RYDER SYSTEM INC, 10-Q filed on 4/23/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
Document and Entity Information [Abstract]
 
Entity Registrant Name
RYDER SYSTEM INC. 
Entity Central Index Key
0000085961 
Document Type
10-Q 
Document Period End Date
Mar. 31, 2014 
Amendment Flag
false 
Document Fiscal Year Focus
2014 
Document Fiscal Period Focus
Q1 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
53,184,496 
Consolidated Condensed Statements of Earnings (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Income Statement [Abstract]
 
 
Lease and rental revenues
$ 689,682 
$ 659,708 
Services revenue
709,699 
689,461 
Fuel services revenue
211,356 
213,848 
Total revenues
1,610,737 
1,563,017 
Cost of lease and rental
493,043 
473,077 
Cost of services
606,229 
583,589 
Cost of fuel services
207,205 
210,293 
Other operating expenses
36,645 
37,599 
Selling, general and administrative expenses
191,702 
189,073 
Gains on vehicle sales, net
(28,818)
(23,006)
Interest expense
35,109 
34,454 
Miscellaneous income, net
(5,382)
(4,570)
Total expenses
1,535,733 
1,500,509 
Earnings from continuing operations before income taxes
75,004 
62,508 
Provision for income taxes
25,906 
21,706 
Earnings from continuing operations
49,098 
40,802 
Loss from discontinued operations, net of tax
(866)
(878)
Net earnings
$ 48,232 
$ 39,924 
Earnings (loss) per common share - Basic
 
 
Continuing operations
$ 0.93 
$ 0.79 
Discontinued operations
$ (0.02)
$ (0.02)
Net earnings
$ 0.91 
$ 0.77 
Earnings (loss) per common share - Diluted
 
 
Continuing operations
$ 0.92 
$ 0.79 
Discontinued operations
$ (0.02)
$ (0.02)
Net earnings
$ 0.90 
$ 0.77 
Cash dividends declared per common share
$ 0.34 
$ 0.31 
Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net earnings
$ 48,232 
$ 39,924 
Other comprehensive income:
 
 
Changes in cumulative translation adjustment and other, before and after tax
(14,592)
(33,704)
Amortization of pension and postretirement items
5,033 
8,354 
Income tax expense related to amortization of pension and postretirement items
(1,906)
(2,935)
Amortization of pension and postretirement items, net of taxes
3,127 
5,419 
Other comprehensive loss
(11,465)
(28,285)
Comprehensive income
$ 36,767 
$ 11,639 
Consolidated Condensed Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 72,786 
$ 61,562 
Receivables, net
822,010 
777,370 
Inventories
64,758 
64,298 
Prepaid expenses and other current assets
157,562 
159,263 
Total current assets
1,117,116 
1,062,493 
Revenue earning equipment, net of accumulated depreciation of $3,587,031 and $3,596,102, respectively
6,687,976 
6,490,837 
Operating property and equipment, net of accumulated depreciation of $1,006,105 and $991,117, respectively
636,632 
633,826 
Goodwill
383,200 
383,719 
Intangible assets
70,411 
72,406 
Direct financing leases and other assets
472,148 
460,501 
Total assets
9,367,483 
9,103,782 
Current liabilities:
 
 
Short-term debt and current portion of long-term debt
400,846 
259,438 
Accounts payable
505,779 
475,364 
Accrued expenses and other current liabilities
465,997 
496,337 
Total current liabilities
1,372,622 
1,231,139 
Long-term debt
4,045,751 
3,929,987 
Other non-current liabilities
617,281 
616,305 
Deferred income taxes
1,433,288 
1,429,637 
Total liabilities
7,468,942 
7,207,068 
Shareholders' equity:
 
 
Preferred stock of no par value per share — authorized, 3,800,917; none outstanding, March 31, 2014 or December 31, 2013
Common stock of $0.50 par value per share — authorized, 400,000,000; outstanding, March 31, 2014 — 53,184,496; December 31, 2013 — 53,335,386
26,591 
26,667 
Additional paid-in capital
931,353 
917,539 
Retained earnings
1,390,310 
1,390,756 
Accumulated other comprehensive loss
(449,713)
(438,248)
Total shareholders' equity
1,898,541 
1,896,714 
Total liabilities and shareholders' equity
$ 9,367,483 
$ 9,103,782 
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Assets:
 
 
Accumulated depreciation on revenue earning equipment
$ 3,587,031 
$ 3,596,102 
Accumulated depreciation on operating property and equipment
$ (1,006,105)
$ (991,117)
Shareholders' equity:
 
 
Preferred stock, par value
$ 0 
$ 0 
Preferred stock, shares authorized
3,800,917 
3,800,917 
Preferred stock, shares outstanding
Common stock, par value
$ 0.5 
$ 0.5 
Common stock, shares authorized
400,000,000 
400,000,000 
Common stock, shares outstanding
53,184,496 
53,335,386 
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities from continuing operations:
 
 
Net earnings
$ 48,232 
$ 39,924 
Less: Loss from discontinued operations, net of tax
(866)
(878)
Earnings from continuing operations
49,098 
40,802 
Depreciation expense
248,815 
231,541 
Gains on vehicle sales, net
(28,818)
(23,006)
Share-based compensation expense
4,858 
4,609 
Amortization expense and other non-cash charges, net
14,097 
13,432 
Deferred income tax expense
21,653 
18,593 
Changes in operating assets and liabilities, net of acquisitions:
 
 
Receivables
(41,526)
(8,677)
Inventories
(629)
902 
Prepaid expenses and other assets
(14,410)
(17,353)
Accounts payable
14,423 
36,405 
Accrued expenses and other non-current liabilities
(29,901)
(48,320)
Net cash provided by operating activities from continuing operations
237,660 
248,928 
Cash flows from financing activities from continuing operations:
 
 
Net change in commercial paper borrowings
142,834 
112,938 
Debt proceeds
366,612 
249,723 
Debt repaid, including capital lease obligations
(252,845)
(317,344)
Dividends on common stock
(18,005)
(15,980)
Common stock issued
18,526 
22,529 
Common stock repurchased
(40,437)
(104)
Excess tax benefits from share-based compensation
293 
1,575 
Debt issuance costs
(1,809)
(1,767)
Net cash provided by financing activities from continuing operations
215,169 
51,570 
Cash flows from investing activities from continuing operations:
 
 
Purchases of property and revenue earning equipment
(578,722)
(420,054)
Sales of revenue earning equipment
125,673 
112,425 
Sales of operating property and equipment
2,004 
916 
Payments to Acquire Businesses, Net of Cash Acquired
(1,649)
(1,420)
Collections on direct finance leases
16,184 
27,411 
Changes in restricted cash
(4,087)
(18,979)
Insurance recoveries and other
(1,250)
3,767 
Net cash used in investing activities from continuing operations
(441,847)
(295,934)
Effect of exchange rate changes on cash
1,369 
6,257 
Decrease in cash and cash equivalents from discontinued operations
12,351 
10,821 
Cash flows from discontinued operations:
 
 
Operating cash flows
(906)
(726)
Effect of exchange rate changes on cash
(221)
Decrease in cash and cash equivalents from discontinued operations
(1,127)
(724)
Increase in cash and cash equivalents
11,224 
10,097 
Cash and cash equivalents at January 1
61,562 
66,392 
Cash and cash equivalents at March 31
$ 72,786 
$ 76,489 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2013
$ 1,896,714 
$ 0 
$ 26,667 
$ 917,539 
$ 1,390,756 
$ (438,248)
Beginning Balance, shares at Dec. 31, 2013
53,335,386 
 
