|
|
|
|
|
|
|
|
|
Three months ended March 31, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
|
||||||||
Total revenue
|
$ | — | — | |||||
|
||||||||
|
||||||||
Pre-tax loss from discontinued operations
|
$ | (747 | ) | (505 | ) | |||
Income tax benefit
|
15 | 6 | ||||||
|
||||||||
Loss from discontinued operations, net of tax
|
$ | (732 | ) | (499 | ) | |||
|
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Assets:
|
||||||||
Total current assets, primarily other receivables
|
$ | 4,337 | $ | 4,710 | ||||
Total assets
|
$ | 6,125 | $ | 6,346 | ||||
|
||||||||
Liabilities:
|
||||||||
Total current liabilities, primarily other payables
|
$ | 3,975 | $ | 4,018 | ||||
Total liabilities
|
$ | 7,936 | $ | 7,882 |
|
Foreign | ||||||||||||||||||||
December 31, 2010 | Cash | Translation | March 31, 2011 | |||||||||||||||||
Balance | Additions | Payments | Adjustments | Balance | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
|
||||||||||||||||||||
Employee severance and benefits
|
$ | 234 | 405 | 11 | 5 | 633 | ||||||||||||||
Contract termination costs
|
3,813 | 375 | 553 | 88 | 3,723 | |||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 4,047 | 780 | 564 | 93 | 4,356 | ||||||||||||||
|
|
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
|
||||||||
Total minimum lease payments receivable
|
$ | 561,575 | $ | 548,419 | ||||
Less: Executory costs
|
(181,266 | ) | (171,076 | ) | ||||
|
||||||||
Minimum lease payments receivable
|
380,309 | 377,343 | ||||||
Less: Allowance for uncollectibles
|
(669 | ) | (784 | ) | ||||
|
||||||||
Net minimum lease payments receivable
|
379,640 | 376,559 | ||||||
Unguaranteed residuals
|
59,086 | 57,898 | ||||||
Less: Unearned income
|
(96,646 | ) | (96,522 | ) | ||||
|
||||||||
Net investment in direct financing and sales-type leases
|
342,080 | 337,935 | ||||||
Current portion
|
(62,925 | ) | (63,304 | ) | ||||
|
||||||||
Non-current portion
|
$ | 279,155 | $ | 274,631 | ||||
|
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Very low risk
|
$ | 58,480 | $ | 47,395 | ||||
Low risk
|
47,442 | 44,598 | ||||||
Moderate risk
|
210,226 | 218,547 | ||||||
Moderately high risk
|
42,306 | 49,536 | ||||||
High risk
|
21,855 | 17,267 | ||||||
|
||||||||
|
$ | 380,309 | $ | 377,343 | ||||
|
(In thousands) | ||||
Balance at December 31, 2010
|
$ | 784 | ||
Charged to earnings
|
18 | |||
Deductions
|
(133 | ) | ||
|
||||
Balance at March 31, 2011
|
$ | 669 | ||
|
|
March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accumulated | Net Book | Accumulated | Net Book | |||||||||||||||||||||
Cost | Depreciation | Value(1) | Cost | Depreciation | Value (1) | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Held for use:
|
||||||||||||||||||||||||
Full service lease
|
$ | 5,712,106 | (2,480,796 | ) | 3,231,310 | $ | 5,639,410 | (2,408,126 | ) | 3,231,284 | ||||||||||||||
Commercial rental
|
1,812,939 | (652,619 | ) | 1,160,320 | 1,549,094 | (647,764 | ) | 901,330 | ||||||||||||||||
Held for sale
|
247,561 | (181,324 | ) | 66,237 | 260,114 | (191,510 | ) | 68,604 | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 7,772,606 | (3,314,739 | ) | 4,457,867 | $ | 7,448,618 | (3,247,400 | ) | 4,201,218 | ||||||||||||||
|
(1) | Revenue earning equipment, net includes vehicles under capital leases of $29.1 million, less accumulated amortization of $19.0 million, at March 31, 2011, and $29.2 million, less accumulated amortization of $18.5 million, at December 31, 2010. Amortization expense attributed to vehicles acquired under capital leases is combined with depreciation expense. |
|
Fleet | Supply | Dedicated | ||||||||||||||
Management | Chain | Contract | ||||||||||||||
Solutions | Solutions | Carriage | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1, 2011:
|
||||||||||||||||
Goodwill
|
$ | 202,941 | 177,222 | 4,900 | 385,063 | |||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
192,619 | 158,323 | 4,900 | 355,842 | ||||||||||||
Acquisitions
|
12,655 | — | 14,123 | 26,778 | ||||||||||||
Purchase accounting adjustments
|
— | (4,319 | ) | — | (4,319 | ) | ||||||||||
