UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) March 1, 2012

Ryder System, Inc.
(Exact Name of Registrant as Specified in its Charter)

 
					
Florida	 	1-4364	 	59-0739250	
(State or Other Jurisdiction
of Incorporation)	 	(Commission File Number)	 	(IRS Employer
Identification No.)	

11690 NW 105th Street, Miami, Florida	 	33178	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (305) 500-3726
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)	

 

Item 7.01	Regulation FD Disclosure.	
Ryder System, Inc. (“Ryder”) posted a presentation on its website (www.ryder.com) containing an overview and certain additional information relating to its pension plan. A copy of this presentation is attached hereto as Exhibit 99.1.
 
Item 8.01	Other Events.	
As discussed on Ryder’s earnings conference call on February 2, 2012, Ryder is combining its financial reporting for its Supply Chain Solutions (“SCS”) and Dedicated Contract Carriage (“DCC”) segments to reflect how the businesses are run from both an operational and sales perspective. In addition, to provide better transparency to segment operating results and to improve visibility into pension plan performance, Ryder is excluding non-service pension costs from segment net before tax earnings. Ryder’s historical quarterly financial information for the fiscal years ended December 31, 2011, 2010 and 2009 reflecting the combined financial reporting for the SCS and DCC segments and segment net before tax earnings, excluding non-service pension costs, is attached hereto as Exhibit 99.2.
 
Item 9.01	Financial Statements and Exhibits.	
 
(d)	Exhibits	

Exhibit No.	  	Description	
99.1	  	Presentation relating to Ryder System, Inc.’s pension plan.	
99.2	  	Historical quarterly financial information for the fiscal years ended December 31, 2011, 2010 and 2009.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Ryder System, Inc.	
		
By:	 	/s/    Cristina A. Gallo-Aquino        	
	 	Name: Cristina A. Gallo-Aquino	
	 	Title: Vice President and Controller
(Principal Accounting Officer)	
Date: March 1, 2012

	

Pension Overview
December 2011
Exhibit No. 99.1	

	

Proprietary and Confidential
2
Safe Harbor
Note Regarding Forward-Looking Statements: Certain statements and information included in this
presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform
Act of 1995 including statements relating to estimated pension expense and contributions for 2011.
Accordingly, these forward-looking statements should be evaluated with consideration given to the
many
risks
and
uncertainties
that
could
cause
actual
results
and
events
to
differ
materially
from
those
in the forward-looking statements. Important factors that could cause such differences include, among
others, the adequacy of actuarial assumptions and estimates; macroeconomic factors, including
market volatility, that affect our investment returns, discount rates, costs and funding requirements; the
impact of new pension regulations; actual withdrawal liability and funding levels of multi-employer
plans; and a change in the level of pension contributions resulting from, among other things, a change
in expected free cash flow levels. Our expectations are also subject to the risks described in our filings
with the Securities and Exchange Commission (SEC). The risks included here and in our SEC filings
are
not
exhaustive.
New
risks
emerge
from
time
to
time
and
it
is
not
possible
for
management
to
predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.	

	

Proprietary and Confidential
3
Purpose of Overview
Page   4
Plan Overview / Recent Changes
Page   5
Accounting Fundamentals
Page   6
Pension Funded Status
Page 10
Pension Investment Strategies and Results
Page 18
Pension Contribution Requirements
Page 23
Pension Expense
Page 27
Pension Equity Charges
Page 41
Conclusions
Page 44
Contents	

	

Proprietary and Confidential
4
Provide clarity to the main components and drivers of pension expense:
generally and specific to Ryder’s continuing operations
Provide insight into the factors which create funding requirements: generally
and specific to Ryder
Provide information on Ryder’s U.S. pension funding status, pension asset
returns and asset allocation strategies
Provide information on estimated future cash funding requirements
Provide information on estimated 2012 pension costs, go-forward sensitivity
guides and drivers of changes in 2012 pension costs
Provide information on equity charges as a result of under-funded status
Purpose of Overview	

	

Proprietary and Confidential
5
Ryder historically offered defined-benefit pension benefits in the U.S., U.K, and
Canada.  Substantially all employees, except U.S. drivers and warehouseman,
were covered under the plans.  The majority of the employees covered by the
plans are in Fleet Management Solutions and Central Support Services.
Effective 1/1/08, U.S. pension plans were frozen for participants who did not
meet
certain
grandfathering
criteria.
Currently,
only
8%
of
the
active participants
accrue benefits under the plan.
Effective 1/1/10, the Canadian pension plan was frozen for participants who did
not meet certain grandfathering criteria.  Currently, only 16% of the active
participants accrue benefits under the plan.
Effective 3/31/10, the U.K. pension plan was frozen for all participants.
The freeze of the pension plans will minimize the volatility in earnings over time.
Impacted employees participate in new enhanced defined contribution plans. 
Reductions in pension expense associated with the freeze of the plans are
generally
being
offset
by
costs
associated
with
the
new
enhanced
defined
contribution plans.
Plan Overview / Recent Changes	

