DEBT

12 Months Ended

Dec. 31, 2020


	Weighted Average Interest Rate
	December 31, 2020	December 31, 2019	Maturities	December 31, 2020		December 31, 2019
				(In thousands)




Debt:
U.S. commercial paper	0.29%	1.99%	2023	$	214,375	$	511,486
Canadian commercial paper	0.62%	2.04%	2023	62,800		136,199
Trade receivables program	—%	—%	2021	—		—
Global revolving credit facility	1.25%	2.10%	2023	200		8,104
Unsecured U.S. obligations	3.47%	2.79%	2024	200,000		200,000
Unsecured U.S. notes — Medium-term notes (1)	3.41%	3.17%	2021-2026	5,174,180		5,970,462
Unsecured foreign obligations	1.82%	2.18%	2021-2024	254,259		270,719
Asset-backed U.S. obligations (2)	2.53%	2.50%	2021-2026	682,383		807,374
Finance lease obligations and other			2021-2073	48,418		51,717
				6,636,615		7,956,061
Debt issuance costs and original issue discounts				(26,379)		(31,273)
Total debt				6,610,236		7,924,788
Short-term debt and current portion of long-term debt				(516,581)		(1,154,564)
Long-term debt				$	6,093,655	$	6,770,224

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(1)Includes the impact from the fair market values of hedging instruments on our notes, which were not material as of both December 31, 2020 and December 31, 2019. The notional amount of the executed interest rate swaps designated as fair value hedges was $150 million and $525 million as of December 31, 2020 and December 31, 2019, respectively.

(2)Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment.

The fair value of total debt (excluding finance lease and asset-backed U.S. obligations) was approximately $6.3 billion and $7.0 billion as of December 31, 2020 and 2019, respectively. For publicly-traded debt, estimates of fair value were based on market prices. 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. The fair value measurements of our publicly-traded debt and our other debt were classified within Level 2 of the fair value hierarchy.

Debt Proceeds and Repayments

The following table includes our debt proceeds and repayments in 2020:




Debt Proceeds			Debt Repayments
(In thousands)
Medium-term notes	$	799,648	Medium-term notes	$	1,600,000
Global revolving credit facility	327,846		Global revolving credit facility	333,912
Trade receivables program	300,000		Trade receivables program	300,000
U.S. and foreign term loans and other	656,849		U.S. and foreign term loan, finance lease obligations, and other repayments	821,468

Total debt proceeds	$	2,084,343	Total debt repaid	$	3,055,380

Debt repayments included $600 million of medium-term notes that were redeemed early in the fourth quarter that were previously set to mature in 2021. We recorded $9 million of expenses related to the early redemption of these notes in "Interest Expense" on the Statements of Earnings. Debt proceeds were used to repay maturing debt and for general corporate purposes. If the unsecured medium-term notes are downgraded below investment grade following, or as a result of, a change in control, the note holders can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal value plus accrued and unpaid interest.

Contractual maturities of total debt, excluding finance lease obligations, are as follows:



Years ending December 31	(In thousands)
2021	$	503,480
2022	1,346,560
2023	1,678,976
2024	1,511,757
2025	1,085,897
Thereafter	461,527
Total	6,588,197
Finance lease obligations (Refer to Note 11)	48,418


Total long-term debt	$	6,636,615

Global Revolving Credit Facility

We maintain a $1.4 billion global revolving credit facility, which includes U.S. and Canadian commercial paper programs, with a syndicate of eleven lending institutions and matures in September 2023. The agreement provides for annual facility fees which range from 7.5 to 20 based on our long-term credit ratings. The annual facility fee is 15 basis points as of December 31, 2020. The credit facility is primarily used to finance working capital and vehicle purchases, but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility as of December 31, 2020). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The credit facility contains no provisions limiting its availability in the event of a material adverse change to our business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions, and certain affirmative and negative covenants. In the fourth quarter of 2020, we amended our revolving credit facility to address various administrative matters. As of December 31, 2020, there was $1.1 billion available under the credit facility.

In order to maintain availability of funding, we must maintain a ratio of debt to Consolidated Net Worth of less than or equal to 300%. Consolidated Net Worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. In 2020, Consolidated Net Worth was amended to also (1) exclude currency translation adjustment as reported in our consolidated balance sheet; (2) add back the after-tax charge to shareholders' equity which resulted from our adoption of the new lease accounting standard as of December 31, 2018 (amortized quarterly to 50% of the charge over a 7 year period); and (3) add back any potential non-cash FMS North America goodwill impairment charges, should they occur, up to a maximum amount. As of December 31, 2020, the ratio was 195%.

Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Short-term commercial paper obligations are classified as long-term as we have both the intent and ability to refinance on a long-term basis. Starting in 2020, we have reflected all contractual maturities due within the next twelve months in the current portion of long-term debt even though we may refinance these obligations on a long-term basis and have the ability to do so under our revolving credit facility. As of December 31, 2019, we classified $227 million of short-term commercial paper, $400 million of the current portion of long-term debt and $201 million of short-term debt as long-term debt as we had the intent and ability to refinance the current portion of these long-term debt on a long-term basis.

Trade Receivables Program

We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership

interest in certain of these accounts receivable to a committed purchaser. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. In February 2020, we increased the amount of maximum available proceeds from $225 million to $300 million. In April 2020, we extended the maturity of the trade receivables program to April 2021. As of December 31, 2020, the available proceeds under the program were $300 million. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets.