,511
)
Long-term debt
 
 
 
 
 
 
5,144,938

 
4,694,335

Total debt
 
 
 
 
 
 
$
5,450,697

 
4,730,619

 ————————————
(1)
We had unamortized original issue discounts of $8.0 million and $7.9 million at September 30, 2015 and December 31, 2014, respectively.
(2)
Asset-backed U.S. obligations of $448.3 million at September 30, 2015 and $218.1 million at December 31, 2014 are related to financing transactions involving revenue earning equipment. See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions.
(3)
The notional amount of executed interest rate swaps designated as fair value hedges was $825 million at September 30, 2015 and $600 million at December 31, 2014.


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 September 30, 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 September 30, 2015 was 215%. At September 30, 2015, there was $694.9 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 September 30, 2015, we classified $461.4 million of short-term commercial paper, $300.0 million of the current portion of long-term debt and $41 million of short-term borrowings under our global revolving credit facility as long-term debt. At December 31, 2014, we classified $276.7 million of short-term commercial paper, $60.0 million of trade receivables borrowings and $698.5 million of the current portion of long-term debt as long-term debt.

In September and April 2015, we received $92.9 million and $156.4 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 committed purchaser. 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. If no event occurs that causes early termination, the 364-day program will expire during October 2015. We are currently in the process of renewing the program through October 2016. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. No amounts were outstanding under the program at September 30, 2015. At December 31, 2014, $60.0 million was outstanding under the program. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets.

At September 30, 2015 and December 31, 2014, we had letters of credit and surety bonds outstanding totaling $339.3 million and $334.3 million, respectively, which primarily guarantee the payment of insurance claims.
Fair Value Measurements
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

The assets and liabilities measured at fair value on a recurring basis consist primarily of interest rate swaps and investments held in Rabbi Trusts.  These amounts as of September 30, 2015 are not material to our consolidated financial position and operations and have not changed significantly from the amounts reported as of December 31, 2014.  

The following tables present our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:
 
Fair Value Measurements at
 
Total Losses (2)
 
September 30, 2015
 
Three months ended September 30, 2015
 
Nine months ended September 30, 2015
 
(In thousands)
Assets held for sale:
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
Trucks
$
7,701

 
$
1,657

 
$
4,400

Tractors
10,093

 
2,062

 
3,970

Trailers
1,195

 
610

 
1,582

Total assets at fair value
$
18,989

 
$
4,329

 
9,952


 
 
 
 
 
Fair Value Measurements at
 
Total Losses (2)
 
 
September 30, 2014
 
Three months ended September 30, 2014
 
Nine months ended September 30, 2014
 
 
(In thousands)
 
Assets held for sale:
 
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
 
Trucks
$
8,437

 
$
1,527

 
$
4,981

 
Tractors
4,666

 
530

 
2,824

 
Trailers
682

 
320

 
762

 
Total assets at fair value
$
13,785

 
$
2,377

 
$
8,567

 
 
 ————————————
(1)
Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell.
(2)
Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value.

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 Condensed 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.

Fair value of total debt (excluding capital lease and asset-backed U.S. obligations) at September 30, 2015 and December 31, 2014 was approximately $5.35 billion and $4.59 billion, respectively. For publicly-traded debt, estimates of fair value were 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 was estimated based on a model-driven approach using rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Condensed Balance Sheets for “Cash and cash equivalents,” “Receivables, net” and “Accounts payable” approximate fair value because of the immediate or short-term maturities of these financial instruments.
Derivatives
DERIVATIVES
DERIVATIVES

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. Fair value was based on a model-driven income approach using the LIBOR rate at each interest payment date, which was observable at commonly quoted intervals for the full term of the swaps. Therefore, our interest rate swaps were classified within Level 2 of the fair value hierarchy. The fair value amounts of the interest rate swaps are reported in the Consolidated Condensed Balance Sheets within "Prepaid expenses and other current assets," "Direct financing leases and other assets," and "Other non-current liabilities." As of September 30, 2015, these amounts are not material to our consolidated financial position or results of operations and have not changed significantly from the amounts reported at December 31, 2014.

The following table provides a detail of the swaps outstanding and the related hedged items as of September 30, 2015:
 
 
 
Maturity date
 
Face value of medium-term notes
 
Aggregate 
notional
amount of interest rate swaps
 
Fixed interest 
rate
 
Weighted-average variable
interest rate on hedged debt
as of September 30,
Issuance date
 
 
 
 
 
2015
 
2014
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.52%
 
1.42%
November 2013
 
November 2018
 
$300,000
 
$100,000
 
2.45%
 
1.28%
 
1.18%
February 2014
 
June 2019
 
$350,000
 
$100,000
 
2.55%
 
1.19%
 
1.10%
May 2014
 
September 2019
 
$400,000
 
$100,000
 
2.45%
 
0.95%
 
0.86%
February 2015
 
March 2020
 
$400,000
 
$150,000
 
2.65%
 
1.21%
 
August 2015
 
September 2020
 
$300,000
 
$225,000
 
2.88%
 
1.52%
 


The amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items are reported in the Consolidated Condensed Statements of Earnings within "Interest expense." Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps.
Share Repurchase Programs
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS

In December 2013, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans (collectively, the employee stock plans). Under the December 2013 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued under the employee stock plans from December 1, 2013 through December 10, 2015. The December 2013 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management established prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2013 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. Early in the first quarter of 2015, due to the increase in leverage, we temporarily paused anti-dilutive share repurchase activity. For the nine months ended September 30, 2015 and 2014, we repurchased and retired 69,107 shares and 1,170,123 shares, respectively, under the program at an aggregate cost of $6.1 million and $92.3 million, respectively.
Accumulated Other Comprehensive Loss
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS

The following summary sets forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
Currency
Translation
Adjustments and Other
 
Net Actuarial
Loss (1)
 
Prior Service
Credit (1)
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
December 31, 2014
 
$
(36,087
)
 
(585,941
)
 
1,758

 
(620,270
)
Amortization
 

 
14,605

 
(1,066
)
 
13,539

Other current period change
 
(73,093
)
 
(5,321
)
 

 
(78,414
)
September 30, 2015
 
$
(109,180
)
 
(576,657
)
 
692

 
(685,145
)


 
 
Currency
Translation
Adjustments and Other
 
Net Actuarial
Loss (1)
 
Prior Service
Credit (1)
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
December 31, 2013
 
$
35,875


(477,883
)
 
3,760

 
(438,248
)
Amortization
 


11,183


(2,008
)
 
9,175

Other current period change
 
(35,198
)

(2,043
)

(109
)
 
(37,350
)
September 30, 2014
 
$
677

 
(468,743
)
 
1,643

 
(466,423
)

_______________________ 

(1)
These amounts are included in the computation of net periodic benefit cost. See Note (L), "Employee Benefit Plans," for further information.

The loss from currency translation adjustments in the nine months ended September 30, 2015 of $73.1 million was due primarily to the weakening of the Canadian Dollar and British Pound against the U.S. Dollar.
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost/(credit) were as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Pension Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
3,612

 
3,297

 
$
10,805

 
9,892

Interest cost
21,777

 
25,280

 
65,712

 
75,990

Expected return on plan assets
(24,697
)
 
(28,900
)
 
(74,618
)
 
(86,916
)
Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
7,665

 
5,900

 
23,137

 
17,714

Prior service credit
(80
)
 
(445
)
 
(230
)
 
(1,340
)
 
8,277

 
5,132

 
24,806

 
15,340

Union-administered plans
1,772

 
3,475

 
6,057

 
7,744

Net periodic benefit cost
$
10,049

 
8,607

 
$
30,863

 
23,084

 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
8,746

 
5,389

 
$
26,237

 
16,190

Non-U.S.
(469
)
 
(257
)
 
(1,431
)
 
(850
)
 
8,277

 
5,132

 
24,806

 
15,340

Union-administered plans
1,772

 
3,475

 
6,057

 
7,744

 
$
10,049

 
8,607

 
$
30,863

 
23,084

 
 
 
 
