þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Florida | 59-0739250 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
11690 N.W. 105th Street | |
Miami, Florida 33178 | (305) 500-3726 |
(Address of principal executive offices, including zip code) | (Registrant’s telephone number, including area code) |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
Page No. | ||
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Lease and rental revenues | $ | 688,048 | 675,623 | $ | 1,347,756 | 1,313,481 | |||||||
Services revenue | 707,666 | 675,533 | 1,397,127 | 1,353,885 | |||||||||
Fuel services revenue | 208,285 | 212,704 | 422,133 | 432,770 | |||||||||
Total revenues | 1,603,999 | 1,563,860 | 3,167,016 | 3,100,136 | |||||||||
Cost of lease and rental | 473,528 | 474,272 | 943,648 | 933,216 | |||||||||
Cost of services | 592,221 | 564,609 | 1,177,658 | 1,140,278 | |||||||||
Cost of fuel services | 204,626 | 209,337 | 414,919 | 424,910 | |||||||||
Other operating expenses | 33,291 | 33,664 | 71,259 | 67,913 | |||||||||
Selling, general and administrative expenses | 195,842 | 189,332 | 385,655 | 384,316 | |||||||||
Gains on vehicle sales, net | (23,197 | ) | (22,546 | ) | (46,203 | ) | (44,537 | ) | |||||
Interest expense | 33,901 | 35,622 | 68,355 | 70,387 | |||||||||
Miscellaneous income, net | (3,575 | ) | (1,341 | ) | (8,145 | ) | (5,821 | ) | |||||
Restructuring and other charges, net | — | 7,142 | — | 8,007 | |||||||||
1,506,637 | 1,490,091 | 3,007,146 | 2,978,669 | ||||||||||
Earnings from continuing operations before income taxes | 97,362 | 73,769 | 159,870 | 121,467 | |||||||||
Provision for income taxes | 34,787 | 27,002 | 56,493 | 39,824 | |||||||||
Earnings from continuing operations | 62,575 | 46,767 | 103,377 | 81,643 | |||||||||
Loss from discontinued operations, net of tax | (381 | ) | (44 | ) | (1,259 | ) | (599 | ) | |||||
Net earnings | $ | 62,194 | 46,723 | $ | 102,118 | 81,044 | |||||||
Earnings (loss) per common share — Basic | |||||||||||||
Continuing operations | $ | 1.21 | 0.92 | $ | 2.00 | 1.60 | |||||||
Discontinued operations | (0.01 | ) | — | (0.02 | ) | (0.01 | ) | ||||||
Net earnings | $ | 1.20 | 0.92 | $ | 1.98 | 1.59 | |||||||
Earnings (loss) per common share — Diluted | |||||||||||||
Continuing operations | $ | 1.19 | 0.91 | $ | 1.98 | 1.59 | |||||||
Discontinued operations | — | — | (0.02 | ) | (0.01 | ) | |||||||
Net earnings | $ | 1.19 | 0.91 | $ | 1.96 | 1.58 | |||||||
Cash dividends declared per common share | $ | 0.31 | 0.29 | $ | 0.62 | 0.58 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Net earnings | $ | 62,194 | 46,723 | $ | 102,118 | 81,044 | |||||||
Other comprehensive (loss) income: | |||||||||||||
Change in cumulative translation adjustment and other, before and after tax | (16,239 | ) | (16,940 | ) | (49,943 | ) | 5,863 | ||||||
Amortization of pension and postretirement items | 8,180 | 7,095 | 16,534 | 14,326 | |||||||||
Income tax expense related to amortization of pension and postretirement items | (2,782 | ) | (2,490 | ) | (5,717 | ) | (5,033 | ) | |||||
Amortization of pension and postretirement items, net of taxes | 5,398 | 4,605 | 10,817 | 9,293 | |||||||||
Change in net actuarial loss | (5,762 | ) | (4,081 | ) | (5,762 | ) | (4,081 | ) | |||||
Income tax benefit related to change in net actuarial loss | 2,048 | 1,534 | 2,048 | 1,534 | |||||||||
Change in net actuarial loss, net of taxes | (3,714 | ) | (2,547 | ) | (3,714 | ) | (2,547 | ) | |||||
Other comprehensive (loss) income, net of taxes | (14,555 | ) | (14,882 | ) | (42,840 | ) | 12,609 | ||||||
Comprehensive income | $ | 47,639 | 31,841 | $ | 59,278 | 93,653 |
June 30, 2013 | December 31, 2012 | |||||
(Dollars in thousands, except per share amount) | ||||||
Assets: | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 73,429 | 66,392 | |||
Receivables, net | 772,262 | 775,765 | ||||
Inventories | 61,672 | 64,146 | ||||
Prepaid expenses and other current assets | 154,972 | 133,934 | ||||
Total current assets | 1,062,335 | 1,040,237 | ||||
Revenue earning equipment, net of accumulated depreciation of $3,485,433 and $3,514,910, respectively | 5,987,803 | 5,754,608 | ||||
Operating property and equipment, net of accumulated depreciation of $987,312 and $966,220, respectively | 626,932 | 624,853 | ||||
Goodwill | 383,371 | 384,216 | ||||
Intangible assets | 75,520 | 80,475 | ||||
Direct financing leases and other assets | 424,386 | 434,590 | ||||
Total assets | $ | 8,560,347 | 8,318,979 | |||
Liabilities and shareholders’ equity: | ||||||
Current liabilities: | ||||||
Short-term debt and current portion of long-term debt | $ | 258,697 | 367,975 | |||
Accounts payable | 458,627 | 398,983 | ||||
Accrued expenses and other current liabilities | 479,302 | 505,707 | ||||
Total current liabilities | 1,196,626 | 1,272,665 | ||||
Long-term debt | 3,655,710 | 3,452,821 | ||||
Other non-current liabilities | 939,682 | 948,932 | ||||
Deferred income taxes | 1,220,970 | 1,177,074 | ||||
Total liabilities | 7,012,988 | 6,851,492 | ||||
Shareholders’ equity: | ||||||
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, June 30, 2013 or December 31, 2012 | — | — | ||||
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, June 30, 2013 — 52,326,720; December 31, 2012 — 51,371,696 | 26,163 | 25,686 | ||||
Additional paid-in capital | 860,650 | 808,230 | ||||
Retained earnings | 1,291,005 | 1,221,190 | ||||
Accumulated other comprehensive loss | (630,459 | ) | (587,619 | ) | ||
Total shareholders’ equity | 1,547,359 | 1,467,487 | ||||
Total liabilities and shareholders’ equity | $ | 8,560,347 | 8,318,979 |
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Cash flows from operating activities from continuing operations: | ||||||
Net earnings | $ | 102,118 | 81,044 | |||
Less: Loss from discontinued operations, net of tax | (1,259 | ) | (599 | ) | ||
Earnings from continuing operations | 103,377 | 81,643 | ||||
Depreciation expense | 465,979 | 460,081 | ||||
Gains on vehicle sales, net | (46,203 | ) | (44,537 | ) | ||
Share-based compensation expense | 9,602 | 9,085 | ||||
Amortization expense and other non-cash charges, net | 27,289 | 24,873 | ||||
Deferred income tax expense | 48,176 | 37,442 | ||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||
Receivables | (16,591 | ) | (29,119 | ) | ||
Inventories | 2,089 | 2,142 | ||||
Prepaid expenses and other assets | (17,392 | ) | 5,723 | |||
Accounts payable | 23,708 | (11,161 | ) | |||
Accrued expenses and other non-current liabilities | (36,257 | ) | (64,151 | ) | ||
Net cash provided by operating activities from continuing operations | 563,777 | 472,021 | ||||
Cash flows from financing activities from continuing operations: | ||||||
Net change in commercial paper borrowings | 180,777 | 187,935 | ||||
Debt proceeds | 254,371 | 378,000 | ||||
Debt repaid, including capital lease obligations | (320,862 | ) | (205,324 | ) | ||
Dividends on common stock | (32,055 | ) | (29,656 | ) | ||
Common stock issued | 41,428 | 15,771 | ||||
Common stock repurchased | — | (23,290 | ) | |||
Excess tax benefits from share-based compensation | 3,289 | 968 | ||||
Debt issuance costs | (2,008 | ) | (2,358 | ) | ||
Net cash provided by financing activities from continuing operations | 124,940 | 322,046 | ||||
Cash flows from investing activities from continuing operations: | ||||||
Purchases of property and revenue earning equipment | (948,114 | ) | (1,203,985 | ) | ||
Sales of revenue earning equipment | 225,749 | 194,907 | ||||
Sale and leaseback of revenue earning equipment | — | 130,184 | ||||
Sales of operating property and equipment | 3,296 | 4,381 | ||||
Acquisitions | (1,420 | ) | (2,426 | ) | ||
Collections on direct finance leases | 39,854 | 32,586 | ||||
Changes in restricted cash | (15,142 | ) | 19,306 | |||
Insurance recoveries | 8,173 | — | ||||
Net cash used in investing activities from continuing operations | (687,604 | ) | (825,047 | ) | ||
Effect of exchange rate changes on cash | 6,966 | 1,216 | ||||
Increase (decrease) in cash and cash equivalents from continuing operations | 8,079 | (29,764 | ) | |||
Cash flows from discontinued operations: | ||||||
Operating cash flows | (1,031 | ) | (2,274 | ) | ||
Effect of exchange rate changes on cash | (11 | ) | 25 | |||
Decrease in cash and cash equivalents from discontinued operations | (1,042 | ) | (2,249 | ) | ||
Increase (decrease) in cash and cash equivalents | 7,037 | (32,013 | ) | |||
Cash and cash equivalents at January 1 | 66,392 | 104,572 | ||||
Cash and cash equivalents at June 30 | $ | 73,429 | 72,559 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||
Amount | Shares | Par | ||||||||||||||||||||
(Dollars in thousands, except per share amount) | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | 51,371,696 | $ | 25,686 | 808,230 | 1,221,190 | (587,619 | ) | 1,467,487 | ||||||||||||
Net earnings | — | — | — | — | 102,118 | — | 102,118 | |||||||||||||||
Other comprehensive loss | — | — | — | — | — | (42,840 | ) | (42,840 | ) | |||||||||||||
Comprehensive income | 59,278 | |||||||||||||||||||||
Common stock dividends declared — $0.62 per share | — | — | — | — | (32,303 | ) | — | (32,303 | ) | |||||||||||||
Common stock issued under employee stock option and stock purchase plans (1) | — | 946,714 | 473 | 40,378 | — | — | 40,851 | |||||||||||||||
Benefit plan stock sales (2) | — | 8,310 | 4 | 573 | — | — | 577 | |||||||||||||||
Share-based compensation | — | — | — | 9,602 | — | — | 9,602 | |||||||||||||||
Tax benefits from share-based compensation | — | — | — | 1,867 | — | — | 1,867 | |||||||||||||||
