RYDER SYSTEM INC, 10-Q filed on 4/23/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2013
Document and Entity Information [Abstract]
 
Entity Registrant Name
RYDER SYSTEM INC. 
Entity Central Index Key
0000085961 
Document Type
10-Q 
Document Period End Date
Mar. 31, 2013 
Amendment Flag
false 
Document Fiscal Year Focus
2013 
Document Fiscal Period Focus
Q1 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
51,922,227 
Consolidated Condensed Statements of Earnings (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Income Statement [Abstract]
 
 
Lease and rental revenues
$ 659,708 
$ 637,858 
Service revenue
689,461 
678,352 
Fuel services revenue
213,848 
220,066 
Total revenues
1,563,017 
1,536,276 
Cost of lease and rental
470,120 
458,944 
Cost of services
585,437 
575,669 
Cost of fuel services
210,293 
215,573 
Other operating expenses
37,968 
34,249 
Selling, general and administrative expenses
189,813 
194,984 
Gains on vehicle sales, net
(23,006)
(21,991)
Interest expense
34,454 
34,765 
Miscellaneous income, net
(4,570)
(4,480)
Restructuring and other charges, net
0 
865 
Total expenses
1,500,509 
1,488,578 
Earnings from continuing operations before income taxes
62,508 
47,698 
Provision for income taxes
21,706 
12,822 
Earnings from continuing operations
40,802 
34,876 
Loss from discontinued operations, net of tax
(878)
(555)
Net earnings
$ 39,924 
$ 34,321 
Earnings (loss) per common share - Basic
 
 
Continuing operations
$ 0.79 
$ 0.68 
Discontinued operations
$ (0.02)
$ (0.01)
Net earnings
$ 0.77 
$ 0.67 
Earnings (loss) per common share - Diluted
 
 
Continuing operations
$ 0.79 
$ 0.68 
Discontinued operations
$ (0.02)
$ (0.01)
Net earnings
$ 0.77 
$ 0.67 
Cash dividends declared per common share
$ 0.31 
$ 0.29 
Consolidated Statements of Comprehensive Income (Unaudited) Statement (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net earnings
$ 39,924 
$ 34,321 
Other comprehensive (loss) income before taxes [Abstract]
 
 
Amortization of Pension and Postretirement Benefits
8,354 
7,231 
Change in Cummulative Translation Adjustment and Other
(33,704)
22,803 
Other Comprehensive (Loss) Income Before Taxes
(25,350)
30,034 
Income Tax Expense Related to Components of Other Comprehensive Income
(2,935)
(2,543)
Other Comprehensive (Loss) Income
(28,285)
27,491 
Comprehensive income
$ 11,639 
$ 61,812 
Consolidated Condensed Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 76,489 
$ 66,392 
Receivables, net
774,441 
775,765 
Inventories
63,028 
64,146 
Prepaid expenses and other current assets
156,897 
133,934 
Total current assets
1,070,855 
1,040,237 
Revenue earning equipment, net of accumulated depreciation of $3,496,545 and $3,514,910, respectively
5,808,983 
5,754,608 
Operating property and equipment, net of accumulated depreciation of $978,101 and $966,220, respectively
625,727 
624,853 
Goodwill
383,515 
384,216 
Intangible assets
77,711 
80,475 
Direct financing leases and other assets
425,311 
434,590 
Total assets
8,392,102 
8,318,979 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
259,733 
367,975 
Accounts payable
462,192 
398,983 
Accrued expenses and other current liabilities
456,945 
505,707 
Total current liabilities
1,178,870 
1,272,665 
Long-term debt
3,585,890 
3,452,821 
Other non-current liabilities
948,513 
948,932 
Deferred income taxes
1,187,684 
1,177,074 
Total liabilities
6,900,957 
6,851,492 
Shareholders' equity:
 
 
Preferred stock of no par value per share - authorized, 3,800,917; none outstanding, March 31, 2013 or December 31, 2012
0 
0 
Common stock of $0.50 par value per share - authorized, 400,000,000; outstanding, March 31, 2013 - 51,922,227; December 31, 2012 - 51,371,696
25,961 
25,686 
Additional paid-in capital
836,132 
808,230 
Retained earnings
1,244,956 
1,221,190 
Accumulated other comprehensive loss
(615,904)
(587,619)
Total shareholders' equity
1,491,145 
1,467,487 
Total liabilities and shareholders' equity
$ 8,392,102 
$ 8,318,979 
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Assets:
 
 
Accumulated depreciation on revenue earning equipment
$ 3,496,545 
$ 3,514,910 
Accumulated depreciation on operating property and equipment
$ 978,101 
$ 966,220 
Shareholders' equity:
 
 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.5 
$ 0.5 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
51,922,227 
51,371,696 
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities from continuing operations:
 
 
Net earnings
$ 39,924 
$ 34,321 
Less: Loss from discontinued operations, net of tax
(878)
(555)
Earnings from continuing operations
40,802 
34,876 
Depreciation expense
231,541 
226,608 
Gains on vehicle sales, net
(23,006)
(21,991)
Share-based compensation expense
4,609 
4,437 
Amortization expense and other non-cash charges, net
13,432 
9,101 
Deferred income tax expense
18,593 
14,356 
Changes in operating assets and liabilities, net of acquisitions:
 
 
Receivables
(8,677)
(26,520)
Inventories
902 
(1,166)
Prepaid expenses and other assets
(17,353)
(5,644)
Accounts payable
36,405 
9,448 
Accrued expenses and other non-current liabilities
(48,320)
(57,229)
Net cash provided by operating activities from continuing operations
248,928 
186,276 
Cash flows from financing activities from continuing operations:
 
 
Net change in commercial paper borrowings
112,938 
(164,298)
Debt proceeds
249,723 
369,920 
Debt repaid, including capital lease obligations
(317,344)
(2,784)
Dividends on common stock
(15,980)
(14,853)
Common stock issued
22,529 
13,156 
Common stock repurchased
(104)
(11,920)
Excess tax benefits from share-based compensation
1,575 
789 
Debt issuance costs
(1,767)
(2,211)
Net cash provided by financing activities from continuing operations
51,570 
187,799 
Cash flows from investing activities from continuing operations:
 
 
Purchases of property and revenue earning equipment
(420,054)
(470,969)
Sales of revenue earning equipment
112,425 
91,341 
Sales of operating property and equipment
916 
2,898 
Acquisitions
(1,420)
(2,076)
Collections on direct finance leases
27,411 
15,475 
Changes in restricted cash
(18,979)
(2,438)
Other, net
3,767 
0 
Net cash used in investing activities from continuing operations
(295,934)
(365,769)
Effect of exchange rate changes on cash
6,257 
1,660 
Decrease in cash and cash equivalents from continuing operations
10,821 
9,966 
Cash flows from discontinued operations:
 
 
Operating cash flows
(726)
(933)
Effect of exchange rate changes on cash
2 
16 
Decrease in cash and cash equivalents from discontinued operations
(724)
(917)
Decrease in cash and cash equivalents
10,097 
9,049 
Cash and cash equivalents at January 1
66,392 
104,572 
Cash and cash equivalents at March 31
$ 76,489 
$ 113,621 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2012
$ 1,467,487 
$ 0 
$ 25,686 
$ 808,230 
$ 1,221,190 
$ (587,619)
Beginning Balance, shares at Dec. 31, 2012
51,371,696 
 
51,371,696 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
39,924 
 
 
 
39,924 
 
Other Comprehensive Loss
(28,285)
 
 
 
 
(28,285)
Comprehensive income
11,639 
 
 
 
 
 
Common stock dividends declared - $0.31 per share
(16,158)
 
 
 
(16,158)
 
Common stock issued under employee stock option and stock purchase plans1
22,529 
 
275 
22,254 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
551,091 
 
 
 
Benefit plan stock purchases2
(104)
 
0 
(104)
 
 
Benefit plan stock purchases, shares2
 
 
(560)
 
 
 
Share-based compensation
4,609 
 
 
4,609 
 
 
Tax benefits from share-based compensation
1,143 
 
 
1,143 
 
 
Ending Balance at Mar. 31, 2013
$ 1,491,145 
$ 0 
$ 25,961 
$ 836,132 
$ 1,244,956 
$ (615,904)
Ending Balance, shares at Mar. 31, 2013
51,922,227 
 
51,922,227 
 
 
 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Mar. 31, 2013
Cash dividends declared per common share
$ 0.31 
Retained Earnings
 
Cash dividends declared per common share
$ 0.31 
Interim Financial Statements
INTERIM FINANCIAL STATEMENTS
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 2012 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. These financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) 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. Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole.
Discontinued Operations
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

In 2009, we ceased SCS service operations in Brazil, Argentina, Chile and European markets. Accordingly, results of these operations, financial position and cash flows are separately reported as discontinued operations for all periods presented either in the Consolidated Condensed Financial Statements or notes thereto.

Summarized results of discontinued operations were as follows:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Pre-tax loss from discontinued operations
$
(901
)
 
(575
)
Income tax benefit
23

 
20

Loss from discontinued operations, net of tax
$
(878
)
 
(555
)


Results of discontinued operations in 2013 and 2012 reflected losses related to adverse legal developments and professional and administrative fees associated with our discontinued South American operations.

The following is a summary of assets and liabilities of discontinued operations:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Total assets, primarily deposits
$
3,890

 
4,460

Total liabilities, primarily contingent accruals
$
5,535

 
5,329



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 $4.7 million (before and after tax) for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We have successfully overturned these federal tax assessments in the lower courts; however, there is a reasonable possibility that these rulings could be reversed and we would be required to pay the assessments. We believe it is more likely than not that our position will ultimately be sustained if appealed and no amounts have been reserved for these matters. We are entitled to indemnification for a portion of any resulting liability on these federal tax claims which, if honored, would reduce the estimated loss.

In Brazil, we were assessed $5.1 million (before and after tax) for certain state operating tax credits utilized between 2001 and 2003. Although there is a reasonable possibility that we could incur this loss, we believe it is more likely than not that our position will ultimately be sustained and no amounts have been reserved for these matters.
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.

The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Stock option and stock purchase plans
$
2,110

 
2,364

Nonvested stock
2,499

 
2,073

Share-based compensation expense
4,609

 
4,437

Income tax benefit
(1,687
)
 
(1,484
)
Share-based compensation expense, net of tax
$
2,922

 
2,953



During the three months ended March 31, 2013 and 2012, approximately 377,000 and 460,000 stock options, respectively, were granted under the Plans. These awards generally vest evenly over a three years period beginning on the date of grant. The stock options granted in 2013 have contractual terms of ten years, and stock options granted in 2012 have contractual terms of seven years. The fair value of each option award at the date of grant was estimated using a Black-Scholes-Merton option-pricing valuation model. The weighted-average fair value per option granted during the three months ended March 31, 2013 and 2012 was $13.99 and $14.07, respectively.