	

Accounting Fundamentals	

	

Proprietary and Confidential
7
Guiding
literature
–
FASB
Accounting
Standards
Codification
(ASC)
Topic
715,
“Compensation
–
Retirement
Benefits”
Delayed
Recognition
-
changes
in
pension
obligation
and
the
value
of
net
assets
are
recognized
in
earnings
systematically
and
gradually
over
future
periods
Net
Reporting
of
Expense
-
consequences
of
events
and
transactions
(compensation element, interest cost, investment return) are recorded as a single
net expense
Offsetting
of
Assets
and
Liabilities
-
value
of
pension
assets
and
liabilities
to
participants (funded status) shown net on the balance sheet
Assumptions-Based
Expense
Calculation
-
discount
rate,
pension
earnings
rate,
salary progression rate, retirement and mortality rate.
Accounting Fundamentals	

	

Proprietary and Confidential
8
Discount
Rate
-
rate
that
discounts
expected
future
cash
benefit
payments
to
a
present value.
Rate determined from models that match the expected benefit payments underlying the
liability to coupons and maturities from a hypothetical portfolio of high quality corporate
bonds.
Rate considered in determining 2012 pension expense of our primary U.S. Plan is
4.90% vs. 5.70% in 2011.  Weighted-average rate for international plans is 4.76% vs.
5.55% in 2011.
Record low rates are driving the increase in the projected benefit obligation and also
the decrease in the funded status of the plans.
Pension
Earnings
Rate
-
long-term
expected
rate
of
return
on
assets
based
on
asset allocation, current returns and expected reinvestment rates.
Rate considered in determining 2012 pension expense for our primary U.S. Plan is
7.05% vs. 7.45% in 2011.  Weighted-average rate for international plans is 6.00% vs.
6.84% in 2011.
Rate includes impact of investment management and other fees.
Accounting Fundamentals
Pension Assumptions	

	

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9
–
annual rate of growth based on expected compensation
until retirement, including all salary increase components (merit, promotion, equity,
overtime and inflation).
Rate used to produce our 12/31/2011 pension liability valuation and 2012 pension
expense, for our primary U.S. plan, remained at 4.0% based on actuarial review of
historical experience.
Assumption less significant now that plans are frozen with limited active participants (i.e.
assumption only relevant for grandfathered participants).
–
retirement rate based on actual plan experience;
mortality rate based on standard actuarial tables.
Mortality assumptions used to produce our 12/31/2011 pension liability valuation and
2012 pension expense, for our primary U.S. plan, were unchanged from prior year.
Accounting Fundamentals
Accounting Fundamentals
Pension Assumptions
Salary
Progression
Rate
Retirement
and
Mortality
Rate	

	

Pension Funded Status	

	

Proprietary and Confidential
11
* Actuarial losses are amortized to earnings over the average rema ining service life of active participants or the
average remaining life expectancy of inactive participants if all or almost all of the plan’s participants are
inactive.
Ryder System, Inc. and Subsidiaries
Funded Status and Balance Sheet Impact of Pension
Funded Status
(Dollars in millions)
2011
2010
2009
Projected benefit obligations (PBO) at 12/31
$
1,967.6
1,744.2
1,603.6
Fair value of Plan assets at 12/31
1,418.0
1,428.8
1,282.9
Funded status
$
(549.5)
(315.4)
(320.7)
Non-current asset
$
0.3
20.6
10.6
Current liability
(3.1)
(3.0)
(2.7)
Non-current liability
(546.7)
(333.1)
(328.6)
Funded status
$
(549.5)
(315.4)
(320.7)
Unrecognized net actuarial loss *
$
927.0
658.5
638.4
Actuarial Assumptions U.S. Plan:
Discount Rate
4.90%
5.70%
6.20%
Salary Progression Rate
4.00%
4.00%
4.00%	

	

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12
(Dollars in millions)
2011
2010
2009
U.S. Qualified Plan
$
(480.8)
(288.2)
(287.8)
U.S. Non Qualified Plan
(42.1)
(39.6)
(37.1)
International Plans
(26.6)
12.4
4.2
Total Consolidated Funded Status
$
(549.5)
   
(315.4)
(320.7)
Percent Funded
72%
82%
80%
Consolidated Funded Status
Funded Status	

	

Proprietary and Confidential
13
(1)
Actual
return
on
plan
assets
was
approximately
negative
0.5%
for
2011.
(2)
Discount
rate
was
4.90%
at
12/31/11
(5.70%
at
12/31/10
and
6.20%
at
12/31/09).