Balance at June 30, 2013 | $ | — | 52,326,720 | $ | 26,163 | 860,650 | 1,291,005 | (630,459 | ) | 1,547,359 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Pre-tax (loss) income from discontinued operations | $ | (298 | ) | 66 | $ | (1,199 | ) | (509 | ) | ||||
Income tax expense | (83 | ) | (110 | ) | (60 | ) | (90 | ) | |||||
Loss from discontinued operations, net of tax | $ | (381 | ) | (44 | ) | $ | (1,259 | ) | (599 | ) |
June 30, 2013 | December 31, 2012 | |||||
(In thousands) | ||||||
Total assets, primarily deposits | $ | 3,621 | 4,460 | |||
Total liabilities, primarily contingent accruals | $ | 5,067 | 5,329 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Stock option and stock purchase plans | $ | 2,193 | 2,274 | $ | 4,303 | 4,638 | |||||||
Nonvested stock | 2,799 | 2,374 | 5,299 | 4,447 | |||||||||
Share-based compensation expense | 4,992 | 4,648 | 9,602 | 9,085 | |||||||||
Income tax benefit | (1,640 | ) | (1,522 | ) | (3,327 | ) | (3,006 | ) | |||||
Share-based compensation expense, net of tax | $ | 3,352 | 3,126 | $ | 6,275 | 6,079 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Cash awards | $ | 889 | 788 | $ | 2,163 | 1,385 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Earnings per share — Basic: | |||||||||||||
Earnings from continuing operations | $ | 62,575 | 46,767 | $ | 103,377 | 81,643 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (556 | ) | (590 | ) | (978 | ) | (1,062 | ) | |||||
Earnings from continuing operations available to common shareholders — Basic | $ | 62,019 | 46,177 | $ | 102,399 | 80,581 | |||||||
Weighted average common shares outstanding — Basic | 51,445 | 50,433 | 51,201 | 50,459 | |||||||||
Earnings from continuing operations per common share — Basic | $ | 1.21 | 0.92 | $ | 2.00 | 1.60 | |||||||
Earnings per share — Diluted: | |||||||||||||
Earnings from continuing operations | $ | 62,575 | 46,767 | $ | 103,377 | 81,643 | |||||||
Less: Distributed and undistributed earnings allocated to nonvested stock | (552 | ) | (587 | ) | (972 | ) | (1,057 | ) | |||||
Earnings from continuing operations available to common shareholders — Diluted | $ | 62,023 | 46,180 | $ | 102,405 | 80,586 | |||||||
Weighted average common shares outstanding — Basic | 51,445 | 50,433 | 51,201 | 50,459 | |||||||||
Effect of dilutive equity awards | 478 | 264 | 457 | 351 | |||||||||
Weighted average common shares outstanding — Diluted | 51,923 | 50,697 | 51,658 | 50,810 | |||||||||
Earnings from continuing operations per common share — Diluted | $ | 1.19 | 0.91 | $ | 1.98 | 1.59 | |||||||
Anti-dilutive equity awards not included above | 593 | 2,414 | 1,003 | 2,044 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Restructuring charges, net: | |||||||||||||
Severance and employee-related costs | $ | — | 7,142 | $ | — | 7,142 | |||||||
Contract termination costs | — | — | — | 865 | |||||||||
Total | $ | — | 7,142 | $ | — | 8,007 |
Deductions | ||||||||||||||||||
December 31, 2012 | Additions | Cash Payments | Non-Cash Reductions (1) | Foreign Translation Adjustments | June 30, 2013 | |||||||||||||
Balance | Balance | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Employee severance and benefits | $ | 3,147 | — | 2,164 | — | (158 | ) | 825 | ||||||||||
Contract termination costs | 1,728 | — | 1,168 | — | (99 | ) | 461 | |||||||||||
Total | $ | 4,875 | — | 3,332 | — | (257 | ) | 1,286 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Fleet Management Solutions | $ | — | 5,482 | $ | — | 6,347 | |||||||
Supply Chain Solutions | — | 1,400 | — | 1,400 | |||||||||
Central Support Services (CSS) | — | 260 | — | 260 | |||||||||
Total | $ | — | 7,142 | $ | — | 8,007 |
June 30, 2013 | December 31, 2012 | |||||
(In thousands) | ||||||
Total minimum lease payments receivable | $ | 598,606 | 629,919 | |||
Less: Executory costs | (190,090 | ) | (201,777 | ) | ||
Minimum lease payments receivable | 408,516 | 428,142 | ||||
Less: Allowance for uncollectibles | (538 | ) | (703 | ) | ||
Net minimum lease payments receivable | 407,978 | 427,439 | ||||
Unguaranteed residuals | 56,955 | 60,764 | ||||
Less: Unearned income | (90,434 | ) | (96,280 | ) | ||
Net investment in direct financing and sales-type leases | 374,499 | 391,923 | ||||
Current portion | (73,449 | ) | (76,395 | ) | ||
Non-current portion | $ | 301,050 | 315,528 |
June 30, 2013 | December 31, 2012 | |||||
(In thousands) | ||||||
Very low risk to low risk | $ | 156,596 | 193,123 | |||
Moderate risk | 184,990 | 177,400 | ||||
Moderately high risk to high risk | 66,930 | 57,619 | ||||
$ | 408,516 | 428,142 |
2013 | 2012 | |||||
(In thousands) | ||||||
Balance at January 1 | $ | 703 | 903 | |||
(Credited) charged to earnings | (22 | ) | 746 | |||
Deductions | (143 | ) | (911 | ) | ||
Balance at June 30 | $ | 538 | 738 |
June 30, 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 | $ | 6,826,293 | (2,433,139 | ) | 4,393,154 | $ | 6,728,746 | (2,500,786 | ) | 4,227,960 | |||||||||
Commercial rental | 2,128,962 | (686,786 | ) | 1,442,176 | 2,041,698 | (660,356 | ) | 1,381,342 | |||||||||||
Held for sale | 517,981 | (365,508 | ) | 152,473 | 499,074 | (353,768 | ) | 145,306 | |||||||||||
Total | $ | 9,473,236 | (3,485,433 | ) | 5,987,803 | $ | 9,269,518 | (3,514,910 | ) | 5,754,608 |
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $54.9 million, less accumulated depreciation of $18.3 million, at June 30, 2013, and $56.2 million, less accumulated depreciation of $16.5 million, at December 31, 2012. |
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 | 434 | — | 434 | ||||||
Foreign currency translation adjustments | (788 | ) | (491 | ) | (1,279 | ) | |||
Balance at June 30, 2013: | |||||||||
Goodwill | 222,775 | 189,817 | 412,592 | ||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||
$ | 212,453 | 170,918 | 383,371 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||
(In thousands) | |||||||||||||||||||
Salaries and wages | $ | 80,338 | — | 80,338 | $ | 86,776 | — | 86,776 | |||||||||||
Deferred compensation | 1,780 | 27,478 | 29,258 | 1,630 | 24,918 | 26,548 | |||||||||||||
Pension benefits | 3,279 | 586,427 | 589,706 | 3,309 | 597,275 | 600,584 | |||||||||||||
Other postretirement benefits | 2,670 | 36,518 | 39,188 | 2,683 | 37,916 | 40,599 | |||||||||||||
Insurance obligations (1) | 128,131 | 184,157 | 312,288 | 133,459 | 178,714 | 312,173 | |||||||||||||
Residual value guarantees | 1,485 | 239 | 1,724 | 1,505 | 130 | 1,635 | |||||||||||||
Accrued rent | 17,371 | 6,152 | 23,523 | 9,244 | 9,405 | 18,649 | |||||||||||||
Environmental liabilities | 4,361 | 7,988 | 12,349 | 4,201 | 8,415 | 12,616 | |||||||||||||
Asset retirement obligations | 5,372 | 15,324 | 20,696 | 3,642 | 17,116 | 20,758 | |||||||||||||
Operating taxes | 87,204 | — | 87,204 | 91,419 | — | 91,419 | |||||||||||||
Income taxes | 1,694 | 60,081 | 61,775 | 8,288 | 57,590 | 65,878 | |||||||||||||
Interest | 32,742 | — | 32,742 | 35,798 | — | 35,798 | |||||||||||||
Deposits, mainly from customers | 52,285 | 6,238 | 58,523 | 51,671 | 6,236 | 57,907 | |||||||||||||
Deferred revenue | 20,916 | — | 20,916 | 21,557 | — | 21,557 | |||||||||||||
Acquisition holdbacks | 2,815 | — | 2,815 | 1,637 | 2,673 | 4,310 | |||||||||||||
Other | 36,859 | 9,080 | 45,939 | 48,888 | 8,544 | 57,432 | |||||||||||||
Total | $ | 479,302 | 939,682 | 1,418,984 | $ | 505,707 | 948,932 | 1,454,639 |
Weighted-Average Interest Rate | ||||||||||||
June 30, 2013 | December 31, 2012 | Maturities | June 30, 2013 | December 31, 2012 | ||||||||
(In thousands) | ||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||
Short-term debt | 1.33% | 2.27% | 2013 | $ | 394 | 9,820 | ||||||
Current portion of long-term debt, including capital leases | 258,303 | 358,155 | ||||||||||
Total short-term debt and current portion of long-term debt | 258,697 | 367,975 | ||||||||||
Long-term debt: | ||||||||||||
U.S. commercial paper (1) | 0.31% | 0.41% | 2016 | 531,922 | 329,925 | |||||||
Canadian commercial paper (1) | 1.10% | 1.14% | 2016 | 1,901 | 23,165 | |||||||
Global revolving credit facility | 1.57% | 1.58% | 2016 | 5,063 | 8,924 | |||||||
Unsecured U.S. notes — Medium-term notes (1) | 3.95% | 4.01% | 2014-2025 | 2,971,712 | 2,971,313 | |||||||
Unsecured U.S. obligations, principally bank term loans | 1.48% | 1.56% | 2015-2019 | 55,500 | 105,500 | |||||||
Unsecured foreign obligations | 1.91% | 1.91% | 2014-2016 | 293,768 | 313,406 | |||||||
Capital lease obligations | 4.00% | 4.08% | 2013-2019 | 43,789 | 42,018 | |||||||
Total before fair market value adjustment | 3,903,655 | 3,794,251 | ||||||||||
Fair market value adjustment on notes subject to hedging (2) | 10,358 | 16,725 | ||||||||||
3,914,013 | 3,810,976 | |||||||||||
Current portion of long-term debt, including capital leases | (258,303 | ) | (358,155 | ) | ||||||||
Long-term debt | 3,655,710 | 3,452,821 | ||||||||||
Total debt | $ | 3,914,407 | 3,820,796 |
(1) | We had unamortized original issue discounts of $8.4 million and $8.8 million at June 30, 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 June 30, 2013 and December 31, 2012, respectively. |
Balance Sheet Location | Fair Value Measurements At June 30, 2013 Using | Total | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
(In thousands) | ||||||||||||||
Assets: | ||||||||||||||
Interest rate swaps | DFL and other assets | $ | — | 10,358 | — | 10,358 | ||||||||
Investments held in Rabbi Trusts: | ||||||||||||||
Cash and cash equivalents | 4,149 | — | — | 4,149 | ||||||||||
U.S. equity mutual funds | 13,094 | — | — | 13,094 | ||||||||||
Foreign equity mutual funds | 3,417 | — | — | 3,417 | ||||||||||
Fixed income mutual funds | 4,515 | — | — | 4,515 | ||||||||||