53,335,386 
 
 
 
Components of comprehensive income:
 
 
 
 
 
 
Net earnings
48,232 
 
 
 
48,232 
 
Other comprehensive loss
(11,465)
 
 
 
 
(11,465)
Comprehensive income
36,767 
 
 
 
 
 
Common stock dividends declared — $0.34 per share
(18,124)
 
 
 
(18,124)
 
Common stock issued under employee stock option and stock purchase plans1
18,329 
 
204 
18,125 
 
 
Common stock issued under employee stock option and stock purchase plans, shares1
 
 
409,203 
 
 
 
Benefit plan stock sales2
197 
 
196 
 
 
Benefit plan stock sales, shares2
 
 
2,590 
 
 
 
Common stock repurchases
(40,437)
 
(281)
(9,602)
(30,554)
 
Common stock repurchases, shares
 
 
(562,683)
 
 
 
Share-based compensation
4,858 
 
 
4,858 
 
 
Tax benefits from share-based compensation
237 
 
 
237 
 
 
Ending Balance at Mar. 31, 2014
$ 1,898,541 
$ 0 
$ 26,591 
$ 931,353 
$ 1,390,310 
$ (449,713)
Ending Balance, shares at Mar. 31, 2014
53,184,496 
 
53,184,496 
 
 
 
Consolidated Condensed Statement of Shareholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Mar. 31, 2014
Cash dividends declared per common share
$ 0.34 
Retained Earnings
 
Cash dividends declared per common share
$ 0.34 
Interim Financial Statements
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS

The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (“subsidiaries”) and variable interest entities (VIEs) required to be consolidated in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with the accounting policies described in our 2013 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. These financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included and the disclosures herein are adequate. The operating results for interim periods are unaudited and are not necessarily indicative of the results that can be expected for a full year. Prior year amounts have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole.

Prior year amounts related to intercompany profit allocations between Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS) have been reclassified to conform to the current period presentation. These reclassifications were immaterial to the financial statements taken as a whole.
Accounting Changes
RECENT ACCOUNTING PRONOUNCEMENTS [Text Block]
ACCOUNTING CHANGES

In July 2013, the Financial Accounting Standards Board issued accounting guidance on the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance became effective for us on January 1, 2014 and resulted in a reclassification of $38.8 million from other non-current liabilities to deferred income taxes in our December 31, 2013 balance sheet. Prior year amounts have been reclassified to conform to the current period presentation. Other than the change in presentation within the Consolidated Condensed Balance Sheets, this accounting guidance did not have an impact on our consolidated financial position, results of operations or cash flows.
Discontinued Operations
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

In 2009, we ceased SCS service operations in Brazil, Argentina, Chile and European markets. Accordingly, results of these operations, financial position and cash flows are separately reported as discontinued operations for all periods presented either in the Consolidated Condensed Financial Statements or notes thereto.

Summarized results of discontinued operations were as follows:
 
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
)


Results of discontinued operations in 2014 and 2013 reflected losses related to adverse legal developments and professional and administrative fees associated with our discontinued South American operations.

The following is a summary of assets and liabilities of discontinued operations:
 
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



Although we discontinued our South American operations in 2009, we continue to be party to various federal, state and local legal proceedings involving labor matters, tort claims and tax assessments. We have established loss provisions for any matters where we believe a loss is probable and can be reasonably estimated. For matters where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements.

In Brazil, we were assessed $5.0 million (before and after tax) in prior years for various federal income taxes and social contribution taxes for the 1997 and 1998 tax years. We have successfully overturned these federal tax assessments in the lower courts; however, there is a reasonable possibility that these rulings could be reversed and we would be required to pay the assessments. We believe it is more likely than not that our position will ultimately be sustained if appealed and no amounts have been reserved for these matters. We are entitled to indemnification for a portion of any resulting liability on these federal tax claims which, if honored, would reduce the estimated loss.
Share-Based Compensation Plans
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS

Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Awards under the Plans principally include at-the-money stock options, nonvested stock and cash awards. Nonvested stock awards include grants of market-based, performance-based, and time-vested restricted stock rights. Under the terms of our Plans, dividends may be paid on our stock options and nonvested stock awards. We have historically paid dividends on nonvested stock awards but not on our stock option awards. Dividends on nonvested stock granted after 2011 are not paid unless the award vests. Upon vesting, the amount of the dividends paid is equal to the aggregate dividends declared on common shares during the period from the date of grant of the award until the date the shares underlying the award are delivered.

The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands)
Stock option and stock purchase plans
$
2,237

 
2,110

Nonvested stock
2,621

 
2,499

Share-based compensation expense
4,858

 
4,609

Income tax benefit
(1,676
)
 
(1,687
)
Share-based compensation expense, net of tax
$
3,182

 
2,922



During the three months ended March 31, 2014 and 2013, approximately 405,000 and 377,000 stock options, respectively, were granted under the Plans. These awards generally vest evenly over a three year period beginning on the date of grant. The stock options have contractual terms of ten years. The fair value of each option award at the date of grant was estimated using a Black-Scholes-Merton option-pricing valuation model. Share-based compensation expense is recognized on a straight-line basis over the vesting period. The weighted-average fair value per option granted during the three months ended March 31, 2014 and 2013 was $14.99 and $13.99, respectively.

During each of the three months ended March 31, 2014 and 2013, approximately 22,000 market-based restricted stock rights were granted under the Plans. The awards are segmented into three performance periods of one, two and three years. At the end of each performance period, 25%-125% of the award may be earned based on Ryder's total shareholder return (TSR) compared to the TSR of a custom peer group over the applicable performance period. If earned, employees will receive the grant of stock at the end of the relevant three year performance period provided they continue to be employed with Ryder, subject to Compensation Committee approval. The fair value of the market-based restricted stock rights was estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The fair value of the market-based awards was determined on the grant date and considers the likelihood of Ryder achieving the market-based condition. Share-based compensation expense is recognized on a straight-line basis over the vesting period. The weighted-average fair value per market-based restricted stock right granted during the three months ended March 31, 2014 and 2013 was $61.07 and $53.32, respectively.

During the three months ended March 31, 2014 and 2013, approximately 42,000 and 45,000 performance-based restricted stock rights (PBRSRs), respectively, were awarded under the Plans. The awards are segmented into three one-year performance periods. For these awards, 25%-125% of the awards may be earned based on Ryder's one-year adjusted return on capital (ROC) measured against an annual ROC target. If earned, employees will receive the grant of stock three years after the grant date, provided they continue to be employed with Ryder, subject to Compensation Committee approval. For accounting purposes, these awards are not considered granted until the Compensation Committee approves the annual ROC target. During the three months ended March 31, 2014 and 2013, approximately 30,000 and 15,000 PBRSRs, respectively, were considered granted for accounting purposes. The fair value of the PBRSRs is determined and fixed on the grant date based on Ryder's stock price on the date of grant. Share-based compensation expense is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met. The weighted-average fair value per PBRSR granted during the three months ended March 31, 2014 and 2013 was $71.43 and $58.21, respectively.

