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Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Pre-tax loss from discontinued operations | $ | (955 | ) | (901 | ) | |
Income tax benefit | 89 | 23 | ||||
Loss from discontinued operations, net of tax | $ | (866 | ) | (878 | ) |
March 31, 2014 | December 31, 2013 | |||||
(In thousands) | ||||||
Total assets, primarily deposits | $ | 3,541 | 3,627 | |||
Total liabilities, primarily contingent accruals | $ | 4,477 | 4,501 |
|
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value(1) | Cost | Accumulated Depreciation | Net Book Value(1) | ||||||||||||||
(In thousands) | |||||||||||||||||||
Held for use: | |||||||||||||||||||
Full service lease | $ | 7,579,461 | (2,531,559 | ) | 5,047,902 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | |||||||||
Commercial rental | 2,309,828 | (781,005 | ) | 1,528,823 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||
Held for sale | 385,718 | (274,467 | ) | 111,251 | 439,983 | (311,742 | ) | 128,241 | |||||||||||
Total | $ | 10,275,007 | (3,587,031 | ) | 6,687,976 | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 |
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $53.9 million, less accumulated depreciation of $22.7 million, at March 31, 2014, and $54.2 million, less accumulated depreciation of $22.0 million, at December 31, 2013. |
|
Fleet Management Solutions | Supply Chain Solutions | Total | |||||||
(In thousands) | |||||||||
Balance at January 1, 2014: | |||||||||
Goodwill | $ | 223,204 | 189,736 | 412,940 | |||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||
212,882 | 170,837 | 383,719 | |||||||
Foreign currency translation adjustments | (202 | ) | (317 | ) | (519 | ) | |||
Balance at March 31, 2014: | |||||||||
Goodwill | 223,002 | 189,419 | 412,421 | ||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||
$ | 212,680 | 170,520 | 383,200 |
|
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | |||||||||||||
(In thousands) | ||||||||||||||||||
Salaries and wages | $ | 69,064 | — | 69,064 | 106,281 | — | 106,281 | |||||||||||
Deferred compensation | 2,790 | 32,097 | 34,887 | 2,505 | 31,896 | 34,401 | ||||||||||||
Other employee benefits | 4,646 | 4,200 | 8,846 | 3,809 | 6,712 | 10,521 | ||||||||||||
Pension benefits | 3,582 | 293,074 | 296,656 | 3,660 | 292,155 | 295,815 | ||||||||||||
Other postretirement benefits | 2,405 | 28,200 | 30,605 | 2,414 | 28,374 | 30,788 | ||||||||||||
Insurance obligations (1) | 130,734 | 187,307 | 318,041 | 125,835 | 186,700 | 312,535 | ||||||||||||
Accrued rent | 7,198 | 2,721 | 9,919 | 4,373 | 3,372 | 7,745 | ||||||||||||
Environmental liabilities | 4,416 | 8,853 | 13,269 | 4,515 | 8,548 | 13,063 | ||||||||||||
Asset retirement obligations | 5,851 | 19,834 | 25,685 | 6,144 | 19,403 | 25,547 | ||||||||||||
Operating taxes | 100,519 | — | 100,519 | 94,188 | — | 94,188 | ||||||||||||
Income taxes | 2,566 | 24,682 | 27,248 | 2,623 | 23,813 | 26,436 | ||||||||||||
Interest | 25,600 | — | 25,600 | 33,654 | — | 33,654 | ||||||||||||
Deposits, mainly from customers | 56,156 | 6,240 | 62,396 | 55,854 | 6,239 | 62,093 | ||||||||||||
Deferred revenue | 15,013 | — | 15,013 | 15,123 | — | 15,123 | ||||||||||||
Other | 35,457 | 10,073 | 45,530 | 35,359 | 9,093 | 44,452 | ||||||||||||
Total | $ | 465,997 | 617,281 | 1,083,278 | 496,337 | 616,305 | 1,112,642 |
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|
Weighted-Average Interest Rate | ||||||||||||
March 31, 2014 | December 31, 2013 | Maturities | March 31, 2014 | December 31, 2013 | ||||||||