Investments held in Rabbi Trusts | DFL and other assets | 25,175 | — | — | 25,175 | |||||||||
Total assets at fair value | $ | 25,175 | 10,358 | — | 35,533 | |||||||||
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 |
Fair Value Measurements At June 30, 2013 Using | Total Losses (2) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | |||||||||||||
(In thousands) | |||||||||||||||||
Assets held for sale: | |||||||||||||||||
Revenue earning equipment: (1) | |||||||||||||||||
Trucks | $ | — | — | 11,132 | $ | 2,447 | $ | 5,476 | |||||||||
Tractors | — | — | 16,283 | 1,413 | 2,508 | ||||||||||||
Trailers | — | — | 882 | 370 | 967 | ||||||||||||
Total assets at fair value | $ | — | — | 28,297 | $ | 4,230 | $ | 8,951 |
Fair Value Measurements At June 30, 2012 Using | Total Losses (2) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Three months ended | Six months ended | |||||||||||||
(In thousands) | |||||||||||||||||
Assets held for sale: | |||||||||||||||||
Revenue earning equipment (1) | |||||||||||||||||
Trucks | $ | — | — | 9,992 | $ | 3,108 | $ | 5,489 | |||||||||
Tractors | — | — | 6,361 | 1,071 | 1,542 | ||||||||||||
Trailers | — | — | 584 | 276 | 783 | ||||||||||||
Total assets at fair value | $ | — | — | 16,937 | $ | 4,455 | $ | 7,814 |
(1) | Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell. |
(2) | Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value. |
Maturity date | Face value of medium-term notes | Aggregate notional amount of interest rate swaps | Fixed interest rate | Weighted-average variable interest rate on hedged debt as of June 30, | ||||||||
Issuance date | 2013 | 2012 | ||||||||||
(Dollars in thousands) | ||||||||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.51% | 1.83% | ||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.41% | 1.70% |
Fair Value Hedging Relationship | Location of Gain (Loss) Recognized in Income | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Derivatives: Interest rate swaps | Interest expense | $ | (3,586 | ) | 218 | $ | (6,367 | ) | (1,952 | ) | ||||||
Hedged items: Fixed-rate debt | Interest expense | 3,586 | (218 | ) | 6,367 | 1,952 | ||||||||||
Total | $ | — | — | $ | — | — |
Currency Translation Adjustments | Net Actuarial Loss (1) | Prior Service Credit (1) | Transition Obligation (1) | Unrealized Gain (Loss) on Derivatives | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||||
December 31, 2012 | $ | 57,848 | (648,125 | ) | 2,634 | 12 | 12 | (587,619 | ) | ||||||||||
Amortization | — | 11,514 | (697 | ) | — | — | 10,817 | ||||||||||||
Current period change | (49,952 | ) | (3,714 | ) | — | — | 9 | (53,657 | ) | ||||||||||
June 30, 2013 | $ | 7,896 | (640,325 | ) | 1,937 | 12 | 21 | (630,459 | ) |
Currency Translation Adjustments | Net Actuarial Loss (1) | Prior Service Credit (1) | Transition Obligation (1) | Unrealized Gain (Loss) on Derivatives | Accumulated Other Comprehensive Loss | ||||||||||||||
(In thousands) | |||||||||||||||||||
December 31, 2011 | $ | 28,219 | (599,687 | ) | 4,291 | 12 | — | (567,165 | ) | ||||||||||
Amortization | — | 10,107 | (814 | ) | — | — | 9,293 | ||||||||||||
Current period change | 5,844 | (2,547 | ) | — | — | 19 | 3,316 | ||||||||||||
June 30, 2012 | $ | 34,063 | (592,127 | ) | 3,477 | 12 | 19 | (554,556 | ) |
(1) | These amounts are included in the computation of net periodic pension cost. See Note (R), "Employee Benefit Plans", for further information. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Pension Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 3,756 | 3,826 | $ | 8,008 | 7,733 | |||||||
Interest cost | 22,316 | 23,563 | 44,735 | 47,252 | |||||||||
Expected return on plan assets | (26,389 | ) | (24,055 | ) | (52,837 | ) | (48,112 | ) | |||||
Amortization of: | |||||||||||||
Net actuarial loss | 8,685 | 7,726 | 17,565 | 15,587 | |||||||||
Prior service credit | (443 | ) | (567 | ) | (909 | ) | (1,136 | ) | |||||
7,925 | 10,493 | 16,562 | 21,324 | ||||||||||
Union-administered plans | 2,046 | 1,630 | 4,030 | 3,244 | |||||||||
Net periodic benefit cost | $ | 9,971 | 12,123 | $ | 20,592 | 24,568 | |||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 8,152 | 9,643 | $ | 16,893 | 19,491 | |||||||
Non-U.S. | (227 | ) | 850 | (331 | ) | 1,833 | |||||||
7,925 | 10,493 | 16,562 | 21,324 | ||||||||||
Union-administered plans | 2,046 | 1,630 | 4,030 | 3,244 | |||||||||
$ | 9,971 | 12,123 | $ | 20,592 | 24,568 | ||||||||
Postretirement Benefits | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 230 | 227 | $ | 493 | 547 | |||||||
Interest cost | 392 | 475 | 787 | 989 | |||||||||
Amortization of: | |||||||||||||
Net actuarial (gain) loss | (5 | ) | (7 | ) | (7 | ) | (10 | ) | |||||
Prior service credit | (57 | ) | (57 | ) | (115 | ) | (115 | ) | |||||
Net periodic benefit cost | $ | 560 | 638 | $ | 1,158 | 1,411 | |||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 402 | 519 | 808 | 1,071 | ||||||||
Non-U.S. | 158 | 119 | 350 | 340 | |||||||||
$ | 560 | 638 | $ | 1,158 | 1,411 | ||||||||
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Interest paid | $ | 67,545 | 64,060 | |||
Income taxes paid | $ | 8,447 | 6,644 | |||
Changes in accounts payable related to purchases of revenue earning equipment | $ | 40,389 | 112,990 | |||
Operating and revenue earning equipment acquired under capital leases | $ | 4,814 | 616 |
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the three months ended June 30, 2013 | |||||||||||||
Revenue from external customers | $ | 1,006,822 | 597,177 | — | 1,603,999 | ||||||||
Inter-segment revenue | 114,436 | — | (114,436 | ) | — | ||||||||
Total revenue | $ | 1,121,258 | 597,177 | (114,436 | ) | 1,603,999 | |||||||
Segment EBT | $ | 88,667 | 32,683 | (8,405 | ) | 112,945 | |||||||
Unallocated CSS | (10,584 | ) | |||||||||||
Non-operating pension costs | (4,999 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 97,362 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 517,131 | 5,017 | — | 522,148 | ||||||||
Unallocated CSS | 5,912 | ||||||||||||
Capital expenditures paid | $ | 528,060 | |||||||||||
For the three months ended June 30, 2012 | |||||||||||||
Revenue from external customers | $ | 993,606 | 570,254 | — | 1,563,860 | ||||||||
Inter-segment revenue | 107,299 | — | (107,299 | ) | — | ||||||||
Total revenue | $ | 1,100,905 | 570,254 | (107,299 | ) | 1,563,860 | |||||||
Segment EBT | $ | 76,651 | 30,401 | (7,246 | ) | 99,806 | |||||||
Unallocated CSS | (11,193 | ) | |||||||||||
Non-operating pension costs | (7,702 | ) | |||||||||||
Restructuring and other charges, net and other items | (7,142 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 73,769 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 721,954 | 5,599 | — | 727,553 | ||||||||
Unallocated CSS | 5,463 | ||||||||||||
Capital expenditures paid | $ | 733,016 |
(1) | Excludes revenue earning equipment acquired under capital leases. |
(2) | Excludes acquisition payments of $0.4 million during the three months ended June 30, 2012. |
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the six months ended June 30, 2013 | |||||||||||||
Revenue from external customers | $ | 1,993,360 | 1,173,656 | — | 3,167,016 | ||||||||
Inter-segment revenue | 227,630 | — | (227,630 | ) | — | ||||||||
Total revenue | $ | 2,220,990 | 1,173,656 | (227,630 | ) | 3,167,016 | |||||||
Segment EBT | $ | 149,412 | 56,494 | (15,738 | ) | 190,168 | |||||||
Unallocated CSS | (21,959 | ) | |||||||||||
Non-operating pension costs | (10,243 | ) | |||||||||||
Restructuring and other charges, net and other items | 1,904 | ||||||||||||
Earnings from continuing operations before income taxes | $ | 159,870 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 923,642 | 10,817 | — | 934,459 | ||||||||
Unallocated CSS | 13,655 | ||||||||||||
Capital expenditures paid | $ | 948,114 | |||||||||||
For the six months ended June 30, 2012 | |||||||||||||
Revenue from external customers | $ | 1,957,969 | 1,142,167 | — | 3,100,136 | ||||||||
Inter-segment revenue | 214,327 | — | (214,327 | ) | — | ||||||||
Total revenue | $ | 2,172,296 | 1,142,167 | (214,327 | ) | 3,100,136 | |||||||
Segment EBT | $ | 127,334 | 52,272 | (13,727 | ) | 165,879 | |||||||
Unallocated CSS | (20,699 | ) | |||||||||||
Non-operating pension costs | (15,706 | ) | |||||||||||
Restructuring and other charges, net and other items | (8,007 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 121,467 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 1,185,560 | 8,436 | — | 1,193,996 | ||||||||
Unallocated CSS | 9,989 | ||||||||||||
Capital expenditures paid | $ | 1,203,985 |
(1) | Excludes revenue earning equipment acquired under capital leases. |
(2) | Excludes acquisition payments of $1.4 million and $2.4 million during the six months ended June 30, 2013 and 2012, respectively. |
EBT | Earnings | Diluted EPS | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Three months ended June 30 | (In thousands, except per share amounts) | |||||||||||||||||||
EBT/Earnings/EPS | $ | 97,362 | 73,769 | $ | 62,575 | 46,767 | $ | 1.19 | 0.91 | |||||||||||
Non-operating pension costs (1) | 4,999 | 7,702 | 2,924 | 4,746 | 0.06 | 0.09 | ||||||||||||||
Restructuring and other charges (2) | — | 7,142 | — | 4,516 | — | 0.09 | ||||||||||||||
Comparable | $ | 102,361 | 88,613 | $ | 65,499 | 56,029 | $ | 1.25 | 1.09 | |||||||||||
Six months ended June 30 | ||||||||||||||||||||
EBT/Earnings/EPS | $ | 159,870 | 121,467 | $ | 103,377 | 81,643 | $ | 1.98 | 1.59 | |||||||||||
Non-operating pension costs (1) | 10,243 | 15,706 | 6,005 | 9,685 | 0.12 | 0.19 | ||||||||||||||