 
 
 
 
Postretirement Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
88

 
112

 
$
278

 
336

Interest cost
270

 
356

 
829

 
1,069

Amortization of:
 
 
 
 
 
 
 
Net actuarial gain
(235
)
 
(181
)
 
(709
)
 
(544
)
Prior service credit
(477
)
 
(616
)
 
(1,433
)
 
(1,844
)
Net periodic benefit credit
$
(354
)
 
(329
)
 
$
(1,035
)
 
(983
)
 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
(469
)
 
(460
)
 
$
(1,415
)
 
(1,379
)
Non-U.S.
115

 
131

 
380

 
396

 
$
(354
)
 
(329
)
 
$
(1,035
)
 
(983
)


During the nine months ended September 30, 2015, we contributed $29.9 million to our pension plans. In 2015, we expect total contributions to our pension plans to be approximately $35 million.
Other Items Impacting Comparability
OTHER ITEMS IMPACTING COMPARABILITY
OTHER ITEMS IMPACTING COMPARABILITY
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Pension settlement adjustments
$
(509
)
 
1,262

 
$
(509
)
 
1,262

Professional fees
63

 

 
3,843

 

Acquisition transaction costs

 
566

 

 
566

Restructuring and other charges, net and other items
$
(446
)
 
1,828

 
$
3,334

 
1,828



During the three and nine months ended September 30, 2015, we incurred charges of $0.1 million and $3.8 million, respectively, related to professional fees associated with cost savings initiatives. During the three and nine months ended September 30, 2015, we recorded adjustments of $0.5 million to previously recorded estimated pension settlement charges related to the exit from U.S. multi-employer pension plans. These items are reflected within "Selling, general and administrative expenses" in our Consolidated Condensed Statements of Earnings.
During the three and nine months ended September 30, 2014, we recorded estimated pension settlement charges of $1.3 million for the exit of certain U.S. multi-employer pension plans. During the three and nine months ended September 30, 2014, transaction costs related to the Bullwell acquisition were $0.6 million. These items were reflected within "Selling, general and administrative expenses" in our Consolidated Condensed Statements of Earnings.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information was as follows:
 
Nine months ended September 30,
 
2015
 
2014
 
(In thousands)
Interest paid
$
110,141

 
110,192

Income taxes paid
13,635

 
9,878

Changes in accounts payable related to purchases of revenue earning equipment
18,307

 
3,902

Operating and revenue earning equipment acquired under capital leases
5,956

 
3,788

Miscellaneous Income, Net
MISCELLANEOUS INCOME, NET
MISCELLANEOUS INCOME, NET
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015

2014
 
(In thousands)
Gain on sales of operating property and equipment
$
1,516

 
135

 
$
1,597

 
2,725

Gain/(loss) on foreign currency transactions
1,363

 
11

 
1,629

 
(376
)
Rabbi trust investment (loss)/income
(1,504
)
 
(177
)
 
(318
)
 
1,400

Insurance proceeds

 

 
314

 
756

Contract settlement

 
64

 
56

 
2,972

Other, net
(3
)
 
963

 
1,759

 
3,729

Total
$
1,372

 
996

 
$
5,037

 
11,206

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 transportion 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, net and other items discussed in Note (M), "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.

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”). 
The following tables set forth financial information for each of our business segments and provide a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and nine months ended September 30, 2015 and 2014. 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.
 
FMS
 
DTS
 
SCS
 
Eliminations
 
Total
 
 (in thousands)
For the three months ended September 30, 2015
 
 
 
 
 
 
 
 
Revenue from external customers
$
1,054,840

 
226,921

 
387,305

 

 
1,669,066

Inter-segment revenue
102,738

 

 

 
(102,738
)
 

Total revenue
$
1,157,578

 
226,921

 
387,305

 
(102,738
)
 
1,669,066

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
126,433

 
13,296

 
26,573

 
(11,998
)
 
154,304

Unallocated CSS
 
 
 
 
 
 
 
 
(10,070
)
     Non-operating pension costs 
 
 
 
 
 
 
 
 
(4,780
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
446

Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
139,900

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2)
$
740,049

 
1,175

 
4,195

 

 
745,419

Unallocated CSS
 
 
 
 
 
 
 
 
12,657

Capital expenditures paid
 
 
 
 
 
 
 
 
$
758,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended September 30, 2014
 
 
 
 
 
 
 
 
Revenue from external customers
$
1,069,333

 
227,568

 
390,249

 

 
1,687,150

Inter-segment revenue
117,589

 

 

 
(117,589
)
 

Total revenue
$
1,186,922

 
227,568

 
390,249

 
(117,589
)
 
1,687,150

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
120,867

 
11,850

 
24,302

 
(9,564
)
 
147,455

Unallocated CSS
 
 
 
 
 
 
 
 
(13,564
)
Non-operating pension costs 
 
 
 
 
 
 
 
 
(2,455
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(1,828
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
129,608

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2), (3)
$
470,552

 
432

 
7,052

 

 
478,036

Unallocated CSS
 
 
 
 
 
 
 
 
7,915

Capital expenditures paid
 
 
 
 
 
 
 
 
$
485,951

 ————————————
(1)
See Note (M), "Other Items Impacting Comparability," for additional information.
(2)
Excludes revenue earning equipment acquired under capital leases.
(3)
Excludes acquisition payments of $8.1 million during the three months ended September 30, 2014.



 
FMS
 
DTS
 
SCS
 
Eliminations
 
Total
 
 (in thousands)
For the nine months ended September 30, 2015
 
 
 
 
 
 
 
 
Revenue from external customers
$
3,080,756

 
663,094

 
1,155,300

 

 
4,899,150

Inter-segment revenue
313,321

 

 

 
(313,321
)
 

Total revenue
$
3,394,077

 
663,094

 
1,155,300

 
(313,321
)
 
4,899,150

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
338,603

 
34,701

 
69,961

 
(35,120
)
 
408,145

Unallocated CSS
 
 
 
 
 
 
 
 
(32,936
)
     Non-operating pension costs
 
 
 
 
 
 
 
 
(14,351
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(3,334
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
357,524

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2)
$
2,040,334

 
2,530

 
13,752

 

 
2,056,616

Unallocated CSS
 
 
 
 
 
 
 
 
30,678

Capital expenditures paid
 
 
 
 
 
 
 
 
$
2,087,294

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the nine months ended September 30, 2014
 
 
 
 
 
 
 
 
Revenue from external customers
$
3,139,721

 
677,544

 
1,165,193

 

 
4,982,458

Inter-segment revenue
363,510

 

 

 
(363,510
)
 

Total revenue
$
3,503,231

 
677,544

 
1,165,193

 
(363,510
)
 
4,982,458

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
311,453

 
33,534

 
55,130

 
(29,715
)
 
370,402

Unallocated CSS
 
 
 
 
 
 
 
 
(36,518
)
Non-operating pension costs
 
 
 
 
 
 
 
 
(7,313
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(1,828
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
324,743

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2), (3)
$
1,661,929

 
1,090

 
14,515

 

 
1,677,534

Unallocated CSS
 
 
 
 
 
 
 
 
63,639

Capital expenditures paid
 
 
 
 
 
 
 
 
$
1,741,173



(1)
See Note (M), "Other Items Impacting Comparability," for additional information.
(2)
Excludes revenue earning equipment acquired under capital leases.
(3)
Excludes acquisition payments of $9.8 million during the nine months ended September 30, 2014.
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 recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements.

Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates.

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

In Brazil, we were assessed $5 million 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 amount of any potential loss.
General (Tables)
Schedule of error corrections and prior period adjustments
Adjustments may not be additive and may have minor differences within the tables due to rounding.