During the three months ended March 31, 2013 and 2012, approximately 22,000 and 93,000 market-based restricted stock rights, respectively, were granted under the Plans. The awards were segmented into three performance periods of one, two and three years. At the end of each performance period, 25%-125% of the award may be earned based on Ryder's total shareholder return (TSR) as compared to the TSR of a peer group over the applicable performance period. For the 2013 awards, Ryder's TSR will be compared to the TSR of a custom peer group. For the 2012 awards, Ryder's TSR will be compared to the TSR of the S&P 500. If earned, employees will receive the grant of stock at the end of the three year performance period from the grant date provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the market-based restricted stock rights was estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The fair value of the market-based awards was determined and fixed on the grant date and considers the likelihood of Ryder achieving the market-based condition. The weighted-average fair value per market-based restricted stock right granted during the three months ended March 31, 2013 and 2012 was $53.32 and $43.39, respectively.

During the three months ended March 31, 2013, approximately 15,000 performance-based restricted stock rights were granted under the Plans. For these awards, 25%-125% of the awards may be earned based on Ryder's 2013 return on capital (ROC) measured against a ROC target. If earned, employees will receive the grant of stock at the end of the three year period from the grant date provided they continue to be employed with Ryder, subject to Compensation Committee approval. Share-based compensation expense is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. The fair value of the performance-based restricted stock rights was determined and fixed on the date of grant based on Ryder’s stock price on the date of grant. The weighted-average fair value per performance-based restricted stock right granted was $58.21. During the three months ended March 31, 2013, approximately 30,000 performance-based restricted stock rights were also awarded under the Plans for which the annual ROC target will be determined in future years. These awards will be considered granted under accounting guidance for stock compensation once the Compensation Committee approves the annual ROC target and communicates the terms of the awards to the recipients.

During the three months ended March 31, 2013 and 2012, approximately 127,000 and 104,000 time-vested restricted stock rights, respectively, were granted under the Plans. The time-vested restricted stock rights entitle the holder to shares of common stock when the awards generally vest at the end of the three-year period after the grant date. The fair value of the time-vested awards is determined and fixed on the date of grant based on Ryder’s stock price on the date of grant. The weighted-average fair value per time-vested restricted stock right granted during the three months ended March 31, 2013 and 2012 was $58.00 and $53.62, respectively.

During the three months ended March 31, 2013 and 2012, employees who received market-based restricted stock rights also received market-based cash awards. In addition, in 2012, the majority of the employees who received time-vested restricted stock also received market-based cash awards. The cash awards have the same vesting provisions as the market-based restricted stock rights. The cash awards are accounted for as liability awards under the share-based compensation accounting guidance as the awards are based upon the performance of our common stock and are settled in cash. As a result, the liability is adjusted to reflect fair value at the end of each reporting period. The fair value of the cash awards was estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation.

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 March 31,
 
2013
 
2012
 
(In thousands)
Cash awards
$1,274
 
597


Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at March 31, 2013 was $39.3 million and is expected to be recognized over a weighted-average period of 1.6 years.
Earnings Per Share
EARNINGS PER SHARE
EARNINGS PER SHARE

We compute earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock granted prior to 2012 are considered participating securities since the share-based awards contain a non-forfeitable right to dividend cash payments prior to vesting. Dividends on nonvested stock granted after 2011 are not paid unless the award vests. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.

The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
Earnings from continuing operations
$
40,802

 
34,876

Less: Distributed and undistributed earnings allocated to nonvested stock
(403
)
 
(462
)
Earnings from continuing operations available to common shareholders — Basic
$
40,399

 
34,414

 
 
 
 
Weighted average common shares outstanding — Basic
50,958

 
50,485

 
 
 
 
Earnings from continuing operations per common share — Basic
$
0.79

 
0.68

 
 
 
 
Earnings per share — Diluted:
 
 
 
Earnings from continuing operations
$
40,802

 
34,876

Less: Distributed and undistributed earnings allocated to nonvested stock
(403
)
 
(460
)
Earnings from continuing operations available to common shareholders — Diluted
$
40,399

 
34,416

 
 
 
 
Weighted average common shares outstanding — Basic
50,958

 
50,485

Effect of dilutive equity awards
435

 
436

Weighted average common shares outstanding — Diluted
51,393

 
50,921

 
 
 
 
Earnings from continuing operations per common share — Diluted
$
0.79

 
0.68

 
 
 
 
Anti-dilutive equity awards not included above
1,413

 
1,453

Restructuring and Other Charges
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES

Restructuring charges, net of $0.9 million for the three months ended March 31, 2012 represented exit costs associated with non-essential leased facilities assumed in the Hill Hire acquisition.
 
Activity related to restructuring reserves including discontinued operations were as follows:
 
 
 
 
 
Deductions
 
 
 
 
 
December 31, 2012
 
Additions
 
Cash
Payments
 
Non-Cash Reductions (1)
 
Foreign
Translation
Adjustments
 
March 31, 2013
 
Balance
 
 
 
 
 
Balance
 
(In thousands)      
Employee severance and benefits
$
3,147

 
—

 
1,693

 
25

 
(95
)
 
1,334

Contract termination costs
1,728

 
—

 
579

 
—

 
(103
)
 
1,046

Total
$
4,875

 
—

 
2,272

 
25

 
(198
)
 
2,380


_________________________ 
(1) Non-cash reductions represent adjustments to the restructuring reserve as actual costs were less than originally estimated. 
At March 31, 2013, the majority of outstanding restructuring obligations are required to be paid by the end of the year.
Direct Financing Lease Receivables
DIRECT FINANCING LEASE RECEIVABLES
DIRECT FINANCING LEASE RECEIVABLES

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. The net investment in direct financing and sales-type leases consisted of:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Total minimum lease payments receivable
$
602,575

 
629,919

Less: Executory costs
(190,380
)
 
(201,777
)
Minimum lease payments receivable
412,195

 
428,142

Less: Allowance for uncollectibles
(643
)
 
(703
)
Net minimum lease payments receivable
411,552

 
427,439

Unguaranteed residuals
58,022

 
60,764

Less: Unearned income
(93,209
)
 
(96,280
)
Net investment in direct financing and sales-type leases
376,365

 
391,923

Current portion
(73,951
)
 
(76,395
)
Non-current portion
$
302,414

 
315,528



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. The credit risk assessment is only updated under certain circumstances. Credit risk is assessed using an internally developed model, which is updated monthly, that incorporates credit scores from third party providers and our own custom risk ratings. The external credit scores are developed based on the customer’s historical payment patterns and an overall assessment of the likelihood of delinquent payments. Our internal ratings are weighted based on the industry in which the customer operates, company size, years in business, and other credit-related indicators (i.e. profitability, cash flow, liquidity, tangible net worth, etc.). Any one of the following factors may result in a customer being classified as high risk: i) the customer has a history of late payments; ii) the customer has open lawsuits, liens or judgments; iii) the customer has been in business less than 3 years; and iv) the customer operates in an industry with low barriers to entry. For those customers who are designated as high risk, we typically require deposits to be paid in advance in order to mitigate our credit risk. Additionally, our receivables are collateralized by the vehicle’s fair value, which further mitigates our credit risk.

The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Very low risk to low risk
$
172,034

 
193,123

Moderate risk
175,056

 
177,400

Moderately high risk to high risk
65,105

 
57,619

 
$
412,195

 
428,142



The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the three months ended March 31, 2013 and 2012:
 
2013
 
2012
 
(In thousands)
Balance at December 31
$
703

 
903

Charged to earnings
(42
)
 
783

Deductions
(18
)
 
(879
)
Balance at March 31
$
643

 
807



As of March 31, 2013, the amount of direct financing lease receivables which were 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 as of March 31, 2013.
Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT

 
March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
(In thousands)
Held for use:
 
Full service lease
$
6,783,263

 
(2,463,080
)
 
4,320,183

 
6,728,746

 
(2,500,786
)
 
4,227,960

Commercial rental
1,979,910

 
(648,351
)
 
1,331,559

 
2,041,698

 
(660,356
)
 
1,381,342

Held for sale
542,355

 
(385,114
)
 
157,241

 
499,074

 
(353,768
)
 
145,306

Total
$
9,305,528

 
(3,496,545
)
 
5,808,983

 
9,269,518

 
(3,514,910
)
 
5,754,608

 ————————————
(1)
Revenue earning equipment, net includes vehicles acquired under capital leases of $55.1 million, less accumulated depreciation of $17.1 million, at March 31, 2013, and $56.2 million, less accumulated depreciation of $16.5 million, at December 31, 2012.

At the end of 2012, 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, 2013. The change in estimated residual values increased pre-tax earnings for the three months ended March 31, 2013 by approximately $7.4 million.
Goodwill
GOODWILL
GOODWILL

The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
Fleet
Management
Solutions
 
Supply
Chain
Solutions
 
Total
 
(In thousands)
Balance at January 1, 2013:
 
 
 
 
 
Goodwill
$
223,129

 
190,308

 
413,437

Accumulated impairment losses
(10,322
)
 
(18,899
)
 
(29,221
)
 
212,807

 
171,409

 
384,216

Purchase accounting adjustments
86

 
—

 
86

Foreign currency translation adjustments
(573
)
 
(214
)
 
(787
)
Balance at March 31, 2013:
 
 
 
 
 
Goodwill
222,642

 
190,094

 
412,736

Accumulated impairment losses
(10,322
)
 
(18,899
)
 
(29,221
)
 
$
212,320

 
171,195

 
383,515

Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES

 
March 31, 2013
 
December 31, 2012
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
(In thousands)
Salaries and wages
$
61,830