Restructuring and other charges (2) | — | 8,007 | — | 5,161 | — | 0.10 | ||||||||||||||
Foreign currency translation benefit (3) | (1,904 | ) | — | (1,904 | ) | — | (0.04 | ) | — | |||||||||||
Tax benefit (4) | — | — | — | (4,967 | ) | — | (0.10 | ) | ||||||||||||
Comparable | $ | 168,209 | 145,180 | $ | 107,478 | 91,522 | $ | 2.06 | 1.78 |
(1) | Includes the amortization of actuarial loss, interest cost and expected return on plan assets components of pension and post-retirement costs, which are tied to financial market performance. The company considers these costs to be outside the operational performance of the business. |
(2) | See Note (G), “Restructuring and Other Charges,” for further discussion. |
(3) | See Note (S), “Other Items Impacting Comparability,” for additional information. |
(4) | Tax benefit associated with the resolution of a prior year tax item. See Note (L),“Income Taxes.” |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Total revenue | $ | 1,603,999 | 1,563,860 | $ | 3,167,016 | 3,100,136 | 3% | 2% | |||||||||
Operating revenue (1) | 1,313,339 | 1,266,610 | 2,580,860 | 2,495,534 | 4% | 3% | |||||||||||
Pre-tax earnings from continuing operations | $ | 97,362 | 73,769 | $ | 159,870 | 121,467 | 32% | 32% | |||||||||
Earnings from continuing operations | 62,575 | 46,767 | 103,377 | 81,643 | 34% | 27% | |||||||||||
Net earnings | 62,194 | 46,723 | 102,118 | 81,044 | 33% | 26% | |||||||||||
Earnings per common share — Diluted | |||||||||||||||||
Continuing operations | $ | 1.19 | 0.91 | $ | 1.98 | 1.59 | 31% | 25% | |||||||||
Net earnings | 1.19 | 0.91 | 1.96 | 1.58 | 31% | 24% |
(1) | We use operating revenue, a non-GAAP financial measure, to evaluate the operating performance of our businesses and as a measure of sales activity. FMS fuel services revenue, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass-through to our customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. Subcontracted transportation is deducted from total revenue to arrive at operating revenue as subcontracted transportation is typically a pass-through to our customers. We realize minimal changes in profitability as a result of fluctuations in subcontracted transportation. Refer to the section titled “Non-GAAP Financial Measures” for a reconciliation of total revenue to operating revenue. |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Lease and rental revenues | $ | 688,048 | 675,623 | $ | 1,347,756 | 1,313,481 | 2% | 3% | |||||||||
Cost of lease and rental | 473,528 | 474,272 | 943,648 | 933,216 | —% | 1% | |||||||||||
Gross margin | 214,520 | 201,351 | 404,108 | 380,265 | 7% | 6% | |||||||||||
Gross margin % | 31 | % | 30 | % | 30 | % | 29 | % |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Services revenue | $ | 707,666 | 675,533 | 1,397,127 | 1,353,885 | 5% | 3% | |||||||||
Cost of services | 592,221 | 564,609 | 1,177,658 | 1,140,278 | 5% | 3% | ||||||||||
Gross margin | 115,445 | 110,924 | 219,469 | 213,607 | 4% | 3% | ||||||||||
Gross margin % | 16 | % | 16 | % | 16 | % | 16 | % |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fuel services revenue | $ | 208,285 | 212,704 | $ | 422,133 | 432,770 | (2)% | (2)% | |||||||||
Cost of fuel services | 204,626 | 209,337 | 414,919 | 424,910 | (2)% | (2)% | |||||||||||
Gross margin | 3,659 | 3,367 | 7,214 | 7,860 | 9% | (8)% | |||||||||||
Gross margin % | 2 | % | 2 | % | 2 | % | 2 | % |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(In thousands) | |||||||||||||||||
Other operating expenses | $ | 33,291 | 33,664 | $ | 71,259 | 67,913 | (1)% | 5% |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Selling, general and administrative expenses (SG&A) | $ | 195,842 | 189,332 | $ | 385,655 | 384,316 | 3% | —% | |||||||||
Percentage of total revenue | 12 | % | 12 | % | 12 | % | 12 | % | |||||||||
Percentage of operating revenue | 15 | % | 15 | % | 15 | % | 15 | % |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(In thousands) | |||||||||||||||||
Gains on vehicle sales, net | $ | 23,197 | 22,546 | $ | 46,203 | 44,537 | 3% | 4% |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest expense | $ | 33,901 | 35,622 | $ | 68,355 | 70,387 | (5)% | (3)% | |||||||||
Effective interest rate | 3.5 | % | 3.9 | % | 3.5 | % | 3.9 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(In thousands) | |||||||||||
Miscellaneous income, net | $ | 3,575 | 1,341 | $ | 8,145 | 5,821 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(In thousands) | |||||||||||
Restructuring and other charges, net | $ | — | 7,142 | $ | — | 8,007 |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Provision for income taxes | $ | 34,787 | 27,002 | $ | 56,493 | 39,824 | 29% | 42% | |||||||||
Effective tax rate from continuing operations | 35.7 | % | 36.6 | % | 35.3 | % | 32.8 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(In thousands) | |||||||||||
Loss from discontinued operations, net of tax | $ | (381 | ) | (44) | $ | (1,259 | ) | (599) |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Revenue: | |||||||||||||||||
Fleet Management Solutions | $ | 1,121,258 | 1,100,905 | $ | 2,220,990 | 2,172,296 | 2% | 2% | |||||||||
Supply Chain Solutions | 597,177 | 570,254 | 1,173,656 | 1,142,167 | 5 | 3 | |||||||||||
Eliminations | (114,436 | ) | (107,299 | ) | (227,630 | ) | (214,327 | ) | 7 | 6 | |||||||
Total | $ | 1,603,999 | 1,563,860 | $ | 3,167,016 | 3,100,136 | 3% | 2% | |||||||||
Operating Revenue: | |||||||||||||||||
Fleet Management Solutions | $ | 852,527 | 830,864 | $ | 1,676,515 | 1,623,607 | 3% | 3% | |||||||||
Supply Chain Solutions | 514,802 | 485,709 | 1,009,633 | 970,335 | 6 | 4 | |||||||||||
Eliminations | (53,990 | ) | (49,963 | ) | (105,288 | ) | (98,408 | ) | 8 | 7 | |||||||
Total | $ | 1,313,339 | 1,266,610 | $ | 2,580,860 | 2,495,534 | 4% | 3% | |||||||||
EBT: | |||||||||||||||||
Fleet Management Solutions | $ | 88,667 | 76,651 | $ | 149,412 | 127,334 | 16% | 17% | |||||||||
Supply Chain Solutions | 32,683 | 30,401 | 56,494 | 52,272 | 8 | 8 | |||||||||||
Eliminations | (8,405 | ) | (7,246 | ) | (15,738 | ) | (13,727 | ) | 16 | 15 | |||||||
112,945 | 99,806 | 190,168 | 165,879 | 13 | 15 | ||||||||||||
Unallocated Central Support Services | (10,584 | ) | (11,193 | ) | (21,959 | ) | (20,699 | ) | (5) | 6 | |||||||
Non-operating pension costs | (4,999 | ) | (7,702 | ) | (10,243 | ) | (15,706 | ) | (35) | (35) | |||||||
Restructuring and other charges, net and other items | — | (7,142 | ) | 1,904 | (8,007 | ) | NM | NM | |||||||||
Earnings from continuing operations before income taxes | $ | 97,362 | 73,769 | $ | 159,870 | 121,467 | 32% | 32% |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Description | Consolidated Condensed Statements of Earnings Line Item | 2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||||
Non-operating pension costs | SG&A | $ | (4,999 | ) | (7,702 | ) | $ | (10,243 | ) | (15,706 | ) | |||||
Foreign currency translation benefit (1) | Miscellaneous income | — | — | 1,904 | ||||||||||||
Restructuring and other charges, net | Restructuring | — | (7,142 | ) | — | (8,007 | ) | |||||||||
$ | (4,999 | ) | (14,844 | ) | $ | (8,339 | ) | (23,713 | ) |
(1) | See Note (S), “Other Items Impacting Comparability,” for additional information. |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Full service lease | $ | 540,411 | 521,491 | $ | 1,073,645 | 1,032,049 | 4% | 4% | |||||||||
Contract maintenance | 45,283 | 46,460 | 91,386 | 93,479 | (3) | (2) | |||||||||||
Contractual revenue | 585,694 | 567,951 | 1,165,031 | 1,125,528 | 3 | 4 | |||||||||||
Contract-related maintenance | 52,066 | 46,529 | 105,379 | 93,035 | 12 | 13 | |||||||||||
Commercial rental | 196,512 | 198,728 | 369,609 | 369,976 | (1) | — | |||||||||||
Other | 18,255 | 17,656 | 36,496 | 35,068 | 3 | 4 | |||||||||||
Operating revenue (1) | 852,527 | 830,864 | 1,676,515 | 1,623,607 | 3 | 3 | |||||||||||
Fuel services revenue | 268,731 | 270,041 | 544,475 | 548,689 | — | (1) | |||||||||||
Total revenue | $ | 1,121,258 | 1,100,905 | $ | 2,220,990 | 2,172,296 | 2% | 2% | |||||||||
Segment EBT | $ | 88,667 | 76,651 | $ | 149,412 | 127,334 | 16% | 17% | |||||||||
Segment EBT as a % of total revenue | 7.9 | % | 7.0 | % | 6.7 | % | 5.9 | % | 90 bps | 80 bps | |||||||
Segment EBT as a % of operating revenue (1) | 10.4 | % | 9.2 | % | 8.9 | % | 7.8 | % | 120 bps | 110 bps |
(1) | We use operating revenue and EBT as a percent of operating revenue, non-GAAP financial measures, to evaluate the operating performance of our FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel prices, is excluded from our operating revenue computation as fuel is largely a pass-through to customers for which we realize minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. |
Three months ended | Six months ended | ||||||
June 30, 2013 | June 30, 2013 | ||||||
Total | Operating | Total | Operating | ||||
Organic including price and volume | 1% | 2% | 1% | 2% | |||
Acquisitions | 1 | 1 | 1 | 1 | |||
Total increase | 2% | 3% | 2% | 3% |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Rental revenue from non-lease customers | $ | 117,140 | 116,174 | $ | 213,252 | 207,926 | 1% | 3% | |||||||||
Rental revenue from lease customers (1) | $ | 79,372 | 82,554 | $ | 156,357 | 162,050 | (4)% | (4)% | |||||||||
Average commercial rental power fleet size — in service (2), (3) | 28,300 | 31,000 | 28,200 | 30,400 | (9)% | (7)% | |||||||||||
Commercial rental utilization — power fleet | 80.5 | % | 75.0 | % | 77.2 | % | 72.0 | % | 550 bps | 520 bps |
(1) | Represents revenue from rental vehicles provided to our existing full service lease customers, generally during peak periods in their operations. |