The effects of this revision on our Consolidated Condensed Statements of Earnings were as follows (in millions):
 
Three months ended September 30, 2014
 
Nine months ended September 30, 2014
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Cost of lease and rental
$
522.9

(0.7
)
522.2

 
$
1,524.0

(1.6
)
1,522.4

Interest expense
35.9

0.8

36.7

 
106.3

1.6

107.9

Earnings from continuing operations before income taxes
129.7

(0.1
)
129.6

 
324.8

(0.1
)
324.7

Provision for income taxes
45.8

(0.1
)
45.7

 
116.0


116.0

Earnings from continuing operations
84.0

(0.1
)
83.9

 
208.8

(0.1
)
208.7

Net earnings
83.7

(0.1
)
83.6

 
207.3


207.3






The effects of this revision on our Consolidated Condensed Statements of Comprehensive Income were as follows (in millions):
 
Comprehensive Income
 
As Previously Reported
Adjustment
As Revised
Three months ended September 30, 2014
$
39.8

(0.1
)
39.7

Nine months ended September 30, 2014
179.1


179.1


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

207.4

7,201.9

Total assets
9,676.0

207.4

9,883.4

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
1,476.0

(0.2
)
1,475.8

Total liabilities
7,856.5

207.8

8,064.3

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
9,676.0

207.4

9,883.4


The effects of this revision on the individual line items within our Consolidated Condensed Statements of Cash Flows were as follows (in millions):
 
Nine months ended September 30, 2014
 
As Previously Reported
Adjustment
As Revised
Net earnings
$
207.3


207.3

Depreciation expense
770.1

11.3

781.4

Accrued expenses and other non-current liabilities
(41.5
)
(4.9
)
(46.4
)
Net cash provided by operating activities from continuing operations
974.7

6.3

981.0

Debt proceeds
769.9

125.8

895.7

Debt repaid
(278.4
)
(6.4
)
(284.8
)
Net cash provided by financing activities from continuing operations
213.1

119.4

332.5

Sale and leaseback of revenue earning equipment
125.8

(125.8
)

Net cash used in investing activities from continuing operations
(1,171.5
)
(125.8
)
(1,297.3
)
Share-Based Compensation Plans (Tables)
The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Stock option and stock purchase plans
$
1,948

 
2,353

 
$
6,205

 
6,831

Nonvested stock
2,995

 
3,104

 
9,907

 
8,615

Share-based compensation expense
4,943

 
5,457

 
16,112

 
15,446

Income tax benefit
(1,652
)
 
(1,864
)
 
(5,395
)
 
(5,253
)
Share-based compensation expense, net of tax
$
3,291

 
3,593

 
$
10,717

 
10,193

The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Cash awards
$
197

 
389

 
$
661

 
1,655

The following table is a summary of the awards granted under the Plans during the periods presented:
 
Nine months ended September 30,
 
2015
 
2014
 
(In thousands)
 
 
 
 
Stock options
362

 
406

Market-based restricted stock rights
19

 
22

Performance-based restricted stock rights
42

 
30

Time-vested restricted stock rights
87

 
184

Total
510

 
642

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:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
 
 
 
 
Earnings from continuing operations
$
90,811

 
83,895

 
$
230,054

 
208,742

Less: Distributed and undistributed earnings allocated to nonvested stock
(266
)
 
(275
)
 
(654
)
 
(879
)
Earnings from continuing operations available to common shareholders — Basic
$
90,545

 
83,620

 
$
229,400

 
207,863

 
 
 
 
 
 
 
 
Weighted average common shares outstanding — Basic
52,888

 
52,459

 
52,770

 
52,559

 
 
 
 
 
 
 
 
Earnings from continuing operations per common share — Basic
$
1.71

 
1.60

 
$
4.35

 
3.96

 
 
 
 
 
 
 
 
Earnings per share — Diluted:
 
 
 
 
 
 
 
Earnings from continuing operations
$
90,811

 
83,895

 
$
230,054

 
208,742

Less: Distributed and undistributed earnings allocated to nonvested stock
(265
)
 
(273
)
 
(649
)
 
(873
)
Earnings from continuing operations available to common shareholders — Diluted
$
90,546

 
83,622

 
$
229,405

 
207,869

 
 
 
 
 
 
 
 
Weighted average common shares outstanding — Basic
52,888

 
52,459

 
52,770

 
52,559

Effect of dilutive equity awards
445

 
515

 
476

 
487

Weighted average common shares outstanding — Diluted
53,333

 
52,974

 
53,246

 
53,046

 
 
 
 
 
 
 
 
Earnings from continuing operations per common share — Diluted
$
1.70

 
1.58

 
$
4.31

 
3.92

 
 
 
 
 
 
 
 
Anti-dilutive equity awards not included above
352

 
8

 
300

 
212

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
September 30, 2015
 
December 31, 2014
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
(In thousands)
Held for use:
 
Full service lease
$
8,612,790

 
(2,699,055
)
 
5,913,735

 
$
8,008,122

 
(2,598,140
)
 
5,409,982

Commercial rental
2,932,196

 
(924,004
)
 
2,008,192

 
2,570,081

 
(864,543
)
 
1,705,538

Held for sale
368,406

 
(253,623
)
 
114,783

 
312,699

 
(226,333
)
 
86,366

Total
$
11,913,392

 
(3,876,682
)
 
8,036,710

 
$
10,890,902

 
(3,689,016
)
 
7,201,886

 ————————————
(1)
Revenue earning equipment, net includes vehicles acquired under capital leases of $47.5 million, less accumulated depreciation of $21.0 million, at September 30, 2015, and $47.8 million, less accumulated depreciation of $22.5 million, at December 31, 2014.

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
September 30, 2015
 
December 31, 2014
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
(In thousands)
Salaries and wages
$
101,036

 

 
101,036

 
$
114,446

 

 
114,446

Deferred compensation
2,120

 
39,221

 
41,341

 
3,209

 
37,093

 
40,302

Pension benefits
3,644

 
440,800

 
444,444

 
3,739

 
444,657

 
448,396

Other postretirement benefits
2,084

 
25,440

 
27,524

 
2,112

 
26,889

 
29,001

Other employee benefits
9,059

 
9,360

 
18,419

 
7,172

 
19,276

 
26,448

Insurance obligations (1)
134,407

 
202,258

 
336,665

 
132,246

 
189,431

 
321,677

Environmental liabilities
3,836

 
7,177

 
11,013

 
3,877

 
8,002

 
11,879

Operating taxes
95,311

 

 
95,311

 
92,330

 

 
92,330

Income taxes
2,782

 
23,620

 
26,402

 
5,066

 
22,843

 
27,909

Interest
32,460

 

 
32,460

 
33,509

 

 
33,509

Deposits, mainly from customers
65,995

 
6,193

 
72,188

 
59,388

 
5,929

 
65,317

Deferred revenue
13,377

 

 
13,377

 
11,759

 

 
11,759

Acquisition holdbacks
2,134

 

 
2,134

 
3,817

 
2,187

 
6,004

Other
42,953

 
26,346

 
69,299

 
41,009

 
27,035

 
68,044

Total
$
511,198

 
780,415

 
1,291,613

 
$
513,679

 
783,342

 
1,297,021

 ————————————
(1)
Insurance obligations are primarily comprised of self-insured claim liabilities.
Debt (Tables)
Schedule of debt
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
September 30,
2015
 
December 31,
2014
 
Maturities
 
September 30,
2015
 
December 31,
2014
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
Short-term debt
—%
 
1.30%
 

 
$

 
3,773

Current portion of long-term debt
 
 
 
 
 
 
305,759

 
32,511

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
305,759

 
36,284

Long-term debt:
 
 
 
 
 
 
 
 
 
U.S. commercial paper (1)
0.44%
 
0.35%
 
2020
 
461,414

 
276,694

Global revolving credit facility
2.68%
 
1.60%
 
2020
 
43,553

 
11,190

Unsecured U.S. notes — Medium-term notes (1)
2.74%
 
3.29%
 
2016-2025
 
4,112,089

 
3,772,159

Unsecured U.S. obligations
1.51%
 
0.76%
 
2018
 
50,000

 
110,500

Unsecured foreign obligations
1.92%
 
2.01%
 
2015-2020
 
283,433

 
295,776

Asset-backed U.S. obligations (2)
1.81%
 
1.81%
 
2018-2022
 
448,331

 
218,137

Capital lease obligations
1.92%
 
1.73%
 
2015-2022
 
36,083

 
37,560

Total before fair market value adjustment
 
 
 