12/31/11
12/31/10
12/31/09
(Dollars in millions)
Fair Value of Assets (FVA)
1,063.4
$
(1)
1,077.8
$   
963.1
$      
PV of Liability (PBO)
1,544.2
  
(2)
1,366.0
     
1,250.9
     
Funded Status
(480.8)
$  
(288.2)
$     
(287.8)
$     
           Percent Funded
69%
79%
77%
U.S. Qualified Pension Plan
Funded Status	

	

Proprietary and Confidential
14
Pension Assets
Pension assets are measured at the end of each reporting year (12/31)
Point-in-time valuation
Reflects fair market value
Not market-related (smoothed) value which is another accepted method
The fair market value of pension assets changes from year to year as a
result of the following items:
Actual returns earned on plan assets
Contributions to the plan
Benefit payments to retirees 
Payment of plan expenses
Funded Status	

	

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15
Pension Liabilities
Projected
Benefit
Obligation
(PBO)
measures
the
present
value
of
expected
future benefit payments to plan participants including future salary increases
Point-in-time valuation (year-end unless interim assessment required)
Based on service to date of valuation
Based on selected discount rate
The discount rate is based on actuarial models that match expected timing of
expected benefit payments to coupons and maturities from a hypothetical
portfolio of high quality (Aa or better) corporate bonds at the end of each
reporting year (December 31). 
Future
benefit
payments
are
based
on
current
plan
provisions
and
are
impacted by the following assumptions:
Retirement age
Mortality, Disability, Turnover, etc.
Salary progression rate
Funded Status	

	

Proprietary and Confidential
16
Historical Consolidated Funded Status
74
80
83
78
93
100
66
80
82
72
60
80
100
120
140
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Note: All years as of 12/31
Funded Status	

	

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17
Historical Funded Status -
U.S. Qualified Plan Only
77
83
87
81
97
100
62
77
79
69
40
60
80
100
120
140
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Note: All years as of 12/31
Funded Status
Discount Rate
6.50%
6.00%
5.90%
5.65%
6.00%
6.35%
6.25%
6.20%
5.70%
4.90%	

	

Pension Investment Strategies and Results	

	

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19
The purpose of the pension fund is to accumulate sufficient assets to
meet the Plan’s future payment obligations (liabilities).
Ryder’s Investment Committee oversees the asset management and
investment activities of our North American pension plans.
Responsibilities include:
Establishing and maintaining a broad asset allocation strategy
Building investment structure within asset classes to ensure diversification
Retaining and monitoring investment managers
Evaluating performance of plans
Assets are accumulated largely through investment returns; asset
allocation is structured to produce the required long-term returns within
a risk-controlled framework.
Allocation of assets is largely a function of the time horizon for future
liability payments and expected return/risk characteristics for the various
asset classes. Investment allocations are subject to change at any time.
Pension Investment Strategies & Results	

	

Proprietary and Confidential
20
Asset Allocation Strategy
Pension Investment Strategies & Results
Ryder’s U.S. pension asset allocation and approved targets are as follows:
12/31/11
Allocation
12/31/10
Allocation
Target
*
U.S. Equity
42%
47%
40%
Non-U.S. Equity
20%
20%
20%
U.S. Fixed Income
31%
26%
30%
Alternative Investments
7%
2%
10%
Cash
**
0%
5%
0%
100%
100%
100%
*
Asset allocation targets are approved and managed by the Ryder Investment Committee.
**
We made a voluntary pension contribution at the end of December 2010 of $50 million, which was allocated to the target asset
classes in January 2011.	

	

Proprietary and Confidential
21
U.S. Qualified Pension Plan Asset Return History
Pension Investment Strategies & Results
-0.5%
7.05%
5.75%
-35
-25
-15
-5
5
15
25
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
-35
-25
-15
-5
5
15
25
Annual Actual Asset Return
Current Expected Long Term Return on Assets
Rolling 15-Year Compound Annual Return	

	

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22
Current Expected Long-Term Return on Assets
Long-term return assumptions are based on:
Actuarial review of asset allocation strategy
Long-term expected asset returns based on 12/31 actual asset allocation
Investment management fees paid using plan assets
2012 expected return for U.S. pension assets decreased to 7.05% from 7.45%
in 2011. The downward adjustment was driven by lower expected asset return
for fixed income and alternative investments compared to 2011.	