(2) | Number of units rounded to nearest hundred and calculated using quarterly average unit counts. |
(3) | Fleet size excluding trailers. |
Change | ||||||||||||
June 30, 2013 | December 31, 2012 | June 30, 2012 | Jun. 2013/Dec. 2012 | Jun. 2013/Jun. 2012 | ||||||||
End of period vehicle count | ||||||||||||
By type: | ||||||||||||
Trucks (1) | 67,900 | 68,800 | 70,500 | (1)% | (4)% | |||||||
Tractors (2) | 59,000 | 58,800 | 58,700 | — | 1 | |||||||
Trailers (3) (4) | 41,900 | 42,700 | 43,400 | (2) | (3) | |||||||
Other | 2,100 | 2,200 | 2,200 | (5) | (5) | |||||||
Total | 170,900 | 172,500 | 174,800 | (1)% | (2)% | |||||||
By ownership: | ||||||||||||
Owned | 166,700 | 168,000 | 170,100 | (1)% | (2)% | |||||||
Leased | 4,200 | 4,500 | 4,700 | (7) | (11) | |||||||
Total | 170,900 | 172,500 | 174,800 | (1)% | (2)% | |||||||
By product line: (4) | ||||||||||||
Full service lease | 120,300 | 122,400 | 121,600 | (2)% | (1)% | |||||||
Commercial rental | 38,000 | 38,000 | 41,100 | — | (8) | |||||||
Service vehicles and other | 3,000 | 2,900 | 2,900 | 3 | 3 | |||||||
Active units | 161,300 | 163,300 | 165,600 | (1) | (3) | |||||||
Held for sale | 9,600 | 9,200 | 9,200 | 4 | 4 | |||||||
Total | 170,900 | 172,500 | 174,800 | (1)% | (2)% | |||||||
Customer vehicles under contract maintenance | 37,300 | 37,800 | 35,800 | (1)% | 4% | |||||||
Total vehicles under service | 208,200 | 210,300 | 210,600 | (1)% | (1)% | |||||||
Quarterly average vehicle count | ||||||||||||
By product line: | ||||||||||||
Full service lease | 121,000 | 122,100 | 121,700 | (1)% | (1)% | |||||||
Commercial rental | 37,100 | 38,600 | 41,400 | (4) | (10) | |||||||
Service vehicles and other | 2,900 | 2,900 | 3,000 | — | (3) | |||||||
Active units | 161,000 | 163,600 | 166,100 | (2) | (3) | |||||||
Held for sale | 9,900 | 9,500 | 9,000 | 4 | 10 | |||||||
Total | 170,900 | 173,100 | 175,100 | (1)% | (2)% | |||||||
Customer vehicles under contract maintenance | 37,600 | 37,500 | 35,500 | —% | 6% | |||||||
Year-to-date average vehicle count | ||||||||||||
By product line: | ||||||||||||
Full service lease | 121,400 | 121,900 | 121,600 | —% | —% | |||||||
Commercial rental | 37,100 | 40,100 | 41,000 | (7) | (10) | |||||||
Service vehicles and other | 2,900 | 2,900 | 3,000 | — | (3) | |||||||
Active units | 161,400 | 164,900 | 165,600 | (2) | (3) | |||||||
Held for sale | 9,800 | 8,800 | 8,200 | 11 | 20 | |||||||
Total | 171,200 | 173,700 | 173,800 | (1)% | (1)% | |||||||
Customer vehicles under contract maintenance | 37,800 | 36,500 | 35,700 | 4% | 6% |
(1) | Generally comprised of Class 1 through Class 6 type vehicles with a Gross Vehicle Weight (GVW) up to 26,000 pounds. |
(2) | Generally comprised of over the road on highway tractors and are primarily comprised of Classes 7 and 8 type vehicles with a GVW of over 26,000 pounds. |
(3) | Generally comprised of dry, flatbed and refrigerated type trailers. |
Change | |||||||||
June 30, 2013 | December 31, 2012 | June 30, 2012 | Jun. 2013/ Dec. 2012 | Jun. 2013/ Jun. 2012 | |||||
Not yet earning revenue (NYE) | 2,100 | 2,200 | 2,600 | (5)% | (19)% | ||||
No longer earning revenue (NLE): | |||||||||
Units held for sale | 9,600 | 9,200 | 9,200 | 4 | 4 | ||||
Other NLE units | 2,200 | 2,800 | 3,100 | (21) | (29) | ||||
Total | 13,900 | 14,200 | 14,900 | (2)% | (7)% |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Operating revenue: | |||||||||||||||||
Automotive | $ | 144,811 | 141,944 | $ | 293,438 | 281,658 | 2% | 4% | |||||||||
High-Tech | 81,984 | 77,982 | 159,774 | 158,324 | 5 | 1 | |||||||||||
Retail & CPG | 180,312 | 177,535 | 356,130 | 356,299 | 2 | — | |||||||||||
Industrial and other | 107,695 | 88,248 | 200,291 | 174,054 | 22 | 15 | |||||||||||
Total operating revenue (1) | 514,802 | 485,709 | 1,009,633 | 970,335 | 6 | 4 | |||||||||||
Subcontracted transportation | 82,375 | 84,545 | 164,023 | 171,832 | (3) | (5) | |||||||||||
Total revenue | $ | 597,177 | 570,254 | $ | 1,173,656 | 1,142,167 | 5% | 3% | |||||||||
Segment EBT | $ | 32,683 | 30,401 | $ | 56,494 | 52,272 | 8% | 8% | |||||||||
Segment EBT as a % of total revenue | 5.5 | % | 5.3 | % | 4.8 | % | 4.6 | % | 20 bps | 20 bps | |||||||
Segment EBT as a % of operating revenue (1) | 6.3 | % | 6.3 | % | 5.6 | % | 5.4 | % | — | 20 bps | |||||||
Memo: | |||||||||||||||||
Dedicated services total revenue | $ | 338,735 | 327,045 | $ | 663,500 | 655,390 | 4% | 1% | |||||||||
Dedicated services operating revenue (1) (2) | $ | 301,951 | 283,866 | $ | 593,100 | 565,942 | 6% | 5% | |||||||||
Average fleet | 12,000 | 11,600 | 11,900 | 11,500 | 3% | 3% | |||||||||||
Fuel costs (3) | $ | 66,937 | 63,797 | $ | 135,095 | 130,611 | 5% | 3% |
(1) | We use operating revenue and EBT as a percent of operating revenue, non-GAAP financial measures, to evaluate the operating performance of our SCS business segment and as a measure of sales activity and profitability. In SCS transportation management arrangements, we may act as a principal or as an agent in purchasing transportation on behalf of our customer. We record revenue on a gross basis when acting as principal and we record revenue on a net basis when acting as an agent. As a result, total revenue may fluctuate depending on our role in subcontracted transportation arrangements yet our profitability remains unchanged as we typically realize minimal profitability from subcontracting transportation. We deduct subcontracted transportation expense from SCS total revenue to arrive at SCS operating revenue, and from dedicated services total revenue to arrive at dedicated services operating revenue. |
(2) | Dedicated services operating revenue excludes dedicated subcontracted transportation as follows: $36.8 million and $43.2 million for the three months ended June 30, 2013 and 2012, respectively, and $70.4 million and $89.4 million for the six months ended June 30, 2013 and 2012, respectively. |
(3) | Fuel costs are largely a pass-through to customers and therefore have a direct impact on revenue. |
Three months ended June 30, 2013 | Six months ended June 30, 2013 | ||||||
Total | Operating | Total | Operating | ||||
Organic including price and volume | 6% | 6% | 4% | 4% | |||
Subcontracted transportation | (1) | — | (1) | — | |||
Total increase | 5% | 6% | 3% | 4% |
Three months ended June 30, | Six months ended June 30, | Change 2013/2012 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | Three Months | Six Months | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Human resources | $ | 4,345 | 5,306 | $ | 8,759 | 10,691 | (18)% | (18)% | |||||||||
Finance | 12,307 | 13,064 | 24,813 | 25,877 | (6) | (4) | |||||||||||
Corporate services and public affairs | 3,108 | 3,582 | 7,139 | 6,929 | (13) | 3 | |||||||||||
Information technology | 17,024 | 14,141 | 34,112 | 30,081 | 20 | 13 | |||||||||||
Health and safety | 2,008 | 1,922 | 3,939 | 4,037 | 4 | (2) | |||||||||||
Other | 13,329 | 10,688 | 24,693 | 19,654 | 25 | 26 | |||||||||||
Total CSS | 52,121 | 48,703 | 103,455 | 97,269 | 7 | 6 | |||||||||||
Allocation of CSS to business segments | (41,537 | ) | (37,510 | ) | (81,496 | ) | (76,570 | ) | 11 | 6 | |||||||
Unallocated CSS | $ | 10,584 | 11,193 | $ | 21,959 | 20,699 | (5)% | 6% |
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Net cash provided by (used in): | ||||||
Operating activities | $ | 563,777 | 472,021 | |||
Financing activities | 124,940 | 322,046 | ||||
Investing activities | (687,604 | ) | (825,047 | ) | ||
Effect of exchange rate changes on cash | 6,966 | 1,216 | ||||
Net change in cash and cash equivalents | $ | 8,079 | (29,764 | ) |
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Net cash provided by operating activities from continuing operations | $ | 563,777 | 472,021 | |||
Sales of revenue earning equipment | 225,749 | 194,907 | ||||
Sales of operating property and equipment | 3,296 | 4,381 | ||||
Collections on direct finance leases | 39,854 | 32,586 | ||||
Other, net | 8,173 | — | ||||
Sale and leaseback of revenue earning equipment | — | 130,184 | ||||
Total cash generated | 840,849 | 834,079 | ||||
Purchases of property and revenue earning equipment | (948,114 | ) | (1,203,985 | ) | ||
Free cash flow | $ | (107,265 | ) | (369,906 | ) |
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Revenue earning equipment: (1) | ||||||
Full service lease | $ | 777,508 | 785,827 | |||
Commercial rental | 171,210 | 499,553 | ||||
948,718 | 1,285,380 | |||||
Operating property and equipment | 39,785 | 31,595 | ||||
Total capital expenditures | 988,503 | 1,316,975 | ||||
Changes in accounts payable related to purchases of revenue earning equipment | (40,389 | ) | (112,990 | ) | ||
Cash paid for purchases of property and revenue earning equipment | $ | 948,114 | 1,203,985 |
(1) | Capital expenditures exclude non-cash additions of approximately $4.8 million and $0.6 million during the six months ended June 30, 2013 and 2012, respectively, in assets held under capital leases resulting from the extension of existing operating leases and other additions. |
Short-term | Long-term | ||||||
Rating | Outlook | Rating | Outlook | ||||
Moody’s Investors Service | P2 | Stable | Baa1 | Stable | |||
Standard & Poor’s Ratings Services | A2 | Stable | BBB | Stable | |||
Fitch Ratings | F2 | Stable | A- | Stable |
(In millions) | |
Global revolving credit facility | $361 |
Trade receivables program | $175 |
Six months ended June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Debt balance at January 1 | $ | 3,820,796 | 3,382,145 | |||
Cash-related changes in debt: | ||||||
Net change in commercial paper borrowings | 180,777 | 187,935 | ||||