(In thousands) | ||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||
Short-term debt | 1.02% | 1.70% | 2014 | $ | 1,590 | 1,315 | ||||||
Current portion of long-term debt, including capital leases | 399,256 | 258,123 | ||||||||||
Total short-term debt and current portion of long-term debt | 400,846 | 259,438 | ||||||||||
Long-term debt: | ||||||||||||
U.S. commercial paper (1) | 0.26% | 0.28% | 2018 | 640,940 | 486,939 | |||||||
Canadian commercial paper (1) | —% | 1.13% | 2018 | — | 11,297 | |||||||
Global revolving credit facility | 3.00% | —% | 2018 | 16,290 | — | |||||||
Unsecured U.S. notes — Medium-term notes (1) | 3.44% | 3.76% | 2015-2025 | 3,371,707 | 3,271,734 | |||||||
Unsecured U.S. obligations, principally bank term loans | 1.45% | 1.45% | 2015-2018 | 55,500 | 55,500 | |||||||
Unsecured foreign obligations | 1.99% | 1.99% | 2015-2016 | 315,681 | 315,558 | |||||||
Capital lease obligations | 3.78% | 3.81% | 2014-2019 | 38,701 | 38,911 | |||||||
Total before fair market value adjustment | 4,438,819 | 4,179,939 | ||||||||||
Fair market value adjustment on notes subject to hedging (2) | 6,188 | 8,171 | ||||||||||
4,445,007 | 4,188,110 | |||||||||||
Current portion of long-term debt, including capital leases | (399,256 | ) | (258,123 | ) | ||||||||
Long-term debt | 4,045,751 | 3,929,987 | ||||||||||
Total debt | $ | 4,446,597 | 4,189,425 |
(1) | We had unamortized original issue discounts of $8.4 million and $8.3 million at March 31, 2014 and December 31, 2013, respectively. |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $500 million and $400 million at March 31, 2014 and December 31, 2013, respectively. |
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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 |
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 |
(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 March 31, | ||||||||
Issuance date | 2014 | 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.28% | 1.41% | ||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.44% | 1.62% | ||||||
November 2013 | November 2018 | $300,000 | $100,000 | 2.45% | 1.19% | —% | ||||||
February 2014 | June 2019 | $350,000 | $100,000 | 2.55% | 1.10% | —% |
Fair Value Hedging Relationship | Location of Gain (Loss) Recognized in Income | Three months ended March 31, | |||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Derivatives: Interest rate swaps | Interest expense | $ | (1,983 | ) | (2,781 | ) | |||
Hedged items: Fixed-rate debt | Interest expense | 1,983 | 2,781 | ||||||
Total | $ | — | — |
|
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2013 | $ | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||
Amortization | — | 3,807 | (680 | ) | 3,127 | ||||||||
Current period change | (14,592 | ) | — | — | (14,592 | ) | |||||||
March 31, 2014 | $ | 21,283 | (474,076 | ) | 3,080 | (449,713 | ) |
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2012 | $ | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||
Amortization | — | 5,754 | (335 | ) | 5,419 | ||||||||
Current period change | (33,704 | ) | — | — | (33,704 | ) | |||||||
March 31, 2013 | $ | 24,156 | (642,359 | ) | 2,299 | (615,904 | ) |
(1) | These amounts are included in the computation of net periodic pension cost. See Note (O), "Employee Benefit Plans," for further information. |
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Pension Benefits | Postretirement Benefits | ||||||||||||
Three months ended March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 3,423 | 4,252 | $ | 135 | 263 | |||||||
Interest cost | 25,561 | 22,419 | 365 | 395 | |||||||||
Expected return on plan assets | (28,718 | ) | (26,448 | ) | — | — | |||||||
Amortization of: | |||||||||||||
Net actuarial loss (credit) | 6,235 | 8,880 | (129 | ) | (2 | ) | |||||||
Prior service credit | (458 | ) | (466 | ) | (615 | ) | (58 | ) | |||||
6,043 | 8,637 | (244 | ) | 598 | |||||||||
Union-administered plans | 2,091 | 1,984 | — | — | |||||||||
Net periodic benefit cost | $ | 8,134 | 10,621 | $ | (244 | ) | 598 | ||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 6,287 | 8,741 | $ | (397 | ) | 406 | ||||||
Non-U.S. | (244 | ) | (104 | ) | 153 | 192 | |||||||
6,043 | 8,637 | (244 | ) | 598 | |||||||||
Union-administered plans | 2,091 | 1,984 | — | — | |||||||||
$ | 8,134 | 10,621 | $ | (244 | ) | 598 | |||||||
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Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Interest paid | $ | 41,180 | 45,425 | |||
Income taxes paid | 1,534 | 3,721 | ||||
Changes in accounts payable related to purchases of revenue earning equipment | 16,918 | 29,381 | ||||
Operating and revenue earning equipment acquired under capital leases | 2,245 | 458 |
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FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the three months ended March 31, 2014 | |||||||||||||
Revenue from external customers | $ | 1,013,396 | 597,341 | — | 1,610,737 | ||||||||
Inter-segment revenue | 121,691 | — | (121,691 | ) | — | ||||||||
Total revenue | $ | 1,135,087 | 597,341 | (121,691 | ) | 1,610,737 | |||||||
Segment EBT | $ | 76,991 | 21,784 | (9,628 | ) | 89,147 | |||||||
Unallocated CSS | (10,829 | ) | |||||||||||
Non-operating pension costs | (3,314 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 75,004 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 568,239 | 3,872 | — | 572,111 | ||||||||
Unallocated CSS | 6,611 | ||||||||||||
Capital expenditures paid | $ | 578,722 | |||||||||||
For the three months ended March 31, 2013 | |||||||||||||
Revenue from external customers | $ | 986,538 | 576,479 | — | 1,563,017 | ||||||||
Inter-segment revenue | 113,194 | — | (113,194 | ) | — | ||||||||
Total revenue | $ | 1,099,732 | 576,479 | (113,194 | ) | 1,563,017 | |||||||
Segment EBT | $ | 60,745 | 24,436 | (7,958 | ) | 77,223 | |||||||
Unallocated CSS | (11,375 | ) | |||||||||||
Non-operating pension costs | (5,244 | ) | |||||||||||
Restructuring and other charges, net and other items | 1,904 | ||||||||||||
Earnings from continuing operations before income taxes | $ | 62,508 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 406,511 | 5,800 | — | 412,311 | ||||||||
Unallocated CSS | 7,743 | ||||||||||||
Capital expenditures paid | $ | 420,054 |
(1) | Excludes revenue earning equipment acquired under capital leases. |
(2) | Excludes acquisition payments of $1.6 million and $1.4 million during the three months ended March 31, 2014, and 2013, respectively. |
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Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Contract settlement | $ | 2,908 | — | |||
Gains on sales of operating property and equipment | 1,304 | 273 | ||||
Foreign currency translation benefit (1) | — | 1,904 | ||||
Rabbi trust investment income | 500 | 1,459 | ||||
Other, net | 670 | 934 | ||||
Total | $ | 5,382 | 4,570 |
|
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Pre-tax loss from discontinued operations | $ | (955 | ) | (901 | ) | |
Income tax benefit | 89 | 23 | ||||
Loss from discontinued operations, net of tax | $ | (866 | ) | (878 | ) |
March 31, 2014 | December 31, 2013 | |||||
(In thousands) | ||||||
Total assets, primarily deposits | $ | 3,541 | 3,627 | |||
Total liabilities, primarily contingent accruals | $ | 4,477 | 4,501 |
|
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
Cost | Accumulated Depreciation | Net Book Value(1) | Cost | Accumulated Depreciation | Net Book Value(1) | ||||||||||||||
(In thousands) | |||||||||||||||||||
Held for use: | |||||||||||||||||||
Full service lease | $ | 7,579,461 | (2,531,559 | ) | 5,047,902 | $ | 7,436,093 | (2,537,077 | ) | 4,899,016 | |||||||||
Commercial rental | 2,309,828 | (781,005 | ) | 1,528,823 | 2,210,863 | (747,283 | ) | 1,463,580 | |||||||||||
Held for sale | 385,718 | (274,467 | ) | 111,251 | 439,983 | (311,742 | ) | 128,241 | |||||||||||
Total | $ | 10,275,007 | (3,587,031 | ) | 6,687,976 | $ | 10,086,939 | (3,596,102 | ) | 6,490,837 |
(1) | Revenue earning equipment, net includes vehicles acquired under capital leases of $53.9 million, less accumulated depreciation of $22.7 million, at March 31, 2014, and $54.2 million, less accumulated depreciation of $22.0 million, at December 31, 2013. |
|
Fleet Management Solutions | Supply Chain Solutions | Total | |||||||
(In thousands) | |||||||||
Balance at January 1, 2014: | |||||||||
Goodwill | $ | 223,204 | 189,736 | 412,940 | |||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||
212,882 | 170,837 | 383,719 | |||||||
Foreign currency translation adjustments | (202 | ) | (317 | ) | (519 | ) | |||
Balance at March 31, 2014: | |||||||||
Goodwill | 223,002 | 189,419 | 412,421 | ||||||
Accumulated impairment losses | (10,322 | ) | (18,899 | ) | (29,221 | ) | |||
$ | 212,680 | 170,520 | 383,200 |
|
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | |||||||||||||
(In thousands) | ||||||||||||||||||
Salaries and wages | $ | 69,064 | — | 69,064 | 106,281 | — | 106,281 | |||||||||||
Deferred compensation | 2,790 | 32,097 | 34,887 | 2,505 | 31,896 | 34,401 | ||||||||||||
Other employee benefits | 4,646 | 4,200 | 8,846 | 3,809 | 6,712 | 10,521 | ||||||||||||
Pension benefits | 3,582 | 293,074 | 296,656 | 3,660 | 292,155 | 295,815 | ||||||||||||
Other postretirement benefits | 2,405 | 28,200 | 30,605 | 2,414 | 28,374 | 30,788 | ||||||||||||
Insurance obligations (1) | 130,734 | 187,307 | 318,041 | 125,835 | 186,700 | 312,535 | ||||||||||||
Accrued rent | 7,198 | 2,721 | 9,919 | 4,373 | 3,372 | 7,745 | ||||||||||||
Environmental liabilities | 4,416 | 8,853 | 13,269 | 4,515 | 8,548 | 13,063 | ||||||||||||
Asset retirement obligations | 5,851 | 19,834 | 25,685 | 6,144 | 19,403 | 25,547 | ||||||||||||
Operating taxes | 100,519 | — | 100,519 | 94,188 | — | 94,188 | ||||||||||||
Income taxes | 2,566 | 24,682 | 27,248 | 2,623 | 23,813 | 26,436 | ||||||||||||
Interest | 25,600 | — | 25,600 | 33,654 | — | 33,654 | ||||||||||||
Deposits, mainly from customers | 56,156 | 6,240 | 62,396 | 55,854 | 6,239 | 62,093 | ||||||||||||
Deferred revenue | 15,013 | — | 15,013 | 15,123 | — | 15,123 | ||||||||||||
Other | 35,457 | 10,073 | 45,530 | 35,359 | 9,093 | 44,452 | ||||||||||||
Total | $ | 465,997 | 617,281 | 1,083,278 | 496,337 | 616,305 | 1,112,642 |
|
Weighted-Average Interest Rate | ||||||||||||
March 31, 2014 | December 31, 2013 | Maturities | March 31, 2014 | December 31, 2013 | ||||||||
(In thousands) | ||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||