 
—

 
61,830

 
86,776

 
—

 
86,776

Deferred compensation
1,718

 
26,546

 
28,264

 
1,630

 
24,918

 
26,548

Pension benefits
2,661

 
597,762

 
600,423

 
3,309

 
597,275

 
600,584

Other postretirement benefits
2,677

 
37,601

 
40,278

 
2,683

 
37,916

 
40,599

Insurance obligations (1)
126,608

 
182,570

 
309,178

 
133,459

 
178,714

 
312,173

Residual value guarantees
1,421

 
184

 
1,605

 
1,505

 
130

 
1,635

Accrued rent
16,250

 
6,944

 
23,194

 
9,244

 
9,405

 
18,649

Environmental liabilities
4,145

 
7,926

 
12,071

 
4,201

 
8,415

 
12,616

Asset retirement obligations
5,268

 
15,347

 
20,615

 
3,642

 
17,116

 
20,758

Operating taxes
98,677

 
—

 
98,677

 
91,419

 
—

 
91,419

Income taxes
3,234

 
58,745

 
61,979

 
8,288

 
57,590

 
65,878

Interest
22,950

 
—

 
22,950

 
35,798

 
—

 
35,798

Deposits, mainly from customers
50,739

 
6,237

 
56,976

 
51,671

 
6,236

 
57,907

Deferred revenue
18,918

 
6

 
18,924

 
21,557

 
—

 
21,557

Acquisition holdbacks
2,798

 
—

 
2,798

 
1,637

 
2,673

 
4,310

Other
37,051

 
8,645

 
45,696

 
48,888

 
8,544

 
57,432

Total
$
456,945

 
948,513

 
1,405,458

 
505,707

 
948,932

 
1,454,639

————————————
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.
Income Taxes
INCOME TAXES
INCOME TAXES

Uncertain Tax Positions

We are subject to tax audits in numerous jurisdictions in the U.S. and foreign countries. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we recognize the tax benefit from uncertain tax positions that are at least more likely than not of being sustained upon audit based on the technical merits of the tax position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Such calculations require management to make estimates and judgments with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates. We reevaluate uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, expiration of statutes of limitations, changes in tax law, effectively settled issues under audit, and new audit activity. Depending on the jurisdiction, such a change in recognition or measurement may result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

The following is a summary of tax years that are no longer subject to examination:
Federal — audits of our U.S. federal income tax returns are closed through fiscal year 2008.
State — for the majority of states, tax returns are closed through fiscal year 2008.
Foreign — we are no longer subject to foreign tax examinations by tax authorities for tax years before 2005 in Canada, 2006 in Brazil, 2008 in Mexico and 2010 in the U.K., which are our major foreign tax jurisdictions. Refer to Note (C), “Discontinued Operations,” for further discussion on various assessments related to our former South American operations.

At March 31, 2013 and December 31, 2012, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $53.2 million and $52.3 million, respectively. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $2.3 million by March 31, 2014, if audits are completed or tax years close.
Like-Kind Exchange Program

We have a like-kind exchange program for certain of our revenue earning equipment operating in the U.S. Pursuant to the program, we dispose of vehicles and acquire replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, we exchange through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing us to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. Due to the structure utilized to facilitate the like-kind exchanges, the qualified intermediary that holds the proceeds from the sales of eligible vehicles and the entity that holds the vehicles to be acquired under the program are required to be consolidated in the accompanying Consolidated Condensed Financial Statements in accordance with U.S. GAAP. At March 31, 2013 and December 31, 2012, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable, of $174.3 million and $25.8 million, respectively.

During 2012, we were in a net operating loss position for tax purposes and were not realizing any benefits from the like-kind exchange program. We also had restricted cash in the program that could be used for other purposes. As a result, in the second quarter of 2012, we temporarily ceased utilizing the program while we restructured the processes relating to the purchase and sale of our vehicles and evaluated other tax planning alternatives. Although these actions did not impact our 2012 tax provision or capital spending program, our cash flows increased $19 million from the release of the program's restricted cash. In the first quarter of 2013, once we had completed our restructuring and evaluation, we reinstated our like-kind exchange program and expect to realize cash tax benefits in future periods.

Effective Tax Rate

Our effective income tax rate from continuing operations for the first quarter of 2013 was 34.7% compared with 26.9% in the same period of the prior year. The effective tax rate in the first quarter of 2012 was favorably impacted by a tax benefit of $5 million (10.4% of earnings before tax) relating to the favorable resolution of a tax item from prior periods.
Debt
DEBT
DEBT
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
March 31,
2013
 
December 31,
2012
 
Maturities
 
March 31,
2013
 
December 31,
2012
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
Short-term debt
1.49
%
 
2.27
%
 
2013
 
$
2,015

 
9,820

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
257,718

 
358,155

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
259,733

 
367,975

Long-term debt:
 
 
 
 
 
 
 
 
 
U.S. commercial paper (1)
0.35
%
 
0.41
%
 
2016
 
457,942

 
329,925

Canadian commercial paper (1)
1.15
%
 
1.14
%
 
2016
 
7,861

 
23,165

Global revolving credit facility
1.40
%
 
1.58
%
 
2016
 
500

 
8,924

Unsecured U.S. notes — Medium-term notes (1)
3.95
%
 
4.01
%
 
2014-2025
 
2,971,376

 
2,971,313

Unsecured U.S. obligations, principally bank term loans
1.49
%
 
1.56
%
 
2015-2019
 
55,500

 
105,500

Unsecured foreign obligations
1.92
%
 
1.91
%
 
2014-2016
 
295,055

 
313,406

Capital lease obligations
4.14
%
 
4.08
%
 
2013-2019
 
41,430

 
42,018

Total before fair market value adjustment
 
 
 
 
 
 
3,829,664

 
3,794,251

Fair market value adjustment on notes subject to hedging (2)
 
 
 
 
 
13,944

 
16,725

 
 
 
 
 
 
 
3,843,608

 
3,810,976

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
(257,718
)
 
(358,155
)
Long-term debt
 
 
 
 
 
 
3,585,890

 
3,452,821

Total debt
 
 
 
 
 
 
$
3,845,623

 
3,820,796

 ————————————
(1)
We had unamortized original issue discounts of $8.7 million and $8.8 million at March 31, 2013 and December 31, 2012, respectively.
(2)
The notional amount of executed interest rate swaps designated as fair value hedges was $300 million and $550 million at March 31, 2013 and December 31, 2012, respectively.

We can borrow up to $900 million under a 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, Royal Bank of Scotland Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. This facility matures in June 2016 and is used primarily to finance working capital and provide support for the issuance of unsecured commercial paper in the U.S. and Canada. This facility 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 March 31, 2013). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The agreement provides for annual facility fees, which range from 10.0 basis points to 32.5 basis points, and are based on Ryder’s long-term credit ratings. The current annual facility fee is 15.0 basis points, which applies to the total facility size of $900 million. 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 March 31, 2013 was 180%. At March 31, 2013, $434 million was available under the credit facility, net of support for commercial paper borrowings.

Our global revolving credit facility permits us to refinance short-term commercial paper 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. At March 31, 2013 and December 31, 2012, we classified $465.8 million and $353.1 million, respectively, of short-term commercial paper as long-term debt.

In February 2013, we issued $250 million of unsecured medium-term notes maturing in February 2019. The proceeds from the notes were used to pay down commercial paper and for general corporate purposes. If the notes are downgraded following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal plus accrued and unpaid interest.

We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. If no event occurs which causes early termination, the 364-day program will expire on October 25, 2013. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectability of the collateralized receivables. At March 31, 2013 and December 31, 2012, no amounts were outstanding under the program. Sales of receivables under this program will be accounted for as secured borrowings based on our continuing involvement in the transferred assets.

At March 31, 2013 and December 31, 2012, we had letters of credit and surety bonds outstanding totaling $293.9 million and $294.1 million, respectively, which primarily guarantee the payment of insurance claims.
Fair Value Measurements
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:
 
Balance Sheet Location
 
Fair Value Measurements
At March 31, 2013 Using
 
Total
 
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
(In thousands)
Assets:
 
 
 
Interest rate swaps
DFL and other assets
 
$
—

 
13,944

 
—

 
13,944

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
3,513

 
—

 
—

 
3,513

U.S. equity mutual funds
 
 
12,239

 
—

 
—

 
12,239

Foreign equity mutual funds
 
 
3,337

 
—

 
—

 
3,337

Fixed income mutual funds
 
 
4,534

 
—

 
—

 
4,534

Investments held in Rabbi Trusts
DFL and other assets
 
23,623

 
—

 
—

 
23,623

Total assets at fair value
 
 
$
23,623

 
13,944

 
—

 
37,567

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Contingent consideration
Accrued expenses and other current liabilities
 
$
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
$
—

 
—

 
478

 
478

 
Balance Sheet Location
 
Fair Value Measurements
At December 31, 2012 Using
 
Total
 
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
(In thousands)
Assets:
 
 
 
Interest rate swaps
Prepaid expenses and other current assets
 
$
—

 
1,313

 
—

 
1,313

Interest rate swaps
DFL and other assets
 
—

 
15,412

 
—

 
15,412

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
4,055

 
—

 
—

 
4,055

U.S. equity mutual funds
 
 
10,871

 
—

 
—

 
10,871

Foreign equity mutual funds
 
 
2,974

 
—

 
—

 
2,974

Fixed income mutual funds
 
 
4,526

 
—

 
—

 
4,526

Investments held in Rabbi Trusts
DFL and other assets
 
22,426

 
—

 
—

 
22,426

Total assets at fair value
 
 
$
22,426

 
16,725

 
—

 
39,151

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Contingent consideration
Other non-current liabilities
 
$
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
$
—

 
—

 
478

 
478



The following is a description of the valuation methodologies used for these items, as well as the level of inputs used to measure fair value:

Investments held in Rabbi Trusts — The investments primarily include mutual funds that invest in equity and fixed income securities. Shares of mutual funds were valued based on quoted market prices, which represent the net asset value of the shares and were therefore classified within Level 1 of the fair value hierarchy.

Interest rate swaps — The derivatives are pay-variable, receive-fixed interest rate swaps based on the LIBOR rate and are designated as fair value hedges. 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.

Contingent consideration — Fair value was based on the income approach and uses significant inputs that are not observable in the market. These inputs are based on our expectations as to what amount we will pay based on contractual provisions. Therefore, the liability was classified within Level 3 of the fair value hierarchy.