Proceeds from issuance of medium-term notes | 249,723 | 349,444 | ||||
Proceeds from issuance of other debt instruments | 4,648 | 28,556 | ||||
Retirement of medium term notes | (250,000 | ) | (200,000 | ) | ||
Other debt repaid, including capital lease obligations | (70,862 | ) | (5,324 | ) | ||
114,286 | 360,611 | |||||
Non-cash changes in debt: | ||||||
Fair market value adjustment on notes subject to hedging | (6,367 | ) | (1,952 | ) | ||
Addition of capital lease obligations | 4,814 | 616 | ||||
Changes in foreign currency exchange rates and other non-cash items | (19,122 | ) | 4,228 | |||
Total changes in debt | 93,611 | 363,503 | ||||
Debt balance at June 30 | $ | 3,914,407 | 3,745,648 |
June 30, 2013 | % to Equity | December 31, 2012 | % to Equity | |||||||
(Dollars in thousands) | ||||||||||
On-balance sheet debt | $ | 3,914,407 | 253% | 3,820,796 | 260% | |||||
Off-balance sheet debt—PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (1) | 141,912 | 147,987 | ||||||||
Total obligations | $ | 4,056,319 | 262% | 3,968,783 | 270% |
(1) | Present value (PV) does not reflect payments Ryder would be required to make if we terminated the related leases prior to the scheduled expiration dates. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Total revenue | $ | 1,603,999 | 1,563,860 | $ | 3,167,016 | 3,100,136 | |||||||
FMS fuel services and SCS subcontracted transportation (1) | (351,106 | ) | (354,586 | ) | (708,498 | ) | (720,521 | ) | |||||
Fuel eliminations | 60,446 | 57,336 | 122,342 | 115,919 | |||||||||
Operating revenue | $ | 1,313,339 | 1,266,610 | $ | 2,580,860 | 2,495,534 |
(1) | Includes intercompany fuel sales. |
• | our expectations as to anticipated revenue and earnings in each business segment as well as future economic conditions and market demand, including revenue, demand and pricing in full service lease and commercial rental as well as the impact of new business on SCS revenue; |
• | our expectations of the long-term residual values of revenue earning equipment; |
• | our ability to sell certain revenue earning vehicles through the end of the year; |
• | the anticipated levels of NLE vehicles in inventory through the end of the year; |
• | the anticipated tax benefits of our like-kind exchange program; |
• | our expectations of operating cash flow, free cash flow and capital expenditures throughout 2013; |
• | the adequacy of our accounting estimates and reserves for pension expense, compensation expense and employee benefit plan obligations, depreciation and residual value guarantees and income taxes; |
• | the adequacy of our fair value estimates of employee incentive awards under our share-based compensation plans, contingent consideration, total debt and other debt; |
• | our beliefs regarding the default risk of our direct financing lease receivables |
• | our ability to fund all of our operating, investing and financial needs for the foreseeable future through internally generated funds and outside funding sources; |
• | the anticipated impact of fuel price fluctuations; |
• | our expectations as to return on pension plan assets, future pension expense and estimated contributions |
• | our expectations regarding the completion and ultimate resolution of tax audits; |
• | our expectations regarding the scope, anticipated outcomes and the adequacy of our loss provisions with respect to certain claims, proceedings and lawsuits; |
• | our ability to access commercial paper and other available debt financing in the capital markets; |
• | our expectations regarding the future use and availability of funding sources; and |
• | the anticipated impact of our decision to temporarily pause our share repurchase program. |
• | Market Conditions: |
| Changes in general economic and financial conditions in the U.S. and worldwide leading to decreased demand for our services, lower profit margins, increased levels of bad debt and reduced access to credit |
| Decrease in freight demand or setbacks in the recent recovery of the freight recession which would impact both our transactional and variable-based contractual business |
| Changes in our customers’ operations, financial condition or business environment that may limit their need for, or ability to purchase, our services |
| Decreases in market demand affecting the commercial rental market, as well as economic conditions in the U.K. |
| Fluctuations in market demand on the sale of used vehicles impacting our pricing and our anticipated proportion of retail versus wholesale sales |
| Volatility in automotive and high-tech volumes and shifting customer demand in the automotive and high-tech industries |
| Changes in current financial, tax or regulatory requirements that could negatively impact the leasing market |
• | Competition: |
| Advances in technology may require increased investments to remain competitive, and our customers may not be willing to accept higher prices to cover the cost of these investments |
| Competition from other service providers, some of which have greater capital resources or lower capital costs, or from our customers, who may choose to provide services themselves |
| Continued consolidation in the markets in which we operate which may create large competitors with greater financial resources |
| Our inability to maintain current pricing levels due to economic conditions, demand for services, customer acceptance or competition |
• | Profitability: |
| Our inability to obtain adequate profit margins for our services |
| Lower than expected sales volumes or customer retention levels |
| Our inability to integrate acquisitions as projected, achieve planned synergies, anticipate costs and liabilities or retain customers of companies we acquire |
| Lower full service lease sales activity |
| Loss of key customers in our SCS business segment |
| Our inability to adapt our product offerings to meet changing consumer preferences on a cost-effective basis |
| The inability of our legacy information technology systems to provide timely access to data |
| Sudden changes in fuel prices and fuel shortages |
| Higher prices for vehicles, diesel engines and fuel as a result of exhaust emissions standards enacted over the last few years |
| Higher than expected maintenance costs and lower than expected benefits associated with a younger fleet and recently implemented maintenance initiatives |
| Our inability to successfully implement our asset management initiatives |
| Our key assumptions and pricing structure of our SCS contracts prove to be invalid |
| Increased unionizing, labor strikes, work stoppages and driver shortages |
| Difficulties in attracting and retaining drivers due to driver shortages, which may result in higher costs to procure drivers and higher turnover rates affecting our customers |
| Our inability to manage our cost structure | ||
| Savings resulting from our company-wide savings initiatives are higher or lower than anticipated |
| Our inability to limit our exposure for customer claims |
| Unfavorable or unanticipated outcomes in legal proceedings or uncertain positions |
• | Financing Concerns: |
| Higher borrowing costs and possible decreases in available funding sources caused by an adverse change in our debt ratings |
| Unanticipated interest rate and currency exchange rate fluctuations |
| Negative funding status of our pension plans caused by lower than expected returns on invested assets and unanticipated changes in interest rates |
| Withdrawal liability as a result of our participation in multi-employer plans |
| Instability in U.S. and worldwide credit markets, resulting in higher borrowing costs and/or reduced access to credit |
• | Accounting Matters: |
| Impact of unusual items resulting from ongoing evaluations of business strategies, asset valuations, acquisitions, divestitures and our organizational structure |
| Reductions in residual values or useful lives of revenue earning equipment |
| Increases in compensation levels, retirement rate and mortality resulting in higher pension expense; regulatory changes affecting pension estimates, accruals and expenses |
| Increases in healthcare costs resulting in higher insurance costs |
| Changes in accounting rules, assumptions and accruals |
| Impact of actual insurance claim and settlement activity compared to historical loss development factors used to project future development |
• | Other risks detailed from time to time in our SEC filings |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares That May Yet Be Purchased Under the Anti-Dilutive Program (2) | |||||||||
April 1 through April 30, 2013 | 4,992 | $ | 58.53 | — | 1,456,077 | |||||||
May 1 through May 31, 2013 | 1,880 | 59.31 | — | 1,456,077 | ||||||||
June 1 through June 30, 2013 | 4,400 | 60.25 | — | 1,456,077 | ||||||||
Total | 11,272 | $ | 59.33 | — |
(1) | During the three months ended June 30, 2013, we purchased an aggregate of 11,272 shares of our common stock in employee-related transactions. Employee-related transactions may include: (i) shares of common stock delivered as payment for the exercise price of options exercised or to satisfy the option holders’ tax withholding liability associated with our share-based compensation programs and (ii) open-market purchases by the trustee of Ryder’s deferred compensation plans relating to investments by employees in our stock, one of the investment options available under the plans. |
(2) | 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. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management established prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2011 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. For the three months ended June 30, 2013, we did not repurchase any shares under the program. |
