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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 |
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 |
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 |
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 | ) |
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|
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. |
|
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. |
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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 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. |
|
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% | — |
|
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. |
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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 | ) |
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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 |
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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 |
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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 |
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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. |
|
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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 |
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 |
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 |
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 | ) |
|
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. |
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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. |
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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. |
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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. |
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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% | — |
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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. |
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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 | ) |
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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 |
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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 |
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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 |
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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. |
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