During the three months ended March 31, 2014 and 2013, approximately 87,000 and 127,000 time-vested restricted stock rights, respectively, were granted under the Plans. The time-vested restricted stock rights entitle the holder to shares of common stock when the awards generally vest at the end of the three-year period after the grant date. The fair value of the time-vested awards is determined and fixed on the date of grant based on Ryder’s stock price on the date of grant. Share-based compensation expense is recognized on a straight-line basis over the vesting period. The weighted-average fair value per time-vested restricted stock right granted during the three months ended March 31, 2014 and 2013 was $71.40 and $58.00, respectively.

During the three months ended March 31, 2014 and 2013, employees who received market-based restricted stock rights also received market-based cash awards. The cash awards have the same vesting provisions as the market-based restricted stock rights. The cash awards are accounted for as liability awards under the share-based compensation accounting guidance as the awards are based upon the performance of our common stock and are settled in cash. As a result, the liability is adjusted to reflect fair value at the end of each reporting period. The fair value of the cash awards was estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. Share-based compensation expense is recognized on a straight-line basis over the vesting period.

The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands)
Cash awards
$523
 
1,274


Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at March 31, 2014 was $34.4 million and is expected to be recognized over a weighted-average period of 2.0 years.
Earnings Per Share
EARNINGS PER SHARE
EARNINGS PER SHARE

We compute earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our nonvested stock granted prior to 2012 and restricted stock units granted to our Board of Directors are considered participating securities since the share-based awards contain a non-forfeitable right to dividend cash payments prior to vesting. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.

The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
Earnings from continuing operations
$
49,098

 
40,802

Less: Distributed and undistributed earnings allocated to nonvested stock
(255
)
 
(403
)
Earnings from continuing operations available to common shareholders — Basic
$
48,843

 
40,399

 
 
 
 
Weighted average common shares outstanding — Basic
52,660

 
50,958

 
 
 
 
Earnings from continuing operations per common share — Basic
$
0.93

 
0.79

 
 
 
 
Earnings per share — Diluted:
 
 
 
Earnings from continuing operations
$
49,098

 
40,802

Less: Distributed and undistributed earnings allocated to nonvested stock
(255
)
 
(403
)
Earnings from continuing operations available to common shareholders — Diluted
$
48,843

 
40,399

 
 
 
 
Weighted average common shares outstanding — Basic
52,660

 
50,958

Effect of dilutive equity awards
463

 
435

Weighted average common shares outstanding — Diluted
53,123

 
51,393

 
 
 
 
Earnings from continuing operations per common share — Diluted
$
0.92

 
0.79

 
 
 
 
Anti-dilutive equity awards not included above
215

 
1,413

Revenue Earning Equipment
REVENUE EARNING EQUIPMENT
REVENUE EARNING EQUIPMENT

 
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.

At the end of 2013, we completed our annual review of residual values and useful lives of revenue earning equipment. Based on the results of our analysis, we adjusted the estimated residual values of certain classes of revenue earning equipment effective January 1, 2014. The change in estimated residual values and useful lives increased pre-tax earnings for the three months ended March 31, 2014 by approximately $6.3 million.

We lease revenue earning equipment to customers for periods typically ranging from three to seven years for trucks and tractors and up to ten years for trailers. The majority of our leases are classified as operating leases. However, some of our revenue earning equipment leases are classified as direct financing leases and, to a lesser extent, sales-type leases. As of March 31, 2014 and December 31, 2013, the net investment in direct financing and sales-type leases was $407.8 million and $400.1 million, respectively. Our direct financing lease customers operate in a wide variety of industries, and we have no significant customer concentrations in any one industry. We assess credit risk for all of our customers including those who lease equipment under direct financing leases upon signing of a full service lease contract. For those customers who are designated as high risk, we typically require deposits to be paid in advance in order to mitigate our credit risk. Additionally, our receivables are collateralized by the vehicle’s fair value, which further mitigates our credit risk.

As of March 31, 2014 and December 31, 2013, the amount of direct financing lease receivables which were past due was not significant, and there were no impaired receivables. Accordingly, we do not believe there is a material risk of default with respect to the direct financing lease receivables. The allowance for credit losses was $0.4 million and $0.5 million as of March 31, 2014 and December 31, 2013, respectively.
Goodwill
GOODWILL
GOODWILL

The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
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

Accrued Expenses and Other Liabilities
ACCRUED EXPENSES AND OTHER LIABILITIES
ACCRUED EXPENSES AND OTHER LIABILITIES
 
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

 ————————————
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.
Income Taxes
INCOME TAXES
INCOME TAXES

Uncertain Tax Positions

We are subject to tax audits in numerous jurisdictions in the U.S. and foreign countries. Tax audits by their very nature are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service (IRS) and other tax authorities regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. As part of our calculation of the provision for income taxes on earnings, we recognize the tax benefit from uncertain tax positions that are at least more likely than not of being sustained upon audit, based on the technical merits of the tax position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Such calculations require management to make estimates and judgments with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates. We reevaluate uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, expiration of statutes of limitations, changes in tax law, effectively settled issues under audit, and new audit activity. Depending on the jurisdiction, such a change in recognition or measurement may result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

The following is a summary of tax years that are no longer subject to examination:
Federal — audits of our U.S. federal income tax returns are closed through fiscal year 2008.
State — for the majority of states, tax returns are closed through fiscal year 2008.
Foreign — we are no longer subject to foreign tax examinations by tax authorities for tax years before 2006 in Canada, 2009 in Brazil, 2008 in Mexico and 2011 in the U.K., which are our major foreign tax jurisdictions. Refer to Note (C), “Discontinued Operations,” for further discussion on various assessments related to our former South American operations.

At March 31, 2014 and December 31, 2013, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $57.8 million and $56.8 million, respectively. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $2.7 million by March 31, 2015, if audits are completed or tax years close.

Like-Kind Exchange Program

We have a like-kind exchange program for certain of our U.S.-based revenue earning equipment. Pursuant to the program, we dispose of vehicles and acquire replacement vehicles in a form whereby tax gains on disposal of eligible vehicles are deferred. To qualify for like-kind exchange treatment, we exchange through a qualified intermediary eligible vehicles being disposed of with vehicles being acquired, allowing us to generally carryover the tax basis of the vehicles sold (“like-kind exchanges”). The program results in a material deferral of federal and state income taxes, and a decrease in cash taxes in periods when we are not in a net operating loss (NOL) position. As part of the program, the proceeds from the sale of eligible vehicles are restricted for the acquisition of replacement vehicles and other specified applications. These proceeds are classified as restricted cash, which is included within “Prepaid expenses and other current assets” if the restriction is expected to expire in the twelve months following the balance sheet date or within “Direct financing leases and other assets” if the restriction is expected to expire more than twelve months after the balance sheet date. Due to the structure utilized to facilitate the like-kind exchanges, the qualified intermediary that holds the proceeds from the sales of eligible vehicles and the entity that holds the vehicles to be acquired under the program are required to be consolidated in the accompanying Consolidated Condensed Financial Statements in accordance with U.S. GAAP. The total assets, primarily revenue earning equipment, and the total liabilities, primarily vehicle accounts payable, held by these consolidated entities are equal in value as these entities are solely structured to facilitate the like-kind exchanges. At March 31, 2014 and December 31, 2013, these consolidated entities had total assets, primarily revenue earning equipment, and total liabilities, primarily accounts payable of $249.2 million and $246.3 million, respectively.