Short-term debt | 1.02% | 1.70% | 2014 | $ | 1,590 | 1,315 | ||||||
Current portion of long-term debt, including capital leases | 399,256 | 258,123 | ||||||||||
Total short-term debt and current portion of long-term debt | 400,846 | 259,438 | ||||||||||
Long-term debt: | ||||||||||||
U.S. commercial paper (1) | 0.26% | 0.28% | 2018 | 640,940 | 486,939 | |||||||
Canadian commercial paper (1) | —% | 1.13% | 2018 | — | 11,297 | |||||||
Global revolving credit facility | 3.00% | —% | 2018 | 16,290 | — | |||||||
Unsecured U.S. notes — Medium-term notes (1) | 3.44% | 3.76% | 2015-2025 | 3,371,707 | 3,271,734 | |||||||
Unsecured U.S. obligations, principally bank term loans | 1.45% | 1.45% | 2015-2018 | 55,500 | 55,500 | |||||||
Unsecured foreign obligations | 1.99% | 1.99% | 2015-2016 | 315,681 | 315,558 | |||||||
Capital lease obligations | 3.78% | 3.81% | 2014-2019 | 38,701 | 38,911 | |||||||
Total before fair market value adjustment | 4,438,819 | 4,179,939 | ||||||||||
Fair market value adjustment on notes subject to hedging (2) | 6,188 | 8,171 | ||||||||||
4,445,007 | 4,188,110 | |||||||||||
Current portion of long-term debt, including capital leases | (399,256 | ) | (258,123 | ) | ||||||||
Long-term debt | 4,045,751 | 3,929,987 | ||||||||||
Total debt | $ | 4,446,597 | 4,189,425 |
(1) | We had unamortized original issue discounts of $8.4 million and $8.3 million at March 31, 2014 and December 31, 2013, respectively. |
(2) | The notional amount of executed interest rate swaps designated as fair value hedges was $500 million and $400 million at March 31, 2014 and December 31, 2013, respectively. |
|
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 |
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 |
(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. |
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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 March 31, | ||||||||
Issuance date | 2014 | 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
February 2011 | March 2015 | $350,000 | $150,000 | 3.15% | 1.28% | 1.41% | ||||||
May 2011 | June 2017 | $350,000 | $150,000 | 3.50% | 1.44% | 1.62% | ||||||
November 2013 | November 2018 | $300,000 | $100,000 | 2.45% | 1.19% | —% | ||||||
February 2014 | June 2019 | $350,000 | $100,000 | 2.55% | 1.10% | —% |
Fair Value Hedging Relationship | Location of Gain (Loss) Recognized in Income | Three months ended March 31, | |||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Derivatives: Interest rate swaps | Interest expense | $ | (1,983 | ) | (2,781 | ) | |||
Hedged items: Fixed-rate debt | Interest expense | 1,983 | 2,781 | ||||||
Total | $ | — | — |
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Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2013 | $ | 35,875 | (477,883 | ) | 3,760 | (438,248 | ) | ||||||
Amortization | — | 3,807 | (680 | ) | 3,127 | ||||||||
Current period change | (14,592 | ) | — | — | (14,592 | ) | |||||||
March 31, 2014 | $ | 21,283 | (474,076 | ) | 3,080 | (449,713 | ) |
Currency Translation Adjustments and Other | Net Actuarial Loss (1) | Prior Service Credit (1) | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | |||||||||||||
December 31, 2012 | $ | 57,860 | (648,113 | ) | 2,634 | (587,619 | ) | ||||||
Amortization | — | 5,754 | (335 | ) | 5,419 | ||||||||
Current period change | (33,704 | ) | — | — | (33,704 | ) | |||||||
March 31, 2013 | $ | 24,156 | (642,359 | ) | 2,299 | (615,904 | ) |
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Pension Benefits | Postretirement Benefits | ||||||||||||