	

Pension Contribution Requirements	

	

24
Pension Contribution
Annual U.S. cash contribution requirements were historically determined
under Employee Retirement Income Security Act (ERISA).
In 2006, the Pension Protection Act (PPA) was passed which amended
ERISA for the purpose of strengthening pension funding and helping the
Pension Benefit Guarantee Corporation (PBGC) remain solvent.
Below is a summary of the contribution and PBGC premium requirements
under PPA:
Minimum
Funding
Requirements
-
sufficient
contributions
to
cover
normal
costs for the period and the amount to amortize funding shortfalls (if liability
exceeds assets) over 7 years.
Additional contribution requirements if funded status falls below certain thresholds
and
plan
considered
“at-risk”
(80%
for
1/1/2011
and
later).
“At-risk”
status
is
determined based on the prior year funded percentage.
Based
on
the
current
pension
assumptions,
the
U.S.
Qualified
Plan
is
“at-risk”
on
1/1/2012
(not
at-risk
from
2013
to
2017).
The
“at-risk”
status
triggers
an
additional
funding
requirement
of
approximately
$4
million
in
the
2012
plan
year.
PBGC premium
–
a flat dollar amount (per participant) for U.S. Plan PLUS a
variable premium per participant when U.S. Plan is less than 100% funded
(under PPA, no exemptions).	

	

25
For
2011
funding
purposes,
Ryder
used
the
same
elections
as
used
in
2010:
Smoothed assets
Smoothed discount rate
Smoothing should produce more stable contribution requirements
Contribution requirements are influenced primarily by the following factors:
Funded status
Actual return on plan assets
Discount rate applied to expected plan payouts –
based on corporate bond
yield curve
Salary growth, retirement age and turnover
Mortality –
table issued by IRS and updated every year
The Internal Revenue Code allows annual contributions greater than PPA
minimum funding requirements, thus a range of contributions is possible.
However,
under
current
PPA
“credit
balance”
rules,
excess
contributions
in
a current period may not be totally available for determining future
contribution requirements.
Pension Contribution	

	

Proprietary and Confidential
26
Pension Contribution
Under PPA minimum funding rules and based on current market assumptions,
Ryder will be required to make significant contributions in the next five years.  In
general,
Ryder
may
elect
to
make
voluntary
contributions
earlier
than
required
and
in amounts greater than the minimum requirements.
The
following
table
presents
Ryder’s
estimated
minimum
funding
requirements
(1)
: 
As of
Dec 2011
As of
Dec 2010
($ in millions)
Present value over 5 years
(2)
U.S. Qualified Plan
(3)
$        442
$        302
All other plans
$          54
$          50
Subsequent Calendar Year
U.S. Qualified Plan
$          65
$          
-
All other plans
$          16
$          15
1/1/2012 PPA Funded Status
(4)
74%
75%
(1) U.S. Qualified Plan Contributions as of December 31, 2011 are based on a discount rate of 5.56% for 2012
and 5.10% for 2013 through 2017 and return on assets of 7.05%.  The level of future contributions will change
based on actual discount rate and plan asset performance.
(2) The present value of the future contributions is discounted based on Ryder’s  5-year borrowing rate.
(3) U.S. Qualified Plan undiscounted by year: 2012; $65M, 2013; $113M, 2014; $111M, 2015; $108M, 2016;
$88M, 2013
includes
estimated
$4M
additional
funding
requirement
triggered
by
"at-risk" status for 2012 plan
year.
(4) Funded status < 80% as of 1/1/2011 triggered the "at-risk" status for plan year 2012.  In December 2011 a
$13M contribution was made to avoid the "at-risk" status for the 2013 plan year.	

	

Pension Expense	

	

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28
Consolidated Pension Expense History
Pension Expense
(Dollars in millions)
2011
2010
2009
Service cost
14.7
$     
15.2
21.0
Interest cost
97.5
96.1
93.0
Expected return on plan assets
(101.8)
(93.1)
(74.9)
Settlement/Curtailment loss
-
1.5
0.1
Recognized net actuarial loss
20.2
19.0
24.0
Amortization of prior service credit
(2.3)
(2.3)
(2.2)
Pension expense, excluding union plans
28.4
36.5
61.0
Union-administered plans
6.0
5.2
5.2
Net pension expense
34.3
$     
41.7
66.2
U.S.
Actuarial
Assumptions:
Discount rate
5.70%
6.20%
6.25%
Salary progression rate
4.00%
4.00%
4.00%
Expected return on plan assets
7.45%
7.65%
7.90%
Gain and loss amortization in years
25
26
27	

	

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29
(Amounts in millions)