 
 
 
5,434,903

 
4,722,016

Fair market value adjustment on notes subject to hedging (3)
 
 
 
 
 
15,794

 
4,830

 
 
 
 
 
 
 
5,450,697

 
4,726,846

Current portion of long-term debt
 
 
 
 
 
 
(305,759
)
 
(32,511
)
Long-term debt
 
 
 
 
 
 
5,144,938

 
4,694,335

Total debt
 
 
 
 
 
 
$
5,450,697

 
4,730,619

 ————————————
(1)
We had unamortized original issue discounts of $8.0 million and $7.9 million at September 30, 2015 and December 31, 2014, respectively.
(2)
Asset-backed U.S. obligations of $448.3 million at September 30, 2015 and $218.1 million at December 31, 2014 are related to financing transactions involving revenue earning equipment. See Note (A), General, Revision of Prior Period Financial Information for further information related to our evaluation of accounting for these transactions.
(3)
The notional amount of executed interest rate swaps designated as fair value hedges was $825 million at September 30, 2015 and $600 million at December 31, 2014.
Fair Value Measurements (Tables)
Assets and liabilities measured at fair value on nonrecurring basis
The following tables present our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:
 
Fair Value Measurements at
 
Total Losses (2)
 
September 30, 2015
 
Three months ended September 30, 2015
 
Nine months ended September 30, 2015
 
(In thousands)
Assets held for sale:
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
Trucks
$
7,701

 
$
1,657

 
$
4,400

Tractors
10,093

 
2,062

 
3,970

Trailers
1,195

 
610

 
1,582

Total assets at fair value
$
18,989

 
$
4,329

 
9,952


 
 
 
 
 
Fair Value Measurements at
 
Total Losses (2)
 
 
September 30, 2014
 
Three months ended September 30, 2014
 
Nine months ended September 30, 2014
 
 
(In thousands)
 
Assets held for sale:
 
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
 
Trucks
$
8,437

 
$
1,527

 
$
4,981

 
Tractors
4,666

 
530

 
2,824

 
Trailers
682

 
320

 
762

 
Total assets at fair value
$
13,785

 
$
2,377

 
$
8,567

 
 
 ————————————
(1)
Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell.
(2)
Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value.

Derivatives (Tables)
Schedule of Derivative Instruments
The following table provides a detail of the swaps outstanding and the related hedged items as of September 30, 2015:
 
 
 
Maturity date
 
Face value of medium-term notes
 
Aggregate 
notional
amount of interest rate swaps
 
Fixed interest 
rate
 
Weighted-average variable
interest rate on hedged debt
as of September 30,
Issuance date
 
 
 
 
 
2015
 
2014
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.52%
 
1.42%
November 2013
 
November 2018
 
$300,000
 
$100,000
 
2.45%
 
1.28%
 
1.18%
February 2014
 
June 2019
 
$350,000
 
$100,000
 
2.55%
 
1.19%
 
1.10%
May 2014
 
September 2019
 
$400,000
 
$100,000
 
2.45%
 
0.95%
 
0.86%
February 2015
 
March 2020
 
$400,000
 
$150,000
 
2.65%
 
1.21%
 
August 2015
 
September 2020
 
$300,000
 
$225,000
 
2.88%
 
1.52%
 
Accumulated Other Comprehensive Loss (Tables)
Schedule 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)
December 31, 2014
 
$
(36,087
)
 
(585,941
)
 
1,758

 
(620,270
)
Amortization
 

 
14,605

 
(1,066
)
 
13,539

Other current period change
 
(73,093
)
 
(5,321
)
 

 
(78,414
)
September 30, 2015
 
$
(109,180
)
 
(576,657
)
 
692

 
(685,145
)


 
 
Currency
Translation
Adjustments and Other
 
Net Actuarial
Loss (1)
 
Prior Service
Credit (1)
 
Accumulated
Other
Comprehensive
Loss
 
 
(In thousands)
December 31, 2013
 
$
35,875


(477,883
)
 
3,760

 
(438,248
)
Amortization
 


11,183


(2,008
)
 
9,175

Other current period change
 
(35,198
)

(2,043
)

(109
)
 
(37,350
)
September 30, 2014
 
$
677

 
(468,743
)
 
1,643

 
(466,423
)

_______________________ 

(1)
These amounts are included in the computation of net periodic benefit cost. See Note (L), "Employee Benefit Plans," for further information.

Employee Benefit Plans (Tables)
Components of net periodic benefit cost
Components of net periodic benefit cost/(credit) were as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Pension Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
3,612

 
3,297

 
$
10,805

 
9,892

Interest cost
21,777

 
25,280

 
65,712

 
75,990

Expected return on plan assets
(24,697
)
 
(28,900
)
 
(74,618
)
 
(86,916
)
Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
7,665

 
5,900

 
23,137

 
17,714

Prior service credit
(80
)
 
(445
)
 
(230
)
 
(1,340
)
 
8,277

 
5,132

 
24,806

 
15,340

Union-administered plans
1,772

 
3,475

 
6,057

 
7,744

Net periodic benefit cost
$
10,049

 
8,607

 
$
30,863

 
23,084

 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
8,746

 
5,389

 
$
26,237

 
16,190

Non-U.S.
(469
)
 
(257
)
 
(1,431
)
 
(850
)
 
8,277

 
5,132

 
24,806

 
15,340

Union-administered plans
1,772

 
3,475

 
6,057

 
7,744

 
$
10,049

 
8,607

 
$
30,863

 
23,084

 
 
 
 
 
 
 
 
Postretirement Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
88

 
112

 
$
278

 
336

Interest cost
270

 
356

 
829

 
1,069

Amortization of:
 
 
 
 
 
 
 
Net actuarial gain
(235
)
 
(181
)
 
(709
)
 
(544
)
Prior service credit
(477
)
 
(616
)
 
(1,433
)
 
(1,844
)
Net periodic benefit credit
$
(354
)
 
(329
)
 
$
(1,035
)
 
(983
)
 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
(469
)
 
(460
)
 
$
(1,415
)
 
(1,379
)
Non-U.S.
115

 
131

 
380

 
396

 
$
(354
)
 
(329
)
 
$
(1,035
)
 
(983
)
Other Items Impacting Comparability (Tables)
Restructuring and Related Costs
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Pension settlement adjustments
$
(509
)
 
1,262

 
$
(509
)
 
1,262

Professional fees
63

 

 
3,843

 

Acquisition transaction costs

 
566

 

 
566

Restructuring and other charges, net and other items
$
(446
)
 
1,828

 
$
3,334

 
1,828

Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:
 
Nine months ended September 30,
 
2015
 
2014
 
(In thousands)
Interest paid
$
110,141

 
110,192

Income taxes paid
13,635

 
9,878

Changes in accounts payable related to purchases of revenue earning equipment
18,307

 
3,902

Operating and revenue earning equipment acquired under capital leases
5,956

 
3,788

Miscellaneous Income, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015

2014
 
(In thousands)
Gain on sales of operating property and equipment
$
1,516

 
135

 
$
1,597

 
2,725

Gain/(loss) on foreign currency transactions
1,363

 
11

 
1,629

 
(376
)
Rabbi trust investment (loss)/income
(1,504
)
 
(177
)
 
(318
)
 
1,400

Insurance proceeds

 

 
314

 
756

Contract settlement

 
64

 
56

 
2,972

Other, net
(3
)
 
963

 
1,759

 
3,729

Total
$
1,372

 
996

 
$
5,037

 
11,206

Segment Reporting (Tables)
Financial information of business segments
The following tables set forth financial information for each of our business segments and provide a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three and nine months ended September 30, 2015 and 2014. 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.
 