Three months ended March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Company-administered plans: | |||||||||||||
Service cost | $ | 3,423 | 4,252 | $ | 135 | 263 | |||||||
Interest cost | 25,561 | 22,419 | 365 | 395 | |||||||||
Expected return on plan assets | (28,718 | ) | (26,448 | ) | — | — | |||||||
Amortization of: | |||||||||||||
Net actuarial loss (credit) | 6,235 | 8,880 | (129 | ) | (2 | ) | |||||||
Prior service credit | (458 | ) | (466 | ) | (615 | ) | (58 | ) | |||||
6,043 | 8,637 | (244 | ) | 598 | |||||||||
Union-administered plans | 2,091 | 1,984 | — | — | |||||||||
Net periodic benefit cost | $ | 8,134 | 10,621 | $ | (244 | ) | 598 | ||||||
Company-administered plans: | |||||||||||||
U.S. | $ | 6,287 | 8,741 | $ | (397 | ) | 406 | ||||||
Non-U.S. | (244 | ) | (104 | ) | 153 | 192 | |||||||
6,043 | 8,637 | (244 | ) | 598 | |||||||||
Union-administered plans | 2,091 | 1,984 | — | — | |||||||||
$ | 8,134 | 10,621 | $ | (244 | ) | 598 | |||||||
|
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Interest paid | $ | 41,180 | 45,425 | |||
Income taxes paid | 1,534 | 3,721 | ||||
Changes in accounts payable related to purchases of revenue earning equipment | 16,918 | 29,381 | ||||
Operating and revenue earning equipment acquired under capital leases | 2,245 | 458 |
|
FMS | SCS | Eliminations | Total | ||||||||||
(In thousands) | |||||||||||||
For the three months ended March 31, 2014 | |||||||||||||
Revenue from external customers | $ | 1,013,396 | 597,341 | — | 1,610,737 | ||||||||
Inter-segment revenue | 121,691 | — | (121,691 | ) | — | ||||||||
Total revenue | $ | 1,135,087 | 597,341 | (121,691 | ) | 1,610,737 | |||||||
Segment EBT | $ | 76,991 | 21,784 | (9,628 | ) | 89,147 | |||||||
Unallocated CSS | (10,829 | ) | |||||||||||
Non-operating pension costs | (3,314 | ) | |||||||||||
Earnings from continuing operations before income taxes | $ | 75,004 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 568,239 | 3,872 | — | 572,111 | ||||||||
Unallocated CSS | 6,611 | ||||||||||||
Capital expenditures paid | $ | 578,722 | |||||||||||
For the three months ended March 31, 2013 | |||||||||||||
Revenue from external customers | $ | 986,538 | 576,479 | — | 1,563,017 | ||||||||
Inter-segment revenue | 113,194 | — | (113,194 | ) | — | ||||||||
Total revenue | $ | 1,099,732 | 576,479 | (113,194 | ) | 1,563,017 | |||||||
Segment EBT | $ | 60,745 | 24,436 | (7,958 | ) | 77,223 | |||||||
Unallocated CSS | (11,375 | ) | |||||||||||
Non-operating pension costs | (5,244 | ) | |||||||||||
Restructuring and other charges, net and other items | 1,904 | ||||||||||||
Earnings from continuing operations before income taxes | $ | 62,508 | |||||||||||
Segment capital expenditures paid (1), (2) | $ | 406,511 | 5,800 | — | 412,311 | ||||||||
Unallocated CSS | 7,743 | ||||||||||||
Capital expenditures paid | $ | 420,054 |
(1) | Excludes revenue earning equipment acquired under capital leases. |
(2) | Excludes acquisition payments of $1.6 million and $1.4 million during the three months ended March 31, 2014, and 2013, respectively. |
|
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Contract settlement | $ | 2,908 | — | |||
Gains on sales of operating property and equipment | 1,304 | 273 | ||||
Foreign currency translation benefit (1) | — | 1,904 | ||||
Rabbi trust investment income | 500 | 1,459 | ||||
Other, net | 670 | 934 | ||||
Total | $ | 5,382 | 4,570 |
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