2011
2010
2009

U.S. Qualified Plan
25.9
$      
30.7
$     
47.7
        
U.S. Non Qualified Plan
3.0
           
3.1
          
3.2
          
International Plans
(0.6)
         
2.7
          
10.1
        
Union Administered Plans
6.0
5.2
5.2
Net Pension Expense
34.3
$      
41.7
$     
66.2
        
Years Ended December 31:
Detail of Consolidated Pension
Expense History
Pension Expense	

	

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30
•
Service cost is
determined as the
actuarial present value of
benefits for employee
service during the period
•
Amount is impacted by:
1) Discount Rate
2) Number of                
employees
3) Expected lives /
retirement period
of
employees
Service Cost
Pension Expense
(Amounts in millions)
2011
2010
Company-administered plans:
Service cost
14.7
$   
15.2
$ 
Interest cost
97.5
96.1
Expected return on plan assets
(101.8)
(93.1)
Settlement loss
-
1.5
Recognized net actuarial loss
20.2
19.0
Amortization of prior service credit
(2.3)
(2.3)
Pension expense, excluding union plans
28.4
36.5
Union-administered plans
6.0
5.2
Net pension expense
34.3
$   
41.7
$ 	

	

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31
•
Interest cost represents
the increase in the
projected benefit
obligation due to the
passage of time
•
Amount is measured
by accrual of interest
cost at assumed
discount rate
Interest Cost
(Amounts in millions)
2011
2010
Company-administered plans:
   Service cost
14.7
$    
15.2
$ 
   Interest cost
97.5
      
96.1
   
   Expected return on plan assets
(101.8)
   
(93.1)
  
   Settlement loss
-  
1.5
     
   Recognized net actuarial loss
20.2
      
19.0
   
   Amortization of prior service credit
(2.3)
       
(2.3)
    
Pension expense, excluding union plans
28.4
      
36.5
   
Union-administered plans
6.0
        
5.2
     
Net pension expense
34.3
$    
41.7
$ 
Pension Expense	

	

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32
•
Return on Plan assets
represents the assumed
change in the fair value of
Plan assets during the
year, after considering plan
contributions and
distributions
•
Average long-term U.S.
expected rate of return of:
2002
8.75%
2003-2007 
8.50%
2008
8.40%
2009
7.90%
2010
7.65%
2011
7.45%
Expected Return on Assets
(Amounts in millions)
2011
2010
Company-administered plans:
   Service cost
14.7
$    
15.2
$  
   Interest cost
97.5
      
96.1
   
   Expected return on plan assets
(101.8)
   
(93.1)
  
   Settlement loss
-  
1.5
     
   Recognized net actuarial loss
20.2
      
19.0
   
   Amortization of prior service credit
(2.3)
       
(2.3)
    
Pension expense, excluding union plans
28.4
      
36.5
   
Union-administered plans
6.0
        
5.2
     
Net pension expense
34.3
$    
41.7
$  
Pension Expense	

	

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33
•
Settlement loss recognized in
2010 upon election by a
number of Canadian
employees to receive a lump-
sum payment
(1) For 2010, lump-sum
payments were greater
than service and interest
cost and triggered
settlement accounting
(2) Recognized
proportionate amount of
unrecognized loss
Pension Expense
Settlement/Curtailment Loss
(Amounts in millions)
2011
2010
Company-administered plans:
Service cost
14.7
$   
15.2
$ 
Interest cost
97.5
96.1
Expected return on plan assets
(101.8)
(93.1)
Settlement loss
-
1.5
Recognized net actuarial loss
20.2
19.0
Amortization of prior service credit
(2.3)
(2.3)
Pension expense, excluding union plans
28.4
36.5
Union-administered plans
6.0
5.2
Net pension expense
34.3
$   
41.7
$ 	

	

Proprietary and Confidential
34
•
Actuarial gains or losses
(G/L) include changes in
pension assets or
obligations resulting from
experience different than
that assumed or changes in
assumptions
•
G/L recognized over time
•
G/L recognition is subject to
a “corridor”
which is
generally 10% of the greater
of pension obligations or
assets
•
Corridor at 12/31/11 was
$197 million
•
For U.S. and U.K. plans,
gains and losses are
recognized over average
remaining life expectancy of
plan participants, in light of
plan freeze
Actuarial Gain / Loss
(Amounts in millions)
2011
2010
Company-administered plans:
   Service cost
14.7
$    
15.2
$  
   Interest cost
97.5
      
96.1
   
   Expected return on plan assets
(101.8)
   
(93.1)
  
   Settlement loss
-  
1.5
     
   Recognized net actuarial loss
20.2
      
19.0
   
   Amortization of prior service credit
(2.3)
       