FMS
 
DTS
 
SCS
 
Eliminations
 
Total
 
 (in thousands)
For the three months ended September 30, 2015
 
 
 
 
 
 
 
 
Revenue from external customers
$
1,054,840

 
226,921

 
387,305

 

 
1,669,066

Inter-segment revenue
102,738

 

 

 
(102,738
)
 

Total revenue
$
1,157,578

 
226,921

 
387,305

 
(102,738
)
 
1,669,066

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
126,433

 
13,296

 
26,573

 
(11,998
)
 
154,304

Unallocated CSS
 
 
 
 
 
 
 
 
(10,070
)
     Non-operating pension costs 
 
 
 
 
 
 
 
 
(4,780
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
446

Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
139,900

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2)
$
740,049

 
1,175

 
4,195

 

 
745,419

Unallocated CSS
 
 
 
 
 
 
 
 
12,657

Capital expenditures paid
 
 
 
 
 
 
 
 
$
758,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended September 30, 2014
 
 
 
 
 
 
 
 
Revenue from external customers
$
1,069,333

 
227,568

 
390,249

 

 
1,687,150

Inter-segment revenue
117,589

 

 

 
(117,589
)
 

Total revenue
$
1,186,922

 
227,568

 
390,249

 
(117,589
)
 
1,687,150

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
120,867

 
11,850

 
24,302

 
(9,564
)
 
147,455

Unallocated CSS
 
 
 
 
 
 
 
 
(13,564
)
Non-operating pension costs 
 
 
 
 
 
 
 
 
(2,455
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(1,828
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
129,608

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2), (3)
$
470,552

 
432

 
7,052

 

 
478,036

Unallocated CSS
 
 
 
 
 
 
 
 
7,915

Capital expenditures paid
 
 
 
 
 
 
 
 
$
485,951

 ————————————
(1)
See Note (M), "Other Items Impacting Comparability," for additional information.
(2)
Excludes revenue earning equipment acquired under capital leases.
(3)
Excludes acquisition payments of $8.1 million during the three months ended September 30, 2014.



 
FMS
 
DTS
 
SCS
 
Eliminations
 
Total
 
 (in thousands)
For the nine months ended September 30, 2015
 
 
 
 
 
 
 
 
Revenue from external customers
$
3,080,756

 
663,094

 
1,155,300

 

 
4,899,150

Inter-segment revenue
313,321

 

 

 
(313,321
)
 

Total revenue
$
3,394,077

 
663,094

 
1,155,300

 
(313,321
)
 
4,899,150

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
338,603

 
34,701

 
69,961

 
(35,120
)
 
408,145

Unallocated CSS
 
 
 
 
 
 
 
 
(32,936
)
     Non-operating pension costs
 
 
 
 
 
 
 
 
(14,351
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(3,334
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
357,524

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2)
$
2,040,334

 
2,530

 
13,752

 

 
2,056,616

Unallocated CSS
 
 
 
 
 
 
 
 
30,678

Capital expenditures paid
 
 
 
 
 
 
 
 
$
2,087,294

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the nine months ended September 30, 2014
 
 
 
 
 
 
 
 
Revenue from external customers
$
3,139,721

 
677,544

 
1,165,193

 

 
4,982,458

Inter-segment revenue
363,510

 

 

 
(363,510
)
 

Total revenue
$
3,503,231

 
677,544

 
1,165,193

 
(363,510
)
 
4,982,458

 
 
 
 
 
 
 
 
 
 
Segment EBT
$
311,453

 
33,534

 
55,130

 
(29,715
)
 
370,402

Unallocated CSS
 
 
 
 
 
 
 
 
(36,518
)
Non-operating pension costs
 
 
 
 
 
 
 
 
(7,313
)
Restructuring and other charges, net and other items (1)
 
 
 
 
 
 
 
 
(1,828
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
 
 
$
324,743

 
 
 
 
 
 
 
 
 
 
Segment capital expenditures paid (2), (3)
$
1,661,929

 
1,090

 
14,515

 

 
1,677,534

Unallocated CSS
 
 
 
 
 
 
 
 
63,639

Capital expenditures paid
 
 
 
 
 
 
 
 
$
1,741,173



(1)
See Note (M), "Other Items Impacting Comparability," for additional information.
(2)
Excludes revenue earning equipment acquired under capital leases.
(3)
Excludes acquisition payments of $9.8 million during the nine months ended September 30, 2014.
General - Schedule of Error Corrections and Prior Period Adjustments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Income Statement [Abstract]
 
 
 
 
 
Cost of lease and rental
$ 550,541 
$ 522,202 
$ 1,600,271 
$ 1,522,394 
 
Interest expense
38,986 
36,681 
114,863 
107,948 
 
Earnings from continuing operations before income taxes
139,900 
129,608 
357,524 
324,743 
 
Provision for income taxes
49,089 
45,713 
127,470 
116,001 
 
Earnings from continuing operations
90,811 
83,895 
230,054 
208,742 
 
Net earnings
90,619 
83,617 
228,567 
207,262 
 
Statement of Comprehensive Income [Abstract]
 
 
 
 
 
Comprehensive income (loss)
52,332 
39,689 
163,692 
179,087 
 
Statement of Financial Position [Abstract]
 
 
 
 
 
Revenue earning equipment, net
8,036,710 
 
8,036,710 
 
7,201,886 
Total assets
10,820,186 
 
10,820,186 
 
9,883,424 
Short-term debt and current portion of long-term debt
305,759 
 
305,759 
 
36,284 
Accrued expenses and other current liabilities
511,198 
 
511,198 
 
513,679 
Total current liabilities
1,367,262 
 
1,367,262 
 
1,110,815 
Long-term debt
5,144,938 
 
5,144,938 
 
4,694,335 
Other non-current liabilities
780,415 
 
780,415 
 
783,342 
Deferred income taxes
1,575,507 
 
1,575,507 
 
1,475,845 
Total liabilities
8,868,122 
 
8,868,122 
 
8,064,337 
Retained earnings
1,612,744 
 
1,612,744 
 
1,450,509 
Total shareholders’ equity
1,952,064 
 
1,952,064 
 
1,819,087 
Total liabilities and shareholders’ equity
10,820,186 
 
10,820,186 
 
9,883,424 
Statement of Cash Flows [Abstract]
 
 
 
 
 
Net earnings
90,619 
83,617 
228,567 
207,262 
 
Depreciation expense
 
 
838,100 
781,367 
 
Accrued expenses and other non-current liabilities
 
 
(3,385)
(46,357)
 
Net cash provided by operating activities from continuing operations
 
 
1,071,336 
981,044 
 
Debt proceeds
 
 
1,329,810 
895,733 
 
Debt repaid, including capital and financing lease obligations
 
 
(795,837)
(284,811)
 
Net cash provided by financing activities from continuing operations
 
 
664,783 
332,501 
 
Sale and leaseback of revenue earning equipment
 
 
 
 
Net cash used in investing activities from continuing operations
 
 
(1,707,378)
(1,297,281)
 
As Previously Reported [Member]
 
 
 
 
 
Income Statement [Abstract]
 
 
 
 
 
Cost of lease and rental
 
522,900 
 
1,524,000 
 
Interest expense
 
35,900 
 
106,300 
 
Earnings from continuing operations before income taxes
 
129,700 
 
324,800 
 
Provision for income taxes
 
45,800 
 
116,000 
 
Earnings from continuing operations
 
84,000 
 
208,800 
 
Net earnings
 
83,700 
 
207,300 
 
Statement of Comprehensive Income [Abstract]
 
 
 
 
 
Comprehensive income (loss)
 
39,800 
 
179,100 
 
Statement of Financial Position [Abstract]
 
 
 
 
 
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
 
 
 
 
1,476,000 
Total liabilities
 
 
 
 
7,856,500 
Retained earnings
 
 
 
 
1,450,900 
Total shareholders’ equity
 
 
 
 
1,819,500 
Total liabilities and shareholders’ equity
 
 
 
 
9,676,000 
Statement of Cash Flows [Abstract]
 
 
 
 
 
Net earnings
 
83,700 
 
207,300 
 
Depreciation expense
 
 
 
770,100 
 
Accrued expenses and other non-current liabilities
 
 
 
(41,500)
 
Net cash provided by operating activities from continuing operations
 
 
 
974,700 
 
Debt proceeds
 
 
 
769,900 
 
Debt repaid, including capital and financing lease obligations
 
 
 
(278,400)
 
Net cash provided by financing activities from continuing operations
 
 
 
213,100 
 
Sale and leaseback of revenue earning equipment
 
 
 
125,800 
 
Net cash used in investing activities from continuing operations
 
 
 
(1,171,500)
 
Adjustment [Member]
 
 
 
 
 
Income Statement [Abstract]
 
 
 
 
 
Cost of lease and rental
 
(700)
 
(1,600)
 
Interest expense
 
800 
 
1,600 
 
Earnings from continuing operations before income taxes
 
(100)
 
(100)
 
Provision for income taxes
 
(100)
 
 
Earnings from continuing operations
 
(100)
 
(100)
 
Net earnings
 
(100)
 
 
Statement of Comprehensive Income [Abstract]
 
 
 
 
 
Comprehensive income (loss)
 
(100)
 
 
Statement of Financial Position [Abstract]
 
 
 
 
 
Revenue earning equipment, net
 
 
 
 
207,400 
Total assets
 
 
 
 
207,400 
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
 
 
 
 
(200)
Total liabilities
 
 
 
 
207,800 
Retained earnings
 
 
 
 
(400)
Total shareholders’ equity
 
 
 
 
(400)
Total liabilities and shareholders’ equity
 
 
 
 
207,400 
Statement of Cash Flows [Abstract]
 
 
 
 
 
Net earnings
 
(100)
 
 
Depreciation expense
 
 
 
11,300 
 
Accrued expenses and other non-current liabilities
 
 
 
(4,900)
 
Net cash provided by operating activities from continuing operations
 
 
 
6,300 
 
Debt proceeds
 
 
 
125,800 
 
Debt repaid, including capital and financing lease obligations
 
 
 
(6,400)
 
Net cash provided by financing activities from continuing operations
 
 
 
119,400 
 
Sale and leaseback of revenue earning equipment
 
 
 
(125,800)
 
Net cash used in investing activities from continuing operations
 
 
 
$ (125,800)
 
Recent Accounting Pronouncements (Details) (New Accounting Pronouncement, Early Adoption, Effect [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Unamortized debt issuance costs
$ 20.0 
Share-Based Compensation Plans - Share-Based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation expense
$ 4,943 
$ 5,457 
$ 16,112 
$ 15,446 
Income tax benefit
(1,652)
(1,864)
(5,395)
(5,253)
Share-based compensation expense, net of tax
3,291 
3,593 
10,717 
10,193 
Cash awards
197 
389 
661 
1,655 
Stock Option and Stock Purchase Plans [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation expense
1,948 
2,353 
6,205 
6,831 
Nonvested Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation expense
$ 2,995 
$ 3,104 
$ 9,907 
$ 8,615 
Share-Based Compensation Plans (Details Textual) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Total unrecognized pre-tax compensation expense
$ 24.5 
Weighted-average period to recognize pre-tax compensation expense (in years)
1 year 9 months 18 days 
Share-Based Compensation Plans - Summary of Awards Granted (Details)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total awards granted during period
510 
642 
Stock options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Options, granted in period
362 
406 
Market-based restricted stock rights [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted stock rights, granted during period
19 
22 
Performance-based restricted stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted stock rights, granted during period
42 
30 
Time-vested restricted stock rights [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Restricted stock rights, granted during period
87 
184 
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Earnings per share — Basic:
 
 
 
 
Earnings from continuing operations
$ 90,811 
$ 83,895 
$ 230,054 
$ 208,742 
Less: Distributed and undistributed earnings allocated to nonvested stock
(266)
(275)
(654)
(879)
Earnings from continuing operations available to common shareholders — Basic
90,545 
83,620 
229,400 
207,863 
Weighted average common shares outstanding - Basic (shares)
52,888 
52,459 
52,770 
52,559 
Earnings from continuing operations per common share — Basic
$ 1.71 
$ 1.60 
$ 4.35 
$ 3.96 1
Earnings per share — Diluted:
 
 
 
 
Earnings from continuing operations
90,811 
83,895 
230,054 
208,742 
Less: Distributed and undistributed earnings allocated to nonvested stock
(265)
(273)
(649)
(873)
Earnings from continuing operations available to common shareholders — Diluted
$ 90,546 
$ 83,622 
$ 229,405 
$ 207,869 
Weighted average common shares outstanding - Basic (shares)
52,888 
52,459 
52,770 
52,559 
Effect of dilutive equity awards (shares)
445 
515 
476 
487 
Weighted average common shares outstanding — Diluted (shares)
53,333 
52,974 
53,246 
53,046 
Earnings from continuing operations per common share — Diluted
$ 1.70 
$ 1.58 
$ 4.31 
$ 3.92 1
Anti-dilutive equity awards not included above (shares)
352 
300 
212 
Revenue Earning Equipment - Schedule of Revenue Earning Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Revenue Earning Equipment [Line Items]
 
 
Cost
$ 11,913,392 
$ 10,890,902 
Accumulated Depreciation
(3,876,682)
(3,689,016)
Net Book Value
8,036,710 
7,201,886 
Held for use: Full service lease [Member]
 
 
Revenue Earning Equipment [Line Items]
 
 
Cost
8,612,790 
8,008,122 
Accumulated Depreciation
(2,699,055)
(2,598,140)
Net Book Value
5,913,735 
5,409,982 
Held for use: Commercial rental [Member]
 
 
Revenue Earning Equipment [Line Items]
 
 
Cost
2,932,196 
2,570,081 
Accumulated Depreciation
(924,004)
(864,543)
Net Book Value
2,008,192 
1,705,538 
Held-for-sale [Member]
 
 
Revenue Earning Equipment [Line Items]
 
 
Cost
368,406 
312,699 
Accumulated Depreciation
(253,623)
(226,333)
Net Book Value
114,783 
86,366 
Assets Held under Capital Leases [Member]
 
 
Revenue Earning Equipment [Line Items]
 
 
Cost
47,500 
47,800 
Accumulated Depreciation
$ (21,000)
$ (22,500)
Revenue Earning Equipment (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Dec. 31, 2014
Revenue Earning Equipment [Line Items]
 
 
 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
$ 10.0 
$ 30.0 
 
Net investment in direct financing and sales-type leases
442.6 
442.6 
417.0 
Allowance for credit losses
$ 0.3 
$ 0.3 
$ 0.3 
Trucks [Member] |
Minimum [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Lease term
 
3 years 
 
Trucks [Member] |
Maximum [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Lease term
 
7 years 
 
Trailers [Member] |
Maximum [Member]
 
 
 
Revenue Earning Equipment [Line Items]
 
 
 
Lease term
 
10 years 
 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Accrued Expenses
 
 
Salaries and wages
$ 101,036 
$ 114,446 
Deferred compensation
2,120 
3,209 
Pension benefits
3,644 
3,739 
Other postretirement benefits
2,084 
2,112 
Other employee benefits
9,059 
7,172 
Insurance obligations
134,407 
132,246 
Environmental liabilities
3,836 
3,877 
Operating taxes
95,311 
92,330 
Income taxes
2,782 
5,066 
Interest
32,460 
33,509 
Deposits, mainly from customers
65,995 
59,388 
Deferred revenue
13,377 
11,759 
Acquisition holdbacks
2,134 
3,817 
Other
42,953 
41,009 
Total
511,198 
513,679 
Non-Current Liabilities
 
 
Salaries and wages
Deferred compensation
39,221 
37,093 
Pension benefits
440,800 
444,657 
Other postretirement benefits
25,440 
26,889 
Other employee benefits
9,360 
19,276 
Insurance obligations
202,258 
189,431 
Environmental liabilities
7,177 
8,002 
Operating taxes
Income taxes
23,620 
22,843 
Interest
Deposits, mainly from customers
6,193 
5,929 
Deferred revenue
Acquisition holdbacks
2,187 
Other
26,346 
27,035 
Total
780,415 
783,342 
Total
 