31.1 | Certification of Robert E. Sanchez pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
31.2 | Certification of Art A. Garcia pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
32 | Certification of Robert E. Sanchez and Art A. Garcia pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350. |
RYDER SYSTEM, INC. | ||
(Registrant) | ||
Date: July 23, 2013 | By: | /s/ Art A. Garcia |
Art A. Garcia | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer and Duly Authorized Officer) | ||
Date: July 23, 2013 | By: | /s/ Cristina A. Gallo-Aquino |
Cristina A. Gallo-Aquino | ||
Vice President and Controller (Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Ryder System, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 23, 2013 | /s/ Robert E. Sanchez |
Robert E. Sanchez Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Ryder System, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 23, 2013 | /s/ Art A. Garcia |
Art A. Garcia Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Robert E. Sanchez | |
Robert E. Sanchez Chairman, President and Chief Executive Officer | |
July 23, 2013 |
/s/ Art A. Garcia | |
Art A. Garcia Executive Vice President and Chief Financial Officer | |
July 23, 2013 |
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Revenue Earning Equipment
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Revenue Earning Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE EARNING EQUIPMENT | REVENUE EARNING EQUIPMENT
————————————
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 and six months ended June 30, 2013 by approximately $7.4 million and $14.9 million, respectively. |
Direct Financing Lease Receivables (Details 2) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Allowance for credit losses on direct financing lease receivables | ||
Beginning Balance | $ 703 | $ 903 |
Charged to earnings | (22) | 746 |
Deductions | (143) | (911) |
Ending Balance | $ 538 | $ 738 |
Recent Accounting Pronouncements (Notes)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS [Text Block] | (B) RECENT ACCOUNTING PRONOUNCEMENTS In July 2013, the Financial Accounting Standards Board (FASB) issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Other than the change in presentation within the Consolidated Balance Sheet, this accounting guidance will not have an impact on our consolidated financial position, results of operations or cash flows. |
Share Repurchase Programs
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Share Repurchase Programs [Abstract] | |
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 June 30, 2012, we repurchased and retired 233,500 shares under the program at an aggregate cost of $10.9 million. For the six months ended June 30, 2012, we repurchased and retired 456,700 shares under the program at an aggregate cost of $22.9 million. |
Share Repurchase Programs (Details) (USD $)
In Millions, 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]
|
Jun. 30, 2012
December Two Thousand Eleven Anti Dilutive Share Repurchase Program [Member] [Member]
|
Jun. 30, 2012
Common Stock [Member]
|
|
Accelerated Share Repurchases [Line Items] | ||||
Maximum number of share repurchases authorization | 2,000,000 | |||
Repurchased and retired shares | 233,500 | |||
Aggregate cost of repurchased and retired | $ 10.9 | |||
Maximum period of discretionary share repurchase program | 2 years |
Revenue Earning Equipment (Details Textuals) (USD $)
|
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Revenue Earning Equipment (Textuals) [Abstract] | |||
Cost | $ 9,473,236,000 | $ 9,473,236,000 | $ 9,269,518,000 |
Accumulated Depreciation | 3,485,433,000 | 3,485,433,000 | 3,514,910,000 |
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings | 7,400,000 | 14,900,000 | |
Assets Held under Capital Leases [Member]
|
|||
Revenue Earning Equipment (Textuals) [Abstract] | |||
Cost | 54,900,000 | 54,900,000 | 56,200,000 |
Accumulated Depreciation | $ 18,300,000 | $ 18,300,000 | $ 16,500,000 |
Goodwill
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
Purchase accounting adjustments primarily related to changes in the fair value of acquired revenue earning equipment. We did not adjust the December 31, 2012 balance sheet as the amounts are not material. We assess goodwill for impairment on April 1st of each year or more often if deemed necessary. In the second quarter of 2013, we completed our annual goodwill impairment test and determined there was no impairment. |
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Carrying amount of goodwill attributable to each reportable business segment | ||
Goodwill, Gross | $ 412,592 | $ 413,437 |
Accumulated impairment losses | (29,221) | (29,221) |
Goodwill | 383,371 | 384,216 |
Purchase accounting adjustments | 434 | |
Foreign currency translation adjustment | (1,279) | |
Fleet Management Solutions [Member]
|
||
Carrying amount of goodwill attributable to each reportable business segment | ||
Goodwill, Gross | 222,775 | 223,129 |
Accumulated impairment losses | (10,322) | (10,322) |
Goodwill | 212,453 | 212,807 |
Purchase accounting adjustments | 434 | |
Foreign currency translation adjustment | (788) | |
Supply Chain Solutions [Member]
|
||
Carrying amount of goodwill attributable to each reportable business segment | ||
Goodwill, Gross | 189,817 | 190,308 |
Accumulated impairment losses | (18,899) | (18,899) |
Goodwill | 170,918 | 171,409 |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustment | $ (491) |
Accrued Expenses and Other Liabilities (Tables)
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Jun. 30, 2013
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Accrued Expenses and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities |
———————————— (1) Insurance obligations are primarily comprised of self-insured claim liabilities. |
Other Items
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
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Other Items Impacting Comparability [Abstract] | |
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 six months ended June 30, 2013, we recognized a benefit of $1.9 million (before and after tax) from the recognition of the accumulated currency translation adjustment from a FMS foreign operation which has substantially liquidated its net assets. This benefit was recorded within “Miscellaneous income, net” in our Consolidated Condensed Statement of Earnings. |
Employee Benefit Plans
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost were as follows:
During the six months ended June 30, 2013, we contributed $24.1 million to our pension plans. In 2013, we expect total contributions to our pension plans to be approximately $66 million. |
Acquisitions (Details Textuals) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
Euroway Ltd. [Member]
|
Dec. 31, 2012
Euroway Ltd. [Member]
|
Jun. 30, 2013
Euroway Ltd. [Member]
|
Aug. 01, 2012
Euroway Ltd. [Member]
Vehicle
|
Jun. 30, 2013
Other Acquisitions Completed in Prior Years [Member]
|
Jun. 30, 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 | 350,000 | 1,420,000 | 2,426,000 | 1,200,000 | 1,420,000 | 2,426,000 | |||
Business Acquisition, Contingent Consideration, Potential Cash Payment | 500,000 | ||||||||
Goodwill | 6,500,000 | ||||||||
Customer relationship intangibles | $ 2,800,000 |
Restructuring and Other Charges (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring reserves | Activity related to restructuring reserves including discontinued operations was as follows:
|
Fair Value Measurements (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
————————————
|
Discontinued Operations (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations | Summarized results of discontinued operations were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of assets and liabilities of discontinued operations | The following is a summary of assets and liabilities of discontinued operations:
|
Fair Value Measurements (Details 1) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
|
Jun. 30, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trailers [Member]
|
Jun. 30, 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 | $ 28,297,000 | $ 16,937,000 | $ 11,132,000 | $ 9,992,000 | $ 16,283,000 | $ 6,361,000 | $ 882,000 | $ 584,000 | ||||||||||||||||||
Total Losses | 4,230,000 | 4,455,000 | 8,951,000 | 7,814,000 | 2,447,000 | 3,108,000 | 5,476,000 | 5,489,000 | 1,413,000 | 1,071,000 | 2,508,000 | 1,542,000 | 370,000 | 276,000 | 967,000 | 783,000 | ||||||||||||||||||||||||||
Fair Value Measurements (Textuals) (Abstract) | ||||||||||||||||||||||||||||||||||||||||||
Fair value of total debt | $ 4,000,000,000 | $ 3,990,000,000 |
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Financial information of business segments | ||||
Revenue from external customers | $ 1,603,999 | $ 1,563,860 | $ 3,167,016 | $ 3,100,136 |
Inter-segment revenue | 0 | 0 | 0 | 0 |
Total revenues | 1,603,999 | 1,563,860 | 3,167,016 | 3,100,136 |
Segment NBT | 112,945 | 99,806 | 190,168 | 165,879 |
Unallocated CSS | (10,584) | (11,193) | (21,959) | (20,699) |
Non-service pension costs | (4,999) | (7,702) | (10,243) | (15,706) |
Restructuring And Other Charges Net And Other Items | (7,142) | 1,904 | (8,007) | |
Earnings from continuing operations before income taxes | 97,362 | 73,769 | 159,870 | 121,467 |
Segment capital expenditures | 522,148 | 727,553 | 934,459 | 1,193,996 |
Unallocated CSS | 5,912 | 5,463 | 13,655 | 9,989 |
