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DEBT
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
 Weighted Average
Interest Rate		  
(Dollars in millions)
December 31, 2023December 31, 2022MaturitiesDecember 31,
2023		December 31,
2022
Debt:
U.S. commercial paper
5.68%4.61%2026$572 $672 
Trade receivables financing program5.87%5.14%202450 50 
Global revolving credit facility—%—%2026— — 
Unsecured U.S. obligations4.13%4.08%2024-2027375 375 
Unsecured medium-term note issued February 2018
—%3.40%2023— 450 
Unsecured medium-term note issued June 2018—%3.75%2023— 450 
Unsecured medium-term note issued October 2018—%3.88%2023— 300 
Unsecured medium-term note issued February 20193.65%3.65%2024600 600 
Unsecured medium-term note issued August 20192.50%2.50%2024550 550 
Unsecured medium-term note issued April 20204.63%4.63%2025400 400 
Unsecured medium-term note issued May 20203.35%3.35%2025400 400 
Unsecured medium-term note issued December 19956.95%6.95%2025150 150 
Unsecured medium-term note issued November 2021
6.15%5.29%2026300 300 
Unsecured medium-term note issued November 20192.90%2.90%2026400 400 
Unsecured medium-term note issued February 2022
4.50%3.57%2027450 450 
Unsecured medium-term note issued May 20224.30%4.30%2027300 300 
Unsecured medium-term note issued February 20235.65%—%2028500 — 
Unsecured medium-term note issued May 20235.25%—%2028650 — 
Unsecured medium-term note issued November 20236.30%—%2028400 — 
Unsecured medium-term note issued November 20236.60%—%2033600 — 
Unsecured foreign obligations2.88%2.88%202450 50 
Asset-backed U.S. obligations (1)
3.40%2.98%2024-2030382 477 
Finance lease obligations and other
2024-203149 42 
7,178 6,416 
Fair market value adjustment on medium-term notes (2)
(34)(46)
Debt issuance costs and original issue discounts(30)(18)
Total debt (3)
7,114 6,352 
Short-term debt and current portion of long-term debt(1,583)(1,349)
Long-term debt$5,531 $5,003 
_______________
(1)Asset-backed U.S. obligations are financing transactions backed by a portion of our revenue earning equipment.
(2)Included in "Other non-current liabilities" within the Consolidated Balance Sheets. The notional amount of the executed interest rate swaps designated as fair value hedges was $500 million as of both December 31, 2023 and December 31, 2022.
(3)The unsecured medium-term notes bear semi-annual interest.

The fair value of total debt (excluding finance lease and asset-backed U.S. obligations) was approximately $6.8 billion and $5.7 billion as of December 31, 2023 and 2022, 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
In November 2022, we entered into three term notes that mature on November 16, 2027, with aggregate principal amounts totaling $175 million, bearing annual interest rates ranging from 5.0% to 5.15%.
In 2022, we received $102 million from financing transactions backed by a portion of our revenue earning equipment. The proceeds from the transaction were used for general corporate purposes. We provided end of term guarantees for the residual value of the revenue earning equipment in the transaction. The transaction proceeds, along with the end of term residual value guarantees, have been included within "asset-backed U.S. obligations" in the preceding table.

The following table includes our debt proceeds and repayments in 2023:
(In millions)Debt ProceedsDebt Repayments
Medium-term notes (1)
$2,135 Medium-term notes$1,200 
U.S. and foreign term loans, finance lease obligations and other172 U.S. and foreign term loans, finance lease obligations and other281 
Total debt proceeds
$2,307 Total debt repaid$1,481 
_______________
(1)Proceeds from medium-term notes presented net of discount and issuance costs.
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 millions)
2024$1,569 
20251,089 
20261,347 
2027938 
20281,565 
Thereafter621 
Total7,129 
Finance lease obligations (Refer to Note 12, "Leases")
49 
Total long-term debt$7,178 

Global Revolving Credit Facility

We maintain a $1.4 billion global revolving credit facility, which supports U.S. and Canadian commercial paper programs, with a syndicate of eleven lending institutions and expires in December 2026. The agreement provides for annual facility fees which range from 7.0 to 17.5 basis points based on our long-term credit ratings. The annual facility fee is 10.0 basis points as of December 31, 2023. 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, 2023). At our option, the interest rate on borrowings under the credit facility is based on specific risk-free 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. As of December 31, 2023, there was $828 million 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 as well as currency translation adjustment as reported in our consolidated balance sheet. Consolidated Net Worth also adds 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 any potential non-cash FMS goodwill impairment charges, should they occur, up to a maximum amount. As of December 31, 2023, the ratio was 178%.
In April 2023, certain terms of our global revolving credit facility were amended. Pursuant to the amendment, among other items, (i) the definition of Consolidated Net Worth was revised to exclude impacts from our exit of the FMS U.K. business, (ii) LIBOR was replaced as an available benchmark interest rate with term secured overnight financing rate (SOFR), and (iii) the maximum absolute dollar amounts for our trade receivables financing program and asset-backed financings were removed and the percentage-based maximum amounts were substantially increased.

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.
Trade Receivables Financing Program

We maintain a $300 million 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. The credit facility has a commitment fee of 35 to 45 basis points dependent on the utilization of the credit facility, which includes both borrowings and letters of credit that are supported by the credit facility. Borrowings bear interest at a variable interest rate based on the 30-day term SOFR rate plus 90 basis points or the A1/P1 commercial paper yield rate plus 80 basis points. In April 2023, we extended the trade receivables financing program for an additional year to April 2024. As of December 31, 2023, the available proceeds under the program were $167 million, net of short-term borrowings of $50 million and issued letter of credit outstanding of $83 million. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectability 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.