 
Salaries and wages
101,036 
114,446 
Deferred compensation
41,341 
40,302 
Pension benefits
444,444 
448,396 
Other postretirement benefits
27,524 
29,001 
Other employee benefits
18,419 
26,448 
Insurance obligations
336,665 
321,677 
Environmental liabilities
11,013 
11,879 
Operating taxes
95,311 
92,330 
Income taxes
26,402 
27,909 
Interest
32,460 
33,509 
Deposits, mainly from customers
72,188 
65,317 
Deferred revenue
13,377 
11,759 
Acquisition holdbacks
2,134 
6,004 
Other
69,299 
68,044 
Total
$ 1,291,613 
$ 1,297,021 
Debt - Schedule of Debt (Details) (USD $)
Sep. 30, 2015
Dec. 31, 2014
Short-term debt and current portion of long-term debt:
 
 
Short-term debt, weighted-average interest rate
0.00% 
1.30% 
Short-term debt
$ 0 
$ 3,773,000 
Current portion of long-term debt
305,759,000 
32,511,000 
Total short-term debt and current portion of long-term debt
305,759,000 
36,284,000 
Long-term debt:
 
 
Total before fair market value adjustment
5,434,903,000 
4,722,016,000 
Fair market value adjustment on notes subject to hedging
15,794,000 
4,830,000 
Total after fair market value adjustment
5,450,697,000 
4,726,846,000 
Current portion of long-term debt
(305,759,000)
(32,511,000)
Long-term debt
5,144,938,000 
4,694,335,000 
Total debt
5,450,697,000 
4,730,619,000 
Unamortized original issue discounts
8,000,000 
7,900,000 
Aggregate notional amount of interest rate swaps
825,000,000 
600,000,000 
U.S commercial paper [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
0.44% 
0.35% 
U.S. commercial paper
461,414,000 
276,694,000 
Global revolving credit facility [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
2.68% 
1.60% 
Global revolving credit facility
43,553,000 
11,190,000 
Unsecured U.S. notes - Medium-term notes [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
2.74% 
3.29% 
Unsecured U.S. notes - Medium-term notes
4,112,089,000 
3,772,159,000 
Unsecured U.S. obligations [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
1.51% 
0.76% 
Unsecured U.S. obligations
50,000,000 
110,500,000 
Unsecured foreign obligations [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
1.92% 
2.01% 
Unsecured foreign obligations
283,433,000 
295,776,000 
Asset-backed U.S. obligations [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
1.81% 
1.81% 
Unsecured foreign obligations
448,331,000 
218,137,000 
Capital lease obligations [Member]
 
 
Long-term debt:
 
 
Long-term debt, weighted-average interest rate
1.92% 
1.73% 
Capital lease obligations
$ 36,083,000 
$ 37,560,000 
Debt (Details Textual) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2015
Institutions
Apr. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
Asset-backed U.S. obligations [Member]
Dec. 31, 2014
Asset-backed U.S. obligations [Member]
Sep. 30, 2015
U.S commercial paper [Member]
Dec. 31, 2014
U.S commercial paper [Member]
Sep. 30, 2015
Global Revolving Credit Facility Member
Aug. 31, 2015
Unsecured Medium Term Notes Due September 2020 [Member] [Member]
Sep. 30, 2015
Unsecured Medium Term Notes Due May 2020 [Member]
May 31, 2015
Unsecured Medium Term Notes Due May 2020 [Member]
Feb. 28, 2015
Unsecured Medium Term Notes Due March 2020 [Member]
Sep. 30, 2015
Letter of Credit [Member]
Sep. 30, 2015
Minimum [Member]
Sep. 30, 2015
Maximum [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unsecured Long Term Debt Current And Noncurrent
 
 
 
$ 448,331,000 
$ 218,137,000 
 
 
 
 
 
 
 
 
 
 
Aggregate notional amount of interest rate swaps
825,000,000 
 
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Number of lending institutions
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
1,200,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
75,000,000 
 
 
Annual facility fees, percentage
0.10% 
 
 
 
 
 
 
 
 
 
 
 
 
0.075% 
0.25% 
Letter of credit outstanding amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of debt to consolidated net worth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to consolidated tangible net worth ratio
215.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit remaining capacity
694,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
 
 
 
 
 
461,414,000 
276,694,000 
 
 
 
 
 
 
 
 
Current maturities classified as long-term debt
300,000,000 
 
698,500,000 
 
 
 
 
41,000,000 
 
 
 
 
 
 
 
Trade receivables borrowings
 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
 
 
 
300,000,000 
 
300,000,000 
400,000,000 
 
 
 
Debt repurchase price, percentage
 
 
 
 
 
 
 
 
 
101.00% 
 
 
 
 
 
Cash proceeds on financing transaction backed by a portion of revenue earning equipment
92,900,000 
156,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of days under trade receivables purchase and sale program
364 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit and surety bonds outstanding
$ 339,300,000 
 
$ 334,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Total Losses
$ 4,329 
$ 2,377 
$ 9,952 
$ 8,567 
Revenue earning equipment, Trucks [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Total Losses
1,657 
1,527 
4,400 
4,981 
Revenue earning equipment, Tractors [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Total Losses
2,062 
530 
3,970 
2,824 
Revenue earning equipment, Trailers [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Total Losses
610 
320 
1,582 
762 
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Assets held for sale at fair value
18,989 
13,785 
18,989 
13,785 
Fair Value, Inputs, Level 3 [Member] |
Revenue earning equipment, Trucks [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Assets held for sale at fair value
7,701 
8,437 
7,701 
8,437 
Fair Value, Inputs, Level 3 [Member] |
Revenue earning equipment, Tractors [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Assets held for sale at fair value
10,093 
4,666 
10,093 
4,666 
Fair Value, Inputs, Level 3 [Member] |
Revenue earning equipment, Trailers [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Assets held for sale at fair value
$ 1,195 
$ 682 
$ 1,195 
$ 682 
Fair Value Measurements (Details Textual) (Fair Value, Inputs, Level 2 [Member], USD $)
In Billions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of total debt
$ 5.35 
$ 4.59 
Derivatives (Details) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing June 2017 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing June 2017 [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing November 2018 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing November 2018 [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing June 2019 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing June 2019 [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing September 2019 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing September 2019 [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing March 2020 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest rate swaps maturing March 2020 [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest Rate Swaps Maturing September 2020 [Member]
Sep. 30, 2014
Designated as Hedging Instrument [Member]
Fair Value Hedging [Member]
Interest Rate Swaps Maturing September 2020 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance date
 
 
May 24, 2011 
 
Nov. 12, 2013 
 
Feb. 25, 2014 
 
May 06, 2014 
 
Feb. 24, 2015 
 
Aug. 24, 2015 
 
Maturity date
 
 
Jun. 01, 2017 
 
Nov. 15, 2018 
 
Jun. 01, 2019 
 
Sep. 03, 2019 
 
Mar. 02, 2020 
 
Sep. 01, 2020 
 
Face value of medium-term notes
 
 
$ 350,000,000 
 
$ 300,000,000 
 
$ 350,000,000 
 
$ 400,000,000 
 
$ 400,000,000 
 
$ 300,000,000 
 
Aggregate notional amount of interest rate swaps
$ 825,000,000 
$ 600,000,000 
$ 150,000,000 
 
$ 100,000,000 
 
$ 100,000,000 
 
$ 100,000,000 
 
$ 150,000,000 
 
$ 225,000,000 
 
Fixed interest rate
 
 
3.50% 
 
2.45% 
 
2.55% 
 
2.45% 
 
2.65% 
 
2.875% 
 
Weighted-average variable interest rate on hedged debt
 
 
1.52% 
1.42% 
1.28% 
1.18% 
1.19% 
1.10% 
0.95% 
0.86% 
1.21% 
0.00% 
1.52% 
0.00% 
Share Repurchase Programs (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Accelerated Share Repurchases [Line Items]
 