Capital expenditures paid | 528,060 | 733,016 | 948,114 | 1,203,985 |
Segment Reporting (Textuals) [Abstract] | ||||
Acquisitions | 350 | 1,420 | 2,426 | |
Fleet Management Solutions [Member]
|
||||
Financial information of business segments | ||||
Revenue from external customers | 1,006,822 | 993,606 | 1,993,360 | 1,957,969 |
Inter-segment revenue | 114,436 | 107,299 | 227,630 | 214,327 |
Total revenues | 1,121,258 | 1,100,905 | 2,220,990 | 2,172,296 |
Segment NBT | 88,667 | 76,651 | 149,412 | 127,334 |
Segment capital expenditures | 517,131 | 721,954 | 923,642 | 1,185,560 |
Supply Chain Solutions [Member]
|
||||
Financial information of business segments | ||||
Revenue from external customers | 597,177 | 570,254 | 1,173,656 | 1,142,167 |
Inter-segment revenue | 0 | 0 | 0 | 0 |
Total revenues | 597,177 | 570,254 | 1,173,656 | 1,142,167 |
Segment NBT | 32,683 | 30,401 | 56,494 | 52,272 |
Segment capital expenditures | 5,017 | 5,599 | 10,817 | 8,436 |
Eliminations [Member]
|
||||
Financial information of business segments | ||||
Revenue from external customers | 0 | 0 | 0 | 0 |
Inter-segment revenue | (114,436) | (107,299) | (227,630) | (214,327) |
Total revenues | (114,436) | (107,299) | (227,630) | (214,327) |
Segment NBT | (8,405) | (7,246) | (15,738) | (13,727) |
Segment capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | Components of net periodic benefit cost were as follows:
|
Employee Benefit Plans (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Employee Benefit Plans (Textuals) [Abstract] | ||||
Contribution to pension plans | $ 24,100,000 | |||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 66,000,000 | 66,000,000 | ||
Pension Benefits [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | 9,971,000 | 12,123,000 | 20,592,000 | 24,568,000 |
Postretirement Benefits [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | 560,000 | 638,000 | 1,158,000 | 1,411,000 |
Company Administered Plan [Member] | Pension Benefits [Member]
|
||||
Components of net periodic benefit cost | ||||
Service cost | 3,756,000 | 3,826,000 | 8,008,000 | 7,733,000 |
Interest Cost | 22,316,000 | 23,563,000 | 44,735,000 | 47,252,000 |
Expected Return on Plan Assets | 26,389,000 | 24,055,000 | 52,837,000 | 48,112,000 |
Amortization of: | ||||
Net actuarial loss (gain) | 8,685,000 | 7,726,000 | 17,565,000 | 15,587,000 |
Prior service credit | (443,000) | (567,000) | (909,000) | (1,136,000) |
Net periodic benefit cost | 7,925,000 | 10,493,000 | 16,562,000 | 21,324,000 |
Company Administered Plan [Member] | Pension Benefits U.S. [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | 8,152,000 | 9,643,000 | 16,893,000 | 19,491,000 |
Company Administered Plan [Member] | Pension Benefits Non-U.S. [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | (227,000) | 850,000 | (331,000) | 1,833,000 |
Company Administered Plan [Member] | Postretirement Benefits [Member]
|
||||
Components of net periodic benefit cost | ||||
Service cost | 230,000 | 227,000 | 493,000 | 547,000 |
Interest Cost | 392,000 | 475,000 | 787,000 | 989,000 |
Amortization of: | ||||
Net actuarial loss (gain) | (5,000) | (7,000) | (7,000) | (10,000) |
Prior service credit | (57,000) | (57,000) | (115,000) | (115,000) |
Net periodic benefit cost | 560,000 | 638,000 | 1,158,000 | 1,411,000 |
Company Administered Plan [Member] | Postretirement Benefits U.S [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | 402,000 | 519,000 | 808,000 | 1,071,000 |
Company Administered Plan [Member] | Postretirement Benefits Non-U.S [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | 158,000 | 119,000 | 350,000 | 340,000 |
Union Administered Plan [Member] | Pension Benefits [Member]
|
||||
Amortization of: | ||||
Net periodic benefit cost | $ 2,046,000 | $ 1,630,000 | $ 4,030,000 | $ 3,244,000 |
Accumulated Other Comprehensive Loss
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following summaries set forth the components of accumulated other comprehensive loss, net of tax:
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The loss from currency translation adjustments in 2013 of $50.0 million was due to the weakening of the British Pound and the Canadian Dollar compared to the U.S. Dollar. The currency translation adjustment in 2012 of $5.8 million reflects the strengthening of the British Pound against the U.S. Dollar. |
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (Parenthetical) (USD $)
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6 Months Ended |
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Jun. 30, 2013
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Cash dividends declared per common share | $ 0.62 |
Retained Earnings
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Cash dividends declared per common share | $ 0.62 |
Acquisitions
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6 Months Ended |
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Jun. 30, 2013
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Acquisitions [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | (C) ACQUISITIONS Euroway Ltd. — On August 1, 2012, we acquired all of the common stock of Euroway Ltd., a U.K.-based, full service leasing, rental and maintenance company for a purchase price of $2.4 million and assumed capital lease obligations and debt of $20.3 million. Approximately $1.2 million of the stock purchase price has been paid, and the majority of the capital lease obligations have been repaid as of June 30, 2013. The purchase price includes $0.5 million in contingent consideration to be paid to the seller provided certain conditions are met. As of June 30, 2013, the fair value of the contingent consideration has been reflected in “Accrued expenses and other current liabilities” in our Consolidated Condensed Balance Sheet. See Note (N), “Fair Value Measurements,” for additional information. The acquisition included Euroway's fleet of approximately 560 full service lease vehicles as well as 800 contract maintenance vehicles. As of June 30, 2013, goodwill and customer relationship intangibles related to the Euroway acquisition were $6.5 million and $2.8 million, respectively. The combined network operates under the Ryder name, complementing our FMS business segment coverage in the U.K. During the six months ended June 30, 2013 and June 30, 2012, we paid $1.4 million and $2.4 million, respectively, related to acquisitions completed in years prior to 2012. |
Interim Financial Statements
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6 Months Ended |
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. |
Derivatives (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table provides a detail of the swaps outstanding and the related hedged items as of June 30, 2013:
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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:
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Supplemental Cash Flow Information
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows:
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Share-Based Compensation Plans (Tables)
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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:
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Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
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Supplemental cash flow information | ||
Interest Paid | $ 67,545 | $ 64,060 |
Income taxes paid | 8,447 | 6,644 |
Changes in accounts payable related to purchases of revenue earning equipment | 40,389 | 112,990 |
Operating and revenue earning equipment acquired under capital leases | $ 4,814 | $ 616 |
Goodwill (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Other Items (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2013
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Other Items Impacting Comparability [Abstract] | |
Recognition of benefit from currency translation adjustment into income | $ 1,904 |
Revenue Earning Equipment (Details) (USD $)
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3 Months Ended | 6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2013
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Dec. 31, 2012
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Summary of revenue earning equipment | |||
Cost | $ 9,473,236,000 | $ 9,473,236,000 | $ 9,269,518,000 |
Accumulated Depreciation | (3,485,433,000) | (3,485,433,000) | (3,514,910,000) |
Net Book Value | 5,987,803,000 | 5,987,803,000 | 5,754,608,000 |
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings | 7,400,000 | 14,900,000 | |
Held for use: Full service lease [Member]
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Summary of revenue earning equipment | |||
Cost | 6,826,293,000 | 6,826,293,000 | 6,728,746,000 |
Accumulated Depreciation | (2,433,139,000) | (2,433,139,000) | (2,500,786,000) |
Net Book Value | 4,393,154,000 | 4,393,154,000 | 4,227,960,000 |
Held for use: Commercial rental [Member]
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Summary of revenue earning equipment | |||
Cost | 2,128,962,000 | 2,128,962,000 | 2,041,698,000 |
Accumulated Depreciation | (686,786,000) | (686,786,000) | (660,356,000) |
Net Book Value | 1,442,176,000 | 1,442,176,000 | 1,381,342,000 |
Held-for-sale [Member]
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Summary of revenue earning equipment | |||
Cost | 517,981,000 | 517,981,000 | 499,074,000 |
Accumulated Depreciation | (365,508,000) | (365,508,000) | (353,768,000) |
Net Book Value | $ 152,473,000 | $ 152,473,000 | $ 145,306,000 |