Foreign currency translation adjustment
|
195 | 250 | — | 445 | ||||||||||||
|
||||||||||||||||
Balance at March 31, 2011:
|
||||||||||||||||
Goodwill
|
215,791 | 173,153 | 19,023 | 407,967 | ||||||||||||
Accumulated impairment losses
|
(10,322 | ) | (18,899 | ) | — | (29,221 | ) | |||||||||
|
||||||||||||||||
|
$ | 205,469 | 154,254 | 19,023 | 378,746 | |||||||||||
|
|
March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||
Accrued | Non-Current | Accrued | Non-Current | |||||||||||||||||||||
Expenses | Liabilities | Total | Expenses | Liabilities | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
|
||||||||||||||||||||||||
Salaries and wages
|
$ | 62,743 | — | 62,743 | $ | 81,037 | — | 81,037 | ||||||||||||||||
Deferred compensation
|
1,376 | 21,018 | 22,394 | 1,965 | 21,258 | 23,223 | ||||||||||||||||||
Pension benefits
|
3,000 | 336,175 | 339,175 | 2,984 | 333,074 | 336,058 | ||||||||||||||||||
Other postretirement benefits
|
3,385 | 44,462 | 47,847 | 3,382 | 43,787 | 47,169 | ||||||||||||||||||
Employee benefits
|
1,627 | — | 1,627 | 2,251 | — | 2,251 | ||||||||||||||||||
Insurance obligations, primarily
self-insurance
|
126,195 | 153,122 | 279,317 | 110,697 | 148,639 | 259,336 | ||||||||||||||||||
Residual value guarantees
|
2,461 | 2,169 | 4,630 | 2,301 | 2,196 | 4,497 | ||||||||||||||||||
Deferred rent
|
12,228 | 11,338 | 23,566 | 2,397 | 16,787 | 19,184 | ||||||||||||||||||
Deferred vehicle gains
|
473 | 1,252 | 1,725 | 473 | 1,374 | 1,847 | ||||||||||||||||||
Environmental liabilities
|
4,942 | 9,014 | 13,956 | 5,145 | 8,908 | 14,053 | ||||||||||||||||||
Asset retirement obligations
|
3,799 | 12,577 | 16,376 | 3,868 | 12,319 | 16,187 | ||||||||||||||||||
Operating taxes
|
81,270 | — | 81,270 | 73,095 | — | 73,095 | ||||||||||||||||||
Income taxes
|
1,818 | 75,231 | 77,049 | 2,559 | 73,849 | 76,408 | ||||||||||||||||||
Interest
|
31,618 | — | 31,618 | 30,478 | — | 30,478 | ||||||||||||||||||
Deposits, mainly from customers
|
35,470 | 7,540 | 43,010 | 31,755 | 7,538 | 39,293 | ||||||||||||||||||
Deferred revenue
|
18,698 | 1,950 | 20,648 | 15,956 | 4,646 | 20,602 | ||||||||||||||||||
Acquisition holdbacks
|
20,670 | — | 20,670 | 6,177 | — | 6,177 | ||||||||||||||||||
Other
|
33,697 | 9,057 | 42,754 | 40,495 | 6,433 | 46,928 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 445,470 | 684,905 | 1,130,375 | $ | 417,015 | 680,808 | 1,097,823 | ||||||||||||||||
|
|
|
Weighted-Average | ||||||||||||||||||||
Interest Rate | ||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
2011 | 2010 | Maturities | 2011 | 2010 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Short-term debt and current portion of long-term debt:
|
||||||||||||||||||||
Unsecured foreign obligations
|
4.86% | 4.56% | 2011-2012 | $ | 90,590 | $ | 42,968 | |||||||||||||
Current portion of long-term debt, including capital leases
|
377,384 | 377,156 | ||||||||||||||||||
|
||||||||||||||||||||
Total short-term debt and current portion of long-term debt
|
467,974 | 420,124 | ||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Long-term debt:
|
||||||||||||||||||||
U.S. commercial paper (1)
|
0.42% | 0.42% | 2012 | 77,984 | 367,880 | |||||||||||||||
Unsecured U.S. notes — Medium-term notes (1)
|
4.88% | 5.28% | 2011-2025 | 2,508,957 | 2,158,647 | |||||||||||||||
Unsecured U.S. obligations, principally bank term loans
|
1.53% | 1.54% | 2012-2013 | 105,400 | 105,600 | |||||||||||||||
Unsecured foreign obligations
|
—% | 5.14% | — | — | 45,109 | |||||||||||||||
Capital lease obligations
|
7.90% | 7.86% | 2011-2017 | 11,905 | 11,369 | |||||||||||||||
|
||||||||||||||||||||
Total before fair market value adjustment
|
2,704,246 | 2,688,605 | ||||||||||||||||||
Fair market value adjustment on notes subject to hedging
(2)
|
14,280 | 15,429 | ||||||||||||||||||
|
||||||||||||||||||||
|
2,718,526 | 2,704,034 | ||||||||||||||||||
Current portion of long-term debt, including capital leases
|
(377,384 | ) | (377,156 | ) | ||||||||||||||||
|
||||||||||||||||||||
Long-term debt
|
2,341,142 | 2,326,878 | ||||||||||||||||||