 
Common stock repurchases
$ 6,141 
 
December 2013 Anti-Dilutive Share Repurchase Program [Member]
 
 
Accelerated Share Repurchases [Line Items]
 
 
Common stock repurchases
6,100 
92,300 
Common Stock [Member]
 
 
Accelerated Share Repurchases [Line Items]
 
 
Repurchased and retired shares
69,107 
 
Common stock repurchases
$ 35 
 
Common Stock [Member] |
December 2013 Anti-Dilutive Share Repurchase Program [Member]
 
 
Accelerated Share Repurchases [Line Items]
 
 
Maximum number of share repurchases authorization (no more than 2 million)
2,000,000 
 
Repurchased and retired shares
69,107 
1,170,123 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
Accumulated other comprehensive loss, beginning of period
$ (620,270)
$ (438,248)
Amortization
13,539 
9,175 
Other current period change: Currency translation adjustments and other
(78,414)
(37,350)
Accumulated other comprehensive loss, end of period
(685,145)
(466,423)
Currency Translation Adjustments and Other [Member]
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
Accumulated other comprehensive loss, beginning of period
(36,087)
35,875 
Amortization
Other current period change: Currency translation adjustments and other
(73,093)
(35,198)
Accumulated other comprehensive loss, end of period
(109,180)
677 
Net Actuarial Loss [Member]
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
Accumulated other comprehensive loss, beginning of period
(585,941)
(477,883)
Amortization
14,605 
11,183 
Other current period change: Net actuarial loss and prior service credit
(5,321)
(2,043)
Accumulated other comprehensive loss, end of period
(576,657)
(468,743)
Prior Service Credit [Member]
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
Accumulated other comprehensive loss, beginning of period
1,758 
3,760 
Amortization
(1,066)
(2,008)
Other current period change: Net actuarial loss and prior service credit
(109)
Accumulated other comprehensive loss, end of period
$ 692 
$ 1,643 
Employee Benefit Plans (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Amortization of:
 
 
 
 
Contribution to pension plans
 
 
$ 29,900,000 
 
Estimated total contributions
 
 
35,000,000 
 
Pension Benefits [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
10,049,000 
8,607,000 
30,863,000 
23,084,000 
Company Administered Plan [Member] |
Pension Benefits [Member]
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
Service cost
3,612,000 
3,297,000 
10,805,000 
9,892,000 
Interest cost
21,777,000 
25,280,000 
65,712,000 
75,990,000 
Expected return on plan assets
(24,697,000)
(28,900,000)
(74,618,000)
(86,916,000)
Amortization of:
 
 
 
 
Net actuarial loss (gain)
7,665,000 
5,900,000 
23,137,000 
17,714,000 
Prior service credit
(80,000)
(445,000)
(230,000)
(1,340,000)
Net periodic benefit cost (credit)
8,277,000 
5,132,000 
24,806,000 
15,340,000 
Company Administered Plan [Member] |
Pension Benefits U.S. [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
8,746,000 
5,389,000 
26,237,000 
16,190,000 
Company Administered Plan [Member] |
Pension Benefits Non-U.S. [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
(469,000)
(257,000)
(1,431,000)
(850,000)
Company Administered Plan [Member] |
Postretirement Benefits [Member]
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
Service cost
88,000 
112,000 
278,000 
336,000 
Interest cost
270,000 
356,000 
829,000 
1,069,000 
Amortization of:
 
 
 
 
Net actuarial loss (gain)
(235,000)
(181,000)
(709,000)
(544,000)
Prior service credit
(477,000)
(616,000)
(1,433,000)
(1,844,000)
Net periodic benefit cost (credit)
(354,000)
(329,000)
(1,035,000)
(983,000)
Company Administered Plan [Member] |
Postretirement Benefits U.S [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
(469,000)
(460,000)
(1,415,000)
(1,379,000)
Company Administered Plan [Member] |
Postretirement Benefits Non-U.S [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
115,000 
131,000 
380,000 
396,000 
Union Administered Plan [Member] |
Pension Benefits [Member]
 
 
 
 
Amortization of:
 
 
 
 
Net periodic benefit cost (credit)
$ 1,772,000 
$ 3,475,000 
$ 6,057,000 
$ 7,744,000 
Other Items Impacting Comparability (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Other Income and Expenses [Abstract]
 
 
 
 
Pension settlement adjustments
$ (509)
$ 1,262 
$ (509)
$ 1,262 
Professional fees
63 
3,843 
Acquisition transaction costs
566 
566 
Restructuring and other charges, net and other items
$ (446)
$ 1,828 
$ 3,334 
$ 1,828 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Supplemental cash flow information
 
 
Interest paid
$ 110,141 
$ 110,192 
Income taxes paid
13,635 
9,878 
Changes in accounts payable related to purchases of revenue earning equipment
18,307 
3,902 
Operating and revenue earning equipment acquired under capital leases
$ 5,956 
$ 3,788 
Miscellaneous Income, Net (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Other Income and Expenses [Abstract]
 
 
 
 
Gain on sales of operating property and equipment
$ 1,516 
$ 135 
$ 1,597 
$ 2,725 
Gain/(loss) on foreign currency transactions
1,363 
11 
1,629 
(376)
Rabbi trust investment (loss)/income
(1,504)
(177)
(318)
1,400 
Insurance proceeds
314 
756 
Contract settlement
64 
56 
2,972 
Other, net
(3)
963 
1,759 
3,729 
Total
$ 1,372 
$ 996 
$ 5,037 
$ 11,206 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
$ 1,669,066 
$ 1,687,150 
$ 4,899,150 
$ 4,982,458 
Segment EBT
154,304 
147,455 
408,145 
370,402 
Unallocated CSS
(10,070)
(13,564)
(32,936)
(36,518)
Non-operating pension costs
(4,780)
(2,455)
(14,351)
(7,313)
Restructuring and other recoveries, net and other items
446 
(1,828)
(3,334)
(1,828)
Earnings from continuing operations before income taxes
139,900 
129,608 
357,524 
324,743 
Segment capital expenditures paid
745,419 
478,036 
2,056,616 
1,677,534 
Unallocated CSS
12,657 
7,915 
30,678 
63,639 
Capital expenditures paid
758,076 
485,951 
2,087,294 
1,741,173 
Acquisition payments
 
 
9,785 
Fleet Management Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
1,157,578 
1,186,922 
3,394,077 
3,503,231 
Dedicated Transportation Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
226,921 
227,568 
663,094 
677,544 
Supply Chain Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
387,305 
390,249 
1,155,300 
1,165,193 
Intersegment Eliminations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
(102,738)
(117,589)
(313,321)
(363,510)
Segment EBT
(11,998)
(9,564)
(35,120)
(29,715)
Segment capital expenditures paid
Intersegment Eliminations [Member] |
Fleet Management Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
102,738 
117,589 
313,321 
363,510 
Intersegment Eliminations [Member] |
Dedicated Transportation Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
Intersegment Eliminations [Member] |
Supply Chain Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
Operating Segments [Member] |
Fleet Management Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
1,054,840 
1,069,333 
3,080,756 
3,139,721 
Segment EBT
126,433 
120,867 
338,603 
311,453 
Segment capital expenditures paid
740,049 
470,552 
2,040,334 
1,661,929 
Operating Segments [Member] |
Dedicated Transportation Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
226,921 
227,568 
663,094 
677,544 
Segment EBT
13,296 
11,850 
34,701 
33,534 
Segment capital expenditures paid
1,175 
432 
2,530 
1,090 
Operating Segments [Member] |
Supply Chain Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
387,305 
390,249 
1,155,300 
1,165,193 
Segment EBT
26,573 
24,302 
69,961 
55,130 
Segment capital expenditures paid
$ 4,195 
$ 7,052 
$ 13,752 
$ 14,515 
Other Matters (Details) (Tax Year 1997 and 1998 [Member], Brazil state operating tax [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Tax Year 1997 and 1998 [Member] |
Brazil state operating tax [Member]
 
Loss Contingencies [Line Items]
 
Tax amounts assessed but not reserved
$ 5