In the first quarter of 2013, once we had completed a restructuring of the administrative processes for purchasing and selling vehicles, we reinstated our like-kind exchange program. The reinstated program operates, and will provide cash tax benefits, in the same manner as it did prior to suspension once we are no longer in a NOL position. Our cash flow declined $19.0 million in the first quarter of 2013 as a result of the program's restricted cash. There were no other impacts to cash flow as a result of the program's reinstatement.

Effective Tax Rate

Our effective income tax rate from continuing operations for the first quarter of 2014 was 34.5% compared with 34.7% in the same period of the prior year. The decrease in our effective tax rate in the first quarter of 2014 reflects a benefit from a tax law change in the state of New York partially offset by a higher proportionate amount of 2014 earnings in higher tax rate jurisdictions.

On March 31, 2014, the State of New York enacted changes to its tax system, which impacted net operating loss provisions and reduced the corporate income tax rate from 7.1% to 6.5%. The impact of these changes resulted in a non-cash benefit to deferred income taxes of $1.8 million.
Debt
DEBT
DEBT
 
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.

We maintain a $900 million global revolving credit facility with a syndicate of twelve lending institutions led by Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, Royal Bank of Scotland Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. The global credit facility matures in October 2018. The global facility is used primarily to finance working capital 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 at March 31, 2014). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The agreement provides for annual facility fees which range from 8.0 basis points to 27.5 basis points and are based on Ryder’s long-term credit ratings. This annual facility fee is 12.5 basis points, which applies to the total facility size of $900 million. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s 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 order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. 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. The ratio at March 31, 2014 was 188%. At March 31, 2014, $242.7 million was available under the credit facility.

Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. At March 31, 2014 and December 31, 2013, we classified $640.9 million and $498.2 million, respectively, of short-term commercial paper as long-term debt.

In February 2014, we issued $350 million of unsecured medium-term notes maturing in June 2019. The proceeds from the notes were used to pay down commercial paper and for general corporate purposes. If the notes are downgraded following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal plus accrued and unpaid interest.

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 receivables conduit or committed purchasers. 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 available proceeds that may be received under the program are limited to $175 million. If no event occurs which causes early termination, the 364-day program will expire on October 24, 2014. 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. At March 31, 2014 and December 31, 2013, no amounts were outstanding under the program. Sales of receivables under this program will be accounted for as secured borrowings based on our continuing involvement in the transferred assets.

At March 31, 2014 and December 31, 2013, we had letters of credit and surety bonds outstanding totaling $308.9 million and $310.5 million, respectively, which primarily guarantee the payment of insurance claims.
Fair Value Measurements
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

 ————————————
(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.
Derivatives
DERIVATIVES
DERIVATIVES

We have interest rate swaps outstanding which are designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. The following table provides a detail of the swaps outstanding and the related hedged items as of March 31, 2014:
 
 
 
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%
 
—%


Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps. The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:
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
 
 
 
$

 


Refer to Note (K), “Fair Value Measurements,” for disclosures of the fair value and line item caption of derivative instruments recorded on the Consolidated Condensed Balance Sheets.
Share Repurchase Programs
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS

In December 2013, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2013 program, management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company’s various employee stock, stock option and employee stock purchase plans from December 1, 2013 through December 31, 2015. The December 2013 program limits aggregate share repurchases to no more than 2 million shares of Ryder common stock. Share repurchases of common stock are made periodically in open-market transactions and are subject to market conditions, legal requirements and other factors. Management may establish prearranged written plans for the Company under Rule 10b5-1 of the Securities Exchange Act of 1934 as part of the December 2013 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan. For the three months ended March 31, 2014, we repurchased and retired 562,683 shares under the program at an aggregate cost of $40.4 million. We did not repurchase any shares under this program in 2013.

In December 2011, our Board of Directors authorized a share repurchase program intended to mitigate the dilutive impact of shares issued under our various employee stock, stock option and employee stock purchase plans. Under the December 2011 program, management was authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees under the Company's various employee stock, stock option and employee stock purchase plans from December 1, 2011 through December 13, 2013. The December 2011 program limited aggregate share repurchases to no more than 2 million shares of Ryder common stock. In 2013, we temporarily paused our anti-dilutive share repurchase program to appropriately manage our leverage and to allow us to maintain near-term balance sheet flexibility.
Accumulated Other Comprehensive Loss
Comprehensive Income (Loss) Note [Text Block]
ACCUMULATED OTHER COMPREHENSIVE LOSS

The following summaries set forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
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.
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost were as follows:
 
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

 
 
 
 
 
 
 
 


During the three months ended March 31, 2014, we contributed $4.3 million to our pension plans. In 2014, we expect total contributions to our pension plans to be approximately $75 million.
Other Items
Other Items Impacting Comparability [Text Block]
OTHER ITEMS IMPACTING COMPARABILITY

Our primary measure of segment performance excludes certain items we do not believe are representative of the ongoing operations of the segment. We believe that excluding these items from our segment measure of performance allows for better comparison of results.
During the three months ended March 31, 2013, we recognized a benefit of $1.9 million (before and after tax) from the recognition of the accumulated currency translation adjustment from a FMS foreign operation which has substantially liquidated its net assets. This benefit was recorded within “Miscellaneous income, net” in our Consolidated Condensed Statement of Earnings.
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information was as follows:
 
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



During the three months ended March 31, 2014 and 2013, we paid $1.6 million and $1.4 million, respectively, related to acquisitions completed in prior years.
Segment Reporting
SEGMENT REPORTING
SEGMENT REPORTING

Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. We operate in two reportable business segments: (1) FMS, which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers, principally in the U.S., Canada and the U.K.; and (2) SCS, which provides comprehensive supply chain management solutions including distribution and transportation services in North America and Asia. The SCS segment also provides dedicated services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S.

Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs, restructuring and other charges, net and the items discussed in Note (P), “Other Items Impacting Comparability.” CSS represents those costs incurred to support all business segments, including human resources, finance, corporate services, public affairs, information technology, health and safety, legal, marketing and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation.

Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS segment. Inter-segment revenue and EBT are accounted for at rates similar to those executed with third parties. EBT related to inter-segment equipment and services billed to customers (equipment contribution) are included in both FMS and SCS and then eliminated (presented as “Eliminations”). 

The following tables set forth financial information for each of our business segments and provides a reconciliation between segment EBT and earnings from continuing operations before income taxes for the three months ended March 31, 2014 and 2013. Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented.
 
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.
Other Matters
OTHER MATTERS
OTHER MATTERS

We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations including but not limited to those relating to commercial and employment claims, environmental matters, risk management matters (e.g. vehicle liability, workers’ compensation, etc.) and administrative assessments primarily associated with operating taxes. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. For matters from continuing operations where a reserve has not been established and for which we believe a loss is reasonably possible, as well as for matters where a reserve has been recorded but for which an exposure to loss in excess of the amount accrued is reasonably possible, we believe that such losses will not have a material effect on our consolidated financial statements.

Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our reserves and estimates based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates.