(2.3)
    
Pension expense, excluding union plans
28.4
      
36.5
   
Union-administered plans
6.0
        
5.2
     
Net pension expense
34.3
$    
41.7
$  
Pension Expense	

	

Proprietary and Confidential
35
•
Prior service credit
represents the cost of
retroactive benefit
reductions made in a
Plan amendment
•
Recognized over the
anticipated future service
period of employees
affected
Prior Service Credit
(Amounts in millions)
2011
2010
Company-administered plans:
   Service cost
14.7
$    
15.2
$  
   Interest cost
97.5
      
96.1
    
   Expected return on plan assets
(101.8)
   
(93.1)
   
   Settlement loss
-  
1.5
      
   Recognized net actuarial loss
20.2
      
19.0
    
   Amortization of prior service credit
(2.3)
       
(2.3)
     
Pension expense, excluding union plans
28.4
      
36.5
    
Union-administered plans
6.0
        
5.2
      
Net pension expense
34.3
$    
41.7
$  
Pension Expense	

	

Proprietary and Confidential
36
Ryder participates in 11 multi-employer pension (MEP) plans that provide benefits to
employees covered by collective bargaining agreements as follows:
The annual net pension cost of the plans is equal to the annual contribution which was $6.0
million in 2011.
If any MEP plan fails to meet certain minimum funding requirements, we could be required
to make additional contributions up to 10% of current requirements.
Employers participating in MEP plans can elect to withdraw from the plans, contingent upon
labor union consent, and be subject to a withdrawal obligation based on the plan’s
unfunded vested benefits. Based on the most recent available plan information, we estimate
our withdrawal obligation to be approximately $27 million.  We have no intention of taking
any such action at this time.
Union-Administered Pension Plans
Pension Fund
Employees
Pension Fund
Employees
IAM National
324
New England Teamsters
19
Western Conference Teamsters
252
Local 11
14
Local 701
137
IBT 710
3
IAM Motor City
65
Local 272
13
Central States
30
Cleveland Bakers and Teamsters
3
Auto Industries
29	

	

Proprietary and Confidential
37
Sensitivity Analysis -
U.S. Qualified Pension Plan
Pension Expense
2011
Pension
Projected
Assumption
Change
Expense
Benefit Obligation
US/Int'l
Expected Long-Term Return on Assets
7.45%/6.84%
+/-
0.25%
-/+
$  3.6
Million
Actual 2011 Asset Returns vs. Expected
7.45%/6.84%
+/-
0.25%
-/+
$  0.4
Million
Contributions at beginning of year
+
$ 50 Million
-
$  3.5
Million
Discount Rate
5.70%/5.55%
+
0.25%
-
$  1.5
Million
-
$ 48
Million
Discount Rate
5.70%/5.55%
-
0.25%
+
$  1.3
Million
+
$ 48
Million
Salary Progression Rate
4.00%
+/-
0.25%
+/
-
$  0.1
Million
+/-
$   1
Million	

	

Proprietary and Confidential
38
(Amounts in millions)
Estimate
Actual
Actual
2012
2011
2010

U.S. Qualified Plan
36.0
$      
25.9
       
30.7
        
U.S. Non Qualified Plan
3.4
           
3.0
          
3.1
          
International Plans
3.9
           
(0.6)
        
2.7
          
Union Administered Plans
6.0
6.0
5.2
Net Pension Expense
49.3
$      
34.3
       
41.7
        
Years Ended December 31:
2012 Expectations -
Consolidated Pension Expense
Pension Expense	

	

Proprietary and Confidential
39
Drivers of the Change in 2012
Consolidated
Pension Expense
(Amounts in millions)
2011 Pension Expense
34
$          
Lower than Assumed Return on Assets in 2011
11
            
Lower Expected Return Assumption
7
              
Benefit of Pension Contribution
(6)
             
Lower Discount Rate
4
              
Other
(1)
             
2012 Estimated Pension Expense
49
$          
Pension Expense	

	

Proprietary and Confidential
40
2011 Expectations -
U.S. Qualified Pension Plan
Pension Expense
Estimate
Actual
Actual
(Amounts in millions)
2012
2011
2010
U.S. Qualified Pension Plan
Service cost
12.9
$       
12.3
11.6
Interest cost
74.3
76.2
75.9
Expected return on plan assets
(75.1)
(77.8)
(71.2)
Net amortization
23.9
15.2
14.4
Pension expense (income)
36.0
$       
25.9
30.7
Actuarial Assumptions:
Discount rate
4.90%
5.70%
6.20%
Salary progression rate
4.00%
4.00%
4.00%
Expected return on plan assets
7.05%
7.45%
7.65%
Years Ended December 31:	