|
||||||||||||||||||||
Total debt
|
$ | 2,809,116 | $ | 2,747,002 | ||||||||||||||||
|
(1) | We had unamortized original issue discounts of $10.1 million and $10.5 million at March 31, 2011 and December 31, 2010, respectively. | |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $400 million and $250 million at March 31, 2011 and December 31, 2010, respectively. |
|
Fair Value Measurements | ||||||||||||||||||||
At March 31, 2011 Using | ||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Investments held in Rabbi Trusts:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 3,144 | — | — | 3,144 | |||||||||||||||
U.S. equity mutual funds
|
8,905 | — | — | 8,905 | ||||||||||||||||
Foreign equity mutual funds
|
2,553 | — | — | 2,553 | ||||||||||||||||
Fixed income mutual funds
|
2,977 | — | — | 2,977 | ||||||||||||||||
|
||||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 17,579 | — | — | 17,579 | |||||||||||||||
Interest rate swaps
|
DFL and other assets | — | 14,280 | — | 14,280 | |||||||||||||||
|
||||||||||||||||||||
Total assets at fair value
|
$ | 17,579 | 14,280 | — | 31,859 | |||||||||||||||
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
Contingent consideration
|
Accrued expenses | $ | — | — | 14,400 | 14,400 | ||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
At December 31, 2010 Using | ||||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Investments held in Rabbi Trusts
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 2,348 | — | — | 2,348 | |||||||||||||||
U.S. equity mutual funds
|
8,409 | — | — | 8,409 | ||||||||||||||||
Foreign equity mutual funds
|
5,188 | — | — | 5,188 | ||||||||||||||||
Fixed income mutual funds
|
1,459 | — | — | 1,459 | ||||||||||||||||
|
||||||||||||||||||||
Investments held in Rabbi Trusts
|
DFL and other assets | 17,404 | — | — | 17,404 | |||||||||||||||
Interest rate swap
|
DFL and other assets | — | 15,429 | — | 15,429 | |||||||||||||||
|
||||||||||||||||||||
Total assets at fair value
|
$ | 17,404 | 15,429 | — | 32,833 | |||||||||||||||
|
Fair Value Measurements | ||||||||||||||||
At March 31, 2011 Using | Total Losses (2) | |||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | |||||||||||||
(In thousands) | ||||||||||||||||
Assets held for sale:
|
||||||||||||||||
Revenue earning equipment: (1)
|
||||||||||||||||
Trucks
|
$ | — | — | 10,155 | $ | 1,689 | ||||||||||
Tractors
|
— | — | 4,274 | 689 | ||||||||||||
Trailers
|
— | — | 646 | 661 | ||||||||||||
|
||||||||||||||||
Total assets at fair value
|
$ | — | — | 15,075 | $ | 3,039 | ||||||||||
|
Fair Value Measurements | ||||||||||||||||
At March 31, 2010 Using | Total Losses (2) | |||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | |||||||||||||
(In thousands) | ||||||||||||||||
Assets held for sale:
|
||||||||||||||||
Revenue
earning equipment: (1)
|
||||||||||||||||
Trucks
|
$ | — | — | 16,304 | $ | 4,369 | ||||||||||
Tractors
|
— | — | 23,383 | 3,810 | ||||||||||||
Trailers
|
— | — | 2,548 | 1,551 | ||||||||||||
|
||||||||||||||||
Total revenue earning equipment
|
— | — | 42,235 | 9,730 | ||||||||||||
Operating property and equipment held for sale
|
— | — | 8,792 | — | ||||||||||||
|
||||||||||||||||
Total assets at fair value
|
$ | — | — | 51,027 | $ | 9,730 | ||||||||||
|
(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. |
|
Location of Gain (Loss) | Three months ended March 31, | |||||||||||
Fair Value Hedging Relationship | Recognized in Income | 2011 | 2010 | |||||||||
(In thousands) | ||||||||||||
Derivatives: Interest rate swaps
|
Interest expense | $ | (1,149 | ) | 2,027 | |||||||
Hedged items: Fixed-rate debt
|
Interest expense | 1,149 | (2,027 | ) | ||||||||
|
||||||||||||
Total
|
$ | — | — | |||||||||
|
|
Three months ended March 31, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Net earnings
|
$ | 25,125 | 12,373 | |||||
Other comprehensive income:
|
||||||||
Foreign currency translation adjustments
|
24,343 | (1,650 | ) | |||||
Amortization of transition obligation (1)
|
(6 | ) | (4 | ) | ||||
Amortization of net actuarial loss (1)