Refer to Note (C), “Discontinued Operations,” for additional matters.
Miscellaneous Income, Net (Notes)
Other Income and Other Expense Disclosure
(R) MISCELLANEOUS INCOME, NET
 
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

 ————————————
(1) Refer to Note (P), "Other Items Impacting Comparability," for additional information.
Discontinued Operations (Tables)
Summarized results of discontinued operations were as follows:
 
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
)
The following is a summary of assets and liabilities of discontinued operations:
 
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

Share-Based Compensation Plans (Tables)
The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands)
Stock option and stock purchase plans
$
2,237

 
2,110

Nonvested stock
2,621

 
2,499

Share-based compensation expense
4,858

 
4,609

Income tax benefit
(1,676
)
 
(1,687
)
Share-based compensation expense, net of tax
$
3,182

 
2,922

The following table is a summary of compensation expense recognized for market-based cash awards in addition to the share-based compensation expense reported in the previous table:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands)
Cash awards
$523
 
1,274
Earnings Per Share (Tables)
Schedule of basic and diluted earnings per common share from continuing operations
The following table presents the calculation of basic and diluted earnings per common share from continuing operations:
 
Three months ended March 31,
 
2014
 
2013
 
(In thousands, except per share amounts)
Earnings per share — Basic:
 
 
 
Earnings from continuing operations
$
49,098

 
40,802

Less: Distributed and undistributed earnings allocated to nonvested stock
(255
)
 
(403
)
Earnings from continuing operations available to common shareholders — Basic
$
48,843

 
40,399

 
 
 
 
Weighted average common shares outstanding — Basic
52,660

 
50,958

 
 
 
 
Earnings from continuing operations per common share — Basic
$
0.93

 
0.79

 
 
 
 
Earnings per share — Diluted:
 
 
 
Earnings from continuing operations
$
49,098

 
40,802

Less: Distributed and undistributed earnings allocated to nonvested stock
(255
)
 
(403
)
Earnings from continuing operations available to common shareholders — Diluted
$
48,843

 
40,399

 
 
 
 
Weighted average common shares outstanding — Basic
52,660

 
50,958

Effect of dilutive equity awards
463

 
435

Weighted average common shares outstanding — Diluted
53,123

 
51,393

 
 
 
 
Earnings from continuing operations per common share — Diluted
$
0.92

 
0.79

 
 
 
 
Anti-dilutive equity awards not included above
215

 
1,413

Revenue Earning Equipment (Tables)
Summary of revenue earning equipment
 
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.

Goodwill (Tables)
Carrying amount of goodwill attributable to each reportable business segment
The carrying amount of goodwill attributable to each reportable business segment with changes therein was as follows:
 
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

Accrued Expenses and Other Liabilities (Tables)
Accrued Expenses and Other Liabilities
 
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

 ————————————
(1) Insurance obligations are primarily comprised of self-insured claim liabilities.
Debt (Tables)
Debt
 
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.
Fair Value Measurements (Tables)
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 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

 ————————————
(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.

Derivatives (Tables)
The following table provides a detail of the swaps outstanding and the related hedged items as of March 31, 2014:
 
 
 
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%
 
—%
The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:
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
 
 
 
$

 


Accumulated Other Comprehensive Loss (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following summaries set forth the components of accumulated other comprehensive loss, net of tax:
 
 
 
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
)
Employee Benefit Plans (Tables)
Components of net periodic benefit cost
Components of net periodic benefit cost were as follows:
 
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

 
 
 
 
 
 
 
 
Supplemental Cash Flow Information (Tables)
Supplemental cash flow information
Supplemental cash flow information was as follows:
 
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

Segment Reporting (Tables)
Financial information of business segments
 
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.
Miscellaneous Income, Net (Tables)
Schedule of Other Nonoperating Income (Expense)
 
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

 ————————————
(1) Refer to Note (P), "Other Items Impacting Comparability," for additional information.
Accounting Changes (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Deferred Tax Liabilities, Net, Noncurrent
$ 1,433,288 
$ 1,429,637 
FIN 48 [Member] |
Restatement Adjustment [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Deferred Tax Liabilities, Net, Noncurrent
 
$ 38,800 
Discontinued Operations (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Loss from discontinued operations
 
 
 
Pre-tax loss from discontinued operations
$ (955,000)
$ (901,000)
 
Income tax benefit (expense)
89,000 
23,000 
 
(Loss) earnings from discontinued operations, net of tax
(866,000)
(878,000)
 
Assets:
 
 
 
Total assets, primarily deposits
3,541,000 
 
3,627,000 
Liabilities:
 
 
 
Total liabilities, primarily contingent accruals
4,477,000 
 
4,501,000 
Brazil Federal and Social Contribution tax [Member]
 
 
 
Liabilities:
 
 
 
Tax Amounts Assessed But Not Reserved
$ 5,000,000 
 
 
Share-Based Compensation Plans (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
$ 4,858,000 
$ 4,609,000 
Income tax benefit
(1,676,000)
(1,687,000)
Share-based compensation expense, net of tax
3,182,000 
2,922,000 
Summary of compensation expense recognized related to cash awards
 
 
Cash awards
523,000 
1,274,000 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Stock option plan granted
405,000 
377,000 
Stock option plan granted, contractual term (in years)
10 years 
 
Weighted-average fair value per option granted
$ 14.99 
$ 13.99 
Total unrecognized pre-tax compensation expense
34,400,000 
 
Unrecognized Compensation Costs weighted-average period (in years)
2 years 0 months 13 days 
 
Stock Option and Stock Purchase Plan [Member]
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
2,237,000 
2,110,000 
Nonvested Stock [Member]
 
 
Share-based compensation expense and income tax benefits recognized during the periods
 
 
Share-based compensation expense
$ 2,621,000 
$ 2,499,000 
Market-based restricted stock rights [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Restricted stock rights and restricted stock units granted
22,000 
22,000 
Number of performance periods for market-based restricted stock
P3Y 
 
Weighted-average fair value per restricted stock right and RSU granted
$ 61.07 
$ 53.32 
Market Based Restricted Stock Rights, 2013 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
Market Based Restricted Stock Rights, 2013 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Market Based Restricted Stock Rights, Segment 1 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
1 year 
 
Market Based Restricted Stock Rights, Segment 2 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
2 years 
 
Market Based Restricted Stock Rights, Segment 3 [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Segment Performance Period
3 years 
 
Market Based Restricted Stock Rights, 2014 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
Market Based Restricted Stock Rights, 2014 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
ROC performance based restricted stock rights, 2014 Grant [Member] [Domain] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
ROC performance based restricted stock rights, 2014 Grant [Member] [Domain] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Time Vested Restricted Stock [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based compensation plan, Vesting period (in years)
3 years 
 
Restricted stock rights and restricted stock units granted
87,000 
127,000 
Weighted-average fair value per restricted stock right and RSU granted
$ 71.40 
$ 58.00 
Performance based restricted stock [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Restricted stock rights and restricted stock units granted
30,000 
15,000 
Weighted-average fair value per restricted stock right and RSU granted
$ 71.43 
$ 58.21 
total share based awards including those not considered granted for accounting purposes
42,000 
45,000 
ROC performance based restricted stock rights, 2013 Grant [Member] |
Minimum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
25.00% 
 
ROC performance based restricted stock rights, 2013 Grant [Member] |
Maximum [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Potential Performance Award Percentage
125.00% 
 
Stock Option [Member]
 
 
Share Based Compensation Plans (Textuals) [Abstract]
 
 
Share-based compensation plan, Vesting period (in years)
3 years 
 
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Earnings per share - Basic:
 
 
Earnings from continuing operations
$ 49,098 
$ 40,802 
Less: Distributed and undistributed earnings allocated to nonvested stock
(255)
(403)
Earnings from continuing operations available to common shareholders - Basic
48,843 
40,399 
Weighted average common shares outstanding - Basic
52,660 
50,958 
Earnings from continuing operations per common share - Basic
$ 0.93 
$ 0.79 
Earnings per share - Diluted:
 