The following tables present our assets and liabilities that are measured at fair value on a nonrecurring basis and the levels of inputs used to measure fair value:
 
Fair Value Measurements
At March 31, 2013 Using
 
Total Losses (2)
 
Level 1
 
Level 2
 
Level 3
 
Three months  ended
 
(In thousands)
Assets held for sale:
 
 
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
 
 
Trucks
$
—

 
—

 
13,229

 
$
3,029

Tractors
—

 
—

 
14,943

 
1,095

Trailers
—

 
—

 
989

 
597

Total assets at fair value
$
—

 
—

 
29,161

 
$
4,721

 
 
Fair Value Measurements
At March 31, 2012 Using
 
Total Losses (2)
 
Level 1
 
Level 2
 
Level 3
 
Three months
 ended
 
(In thousands)
Assets held for sale:
 
 
 
 
 
 
 
Revenue earning equipment (1)
 
 
 
 
 
 
 
Trucks
$
—

 
—

 
7,321

 
$
2,381

Tractors
—

 
—

 
3,514

 
471

Trailers
—

 
—

 
624

 
507

Total assets at fair value
$
—

 
—

 
11,459

 
$
3,359

 ————————————
(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 to reflect changes in fair value 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 (tractors, trucks 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 obligations) at March 31, 2013 and December 31, 2012 was approximately $4.02 billion and $3.99 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

As of March 31, 2013, 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. The following table provides a detail of the swaps outstanding and the related hedged items as of March 31, 2013:
 
 
 
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 March 31,
Issuance date
 
 
 
 
 
2013
 
2012
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.62%
 
1.84%
February 2011
 
March 2015
 
$350,000
 
$150,000
 
3.15%
 
1.41%
 
1.70%


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. The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:
Fair Value Hedging Relationship
 
Location of
 Gain (Loss)
Recognized in Income
 
Three months ended March 31,
 
2013
 
2012
 
 
 
 
(In thousands)
Derivatives: Interest rate swaps
 
Interest expense
 
$
(2,781
)
 
(2,170
)
Hedged items: Fixed-rate debt
 
Interest expense
 
2,781

 
2,170

Total
 
 
 
$
—

 
—


Refer to Note (M), “Fair Value Measurements,” for disclosures of the fair value and line item caption of derivative instruments recorded on the Consolidated Condensed Balance Sheets.
Share Repurchase Programs
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS

In December 2011, 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. Under the December 2011 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company's various employee stock, stock option and employee stock purchase plans from December 1, 2011 through December 13, 2013. The December 2011 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. In 2013, we temporarily paused our anti-dilutive share repurchase program to appropriately manage our leverage and to allow us to maintain near-term balance sheet flexibility. For the three months ended March 31, 2012, we repurchased and retired 223,200 shares under this program at an aggregate cost of $11.9 million.
Comprehensive Income (Notes)
Comprehensive Income
COMPREHENSIVE INCOME
“Other comprehensive loss” for the three months ended March 31, 2013 totaled $28.3 million. For the three months ended March 31, 2012, “Other comprehensive income” was $27.5 million. The 2013 loss primarily consisted of a $33.7 million (before and after tax) change in the cumulative translation adjustment, which related to the weakening of the British Pound and the Canadian Dollar when compared to the U.S. Dollar. The prior year adjustment of $22.8 million (before and after tax) reflected the strengthening of these currencies against the U.S. Dollar.
“Other comprehensive income” for the three months ended March 31, 2013 and 2012 also includes amortization of pension and postretirement items of $8.4 million and $7.2 million ($5.4 million and $4.7 million after-tax) respectively, which are included in the computation of net periodic pension cost. See Note (Q), “Employee Benefit Plans,” for further information.

Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Three months ended March 31,
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
4,252

 
3,907

 
263

 
320

Interest cost
22,419

 
23,689

 
395

 
514

Expected return on plan assets
(26,448
)
 
(24,057
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
8,880

 
7,861

 
(2
)
 
(3
)
Prior service credit
(466
)
 
(569
)
 
(58
)
 
(58
)
 
8,637

 
10,831

 
598

 
773

Union-administered plans
1,984

 
1,614

 
—

 
—

Net periodic benefit cost
$
10,621

 
12,445

 
598

 
773

 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
8,741

 
9,848

 
406

 
552

Non-U.S.
(104
)
 
983

 
192

 
221

 
8,637

 
10,831

 
598

 
773

Union-administered plans
1,984

 
1,614

 
—

 
—

 
$
10,621

 
12,445

 
598

 
773

 
 
 
 
 
 
 
 


During the three months ended March 31, 2013, we contributed $4.0 million to our pension plans. In 2013, we expect to contribute approximately $66 million to our pension plans.
Other Items
Other Items Impacting Comparability [Text Block]
OTHER ITEMS IMPACTING COMPARABILITY

Our primary measure of segment performance excludes certain items we do not believe are representative of the ongoing operations of the segment. We believe that excluding these items from our segment measure of performance allows for better comparison of results.
During the three months ended March 31, 2013, we recognized a benefit of $1.9 million (before and after tax) from the recognition of the accumulated currency translation adjustment from a foreign operation which has substantially liquidated its net assets. This benefit was recorded within “Miscellaneous income, net” in our Consolidated Condensed Statement of Earnings.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information was as follows:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Interest paid
$
45,425

 
37,325

Income taxes paid
$
3,721

 
4,183

Changes in accounts payable related to purchases of revenue earning equipment
$
29,381

 
316,457

Operating and revenue earning equipment acquired under capital leases 
$
458

 
59

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. We operate in two reportable business segments: (1) FMS, which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers, principally in the U.S., Canada and the U.K.; and (2) SCS, which provides comprehensive supply chain consulting including distribution and transportation services in North America and Asia. The SCS segment also provides dedicated services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S.

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 as described in Note (F), “Restructuring and Other Charges” and the items discussed in Note (R), “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 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 SCS segment. 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 SCS and then eliminated (presented as “Eliminations”).
 
The following tables set forth financial information for each of our business segments and provides a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three months ended March 31, 2013 and 2012. 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
 
SCS
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
For the three months ended March 31, 2013
 
 
 
 
 
 
Revenue from external customers
$
986,538

 
576,479

 
—

 
1,563,017

Inter-segment revenue
113,194

 
—

 
(113,194
)
 
—

Total revenue
$
1,099,732

 
576,479

 
(113,194
)
 
1,563,017

 
 
 
 
 
 
 
 
Segment EBT
$
60,745

 
23,811

 
(7,333
)
 
77,223

Unallocated CSS
 
 
 
 
 
 
(11,375
)
     Non-operating pension costs 
 
 
 
 
 
 
(5,244
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
1,904

Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
62,508

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
406,511

 
5,800

 
—

 
412,311

Unallocated CSS
 
 
 
 
 
 
7,743

Capital expenditures paid
 
 
 
 
 
 
$
420,054

 
 
 
 
 
 
 
 
For the three months ended March 31, 2012
 
 
 
 
 
 
Revenue from external customers
$
964,363

 
571,913

 
—

 
1,536,276

Inter-segment revenue
107,028

 
—

 
(107,028
)
 
—

Total revenue
$
1,071,391

 
571,913

 
(107,028
)
 
1,536,276

 
 
 
 
 
 
 
 
Segment EBT
$
50,683

 
21,871

 
(6,481
)
 
66,073

Unallocated CSS
 
 
 
 
 
 
(9,506
)
Non-operating pension costs 
 
 
 
 
 
 
(8,004
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
(865
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
47,698

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
463,606

 
2,837

 
—

 
466,443

Unallocated CSS
 
 
 
 
 
 
4,526

Capital expenditures paid
 
 
 
 
 
 
$
470,969

 ————————————
(1)
Excludes revenue earning equipment acquired under capital leases.
(2)
Excludes acquisition payments of $1.4 million and $2.1 million during the three months ended March 31, 2013 and 2012, respectively.
 
 
 
 
 
 
 
 
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.

Refer to Note (C), “Discontinued Operations,” for additional matters.
Discontinued Operations (Tables)
Loss from discontinued operations 
Summarized results of discontinued operations were as follows:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Pre-tax loss from discontinued operations
$
(901
)
 
(575
)
Income tax benefit
23

 
20

Loss from discontinued operations, net of tax
$
(878
)
 
(555
)
Summary of assets and liabilities of discontinued operations 
The following is a summary of assets and liabilities of discontinued operations:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Total assets, primarily deposits
$
3,890

 
4,460

Total liabilities, primarily contingent accruals
$
5,535

 
5,329

Share-Based Compensation Plans (Tables)
Share-based compensation expense and income tax benefits recognized during the periods 
The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Stock option and stock purchase plans
$
2,110

 
2,364

Nonvested stock
2,499

 
2,073

Share-based compensation expense
4,609

 
4,437

Income tax benefit
(1,687
)
 
(1,484
)
Share-based compensation expense, net of tax
$
2,922

 
2,953

Summary of share-based compensation expense recognized related to cash awards 
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 March 31,
 
2013
 
2012
 
(In thousands)
Cash awards
$1,274
 
597
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 March 31,
 
2013
 
2012
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
Earnings from continuing operations
$
40,802

 
34,876

Less: Distributed and undistributed earnings allocated to nonvested stock
(403
)
 
(462
)
Earnings from continuing operations available to common shareholders — Basic
$
40,399

 
34,414

 
 
 
 
Weighted average common shares outstanding — Basic
50,958

 
50,485

 
 
 
 
Earnings from continuing operations per common share — Basic
$
0.79

 
0.68

 
 
 
 
Earnings per share — Diluted:
 
 
 
Earnings from continuing operations
$
40,802

 
34,876

Less: Distributed and undistributed earnings allocated to nonvested stock
(403
)
 
(460
)
Earnings from continuing operations available to common shareholders — Diluted
$
40,399

 
34,416

 
 
 
 
Weighted average common shares outstanding — Basic
50,958

 
50,485

Effect of dilutive equity awards
435

 
436

Weighted average common shares outstanding — Diluted
51,393

 
50,921

 
 
 
 
Earnings from continuing operations per common share — Diluted
$
0.79

 
0.68

 
 
 
 
Anti-dilutive equity awards not included above
1,413

 
1,453

Restructuring and Other Charges (Tables)
Restructuring reserves
Activity related to restructuring reserves including discontinued operations were as follows:
 
 
 
 
 
Deductions
 
 
 
 
 
December 31, 2012
 
Additions
 
Cash
Payments
 
Non-Cash Reductions (1)
 
Foreign
Translation
Adjustments
 
March 31, 2013
 
Balance
 
 
 
 
 
Balance
 
(In thousands)      
Employee severance and benefits
$
3,147

 
—

 
1,693

 
25

 
(95
)
 
1,334

Contract termination costs
1,728

 
—

 
579

 
—

 
(103
)
 
1,046

Total
$
4,875

 
—

 
2,272

 
25

 
(198
)
 
2,380

Direct Financing Lease Receivables (Tables)
Net investment in direct financing and sales-type leases 
The net investment in direct financing and sales-type leases consisted of:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Total minimum lease payments receivable
$
602,575

 
629,919

Less: Executory costs
(190,380
)
 