|
3,368 | 3,157 | ||||||
Amortization of prior service credit (1)
|
(406 | ) | (400 | ) | ||||
Change in net actuarial loss (1)
|
— | (82 | ) | |||||
|
||||||||
Total comprehensive income
|
$ | 52,424 | 13,394 | |||||
|
(1) | Amounts pertain to our pension and/or postretirement benefit plans and are presented net of tax. See Note (R), “Employee Benefit Plans,” for additional information. |
|
Pension Benefits | Postretirement Benefits | |||||||||||||||
Three months ended March 31, | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
Company-administered plans:
|
||||||||||||||||
Service cost
|
$ | 3,767 | 5,089 | $ | 347 | 426 | ||||||||||
Interest cost
|
24,490 | 24,097 | 669 | 765 | ||||||||||||
Expected return on plan assets
|
(25,859 | ) | (23,301 | ) | — | — | ||||||||||
Amortization of:
|
||||||||||||||||
Transition obligation
|
(8 | ) | (6 | ) | — | — | ||||||||||
Net actuarial loss
|
5,129 | 4,732 | 106 | 178 | ||||||||||||
Prior service credit
|
(570 | ) | (563 | ) | (58 | ) | (58 | ) | ||||||||
|
||||||||||||||||
|
6,949 | 10,048 | 1,064 | 1,311 | ||||||||||||
Union-administered plans
|
1,341 | 1,275 | — | — | ||||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 8,290 | 11,323 | $ | 1,064 | 1,311 | ||||||||||
|
||||||||||||||||
Company-administered plans:
|
||||||||||||||||
U.S.
|
$ | 7,100 | 8,816 | $ | 883 | 941 | ||||||||||
Non-U.S.
|
(151 | ) | 1,232 | 181 | 370 | |||||||||||
|
||||||||||||||||
|
6,949 | 10,048 | 1,064 | 1,311 | ||||||||||||
Union-administered plans
|
1,341 | 1,275 | — | — | ||||||||||||
|
||||||||||||||||
|
$ | 8,290 | 11,323 | $ | 1,064 | 1,311 | ||||||||||
|
|
Three months ended March 31, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
Interest paid
|
$ | 31,429 | $ | 26,686 | ||||
Income taxes paid (refunded)
|
$ | 5,110 | $ | (11,119 | ) | |||
Changes in accounts payable related to purchases of revenue earning equipment
|
$ | 134,806 | $ | 76,308 | ||||
Revenue earning equipment acquired under capital leases
|
$ | 1,153 | $ | — |
|
FMS | SCS | DCC | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the three months ended March 31, 2011
|
||||||||||||||||||||
Revenue from external customers
|
$ | 889,616 | 401,038 | 134,722 | — | 1,425,376 | ||||||||||||||
Inter-segment revenue
|
90,500 | — | — | (90,500 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 980,116 | 401,038 | 134,722 | (90,500 | ) | 1,425,376 | |||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 38,562 | 12,064 | 7,398 | (4,904 | ) | 53,120 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(8,742 | ) | ||||||||||||||||||
Restructuring and other charges, net
|
(768 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 43,610 | ||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (1), (2)
|
$ | 301,972 | 6,140 | 959 | — | 309,071 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
4,147 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 313,218 | ||||||||||||||||||
|
||||||||||||||||||||
March 31, 2010
|
||||||||||||||||||||
Revenue from external customers
|
$ | 809,389 | 294,207 | 116,342 | — | 1,219,938 | ||||||||||||||
Inter-segment revenue
|
74,594 | — | — | (74,594 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Total revenue
|
$ | 883,983 | 294,207 | 116,342 | (74,594 | ) | 1,219,938 | |||||||||||||
|
||||||||||||||||||||
Segment NBT
|
$ | 21,695 | 7,025 | 7,386 | (4,732 | ) | 31,374 | |||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
(8,882 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Earnings from continuing operations before income taxes
|
$ | 22,492 | ||||||||||||||||||
|
||||||||||||||||||||
Segment capital expenditures (2)
|
$ | 195,488 | 1,501 | 612 | — | 197,601 | ||||||||||||||
|
||||||||||||||||||||
Unallocated CSS
|
2,500 | |||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures paid
|
$ | 200,101 | ||||||||||||||||||
|
(1) | Excludes revenue earning equipment acquired under capital leases. | |
(2) | Excludes acquisition payments of $83.8 million and $2.4 million during the three months ended March 31, 2011 and 2010, respectively. |