 
Earnings from continuing operations
49,098 
40,802 
Less: Distributed and undistributed earnings allocated to nonvested stock
(255)
(403)
Earnings from continuing operations available to common shareholders - Diluted
$ 48,843 
$ 40,399 
Weighted average common shares outstanding - Basic
52,660 
50,958 
Effect of dilutive equity awards
463 
435 
Weighted average common shares outstanding - Diluted
53,123 
51,393 
Earnings from continuing operations per common share - Diluted
$ 0.92 
$ 0.79 
Anti-dilutive equity awards not included above
215 
1,413 
Revenue Earning Equipment (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Summary of revenue earning equipment
 
 
Cost
$ 10,275,007,000 
$ 10,086,939,000 
Accumulated Depreciation
(3,587,031,000)
(3,596,102,000)
Net Book Value
6,687,976,000 
6,490,837,000 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
6,300,000 
 
Held for use: Full service lease [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
7,579,461,000 
7,436,093,000 
Accumulated Depreciation
(2,531,559,000)
(2,537,077,000)
Net Book Value
5,047,902,000 
4,899,016,000 
Held for use: Commercial rental [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
2,309,828,000 
2,210,863,000 
Accumulated Depreciation
(781,005,000)
(747,283,000)
Net Book Value
1,528,823,000 
1,463,580,000 
Held-for-sale [Member]
 
 
Summary of revenue earning equipment
 
 
Cost
385,718,000 
439,983,000 
Accumulated Depreciation
(274,467,000)
(311,742,000)
Net Book Value
$ 111,251,000 
$ 128,241,000 
Revenue Earning Equipment (Details Textuals) (USD $)
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Revenue Earning Equipment (Textuals) [Abstract]
 
 
Cost
$ 10,275,007,000 
$ 10,086,939,000 
Accumulated Depreciation
3,587,031,000 
3,596,102,000 
Effect of change in estimated residual values of revenue earning equipment on pre tax earnings
6,300,000 
 
Net Investment in Direct Financing and Sales Type Leases
407,800,000 
400,100,000 
Financing Receivable, Allowance for Credit Losses
400,000 
500,000 
Assets Held under Capital Leases [Member]
 
 
Revenue Earning Equipment (Textuals) [Abstract]
 
 
Cost
53,900,000 
54,200,000 
Accumulated Depreciation
$ 22,700,000 
$ 22,000,000 
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
$ 412,421 
$ 412,940 
Accumulated impairment losses
(29,221)
(29,221)
Goodwill
383,200 
383,719 
Foreign currency translation adjustment
(519)
 
Fleet Management Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
223,002 
223,204 
Accumulated impairment losses
(10,322)
(10,322)
Goodwill
212,680 
212,882 
Foreign currency translation adjustment
(202)
 
Supply Chain Solutions [Member]
 
 
Carrying amount of goodwill attributable to each reportable business segment
 
 
Goodwill, Gross
189,419 
189,736 
Accumulated impairment losses
(18,899)
(18,899)
Goodwill
170,520 
170,837 
Foreign currency translation adjustment
$ (317)
 
Accrued Expenses and Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Accrued Expenses and Other Liabilities
 
 
Salaries and wages, Current
$ 69,064 
$ 106,281 
Salaries and wages, Non-Current
Salaries and wages, Total
69,064 
106,281 
Deferred compensation, Accrued Expenses
2,790 
2,505 
Deferred compensation, Non-Current Liabilities
32,097 
31,896 
Deferred compensation, Total
34,887 
34,401 
Other Employee Benefits, Current
4,646 
3,809 
Other Employee Benefits, Non-current
4,200 
6,712 
Other Employee Benefits, Total
8,846 
10,521 
Pension benefits, Accrued Expenses
3,582 
3,660 
Pension benefits, Non-Current Liabilities
293,074 
292,155 
Pension benefits, Total
296,656 
295,815 
Other postretirement benefits, Accrued Expenses
2,405 
2,414 
Other postretirement benefits, Non-Current Liabilities
28,200 
28,374 
Other postretirement benefits, Total
30,605 
30,788 
Insurance Obligations, Accrued Expenses
130,734 
125,835 
Insurance obligations, Non-Current Liabilities
187,307 
186,700 
Insurance obligations, primarily self-insurance, Total
318,041 
312,535 
Accrued rent, Accrued Expenses
7,198 
4,373 
Accrued rent, Non-Current Liabilities
2,721 
3,372 
Accrued rent, Total
9,919 
7,745 
Accrued Environmental Liabilities Current
4,416 
4,515 
Accrued Environmental Liabilities Noncurrent
8,853 
8,548 
Environmental liabilities, Total
13,269 
13,063 
Asset retirement obligations, Accrued Expenses
5,851 
6,144 
Asset retirement obligations, Non-Current Liabilities
19,834 
19,403 
Asset retirement obligations, Total
25,685 
25,547 
Operating taxes, Accrued Expenses
100,519 
94,188 
Operating taxes, Non-Current Liabilities
Operating taxes, Total
100,519 
94,188 
Accrued Income Taxes, Current
2,566 
2,623 
Accrued Income Tax Non current
24,682 
23,813 
Income taxes, Total
27,248 
26,436 
Interest, Accrued Expenses
25,600 
33,654 
Interest, Non-Current Liabilities
Interest, Total
25,600 
33,654 
Customer Deposits, Current
56,156 
55,854 
Customer Deposits, Noncurrent
6,240 
6,239 
Deposits, mainly from customers, Total
62,396 
62,093 
Deferred revenue, Accrued Expenses
15,013 
15,123 
Deferred revenue, Non-Current Liabilities
Deferred Revenue
15,013 
15,123 
Other, Accrued Expenses
35,457 
35,359 
Other, Non-Current Liabilities
10,073 
9,093 
Other, Total
45,530 
44,452 
Total Accrued Expenses
465,997 
496,337 
Total, Non-Current Liabilities
617,281 
616,305 
Total
$ 1,083,278 
$ 1,112,642 
Income Taxes (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Income Tax Examination [Line Items]
 
 
 
Variable Interest Entity, Consolidated, Carrying Amount, Assets
$ 249,200,000 
 
$ 246,300,000 
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities
249,200,000 
 
246,300,000 
Cash Flow (Increase)/Decrease Related to Increase/(Decrease) in Restricted Cash
(4,087,000)
(18,979,000)
 
Income Taxes (Textuals) [Abstract]
 
 
 
Gross unrecognized tax benefits (excluding the federal benefit received from state positions)
57,800,000 
 
56,800,000 
Decrease in unrecognized tax benefits related to federal, state and foreign tax positions
2,700,000 
 
 
Effective income tax rate from continuing operations
34.50% 
34.70% 
 
Corporate Income Tax Rate Prior
 
 
7.10% 
Corporate Income Tax Rate Subsequent
6.50% 
 
 
NEW YORK
 
 
 
Income Taxes (Textuals) [Abstract]
 
 
 
Tax impact from one time item
$ (1,800,000)
 
 
Debt (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Debt Disclosure [Abstract]
 
 
Notional Amount of Interest Rate Fair Value Hedge Derivatives
$ 500,000,000 
$ 400,000,000 
Short-term debt and current portion of long-term debt:
 