	

Pension Equity Charges	

	

Proprietary and Confidential
42
Funded Status = Fair value of plan assets compared to PBO
Overfunded Plan
Balance sheet asset
Underfunded Plan
Balance sheet liability
Year-end (December 31 for Ryder) calculation in conjunction with actuarial
valuation
Certain changes in funded status are recognized through other
comprehensive income.
Relates to actuarial gains/losses and prior service costs/credits that arise during
the period but are not recognized in pension expense
Changes are recognized net of tax
Accumulated changes in other comprehensive income are presented within
shareholders’
equity
Pension Equity Charges
The funded status of a defined benefit plan is recognized in the balance 
sheet.	

	

Proprietary and Confidential
43
Negative/Low asset returns and a declining interest rate environment have
led
to
significant
unrecognized
actuarial
losses.
Following
is
a
summary of
cumulative pension equity charges:
The higher equity charge in 2011 reflects the impact of a lower discount rate
and lower than expected pension asset returns.
Global
revolving
credit
facility
includes
a
covenant
to
maintain
a
ratio
of
debt
to consolidated tangible net worth, as defined, of less than or equal to 300%.
Pension equity charge is included in debt covenant calculation.
Ratio at 12/31/11 was 255% and Ryder continues to be in compliance with the debt covenant.
Pension Equity Charges
Cumulative Equity
Annual Charge /
Year
Charge
(Benefit)
2007
$148
($53)
2008
$480
$332
2009
$412
($68)
2010
$423
$11
2011
$595
$172	

	

Conclusions	

	

Proprietary and Confidential
45
Ryder has frozen U.S. and Canadian pension plans to most active
employees and U.K. pension plan to all employees.
Pension expense is sensitive to expected long-term asset returns versus
actual returns as well as interest rate changes.
Difference between actual and expected asset returns and the
impact of
interest rate changes are required to be amortized in order to smooth
recognition of gains and losses
Plan cash contributions can lower pension expense.
Pension
expense
for
all
plans
(especially
our
primary
U.S.
plan) is
expected to increase in 2012 vs. 2011.
Driven by impact of 2011 asset returns that were less than
assumed return rates, lower expected asset returns as well as a lower
discount rate
Conclusions	

	

Proprietary and Confidential
46
Minimum pension funding requirements are manageable relative to total
cash generated.
At
year
end
2011,
the
plans
were
72%
funded
on
accounting
basis.
The
funded status is negative $550M.
Underfunded status results in a charge to equity (cumulative $595M at
12/31/11).
Pension charge to equity in 2011 does not affect earnings or current
compliance with the debt covenant.
Conclusions	

	

	

This presentation reflects the following changes in our segment
reporting:
–
Combined reporting for the Supply Chain Solutions and
Dedicated Contract Carriage business segments
–
Separate reporting for non-service pension costs
Exhibit No. 99.2	

	

Business Segments
($ Millions)
03/01/12
Proprietary and Confidential
1Q 2011
2Q 2011
3Q 2011
4Q 2011
FY 2011
Operating
Revenue:
(1)
Fleet Management Solutions
719.0
$   
778.9
$   
824.7
$   
813.3
$   
3,135.9
$
Supply Chain Solutions
(2)
452.7
456.8
476.3
471.8
1,857.5
Eliminations
(42.6)
(43.7)
(44.4)
(48.1)
(178.8)
Total
1,129.1
1,192.0
1,256.5
1,237.0
4,814.6
Segment Earnings Before Tax:
(3)
Fleet Management Solutions
42.2
$     
71.5
$     
78.1
$     
73.7
$     
265.7
$   
Supply Chain Solutions
(2)
20.1
27.7
31.4
25.5
104.7
Eliminations
(4.9)
(6.5)
(5.7)
(7.1)
(24.2)
57.4
92.7
103.8
92.1
346.2
Central Support Services (Unallocated Share)
(3)
(8.5)
(11.2)
(11.5)
(11.0)
(42.3)
Non-service Pension Costs
(4.5)
(4.8)
(4.6)
(4.7)
(18.7)
Restructuring and Other Charges, Net and Other Items    
(0.8)
(1.7)
-
(3.3)
(5.8)
Earnings Before Income Taxes
43.6
75.0
87.7
73.1
279.4
Provision for Income Taxes
(17.8)
(34.1)
(30.7)
(25.4)
(108.0)
Earnings from Continuing Operations
25.9
$     
40.9
$     
56.9
$     
47.7
$     
171.4
$   
Net Earnings
25.1
$     
40.0
$     
56.5
$     
48.1
$     
169.8
$   
(1)
Non-GAAP financial measure. Operating revenue excludes FMS fuel services revenue and SCS subcontracted transportation revenue. Refer to the relevant quarterly
and annual reports which include a reconciliation of Operating Revenue to Total Revenue.