(201,777
)
Minimum lease payments receivable
412,195

 
428,142

Less: Allowance for uncollectibles
(643
)
 
(703
)
Net minimum lease payments receivable
411,552

 
427,439

Unguaranteed residuals
58,022

 
60,764

Less: Unearned income
(93,209
)
 
(96,280
)
Net investment in direct financing and sales-type leases
376,365

 
391,923

Current portion
(73,951
)
 
(76,395
)
Non-current portion
$
302,414

 
315,528

Credit risk profile by creditworthiness category of direct financing lease receivables 
The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables:
 
March 31,
2013
 
December 31,
2012
 
(In thousands)
Very low risk to low risk
$
172,034

 
193,123

Moderate risk
175,056

 
177,400

Moderately high risk to high risk
65,105

 
57,619

 
$
412,195

 
428,142

Allowance for credit losses on direct financing lease receivables 
The following table is a rollforward of the allowance for credit losses on direct financing lease receivables for the three months ended March 31, 2013 and 2012:
 
2013
 
2012
 
(In thousands)
Balance at December 31
$
703

 
903

Charged to earnings
(42
)
 
783

Deductions
(18
)
 
(879
)
Balance at March 31
$
643

 
807

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
March 31, 2013
 
December 31, 2012
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
Cost
 
Accumulated
Depreciation
 
Net  Book
Value(1)
 
(In thousands)
Held for use:
 
Full service lease
$
6,783,263

 
(2,463,080
)
 
4,320,183

 
6,728,746

 
(2,500,786
)
 
4,227,960

Commercial rental
1,979,910

 
(648,351
)
 
1,331,559

 
2,041,698

 
(660,356
)
 
1,381,342

Held for sale
542,355

 
(385,114
)
 
157,241

 
499,074

 
(353,768
)
 
145,306

Total
$
9,305,528

 
(3,496,545
)
 
5,808,983

 
9,269,518

 
(3,514,910
)
 
5,754,608

 ————————————
(1)
Revenue earning equipment, net includes vehicles acquired under capital leases of $55.1 million, less accumulated depreciation of $17.1 million, at March 31, 2013, and $56.2 million, less accumulated depreciation of $16.5 million, at December 31, 2012.

Goodwill (Tables)
Carrying amount of goodwill attributable to each reportable business segment
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
Fleet
Management
Solutions
 
Supply
Chain
Solutions
 
Total
 
(In thousands)
Balance at January 1, 2013:
 
 
 
 
 
Goodwill
$
223,129

 
190,308

 
413,437

Accumulated impairment losses
(10,322
)
 
(18,899
)
 
(29,221
)
 
212,807

 
171,409

 
384,216

Purchase accounting adjustments
86

 
—

 
86

Foreign currency translation adjustments
(573
)
 
(214
)
 
(787
)
Balance at March 31, 2013:
 
 
 
 
 
Goodwill
222,642

 
190,094

 
412,736

Accumulated impairment losses
(10,322
)
 
(18,899
)
 
(29,221
)
 
$
212,320

 
171,195

 
383,515

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
March 31, 2013
 
December 31, 2012
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
Accrued
Expenses
 
Non-Current
Liabilities
 
Total
 
(In thousands)
Salaries and wages
$
61,830

 
—

 
61,830

 
86,776

 
—

 
86,776

Deferred compensation
1,718

 
26,546

 
28,264

 
1,630

 
24,918

 
26,548

Pension benefits
2,661

 
597,762

 
600,423

 
3,309

 
597,275

 
600,584

Other postretirement benefits
2,677

 
37,601

 
40,278

 
2,683

 
37,916

 
40,599

Insurance obligations (1)
126,608

 
182,570

 
309,178

 
133,459

 
178,714

 
312,173

Residual value guarantees
1,421

 
184

 
1,605

 
1,505

 
130

 
1,635

Accrued rent
16,250

 
6,944

 
23,194

 
9,244

 
9,405

 
18,649

Environmental liabilities
4,145

 
7,926

 
12,071

 
4,201

 
8,415

 
12,616

Asset retirement obligations
5,268

 
15,347

 
20,615

 
3,642

 
17,116

 
20,758

Operating taxes
98,677

 
—

 
98,677

 
91,419

 
—

 
91,419

Income taxes
3,234

 
58,745

 
61,979

 
8,288

 
57,590

 
65,878

Interest
22,950

 
—

 
22,950

 
35,798

 
—

 
35,798

Deposits, mainly from customers
50,739

 
6,237

 
56,976

 
51,671

 
6,236

 
57,907

Deferred revenue
18,918

 
6

 
18,924

 
21,557

 
—

 
21,557

Acquisition holdbacks
2,798

 
—

 
2,798

 
1,637

 
2,673

 
4,310

Other
37,051

 
8,645

 
45,696

 
48,888

 
8,544

 
57,432

Total
$
456,945

 
948,513

 
1,405,458

 
505,707

 
948,932

 
1,454,639

————————————
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.
Debt (Tables)
Debt
 
Weighted-Average
Interest Rate
 
 
 
 
 
 
 
March 31,
2013
 
December 31,
2012
 
Maturities
 
March 31,
2013
 
December 31,
2012
 
 
 
 
 
 
 
(In thousands)
Short-term debt and current portion of long-term debt:
 
 
 
 
 
 
 
 
 
Short-term debt
1.49
%
 
2.27
%
 
2013
 
$
2,015

 
9,820

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
257,718

 
358,155

Total short-term debt and current portion of long-term debt
 
 
 
 
 
 
259,733

 
367,975

Long-term debt:
 
 
 
 
 
 
 
 
 
U.S. commercial paper (1)
0.35
%
 
0.41
%
 
2016
 
457,942

 
329,925

Canadian commercial paper (1)
1.15
%
 
1.14
%
 
2016
 
7,861

 
23,165

Global revolving credit facility
1.40
%
 
1.58
%
 
2016
 
500

 
8,924

Unsecured U.S. notes — Medium-term notes (1)
3.95
%
 
4.01
%
 
2014-2025
 
2,971,376

 
2,971,313

Unsecured U.S. obligations, principally bank term loans
1.49
%
 
1.56
%
 
2015-2019
 
55,500

 
105,500

Unsecured foreign obligations
1.92
%
 
1.91
%
 
2014-2016
 
295,055

 
313,406

Capital lease obligations
4.14
%
 
4.08
%
 
2013-2019
 
41,430

 
42,018

Total before fair market value adjustment
 
 
 
 
 
 
3,829,664

 
3,794,251

Fair market value adjustment on notes subject to hedging (2)
 
 
 
 
 
13,944

 
16,725

 
 
 
 
 
 
 
3,843,608

 
3,810,976

Current portion of long-term debt, including capital leases
 
 
 
 
 
 
(257,718
)
 
(358,155
)
Long-term debt
 
 
 
 
 
 
3,585,890

 
3,452,821

Total debt
 
 
 
 
 
 
$
3,845,623

 
3,820,796

 ————————————
(1)
We had unamortized original issue discounts of $8.7 million and $8.8 million at March 31, 2013 and December 31, 2012, respectively.
(2)
The notional amount of executed interest rate swaps designated as fair value hedges was $300 million and $550 million at March 31, 2013 and December 31, 2012, respectively.
Fair Value Measurements (Tables)
Assets and liabilities measured at fair value on recurring basis 
The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:
 
Balance Sheet Location
 
Fair Value Measurements
At March 31, 2013 Using
 
Total
 
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
(In thousands)
Assets:
 
 
 
Interest rate swaps
DFL and other assets
 
$
—

 
13,944

 
—

 
13,944

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
3,513

 
—

 
—

 
3,513

U.S. equity mutual funds
 
 
12,239

 
—

 
—

 
12,239

Foreign equity mutual funds
 
 
3,337

 
—

 
—

 
3,337

Fixed income mutual funds
 
 
4,534

 
—

 
—

 
4,534

Investments held in Rabbi Trusts
DFL and other assets
 
23,623

 
—

 
—

 
23,623

Total assets at fair value
 
 
$
23,623

 
13,944

 
—

 
37,567

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Contingent consideration
Accrued expenses and other current liabilities
 
$
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
$
—

 
—

 
478

 
478

 
Balance Sheet Location
 
Fair Value Measurements
At December 31, 2012 Using
 
Total
 
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
(In thousands)
Assets:
 
 
 
Interest rate swaps
Prepaid expenses and other current assets
 
$
—

 
1,313

 
—

 
1,313

Interest rate swaps
DFL and other assets
 
—

 
15,412

 
—

 
15,412

Investments held in Rabbi Trusts:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
4,055

 
—

 
—

 
4,055

U.S. equity mutual funds
 
 
10,871

 
—

 
—

 
10,871

Foreign equity mutual funds
 
 
2,974

 
—

 
—

 
2,974

Fixed income mutual funds
 
 
4,526

 
—

 
—

 
4,526

Investments held in Rabbi Trusts
DFL and other assets
 
22,426

 
—

 
—

 
22,426

Total assets at fair value
 
 
$
22,426

 
16,725

 
—

 
39,151

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Contingent consideration
Other non-current liabilities
 
$
—

 
—

 
478

 
478

Total liabilities at fair value
 
 
$
—

 
—

 
478

 
478

Assets and liabilities measured at fair value on nonrecurring basis 
The following tables present our assets and liabilities that are measured at fair value on a nonrecurring basis and the levels of inputs used to measure fair value:
 
Fair Value Measurements
At March 31, 2013 Using
 
Total Losses (2)
 
Level 1
 
Level 2
 
Level 3
 
Three months  ended
 
(In thousands)
Assets held for sale:
 
 
 
 
 
 
 
Revenue earning equipment: (1)
 
 
 
 
 
 
 
Trucks
$
—

 
—

 
13,229

 
$
3,029

Tractors
—

 
—

 
14,943

 
1,095

Trailers
—

 
—

 
989

 
597

Total assets at fair value
$
—

 
—

 
29,161

 
$
4,721

 
 
Fair Value Measurements
At March 31, 2012 Using
 
Total Losses (2)
 
Level 1
 
Level 2
 
Level 3
 
Three months
 ended
 
(In thousands)
Assets held for sale:
 
 
 
 
 
 
 
Revenue earning equipment (1)
 
 
 
 
 
 
 
Trucks
$
—

 
—

 
7,321

 
$
2,381

Tractors
—

 
—

 
3,514

 
471

Trailers
—

 
—

 
624

 
507

Total assets at fair value
$
—

 
—

 
11,459

 
$
3,359

 ————————————
(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 March 31, 2013:
 
 
 