 
Short-term debt, Weighted Average Interest Rate
1.02% 
1.70% 
Short-term debt
1,590,000 
1,315,000 
Current portion of long-term debt, including capital leases
399,256,000 
258,123,000 
Total short-term debt and current portion of long-term debt
$ 400,846,000 
$ 259,438,000 
Debt (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Short-term Debt, Weighted Average Interest Rate
1.02% 
1.70% 
Long-term debt:
 
 
Commercial paper
$ 640,940 
$ 498,236 
Global revolving credit facility
16,290 
Unsecured U.S. notes - Medium-term notes
3,371,707 
3,271,734 
Unsecured U.S. obligations, principally bank term loans
55,500 
55,500 
Unsecured foreign obligations
315,681 
315,558 
Capital lease obligations
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
6,188 
8,171 
Total after fair market value adjustment
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 
Unsecured Medium Term Notes Due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Call Feature
101% of principal plus accrued and unpaid interest 
 
U.S Commercial Paper, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.26% 
0.28% 
Maturity date range, end
Oct. 18, 2018 
 
Commercial paper
640,940 
486,939 
Canadian Commerial Paper [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
0.00% 
1.13% 
Maturity date range, end
Oct. 18, 2018 
 
Commercial paper
$ 0 
$ 11,297 
Global Revolving Credit Facility Member
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.00% 
0.00% 
Maturity date range, end
Oct. 18, 2018 
 
Unsecured U.S. notes - Medium-term notes, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.44% 
3.76% 
Maturity date range, start
Mar. 01, 2015 
 
Maturity date range, end
Feb. 25, 2025 
 
Unsecured U.S. obligations, principally bank term loans, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.45% 
1.45% 
Maturity date range, start
Mar. 08, 2015 
 
Maturity date range, end
Mar. 19, 2018 
 
Unsecured Foreign Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
1.99% 
1.99% 
Maturity date range, start
Mar. 01, 2015 
 
Maturity date range, end
Sep. 06, 2016 
 
Capital Lease Obligations, Long-Term [Member]
 
 
Long-term debt:
 
 
Long-term debt, Weighted Average Interest Rate
3.78% 
3.81% 
Maturity date range, start
May 24, 2014 
 
Maturity date range, end
Dec. 28, 2019 
 
Debt (Details Textuals) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Letter of Credit [Member]
Mar. 31, 2014
Global Revolving Credit Facility [Member]
Mar. 31, 2014
U.S Commercial Paper, Long-Term [Member]
Dec. 31, 2013
U.S Commercial Paper, Long-Term [Member]
Mar. 31, 2014
Canadian Commerial Paper [Member]
Dec. 31, 2013
Canadian Commerial Paper [Member]
Mar. 31, 2014
Global Revolving Credit Facility Member
Mar. 31, 2014
Unsecured Us Notes Medium Term Notes Long Term [Member]
Mar. 31, 2014
Unsecured Us Obligations Principally Bank Term Loans Long Term [Member]
Mar. 31, 2014
Unsecured Foreign Obligations Long Term [Member]
Mar. 31, 2014
Capital Lease Obligations [Member]
Mar. 31, 2014
Unsecured Medium Term Notes Due 2019 [Member]
Feb. 25, 2014
Unsecured Medium Term Notes Due 2019 [Member]
Mar. 31, 2014
Short-term Debt [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Maturity Date Range, Start
 
 
 
 
 
 
 
 
 
Mar. 01, 2015 
Mar. 08, 2015 
Mar. 01, 2015 
May 24, 2014 
 
 
Jun. 18, 2014 
Debt Instrument, Maturity Date Range, End
 
 
 
 
Oct. 18, 2018 
 
Oct. 18, 2018 
 
Oct. 18, 2018 
Feb. 25, 2025 
Mar. 19, 2018 
Sep. 06, 2016 
Dec. 28, 2019 
 
 
Jun. 18, 2014 
Unamortized original issue discounts
$ 8,400,000 
$ 8,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of the executed interest rate swap designated as a fair value hedge
500,000,000 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under global revolving credit facility
 
 
75,000,000 
900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Number of lending institutions
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit outstanding amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual facility fees minimum
0.08 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual facility fees maximum
0.275 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global revolving credit facility covenant terms, debt to consolidated tangible net worth ratio
less than or equal to 300% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to consolidated tangible net worth ratio
188.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Remaining Borrowing Capacity
242,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper classified as long term debt
640,940,000 
498,236,000 
 
 
640,940,000 
486,939,000 
11,297,000 
 
 
 
 
 
 
 
 
Face amount of unsecured medium-term notes issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350,000,000 
 
Repurchase price condition of notes
 
 
 
 
 
 
 
 
 
 
 
 
 
101% of principal plus accrued and unpaid interest 
 
 
Total available proceeds under trade receivables purchase and sale program
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of days under trade trade receivables purchase and sale program
364 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade Receivables Purchase And Sale Program Amounts Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Revolving Credit Facility Unused Capacity Commitment Fee Percent
12.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters Of Credit And Surety Bonds Outstanding
$ 308,900,000 
$ 310,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Prepaid Expenses and Other Current Assets [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
$ 2,509 
 
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Fair Value, Measurements, Recurring [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
41,241 
41,852 
Total liabilities at fair value
1,946 
1,162 
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,719 
7,101 
Fair Value, Measurements, Recurring [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
20,005 
16,479 
Fair Value, Measurements, Recurring [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,383 
4,323 
Fair Value, Measurements, Recurring [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
5,000 
4,616 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
33,107 
32,519 
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
3,719 
7,101 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
20,005 
16,479 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
4,383 
4,323 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
5,000 
4,616 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
8,134 
9,333 
Total liabilities at fair value
1,946 
1,162 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Total assets at fair value
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
U.S. Equity Mutual Funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Foreign equity mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Fixed income mutual funds [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Prepaid Expenses and Other Current Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
2,509 
 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
33,107 
32,519 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
5,625 
9,333 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
33,107 
32,519 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
5,625 
9,333 
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Investments held in Rabbi Trusts
Fair Value, Measurements, Recurring [Member] |
Direct Financing Leases and Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Interest rate swap [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest rate swaps, assets
 
Fair Value, Measurements, Recurring [Member] |
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
 
Fair Value, Measurements, Recurring [Member] |
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
1,946 
1,162 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
1,946 
1,162 
Fair Value, Measurements, Recurring [Member] |
Other noncurrent liabilities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets and liabilities measured at fair value on a recurring basis
 
 
Interest Rate Derivative Liabilities, at Fair Value
 
$ 0 
Fair Value Measurements (Details 1) (USD $)
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 1 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 2 [Member]
Revenue earning equipment, Trailers [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trucks [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Tractors [Member]
Mar. 31, 2014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Inputs, Level 3 [Member]
Revenue earning equipment, Trailers [Member]
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets held for sale at fair value
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 20,165,000 
$ 29,161,000 
$ 11,928,000 
$ 13,229,000 
$ 7,495,000 
$ 14,943,000 
$ 742,000 
$ 989,000 
Total Losses
 
 
3,675,000 
4,721,000 
1,882,000 
3,029,000 
1,632,000 
1,095,000 
161,000 
597,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Textuals) (Abstract)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total debt
$ 4,450,000,000 
$ 4,280,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Interest rate swaps maturing June 2017 [Member]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
May 24, 2011 
 