(2)
Combined Supply Chain Solutions and Dedicated Contract Carriage.

(3)
Excludes non-service pension costs.

Note: Amounts may not recalculate due to rounding.

	

Business Segments
($ Millions)
03/01/12
Proprietary and Confidential
1Q 2010
2Q 2010
3Q 2010
4Q 2010
FY 2010
Operating Revenue:
(1)
Fleet Management Solutions
677.4
$   
709.0
$   
733.9
$   
726.3
$   
2,846.5
$
Supply Chain Solutions
(2)
350.2
368.5
377.2
377.6
1,473.5
Eliminations
(40.0)
(40.4)
(39.5)
(41.9)
(161.8)
Total
987.6
1,037.1
1,071.6
1,061.9
4,158.2
Segment Earnings Before Tax:
(3)
Fleet Management Solutions
27.3
$     
51.6
$     
60.3
$     
55.7
$     
194.9
$   
Supply Chain Solutions
(2)
15.2
21.6
24.5
20.4
81.7
Eliminations
(4.7)
(5.1)
(4.6)
(4.8)
(19.3)
37.8
68.1
80.2
71.3
257.3
Central Support Services (Unallocated Share)
(3)
(8.8)
(9.8)
(11.9)
(10.7)
(41.2)
Non-service Pension Costs
(6.5)
(6.1)
(6.3)
(7.8)
(26.6)
Restructuring and Other Charges, Net and Other Items    
-
-
-
(3.2)
(3.2)
Earnings Before Income Taxes
22.5
52.2
62.0
49.6
186.3
Provision for Income Taxes
(9.6)
(21.6)
(22.3)
(8.1)
(61.7)
Earnings from Continuing Operations
12.9
$     
30.6
$     
39.7
$     
41.5
$     
124.6
$   
Net Earnings
12.4
$     
29.8
$     
38.8
$     
37.1
$     
118.2
$   
(1)
Non-GAAP financial measure. Operating revenue excludes FMS fuel services revenue and SCS subcontracted transportation revenue. Refer to the relevant quarterly and
annual reports which include a reconciliation of Operating Revenue to Total Revenue.
(2)
Combined Supply Chain Solutions and Dedicated Contract Carriage.
(3)
Excludes non-service pension costs.
Note: Amounts may not recalculate due to rounding.

	

Business Segments
($ Millions)
03/01/12
Proprietary and Confidential
1Q 2009
2Q 2009
3Q 2009
4Q 2009
FY 2009
Operating Revenue:
(1)
Fleet Management Solutions
693.2
$   
712.6
$   
712.5
$   
699.5
$   
2,817.7
$
Supply Chain Solutions
(2)
341.1
347.0
362.8
361.0
1,412.0
Eliminations
(43.5)
(41.8)
(41.2)
(40.7)
(167.2)
Total
990.8
1,017.8
1,034.0
1,019.8
4,062.5
Segment Earnings Before Tax:
(3)
Fleet Management Solutions
40.7
$     
51.5
$     
47.6
$     
42.4
$     
182.2
$   
Supply Chain Solutions
(2)
12.7
17.7
26.8
19.5
76.6
Eliminations
(5.6)
(4.8)
(5.7)
(4.9)
(21.1)
47.8
64.4
68.7
57.0
237.8
Central Support Services (Unallocated Share)
(3)
(6.9)
(8.2)
(9.1)
(11.1)
(35.3)
Non-service Pension Costs
(11.8)
(11.0)
(11.5)
(11.4)
(45.6)
Restructuring and Other Charges, Net and Other Items    
(6.7)
0.2
(3.9)
(2.7)
(13.1)
Earnings Before Income Taxes
22.4
45.3
44.2
31.8
143.8
Provision for Income Taxes
(11.5)
(18.3)
(15.8)
(8.1)
(53.7)
Earnings from Continuing Operations
10.9
$     
27.1
$     
28.4
$     
23.7
$     
90.1
$     
Net Earnings
6.8
$       
22.9
$     
24.0
$     
8.2
$       
61.9
$     
(1)
Non-GAAP financial measure. Operating revenue excludes FMS fuel services revenue and SCS subcontracted transportation revenue. Refer to the relevant quarterly
and annual reports which include a reconciliation of Operating Revenue to Total Revenue.

(2)
Combined Supply Chain Solutions and Dedicated Contract Carriage.

(3)
Excludes non-service pension costs.
Note: Amounts may not recalculate due to rounding.