Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:

	Balance Sheet Location	Fair Value Measurements At March 31, 2014 Using				Total
		Level 1		Level 2	Level 3
		(In thousands)
Assets:
Interest rate swaps	Prepaid expenses and other current assets	$	—	2,509	—	2,509
Interest rate swaps	DFL and other assets	—		5,625	—	5,625
Investments held in Rabbi Trusts:
Cash and cash equivalents		3,719		—	—	3,719
U.S. equity mutual funds		20,005		—	—	20,005
Foreign equity mutual funds		4,383		—	—	4,383
Fixed income mutual funds		5,000		—	—	5,000
Investments held in Rabbi Trusts	DFL and other assets	33,107		—	—	33,107
Total assets at fair value		$	33,107	8,134	—	41,241
Liabilities:
Interest rate swaps	Other non-current liabilities	$	—	1,946	—	1,946
Total liabilities at fair value		$	—	1,946	—	1,946

	Balance Sheet Location	Fair Value Measurements At December 31, 2013 Using				Total
		Level 1		Level 2	Level 3
		(In thousands)
Assets:
Interest rate swaps	DFL and other assets	—		9,333	—	9,333
Investments held in Rabbi Trusts:
Cash and cash equivalents		7,101		—	—	7,101
U.S. equity mutual funds		16,479		—	—	16,479
Foreign equity mutual funds		4,323		—	—	4,323
Fixed income mutual funds		4,616		—	—	4,616
Investments held in Rabbi Trusts	DFL and other assets	32,519		—	—	32,519
Total assets at fair value		$	32,519	9,333	—	41,852
Liabilities:
Interest rate swaps	Other non-current liabilities	$	—	1,162	—	1,162
Total liabilities at fair value		$	—	1,162	—	1,162

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

Interest rate swaps — The derivatives are pay-variable, receive-fixed interest rate swaps based on the LIBOR rate and are designated as fair value hedges. Fair value was based on a model-driven income approach using the LIBOR rate at each interest payment date, which was observable at commonly quoted intervals for the full term of the swaps. Therefore, our interest rate swaps were classified within Level 2 of the fair value hierarchy.

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

The following tables present our assets and liabilities that are measured at fair value on a nonrecurring basis and the levels of inputs used to measure fair value:

	Fair Value Measurements At March 31, 2014 Using				Total Losses (2)
	Level 1		Level 2	Level 3	Three months  ended
	(In thousands)
Assets held for sale:
Revenue earning equipment: (1)
Trucks	$	—	—	11,928	$	1,882
Tractors	—		—	7,495	1,632
Trailers	—		—	742	161
Total assets at fair value	$	—	—	20,165	$	3,675

	Fair Value Measurements At March 31, 2013 Using				Total Losses (2)
	Level 1		Level 2	Level 3	Three months  ended
	(In thousands)
Assets held for sale:
Revenue earning equipment (1)
Trucks	$	—	—	13,229	$	3,029
Tractors	—		—	14,943	1,095
Trailers	—		—	989	597
Total assets at fair value	$	—	—	29,161	$	4,721

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(1) Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell.

(2) Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value was less than carrying value.

Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses to reflect changes in fair value are presented within “Other operating expenses” in the Consolidated Condensed Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (tractors, trucks and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value was determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Therefore, our revenue earning equipment held for sale was classified within Level 3 of the fair value hierarchy.

Fair value of total debt (excluding capital lease obligations) at March 31, 2014 and December 31, 2013 was approximately $4.45 billion and $4.28 billion, respectively. For publicly-traded debt, estimates of fair value were based on market prices. Since our publicly-traded debt is not actively traded, the fair value measurement was classified within Level 2 of the fair value hierarchy. For other debt, fair value was estimated based on a model-driven approach using rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Condensed Balance Sheets for “Cash and cash equivalents,” “Receivables, net” and “Accounts payable” approximate fair value because of the immediate or short-term maturities of these financial instruments.