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 March 31,
Issuance date
 
 
 
 
 
2013
 
2012
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
May 2011
 
June 2017
 
$350,000
 
$150,000
 
3.50%
 
1.62%
 
1.84%
February 2011
 
March 2015
 
$350,000
 
$150,000
 
3.15%
 
1.41%
 
1.70%
Impact on the Consolidated Condensed Statements of Earnings related to Fair Value Hedges 
The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:
Fair Value Hedging Relationship
 
Location of
 Gain (Loss)
Recognized in Income
 
Three months ended March 31,
 
2013
 
2012
 
 
 
 
(In thousands)
Derivatives: Interest rate swaps
 
Interest expense
 
$
(2,781
)
 
(2,170
)
Hedged items: Fixed-rate debt
 
Interest expense
 
2,781

 
2,170

Total
 
 
 
$
—

 
—


Employee Benefit Plans (Tables)
Components of net periodic benefit cost
Components of net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Three months ended March 31,
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
4,252

 
3,907

 
263

 
320

Interest cost
22,419

 
23,689

 
395

 
514

Expected return on plan assets
(26,448
)
 
(24,057
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
8,880

 
7,861

 
(2
)
 
(3
)
Prior service credit
(466
)
 
(569
)
 
(58
)
 
(58
)
 
8,637

 
10,831

 
598

 
773

Union-administered plans
1,984

 
1,614

 
—

 
—

Net periodic benefit cost
$
10,621

 
12,445

 
598

 
773

 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
8,741

 
9,848

 
406

 
552

Non-U.S.
(104
)
 
983

 
192

 
221

 
8,637

 
10,831

 
598

 
773

Union-administered plans
1,984

 
1,614

 
—

 
—

 
$
10,621

 
12,445

 
598

 
773

 
 
 
 
 
 
 
 
Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:
 
Three months ended March 31,
 
2013
 
2012
 
(In thousands)
Interest paid
$
45,425

 
37,325

Income taxes paid
$
3,721

 
4,183

Changes in accounts payable related to purchases of revenue earning equipment
$
29,381

 
316,457

Operating and revenue earning equipment acquired under capital leases 
$
458

 
59

Segment Reporting (Tables)
Financial information of business segments
 
FMS
 
SCS
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
For the three months ended March 31, 2013
 
 
 
 
 
 
Revenue from external customers
$
986,538

 
576,479

 
—

 
1,563,017

Inter-segment revenue
113,194

 
—

 
(113,194
)
 
—

Total revenue
$
1,099,732

 
576,479

 
(113,194
)
 
1,563,017

 
 
 
 
 
 
 
 
Segment EBT
$
60,745

 
23,811

 
(7,333
)
 
77,223

Unallocated CSS
 
 
 
 
 
 
(11,375
)
     Non-operating pension costs 
 
 
 
 
 
 
(5,244
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
1,904

Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
62,508

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
406,511

 
5,800

 
—

 
412,311

Unallocated CSS
 
 
 
 
 
 
7,743

Capital expenditures paid
 
 
 
 
 
 
$
420,054

 
 
 
 
 
 
 
 
For the three months ended March 31, 2012
 
 
 
 
 
 
Revenue from external customers
$
964,363

 
571,913

 
—

 
1,536,276

Inter-segment revenue
107,028

 
—

 
(107,028
)
 
—

Total revenue
$
1,071,391

 
571,913

 
(107,028
)
 
1,536,276

 
 
 
 
 
 
 
 
Segment EBT
$
50,683

 
21,871

 
(6,481
)
 
66,073

Unallocated CSS
 
 
 
 
 
 
(9,506
)
Non-operating pension costs 
 
 
 
 
 
 
(8,004
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
(865
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
47,698

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
463,606

 
2,837

 
—

 
466,443

Unallocated CSS
 
 
 
 
 
 
4,526

Capital expenditures paid
 
 
 
 
 
 
$
470,969

 ————————————
(1)
Excludes revenue earning equipment acquired under capital leases.
(2)
Excludes acquisition payments of $1.4 million and $2.1 million during the three months ended March 31, 2013 and 2012, respectively.
 
 
 
 
 
 
 
 
Acquisitions (Details Textuals) (USD $)
3 Months Ended 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Euroway Ltd. [Member]
Mar. 31, 2013
Euroway Ltd. [Member]
Aug. 1, 2012
Euroway Ltd. [Member]
Vehicle
Mar. 31, 2013
Other Acquisitions Completed in Prior Years [Member]
Mar. 31, 2012
Other Acquisitions Completed in Prior Years [Member]
Acquisitions (Textuals) [Abstract]
 
 
 
 
 
 
 
Purchase Price
 
 
 
 
$ 2,400,000 
 
 
Noncash or Part Noncash Acquisition, Debt Assumed
 
 
20,300,000 
 
 
 
 
Number of full service lease vehicles
 
 
 
 
560 
 
 
Business Acquisition Number Of Contract Maintenance Vehicles Acquired
 
 
 
 
800 
 
 
Payments to Acquire Businesses
1,420,000 
2,076,000 
1,200,000 
 
 
1,400,000 
2,100,000 
Business Acquisition, Contingent Consideration, Potential Cash Payment
 
 
 
 
0 
 
 
Goodwill
 
 
 
6,100,000 
 
 
 
Customer relationship intangibles
 
 
 
$ 2,800,000 
 
 
 
Discontinued Operations (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Loss from discontinued operations
 
 
 
Pre-tax loss from discontinued operations
$ (901,000)
$ (575,000)
 
Income tax benefit
23,000 
20,000 
 
Loss from discontinued operations, net of tax
(878,000)
(555,000)
 
Assets:
 
 
 
Total assets, primarily deposits
3,890,000 
 
4,460,000 
Liabilities:
 
 
 
Total liabilities, primarily contingent accruals
5,535,000 
 
5,329,000 
Brazil Federal and Social Contribution tax [Member]
 
 
 
Liabilities:
 
 
 
Tax Amounts Assessed But Not Reserved
4,700,000 
 
 
Brazil state operating tax [Member]
 
 
 
Liabilities:
 
 
 
Tax Amounts Assessed But Not Reserved
$ 5,100,000 
 
 
Share-Based Compensation Plans (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
$ 4,609,000 
$ 4,437,000 
Income tax benefit
(1,687,000)
(1,484,000)
Share-based compensation expense, net of tax
2,922,000 
2,953,000 
Summary of compensation expense recognized related to cash awards
 
 
Cash awards
1,274,000 
597,000 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Stock option plan granted
377,000 
460,000 
Weighted-average fair value per option granted
$ 13.99 
$ 14.07 
Awards issued but not granted
30,000 
 
Total unrecognized pre-tax compensation expense
39,300,000 
 
Unrecognized Compensation Costs weighted-average period (in years)
1 year 7 months 10 days 
 
2013 stock opton grants [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Stock option plan granted, contractual term (in years)
10 years 
 
2012 stock opton grants [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Stock option plan granted, contractual term (in years)
 
7 years 
ROC performance based restricted stock rights, 2013 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
ROC performance based restricted stock rights, 2013 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Stock Option and Stock Purchase Plan [Member]
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
2,110,000 
2,364,000 
Nonvested Stock [Member]
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
$ 2,499,000 
$ 2,073,000 
Market-based restricted stock rights [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Performance-based restricted stock rights and restricted stock units granted
22,000 
93,000 
Number of performance periods for market-based restricted stock
P3Y 
 
Weighted-average fair value per restricted stock right and RSU granted
$ 53.32 
$ 43.39 
Market Based Restricted Stock Rights, 2012 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
Market Based Restricted Stock Rights, 2012 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Market Based Restricted Stock Rights, Segment 1 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
1 year 
 
Market Based Restricted Stock Rights, Segment 2 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
2 years 
 
Market Based Restricted Stock Rights, Segment 3 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
3 years 
 
Time Vested Restricted Stock [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based compensation plan, Vesting period (in years)
3 years 
 
Performance-based restricted stock rights and restricted stock units granted
127,000 
104,000 
Weighted-average fair value per restricted stock right and RSU granted
$ 58.00 
$ 53.62 
Market Based Restricted Stock Rights, 2013 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
Market Based Restricted Stock Rights, 2013 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Performance based restricted stock [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Performance-based restricted stock rights and restricted stock units granted
15,000 
 
Weighted-average fair value per restricted stock right and RSU granted
$ 58.21 
 
Stock Option [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based compensation plan, Vesting period (in years)
3 years 
 
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Earnings per share - Basic:
 
 
Earnings from continuing operations
$ 40,802 
$ 34,876 
Less: Distributed and undistributed earnings allocated to nonvested stock
(403)
(462)
Earnings from continuing operations available to common shareholders - Basic
40,399 
34,414 
Weighted average common shares outstanding - Basic
50,958 
50,485 
Earnings from continuing operations per common share - Basic
$ 0.79 
$ 0.68 
Earnings per share - Diluted:
 
 
Earnings from continuing operations
40,802 
34,876 
Less: Distributed and undistributed earnings allocated to nonvested stock
(403)
(460)
Earnings from continuing operations available to common shareholders - Diluted
$ 40,399 
$ 34,416 
Weighted average common shares outstanding - Basic
50,958 
50,485 
Effect of dilutive equity awards
435 
436 
Weighted average common shares outstanding - Diluted
51,393 
50,921 
Earnings from continuing operations per common share - Diluted
$ 0.79 
$ 0.68 
Anti-dilutive equity awards and market-based restricted stock rights not included above
1,413 
1,453 
Restructuring and Other Charges (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring and other charges (recoveries), net
$ 0 
$ 865 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
4,875 
 
Additions
0 
 
Cash Payments
2,272 
 
Restructuring Reserve, Accrual Adjustment
25 
 
Foreign Translation Adjustments
(198)
 
Restructuring Reserves, Ending Balance
2,380 
 
Employee severance and benefits [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
3,147 
 
Additions
0 
 
Cash Payments
1,693 
 
Restructuring Reserve, Accrual Adjustment
25 
 
Foreign Translation Adjustments
(95)
 
Restructuring Reserves, Ending Balance
1,334 
 
Contract termination costs [Member]
 
 
Restructuring reserves
 
 
Restructuring Reserves, Beginning Balance
1,728 
 
Additions
0 
 
Cash Payments
579 
 
Restructuring Reserve, Accrual Adjustment
0 
 
Foreign Translation Adjustments
(103)
 
Restructuring Reserves, Ending Balance
$ 1,046 
 
Direct Financing Lease Receivables (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
Provision for Loan, Lease, and Other Losses
$ (42)
$ 783 
 
