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Segment Reporting
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING

Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. Prior to 2012, we operated in three 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.; (2) SCS, which provides comprehensive supply chain consulting including distribution and transportation services in North America and Asia; and (3) DCC, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S. In the first quarter of 2012, the SCS and DCC reportable business segments were combined as a result of aligning our internal reporting with how we operate our business. As a result of this alignment, DCC is not considered an operating segment under the authoritative guidance as discrete financial information is no longer available.

Our primary measurement of segment financial performance, defined as 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 (G), “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. Beginning in 2012, we adjusted our segment financial performance measurement to exclude the non-operating components of pension costs in order to more accurately reflect the operating performance of the business segments. Prior year segment EBT has been recast to conform to the current year presentation. 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 and nine months ended September 30, 2012 and 2011. 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 September 30, 2012
 
 
 
 
 
 
Revenue from external customers
$
1,010,130

 
563,165

 
—

 
1,573,295

Inter-segment revenue
105,220

 
—

 
(105,220
)
 
—

Total revenue
$
1,115,350

 
563,165

 
(105,220
)
 
1,573,295

 
 
 
 
 
 
 
 
Segment EBT
$
94,250

 
31,911

 
(6,901
)
 
119,260

Unallocated CSS
 
 
 
 
 
 
(11,149
)
     Non-operating pension costs 
 
 
 
 
 
 
(7,859
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
(442
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
99,810

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
481,605

 
4,122

 
—

 
485,727

Unallocated CSS
 
 
 
 
 
 
5,110

Capital expenditures paid
 
 
 
 
 
 
$
490,837

 
 
 
 
 
 
 
 
For the three months ended September 30, 2011
 
 
 
 
 
 
Revenue from external customers
$
1,005,716

 
565,004

 
—

 
1,570,720

Inter-segment revenue
93,333

 
—

 
(93,333
)
 
—

Total revenue
$
1,099,049

 
565,004

 
(93,333
)
 
1,570,720

 
 
 
 
 
 
 
 
Segment EBT
$
78,047

 
31,426

 
(5,665
)
 
103,808

Unallocated CSS
 
 
 
 
 
 
(11,513
)
Non-operating pension costs 
 
 
 
 
 
 
(4,640
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
87,655

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
334,672

 
9,316

 
—

 
343,988

Unallocated CSS
 
 
 
 
 
 
3,770

Capital expenditures paid
 
 
 
 
 
 
$
347,758

 ————————————
(1)
Excludes revenue earning equipment acquired under capital leases.
(2)
Excludes acquisition payments of $1.4 million and $13.6 million during the three months ended September 30, 2012 and 2011, respectively.


 
FMS
 
SCS
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
For the nine months ended September 30, 2012
 
 
 
 
 
 
Revenue from external customers
$
2,968,099

 
1,705,332

 
—

 
4,673,431

Inter-segment revenue
319,547

 
—

 
(319,547
)
 
—

Total revenue
$
3,287,646

 
1,705,332

 
(319,547
)
 
4,673,431

 
 
 
 
 
 
 
 
Segment EBT
$
221,584

 
84,183

 
(20,628
)
 
285,139

Unallocated CSS
 
 
 
 
 
 
(31,848
)
     Non-operating pension costs 
 
 
 
 
 
 
(23,565
)
     Restructuring and other charges, net and other items
 
 
 
 
 
 
(8,449
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
221,277

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
1,667,165

 
12,558

 
—

 
1,679,723

Unallocated CSS
 
 
 
 
 
 
15,099

Capital expenditures paid
 
 
 
 
 
 
$
1,694,822

 
 
 
 
 
 
 
 
For the nine months ended September 30, 2011
 
 
 
 
 
 
Revenue from external customers
$
2,868,699

 
1,640,741

 
—

 
4,509,440

Inter-segment revenue
274,976

 
—

 
(274,976
)
 
—

Total revenue
$
3,143,675

 
1,640,741

 
(274,976
)
 
4,509,440

 
 
 
 
 
 
 
 
Segment EBT
$
191,899

 
79,378

 
(17,098
)
 
254,179

Unallocated CSS
 
 
 
 
 
 
(31,424
)
     Non-operating pension costs 
 
 
 
 
 
 
(13,985
)
Restructuring and other charges, net and other items
 
 
 
 
 
 
(2,495
)
Earnings from continuing operations before income taxes
 
 
 
 
 
 
$
206,275

 
 
 
 
 
 
 
 
Segment capital expenditures (1), (2)
$
1,128,560

 
24,319

 
—

 
1,152,879

Unallocated CSS
 
 
 
 
 
 
12,256

Capital expenditures paid
 
 
 
 
 
 
$
1,165,135

 ————————————
(1)
Excludes revenue earning equipment acquired under capital leases.
(2)
Excludes acquisition payments of $3.8 million and $362.2 million during the nine months ended September 30, 2012 and 2011, respectively.