Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Pension expense from continuing operations

Pension expense from continuing operations was as follows:

	Years ended December 31,
	2016			2015		2014
	(In thousands)
Company-administered plans:
Service cost	$	12,977		13,820		13,023
Interest cost	94,476			88,013		100,909
Expected return on plan assets	(90,588		)	(98,892	)	(115,410	)
Pension lump sum settlement expense	—			—		97,231
Amortization of:
Net actuarial loss	31,777			30,741		23,573
Prior service loss (credit)	2,976			(306	)	(1,788	)
	51,618			33,376		117,538
Union-administered plans	9,597			8,328		21,118
Net pension expense	$	61,215		41,704		138,656
Company-administered plans:
U.S.	$	53,319		34,986		118,797
Foreign	(1,701		)	(1,610	)	(1,259	)
	51,618			33,376		117,538
Union-administered plans	9,597			8,328		21,118
	$	61,215		41,704		138,656

Summary of weighted-average actuarial assumptions

The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense:

	U.S. Plans Years ended December 31,			Foreign Plans Years ended December 31,
	2016	2015	2014	2016	2015	2014
Discount rate	4.50%	4.15%	5.00%	3.70%	3.70%	4.57%
Rate of increase in compensation levels	3.00%	3.00%	3.00%	3.10%	3.10%	3.09%
Expected long-term rate of return on plan assets	5.85%	5.95%	6.50%	5.44%	5.50%	5.94%
Gain and loss amortization period (years)	23	23	23	27	27	27

The following table sets forth the weighted-average actuarial assumptions used in determining funded status:

	U.S. Plans December 31,		Foreign Plans December 31,
	2016	2015	2016	2015
Discount rate	4.20%	4.50%	3.90%	4.00%
Rate of increase in compensation levels	3.00%	3.00%	3.10%	3.10%

Summary of benefit obligations, assets and funded status

The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:

	December 31,
	2016			2015
	(In thousands)
Change in benefit obligations:
Benefit obligations at January 1	$	2,091,844		2,221,115
Service cost	12,977			13,820
Interest cost	94,476			88,013
Actuarial loss (gain)	189,523			(98,996	)
Benefits paid	(96,723		)	(98,528	)
Foreign currency exchange rate changes	(63,335		)	(33,580	)
Benefit obligations at December 31	2,228,762			2,091,844
Change in plan assets:
Fair value of plan assets at January 1	1,647,286			1,775,417
Actual return on plan assets	176,066			(29,024	)
Employer contribution	127,991			33,746
Benefits paid	(96,723		)	(98,528	)
Foreign currency exchange rate changes	(67,545		)	(34,325	)
Fair value of plan assets at December 31	1,787,075			1,647,286
Funded status	$	(441,687	)	(444,558	)
Funded percent	80		%	79	%

Amounts recognized in the Consolidated Balance Sheets

The funded status of our pension plans was presented in the Consolidated Balance Sheets as follows:

	December 31,
	2016			2015
	(In thousands)
Noncurrent asset	$	14,049		44,124
Current liability	(3,796		)	(3,790	)
Noncurrent liability	(451,940		)	(484,892	)
Net amount recognized	$	(441,687	)	(444,558	)

Amounts recognized in accumulated other comprehensive loss (pre-tax)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:

	December 31,
	2016		2015
	(In thousands)
Prior service credit	$	11,714	—
Net actuarial loss	961,010		905,944
Net amount recognized	$	972,724	905,944

Summary of pension obligations greater than fair value of related plan assets

At December 31, 2016 and 2015, our accumulated benefit obligations, as well as, our pension obligations (accumulated benefit obligations (ABO), and projected benefit obligations (PBO)), greater than the fair value of the related plan assets for our U.S. and foreign plans were as follows:

	U.S. Plans December 31,			Foreign Plans December 31,		Total December 31,
	2016		2015	2016	2015	2016	2015
	(In thousands)
Total accumulated benefit obligations	$	1,748,171	1,640,844	454,301	423,555	2,202,472	2,064,399
Plans with pension obligations in excess of plan assets:
PBO	1,771,968		1,671,949	7,383	7,916	1,779,351	1,679,865
ABO	1,748,171		1,640,844	5,997	6,793	1,754,168	1,647,637
Fair value of plan assets	1,323,751		1,191,182	—	—	1,323,751	1,191,182

Fair value of each major category of pension plan assets and the level of inputs used to measure fair value

The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2016 and 2015:

	Fair Value Measurements at December 31, 2016
Asset Category	Total		Level 1	Level 2	Level 3
	(In thousands)
Equity securities:
U.S. common collective trusts	$	429,456	—	429,456	—
Foreign common collective trusts	398,282		—	398,282	—
Fixed income securities:
Corporate bonds	76,086		—	76,086	—
Common collective trusts	780,367		—	780,367	—
Private equity and hedge funds	102,884		—	—	102,884
Total	$	1,787,075	—	1,684,191	102,884