 
Financing Receivable, Allowance for Credit Losses, Write-downs
(18)
(879)
 
 
Net Investment in Direct Financing and Sales Type Leases [Abstract]
 
 
 
 
Total minimum lease payments receivable
602,575 
 
629,919 
 
Less: Executory costs
(190,380)
 
(201,777)
 
Minimum lease payments receivable
412,195 
 
428,142 
 
Less: Allowance for uncollectibles
(643)
(807)
(703)
(903)
Net minimum lease payments receivable
411,552 
 
427,439 
 
Unguaranteed residuals
58,022 
 
60,764 
 
Less: Unearned income
(93,209)
 
(96,280)
 
Net investment in direct financing and sales-type leases
376,365 
 
391,923 
 
Current portion
(73,951)
 
(76,395)
 
Non-current portion
302,414 
 
315,528 
 
Interest Rate Swap [Member] |
Fair Value, Inputs, Level 2 [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
 
Interest Rate Fair Value Hedge Asset at Fair Value
 
 
$ 1,313 
 
Direct Financing Lease Receivables (Details 1) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 412,195 
$ 428,142 
Very low risk to low risk [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
172,034 
193,123 
Moderate risk [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
175,056 
177,400 
Moderately high to High risk [Member]
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Credit risk profile by creditworthiness category of direct financing lease receivables, Total
$ 65,105 
$ 57,619 
Direct Financing Lease Receivables (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Allowance for credit losses on direct financing lease receivables
 
 
Beginning Balance
$ 703 
$ 903 
Charged to earnings
(42)
783 
Deductions
(18)
(879)
Ending Balance
$ 643 
$ 807 
Direct Financing Lease Receivables (Details Textuals) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Direct Financing Lease Receivables (Textuals) [Abstract]
 
Factor which may result in customer being classified as high risk
less than 3 years 
Impaired Direct Financing Receivables
$ 0 
Trucks and Tractors [Member]
 
Lease terms for revenue earning equipment [Line Items]
 
Minimum Lease Term of Revenue Earning Equipment
3 years 
Maximum Lease Term of Revenue Earning Equipment
7 years 
Trailers [Member]
 
Lease terms for revenue earning equipment [Line Items]
 
Maximum Lease Term of Revenue Earning Equipment
10 years 
Revenue Earning Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Summary of revenue earning equipment
 
 
Cost
$ 9,305,528 
$ 9,269,518 
Accumulated Depreciation
(3,496,545)
(3,514,910)
Net Book Value
5,808,983 
5,754,608 
Held for use: Full service lease [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
6,783,263 
6,728,746 
Accumulated Depreciation
(2,463,080)
(2,500,786)
Net Book Value
4,320,183 
4,227,960 
Held for use: Commercial rental [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
1,979,910 
2,041,698 
Accumulated Depreciation
(648,351)
(660,356)
Net Book Value
1,331,559 
1,381,342 
Held-for-sale [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
542,355 
499,074 
Accumulated Depreciation
(385,114)
(353,768)
Net Book Value
$ 157,241 
$ 145,306 
Revenue Earning Equipment (Details Textuals) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Revenue Earning Equipment (Textuals) [Abstract]
 
 
Cost
$ 9,305,528,000 
$ 9,269,518,000 
Accumulated Depreciation
3,496,545,000 
3,514,910,000 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
7,400,000 
 
Assets Held under Capital Leases [Member]
 
 
Revenue Earning Equipment (Textuals) [Abstract]
 
 
Cost
55,100,000 
56,200,000 
Accumulated Depreciation
$ 17,100,000 
$ 16,500,000 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
$ 412,736 
$ 413,437 
Accumulated impairment losses
(29,221)
(29,221)
Goodwill
383,515 
384,216 
Purchase accounting adjustments
86 
 
Foreign currency translation adjustment
(787)
 
Fleet Management Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
222,642 
223,129 
Accumulated impairment losses
(10,322)
(10,322)
Goodwill
212,320 
212,807 
Purchase accounting adjustments
86 
 
Foreign currency translation adjustment
(573)
 
Supply Chain Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
190,094 
190,308 
Accumulated impairment losses
(18,899)
(18,899)
Goodwill
171,195 
171,409 
Purchase accounting adjustments
0 
 
Foreign currency translation adjustment
$ (214)
 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Accrued Expenses and Other Liabilities
 
 
Salaries and wages, Accrued Expenses
$ 61,830 
$ 86,776 
Salaries and wages, Non-Current Liabilities
0 
0 
Salaries and wages, Total
61,830 
86,776 
Deferred compensation, Accrued Expenses
1,718 
1,630 
Deferred compensation, Non-Current Liabilities
26,546 
24,918 
Deferred compensation, Total
28,264 
26,548 
Pension benefits, Accrued Expenses
2,661 
3,309 
Pension benefits, Non-Current Liabilities
597,762 
597,275 
Pension benefits, Total
600,423 
600,584 
Other postretirement benefits, Accrued Expenses
2,677 
2,683 
Other postretirement benefits, Non-Current Liabilities
37,601 
37,916 
Other postretirement benefits, Total
40,278 
40,599 
Insurance obligations, primarily self-insurance, Accrued Expenses
126,608 
133,459 
Insurance obligations, primarily self-insurance, Non-Current Liabilities
182,570 
178,714 
Insurance obligations, primarily self-insurance, Total
309,178 
312,173 
Residual value guarantees, Accrued Expenses
1,421 
1,505 
Residual value guarantees, Non-Current Liabilities
184 
130 
Residual value guarantees, Total
1,605 
1,635 
Accrued rent, Accrued Expenses
16,250 
9,244 
Accrued rent, Non-Current Liabilities
6,944 
9,405 
Accrued rent, Total
23,194 
18,649 
Environmental liabilities, Accrued Expenses
4,145 
4,201 
Environmental liabilities, Non-Current Liabilities
7,926 
8,415 
Environmental liabilities, Total
12,071 
12,616 
Asset retirement obligations, Accrued Expenses
5,268 
3,642 
Asset retirement obligations, Non-Current Liabilities
15,347 
17,116 
Asset retirement obligations, Total
20,615 
20,758 
Operating taxes, Accrued Expenses
98,677 
91,419 
Operating taxes, Non-Current Liabilities
0 
0 
Operating taxes, Total
98,677 
91,419 
Income taxes, Accrued Expenses
3,234 
8,288 
Income taxes, Non-Current Liabilities
58,745 
57,590 
Income taxes, Total
61,979 
65,878 
Interest, Accrued Expenses
22,950 
35,798 
Interest, Non-Current Liabilities
0 
0 
Interest, Total
22,950 
35,798 
Deposits, mainly from customers, Accrued Expenses
50,739 
51,671 
Deposits, mainly from customers, Non-Current Liabilities
6,237 
6,236 
Deposits, mainly from customers, Total
56,976 
57,907 
Deferred revenue, Accrued Expenses
18,918 
21,557 
Deferred revenue, Non-Current Liabilities
6 
0 
Deferred revenue, Total
18,924 
21,557 
Acquisition holdbacks, Accrued Expenses
2,798 
1,637 
Acquisition holdbacks, Non-Current Liabilities
0 
2,673 
Acquisition Holdbacks
2,798 
4,310 
Other, Accrued Expenses
37,051 
48,888 
Other, Non-Current Liabilities
8,645 
8,544 
Other, Total
45,696 
57,432 
Total Accrued Expenses
456,945 
505,707 
Total, Non-Current Liabilities
948,513 
948,932 
Total
$ 1,405,458 
$ 1,454,639 
Income Taxes (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Income Tax Examination [Line Items]
 
 
 
Variable Interest Entity, Consolidated, Carrying Amount, Assets
$ 174,300,000 
 
$ 25,800,000 
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities
174,300,000 
 
25,800,000 
Increase (Decrease) in Restricted Cash
18,979,000 
2,438,000 
 
Income Taxes (Textuals) [Abstract]
 
 
 
Gross unrecognized tax benefits (excluding the federal benefit received from state positions)
53,200,000 
 
52,300,000 
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions
2,300,000 
 
 
Effective income tax rate from continuing operations
34.70% 
26.90% 
 
resolution of prior period item [Member]
 
 
 
Income Taxes (Textuals) [Abstract]
 
 
 
Tax impact from one time item
$ 5,000,000 
 
 
One time item impact as a percentage of earnings before tax
10.40% 
 
 
Debt (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Debt Disclosure [Abstract]
 
 
Notional Amount of Interest Rate Fair Value Hedge Derivatives
$ 300,000,000 
$ 550,000,000 
Short-term debt and current portion of long-term debt:
 
 
Short-term debt, Weighted Average Interest Rate
1.49% 
2.27% 
Short-term debt
2,015,000 
9,820,000 
Current portion of long-term debt, including capital leases
257,718,000 
358,155,000 
Total short-term debt and current portion of long-term debt
$ 259,733,000 
$ 367,975,000 
Debt (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Short-term Debt, Weighted Average Interest Rate
1.49% 
2.27% 
Long-term debt:
 
 
Commercial paper
$ 465,803 
$ 353,090 
Global revolving credit facility
500 
8,924 
Unsecured U.S. notes - Medium-term notes
2,971,376 
2,971,313 
Unsecured U.S. obligations, principally bank term loans
55,500 
105,500 
Unsecured foreign obligations
295,055 
313,406 
Capital lease obligations
41,430 
42,018 
Total before fair market value adjustment
3,829,664 
3,794,251 
Fair market value adjustment on notes subject to hedging
13,944 
16,725 
Total after fair market value adjustment
3,843,608 
3,810,976 
Current portion of long-term debt, including capital leases
(257,718)
(358,155)
Long-term debt
3,585,890 
3,452,821 
Total debt
3,845,623 
3,820,796 
U.S Commercial Paper, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.35% 
0.41% 
Maturity date range, end
Jun. 08, 2016 
 
Commercial paper
457,942 
329,925 
Canadian Commerial Paper [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.15% 
1.14% 
Maturity date range, end
Jun. 08, 2016 
 
Commercial paper
$ 7,861 
$ 23,165 
Global Revolving Credit Facility Member
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.40% 
1.58% 
Maturity date range, end
Jun. 08, 2016 
 
Unsecured U.S. notes - Medium-term notes, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.95% 
4.01% 
Maturity date range, start
Mar. 01, 2014 
 
Maturity date range, end
Feb. 25, 2025 
 
Unsecured U.S. obligations, principally bank term loans, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.49% 
1.56% 
Maturity date range, start
Mar. 08, 2015 
 