Maturity date
Jun. 01, 2017 
 
Face value of medium - term notes
$ 350,000 
 
Aggregate notional amount of interest rate swaps
150,000 
 
Fixed interest rate
3.50% 
 
Weighted-average variable interest rate on hedged debt
1.44% 
1.62% 
Interest rate swaps maturing March 2015 [Member]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
Feb. 24, 2011 
 
Maturity date
Mar. 02, 2015 
 
Face value of medium - term notes
350,000 
 
Aggregate notional amount of interest rate swaps
150,000 
 
Fixed interest rate
3.15% 
 
Weighted-average variable interest rate on hedged debt
1.28% 
1.41% 
Interest Rate Swaps Maturing November Two Thousand Eighteeen [Member] [Domain]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
Nov. 12, 2013 
 
Maturity date
Nov. 15, 2018 
 
Face value of medium - term notes
300,000 
 
Aggregate notional amount of interest rate swaps
100,000 
 
Fixed interest rate
2.45% 
 
Weighted-average variable interest rate on hedged debt
1.19% 
 
Interest Rate Swaps Maturing June Two Thousand Nineteen [Member]
 
 
Summary Of Derivative Instruments And Hedged Items [Abstract]
 
 
Issuance date
Feb. 25, 2014 
 
Maturity date
Jun. 01, 2019 
 
Face value of medium - term notes
350,000 
 
Aggregate notional amount of interest rate swaps
$ 100,000 
 
Fixed interest rate
2.55% 
 
Weighted-average variable interest rate on hedged debt
1.10% 
 
Derivatives (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Total
$ 0 
$ 0 
Interest expense [Member] |
Interest rate swap [Member]
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Derivative: Interest rate swap
(1,983)
(2,781)
Interest expense [Member] |
Fixed-rate debt [Member]
 
 
Location and amount of gains (losses) on derivative instruments and related hedged items
 
 
Hedged item: Fixed-rate debt
$ 1,983 
$ 2,781 
Share Repurchase Programs (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Accelerated Share Repurchases [Line Items]
 
Aggregate cost of repurchased and retired
$ (40,437)
December 2013 Anti-Dilutive Share Repurchase Program [Member]
 
Accelerated Share Repurchases [Line Items]
 
Maximum number of share repurchases authorization
2,000,000 
Aggregate cost of repurchased and retired
(40,437)
Common Stock [Member]
 
Accelerated Share Repurchases [Line Items]
 
Repurchased and retired shares
(562,683)
Aggregate cost of repurchased and retired
$ (281)
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax
$ 21,283 
$ 24,156 
$ 35,875 
$ 57,860 
Changes in cumulative translation adjustment and other, before and after tax
(14,592)
(33,704)
 
 
Other Comprehensive Income Amortization Of Pension And Post Retirement Net Of Tax
3,127 
5,419 
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
 
 
Accumulated other comprehensive loss, beginning of period
(438,248)
(587,619)
 
 
Accumulated other comprehensive loss, end of period
(449,713)
(615,904)
 
 
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
3,807 
5,754 
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
 
 
Accumulated other comprehensive loss, beginning of period
(477,883)
(648,113)
 
 
Accumulated other comprehensive loss, end of period
(474,076)
(642,359)
 
 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
 
 
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
(680)
(335)
 
 
Accumulated Other Comprehensive (Loss) [Roll Forward]
 
 
 
 
Accumulated other comprehensive loss, beginning of period
3,760 
2,634 
 
 
Accumulated other comprehensive loss, end of period
3,080 
2,299 
 
 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
$ 0 
$ 0 
 
 
Employee Benefit Plans (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Amortization of:
 
 
Contribution to pension plans
$ 4,300,000 
 
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year
75,000,000 
 
Pension Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
8,134,000 
10,621,000 
Postretirement Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
(244,000)
598,000 
Company Administered Plan [Member] |
Pension Benefits [Member]
 
 
Components of net periodic benefit cost
 
 
Service cost
3,423,000 
4,252,000 
Interest Cost
25,561,000 
22,419,000 
Expected Return on Plan Assets
(28,718,000)
(26,448,000)
Amortization of:
 
 
Net actuarial loss (credit)
6,235,000 
8,880,000 
Prior service credit
(458,000)
(466,000)
Net periodic benefit cost
6,043,000 
8,637,000 
Company Administered Plan [Member] |
Pension Benefits U.S. [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
6,287,000 
8,741,000 
Company Administered Plan [Member] |
Pension Benefits Non-U.S. [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
(244,000)
(104,000)
Company Administered Plan [Member] |
Postretirement Benefits [Member]
 
 
Components of net periodic benefit cost
 
 
Service cost
135,000 
263,000 
Interest Cost
365,000 
395,000 
Amortization of:
 
 
Net actuarial loss (credit)
(129,000)
(2,000)
Prior service credit
(615,000)
(58,000)
Net periodic benefit cost
(244,000)
598,000 
Company Administered Plan [Member] |
Postretirement Benefits U.S [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
(397,000)
406,000 
Company Administered Plan [Member] |
Postretirement Benefits Non-U.S [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
153,000 
192,000 
Union Administered Plan [Member] |
Pension Benefits [Member]
 
 
Amortization of:
 
 
Net periodic benefit cost
$ 2,091,000 
$ 1,984,000 
Other Items (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Other Items Impacting Comparability [Abstract]
 
 
Foreign currency translation benefit (1)
$ 0 
$ 1,904 
Supplemental Cash Flow Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Other Significant Noncash Transactions [Line Items]
 
 
Payments to Acquire Businesses, Net of Cash Acquired
$ 1,649 
$ 1,420 
Supplemental cash flow information
 
 
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 
Other Acquisitions Completed in Prior Years [Member]
 
 
Other Significant Noncash Transactions [Line Items]
 
 
Payments to Acquire Businesses, Net of Cash Acquired
$ 1,600 
$ 1,400 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Financial information of business segments
 
 
Revenue from external customers
$ 1,610,737 
$ 1,563,017 
Inter-segment revenue
Total revenues
1,610,737 
1,563,017 
Segment NBT
89,147 
77,223 
Unallocated CSS
(10,829)
(11,375)
Non-service pension costs
(3,314)
(5,244)
Restructuring And Other Charges Net And Other Items
 
1,904 
Earnings from continuing operations before income taxes
75,004 
62,508 
Segment capital expenditures
572,111 
412,311 
Unallocated CSS
6,611 
7,743 
Capital expenditures paid
578,722 
420,054 
Segment Reporting (Textuals) [Abstract]
 
 
Payments to Acquire Businesses, Net of Cash Acquired
(1,649)
(1,420)
Fleet Management Solutions [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
1,013,396 
986,538 
Inter-segment revenue
121,691 
113,194 
Total revenues
1,135,087 
1,099,732 
Segment NBT
76,991 
60,745 
Segment capital expenditures
568,239 
406,511 
Supply Chain Solutions [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
597,341 
576,479 
Inter-segment revenue
Total revenues
597,341 
576,479 
Segment NBT
21,784 
24,436 
Segment capital expenditures
3,872 
5,800 
Eliminations [Member]
 
 
Financial information of business segments
 
 
Revenue from external customers
Inter-segment revenue
(121,691)
(113,194)
Total revenues
(121,691)
(113,194)
Segment NBT
(9,628)
(7,958)
Segment capital expenditures
$ 0 
$ 0 
Miscellaneous Income, Net (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
MiscellaneousIncome [Abstract]
 
 
Contract settlement
$ 2,908 
$ 0 
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 
Other Nonoperating Income (Expense)
$ 5,382 
$ 4,570