	Fair Value Measurements at December 31, 2015
Asset Category	Total		Level 1	Level 2	Level 3
	(In thousands)
Equity securities:
U.S. common collective trusts	$	387,123	—	387,123	—
Foreign common collective trusts	374,858		—	374,858	—
Fixed income securities:
Corporate bonds	64,834		—	64,834	—
Common collective trusts	719,840		—	719,840	—
Private equity and hedge funds	100,631		—	—	100,631
Total	$	1,647,286	—	1,546,655	100,631

Summary of changes in fair value of the pension plans Level 3 assets

The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2016 and 2015:

	2016		2015
	(In thousands)
Beginning balance at January 1	$	100,631	89,727
Return on plan assets:
Relating to assets still held at the reporting date	1,548		5,399
Relating to assets sold during the period	703		226
Purchases, sales, settlements and expenses	2		5,279
Ending balance at December 31	$	102,884	100,631

Pension benefits expected to be paid

The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:

	(In thousands)
2017	$	102,378
2018	105,256
2019	109,348
2020	113,471
2021	117,724
2022-2026	633,451

Schedule of multi-employer plan

Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded.

		Pension Protection Act Zone Status			Ryder Contributions							Expiration Date(s) of Collective-Bargaining Agreement(s)
Pension Fund	Employer Identification Number	2016	2015	FIP/RP Status Pending/ Implemented (1)	2016			2015		2014	Surcharge Imposed
					(Dollars in thousands)
Western Conference Teamsters	91-6145047	Green	Green	No	$	2,613		2,430		2,315	No	1/12/18 to 4/1/21
IAM National	51-6031295	Green	Green	No	4,162			3,801		3,311	No	3/31/17 to 11/30/19
Automobile Mechanics Local No. 701	36-6042061	Yellow	Red	RP Adopted	2,201			1,902		1,632	Yes	10/31/17 to 5/31/19
Central States Southeast and Southwest Areas	36-6044243	Red	Red	RP Adopted	259			254		211	Yes	5/6/17 to 10/31/17
Other funds					501			450		1,085
Total contributions					9,736			8,837		8,554
Pension settlement (benefit) charges					(139		)	(509	)	12,564
Union-administered plans					$	9,597		8,328		21,118

_____________ 

(1) The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented.

Weighted-average discount rates used in determining annual postretirement benefit expense

The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense:

	U.S. Plan Years ended December 31,			Foreign Plan Years ended December 31,
	2016	2015	2014	2016	2015	2014
Discount rate	4.50%	4.15%	5.00%	4.00%	4.00%	4.80%

Other Postretirement Benefits

Defined Benefit Plan Disclosure [Line Items]

Pension expense from continuing operations

Total postretirement benefit income was as follows:

	Years ended December 31,
	2016			2015		2014
	(In thousands)
Service cost	$	215		363		446
Interest cost	906			1,097		1,421
Amortization of:
Net actuarial gain	(1,989		)	(1,773	)	(725	)
Prior service credit	(231		)	(1,083	)	(2,459	)
Postretirement benefit income	$	(1,099	)	(1,396	)	(1,317	)
U.S.	$	(1,429	)	(1,887	)	(1,839	)
Foreign	330			491		522
	$	(1,099	)	(1,396	)	(1,317	)

Summary of weighted-average actuarial assumptions

Assumptions used in determining accrued postretirement benefit obligations were as follows:

	U.S. Plan December 31,				Foreign Plan December 31,
	2016		2015		2016		2015
Discount rate	4.50	%	4.50	%	3.90	%	4.00	%
Rate of increase in compensation levels	3.00	%	3.00	%	3.00	%	3.00	%
Healthcare cost trend rate assumed for next year	7.50	%	6.75	%	5.00	%	5.50	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.00	%	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		2023		2018		2017

Amounts recognized in the Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets consisted of:

	December 31,
	2016		2015
	(In thousands)
Current liability	$	1,506	1,624
Noncurrent liability	19,459		20,002
Amount recognized	$	20,965	21,626

Amounts recognized in accumulated other comprehensive loss (pre-tax)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:

	December 31,
	2016			2015
	(In thousands)
Prior service credit	$	(385	)	(616	)
Net actuarial gain	(10,186		)	(11,825	)
Net amount recognized	$	(10,571	)	(12,441	)

Pension benefits expected to be paid

The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:

	(In thousands)
2017	$	1,521
2018	1,513
2019	1,502
2020	1,478
2021	1,496
2022-2026	6,923

Benefit obligations associated with postretirement benefit plans

The following table sets forth the benefit obligations associated with our postretirement benefit plans:

	December 31,
	2016			2015
	(In thousands)
Benefit obligations at January 1	$	21,626		29,001
Service cost	215			363
Interest cost	906			1,097
Actuarial gain	(338		)	(6,164	)
Benefits paid	(1,609		)	(1,468	)
Foreign currency exchange rate changes	165			(1,203	)
Benefit obligations at December 31	$	20,965		21,626