Maturity date range, end
Mar. 19, 2019 
 
Unsecured Foreign Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.92% 
1.91% 
Maturity date range, start
Sep. 06, 2014 
 
Maturity date range, end
Sep. 06, 2016 
 
Capital Lease Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
4.14% 
4.08% 
Maturity date range, start
Apr. 01, 2013 
 
Maturity date range, end
Dec. 28, 2018 
 
Debt (Details Textuals) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
Letter of Credit [Member]
Mar. 31, 2013
Global Revolving Credit Facility [Member]
Mar. 31, 2013
U.S Commercial Paper, Long-Term [Member]
Dec. 31, 2012
U.S Commercial Paper, Long-Term [Member]
Mar. 31, 2013
Canadian Commerial Paper [Member]
Dec. 31, 2012
Canadian Commerial Paper [Member]
Mar. 31, 2013
Global Revolving Credit Facility Member
Mar. 31, 2013
350 million unsecured medium-term notes due March 2017 [Member]
Mar. 31, 2013
Unsecured Us Notes Medium Term Notes Long Term [Member]
Mar. 31, 2013
Unsecured Us Obligations Principally Bank Term Loans Long Term [Member]
Mar. 31, 2013
Unsecured Foreign Obligations Long Term [Member]
Mar. 31, 2013
Capital Lease Obligations [Member]
Mar. 31, 2013
Unsecured Medium Term Notes Due 2019 [Member]
Feb. 19, 2013
Unsecured Medium Term Notes Due 2019 [Member]
Mar. 31, 2013
Short-term Debt [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Maturity Date Range, Start
 
 
 
 
 
 
 
 
 
 
Mar. 01, 2014 
Mar. 08, 2015 
Sep. 06, 2014 
Apr. 01, 2013 
 
 
Apr. 23, 2013 
Debt Instrument, Maturity Date Range, End
 
 
 
 
Jun. 08, 2016 
 
Jun. 08, 2016 
 
Jun. 08, 2016 
 
Feb. 25, 2025 
Mar. 19, 2019 
Sep. 06, 2016 
Dec. 28, 2018 
 
 
Jun. 18, 2013 
Unamortized original issue discounts
$ 8,700,000 
$ 8,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of the executed interest rate swap designated as a fair value hedge
300,000,000 
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under global revolving credit facility
 
 
75,000,000 
900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of lending institutions
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit outstanding amount
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual facility fees minimum
10.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual facility fees maximum
32.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global revolving credit facility covenant terms, debt to consolidated tangible net worth ratio
less than or equal to 300% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to consolidated tangible net worth ratio
180.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
465,803,000 
353,090,000 
 
 
457,942,000 
329,925,000 
7,861,000 
23,165,000 
 
 
 
 
 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
Repurchase price condition of notes
 
 
 
 
 
 
 
 
 
101% of principal plus accrued and unpaid interest 
 
 
 
 
101% of principal plus accrued and unpaid interest 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of days under trade trade receivables purchase and sale program
364 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade Receivables Purchase And Sale Program Amounts Outstanding
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Revolving Credit Facility Unused Capacity Commitment Fee Percent
15.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters Of Credit And Surety Bonds Outstanding
$ 293,900,000 
$ 294,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
$ 37,567 
$ 39,151 
Total liabilities at fair value
478 
478 
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,513 
4,055 
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
12,239 
10,871 
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,337 
2,974 
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,534 
4,526 
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
23,623 
22,426 
Total liabilities at fair value
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,513 
4,055 
Fair Value, Inputs, Level 1 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
12,239 
10,871 
Fair Value, Inputs, Level 1 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,337 
2,974 
Fair Value, Inputs, Level 1 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,534 
4,526 
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
13,944 
16,725 
Total liabilities at fair value
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 2 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
0 
0 
Total liabilities at fair value
478 
478 
Fair Value, Inputs, Level 3 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 3 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
0 
 
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
1,313 
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
0 
Direct Financing Leases and Other Assets [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
23,623 
22,426 
Direct Financing Leases and Other Assets [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
13,944 
15,412 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
23,623 
22,426 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
0 
0 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
13,944 
15,412 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
0 
0 
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
0 
0 
Accrued Liabilities [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
478 
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
0 
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
0 
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
 
478 
Accrued Expenses [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
478 
 
Accrued Expenses [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
0 
 
Accrued Expenses [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
0 
 
Accrued Expenses [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Contingent consideration
$ 478 
 
Fair Value Measurements (Details 1) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets held for sale at fair value
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 29,161,000 
$ 11,459,000 
$ 13,229,000 
$ 7,321,000 
$ 14,943,000 
$ 3,514,000 
$ 989,000 
$ 624,000 
Total Losses
 
 
4,721,000 
3,359,000 
3,029,000 
2,381,000 
1,095,000 
471,000 
597,000 
507,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Textuals) (Abstract)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total debt
$ 4,020,000,000 
$ 3,990,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Interest rate swaps maturing June 2017 [Member]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
May 01, 2011 
 
Maturity date
Jun. 01, 2017 
 
Face value of medium - term notes
$ 350,000 
 
Aggregate notional amount of interest rate swaps
150,000 
 
Fixed interest rate
3.50% 
 
Weighted-average variable interest rate on hedged debt
1.62% 
1.84% 
Interest rate swaps maturing March 2015 [Member]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
Feb. 01, 2011 
 
Maturity date
Mar. 01, 2015 
 
Face value of medium - term notes
350,000 
 
Aggregate notional amount of interest rate swaps
$ 150,000 
 
Fixed interest rate
3.15% 
 
Weighted-average variable interest rate on hedged debt
1.41% 
1.70% 
Derivatives (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Total
$ 0 
$ 0 
Interest expense [Member] |
Interest rate swap [Member]
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Derivative: Interest rate swap
(2,781)
(2,170)
Interest expense [Member] |
Fixed-rate debt [Member]
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Hedged item: Fixed-rate debt
$ 2,781 
$ 2,170 
Share Repurchase Programs (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2012
December 2011 Anti-Dilutive Share Repurchase Program [Member]
Dec. 31, 2009
December 2009 Anti-Dilutive Share Repurchase Program [Member]
Mar. 31, 2012
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member]
Mar. 31, 2012
Common Stock [Member]
Accelerated Share Repurchases [Line Items]
 
 
 
 
Maximum number of share repurchases authorization
2,000,000 
 
 
 
Repurchased and retired shares
 
 
 
223,200 
Aggregate cost of repurchased and retired
 
 
$ 11,900 
 
Maximum period of discretionary share repurchase program
 
2 years 
 
 
Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Actuarial loss and prior service cost after tax
5400 
4700 
Other Comprehensive (Loss) Income
$ (28,285)
$ 27,491 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Parent
(33,704)
22,803 
Amortization of Pension and Postretirement Benefits
$ (8,354)
$ (7,231)
Employee Benefit Plans (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Employee Benefit Plans (Textuals) [Abstract]
 
 
Contribution to pension plans
$ 4,000,000 
 
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year
66,000,000 
 
Pension Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
10,621,000 
12,445,000 
Postretirement Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
598,000 
773,000 
Company Administered Plan [Member] |
Pension Benefits [Member]
 
 
Components of net periodic benefit cost
 
 
Service cost
4,252,000 
3,907,000 
Interest Cost
22,419,000 
23,689,000 
Expected Return on Plan Assets
(26,448,000)
(24,057,000)
Amortization of:
 
 
Net actuarial loss (gain)
8,880,000 
7,861,000 
Prior service credit
(466,000)
(569,000)
Net periodic benefit cost
8,637,000 
10,831,000 
Company Administered Plan [Member] |
Pension Benefits U.S. [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
8,741,000 
9,848,000 
Company Administered Plan [Member] |
Pension Benefits Non-U.S. [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
(104,000)
983,000 
Company Administered Plan [Member] |
Postretirement Benefits [Member]
 
 
Components of net periodic benefit cost
 
 
Service cost
263,000 
320,000 
Interest Cost
395,000 
514,000 
Expected Return on Plan Assets
0 
0 
Amortization of:
 
 
Net actuarial loss (gain)
(2,000)
(3,000)
Prior service credit
(58,000)
(58,000)
Net periodic benefit cost
598,000 
773,000 
Company Administered Plan [Member] |
Postretirement Benefits U.S [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
406,000 
552,000 
Company Administered Plan [Member] |
Postretirement Benefits Non-U.S [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
192,000 
221,000 
Union Administered Plan [Member] |
Pension Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
1,984,000 
1,614,000 
Union Administered Plan [Member] |
Postretirement Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
$ 0 
$ 0 
Other Items (Details)
3 Months Ended
Mar. 31, 2013
Other Items Impacting Comparability [Abstract]
 
Recognition of currency translation adjustment into income
-1904 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Supplemental cash flow information
 
 
Interest Paid
$ 45,425 
$ 37,325 
Income taxes paid
3,721 
4,183 
Changes in accounts payable related to purchases of revenue earning equipment
29,381 
316,457 
Operating and revenue earning equipment acquired under capital leases
$ 458 
$ 59 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Financial information of business segments
 
 
Revenue from external customers
$ 1,563,017 
$ 1,536,276 
Inter-segment revenue
0 
0 
Total revenues
1,563,017 
1,536,276 
Segment NBT
77,223 
66,073 
Unallocated CSS
(11,375)
(9,506)
Non-service pension costs
(5,244)
(8,004)
Restructuring And Other Charges Net And Other Items
1,904 
 
Restructuring and other charges, net
0 
(865)
Earnings from continuing operations before income taxes
62,508 
47,698 
Segment capital expenditures
412,311 
466,443 
Unallocated CSS
7,743 
4,526 
Capital expenditures paid
420,054 
470,969 
Segment Reporting (Textuals) [Abstract]
 
 
Acquisitions
(1,420)
(2,076)
Fleet Management Solutions [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
986,538 
964,363 
Inter-segment revenue
113,194 
107,028 
Total revenues
1,099,732 
1,071,391 
Segment NBT
60,745 
50,683 
Segment capital expenditures
406,511 
463,606 
Supply Chain Solutions [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
576,479 
571,913 
Inter-segment revenue
0 
0 
Total revenues
576,479 
571,913 
Segment NBT
23,811 
21,871 
Segment capital expenditures
5,800 
2,837 
Eliminations [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
0 
0 
Inter-segment revenue
(113,194)
(107,028)
Total revenues
(113,194)
(107,028)
Segment NBT
(7,333)
(6,481)
Segment capital expenditures
$ 0 
$ 0