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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Florida
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59-0739250
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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11690 N.W. 105
th
Street,
Miami, Florida 33178
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(305) 500-3726
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(Address of principal executive offices, including zip code)
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(Telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of exchange on which registered
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Ryder System, Inc. Common Stock ($0.50 par value)
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New York Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Documents Incorporated by Reference into this Report
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Part of Form 10-K into which Document is Incorporated
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Ryder System, Inc. 2016 Proxy Statement
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Part III
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Page No.
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•
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delivering operational excellence through continuous productivity and process improvements;
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•
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attracting, developing and retaining the best talent
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•
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deploying technology that will enable growth while improving operational efficiencies.
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Fleet Management Solutions
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(1)
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U.S. Fleet as of June
2016
, Class 3-8, IHS Markit Ltd. (formerly RL Polk)
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(2)
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U.S. Fleet as of June
2016
, Class 3-8, IHS Markit Ltd. (formerly RL Polk)
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(3)
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Canada Outsourced Fleet Market as of September
2016
, Class 3-8, IHS Markit Ltd. (formerly RL Polk)
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(4)
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U.K. Lease and Rental HGV Market, Projection for December
2016
, Source: The Society of Motor Manufacturers & Traders (SMMT) 2010 & Ryder Internal Estimates
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•
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We are able to leverage our vehicle buying power for the benefit of our customers because we purchase a large number of vehicles from a limited number of manufacturers. Once we have signed an agreement with the customer, we acquire vehicles and components that are custom engineered to the customer’s requirements and lease the vehicles to the customer for periods generally ranging from three to seven years for trucks and tractors and typically ten years for trailers.
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•
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We provide full service lease customers with complete maintenance program designed to reduce vehicle downtime through a preventive maintenance plan that is based on vehicle type and time or mileage intervals. Alternatively, we offer flexible maintenance options to our customers designed to provide them with choices on their preferred level of maintenance. Given our continued focus on improving the efficiency and effectiveness of our maintenance services, particularly in light of changing technology and increased regulation, we provide our lease customers with a cost effective alternative to maintaining their own fleet of vehicles and the flexibility to choose the maintenance program that works for them. Beginning in 2016 customer’s maintenance options include, full service, preventive and on demand.
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•
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Our customers have access to our extensive network of maintenance facilities and trained technicians for maintenance, vehicle repairs, 24-hour emergency roadside service, and replacement vehicles for vehicles that are temporarily out of service.
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•
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We typically retain vehicle residual risk exposure.
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•
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Customers have an opportunity to enhance their standard lease with additional fleet support services including our fuel and related services as described below; liability insurance coverage under our existing insurance policies and related insurance services; safety services including safety training, driver certification and loss prevention consulting; vehicle use and other tax reporting, permitting and licensing, and regulatory compliance (including hours of service administration); environmental services; and access to
RydeSmart
®
, a full-featured GPS fleet location, tracking, and vehicle performance management system and to
Ryder
FleetCARE
SM
,
our web-based tool that provides customers with 24/7 access to key operational and maintenance management information about their fleets.
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U.S.
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Foreign
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Total
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||||||
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Vehicles
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Customers
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Vehicles
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Customers
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Vehicles
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Customers
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Full service leasing
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112,300
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11,200
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24,200
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2,700
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136,500
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13,900
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Commercial rental
(1)
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30,600
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32,100
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7,200
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5,900
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37,800
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38,000
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Contract maintenance
(2)
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43,100
|
|
1,500
|
|
5,900
|
|
400
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49,000
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|
1,900
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(1)
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Commercial rental customers include customers who rented a vehicle for more than 3 days during the year and includes approximately
8,100
lease customers
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(2)
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Contract maintenance customers include approximately
970
lease customers
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•
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Drive profitable fleet growth by (1) successfully implementing sales and marketing initiatives designed to compel private fleet operators and for-hire carriers to outsource all or some portion of their fleet management needs to us; (2) offering innovative products, solutions and support services that will create and strengthen new and existing customer relationships; and (3) completing targeted acquisitions;
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•
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Deliver a consistent, industry-leading and cost-effective maintenance program to our customers through continued process improvement and re-design, productivity initiatives and technology improvements; and
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•
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Optimize asset utilization and management, particularly with respect to our rental fleet, used vehicle operations and maintenance facility infrastructure.
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Dedicated Transportation Solutions
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Supply Chain Solutions
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•
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Providing customers with best in class execution and quality through reliable and flexible supply chain solutions;
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•
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Developing innovative solutions and capabilities that drive value for our customer within our targeted industry verticals;
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•
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Creating a culture of innovation and collaboration to share capabilities and solutions to meet our client’s needs;
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•
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Consistent focus on network optimization and continuous improvement; and
|
•
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Successfully executing targeted sales and marketing growth strategies.
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Name
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Age
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Position
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Robert E. Sanchez
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51
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Chair and Chief Executive Officer
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Art A. Garcia
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55
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Executive Vice President and Chief Financial Officer
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Dennis C. Cooke
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52
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President, Global Fleet Management Solutions
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John J. Diez
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45
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President, Dedicated Transportation Solutions
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J. Steven Sensing
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49
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President, Global Supply Chain Solutions
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Robert D. Fatovic
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51
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Executive Vice President, Chief Legal Officer and Corporate Secretary
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Frank Lopez
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42
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Senior Vice President and Chief Human Resources Officer
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Karen M. Jones
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54
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Executive Vice President and Chief Marketing Officer
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John Gleason
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60
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Executive Vice President and Chief Sales Officer
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Melvin L. Kirk
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52
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Senior Vice President and Chief Information Officer
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•
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our inability to obtain expected customer retention levels or sales growth targets;
|
•
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we compete with many other transportation and logistics service providers, some of which have greater capital resources than we do;
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•
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customers may choose to provide the services we provide for themselves;
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•
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some of our competitors periodically reduce their prices to gain business, and some of our smaller competitors may have lower cost structures than we do, which may limit our ability to maintain or increase prices; and
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•
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because cost of capital is a significant competitive factor, any increase in either the cost of our debt or equity as a result of reductions in our debt rating or stock price volatility could have a significant impact on our competitive position.
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•
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unanticipated interest rate and currency exchange rate fluctuations;
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•
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increased risk of default by counterparties under derivative instruments and hedging agreements; and
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•
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diminished liquidity and credit availability resulting in higher short-term borrowing costs and more stringent borrowing terms.
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Stock Price
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Dividends per
Common Share
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|||||
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High
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Low
|
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||||
2016
|
|
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|||
First quarter
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$
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66.36
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45.12
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|
|
0.41
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Second quarter
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71.90
|
|
|
56.98
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|
|
0.41
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Third quarter
|
|
69.78
|
|
|
59.57
|
|
|
0.44
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Fourth quarter
|
|
85.42
|
|
|
62.03
|
|
|
0.44
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|||
2015
|
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First quarter
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$
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99.32
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|
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82.29
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|
|
0.37
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Second quarter
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100.64
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86.75
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0.37
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Third quarter
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93.86
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|
72.66
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|
|
0.41
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Fourth quarter
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76.33
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53.54
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0.41
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Total Number
of Shares
Purchased
(1)
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Average Price
Paid per
Share
|
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Total Number of
Shares Purchased as
Part of Publicly Announced Program
(2)
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Maximum Number
of Shares That May
Yet Be Purchased
Under the Anti-Dilutive
Program
(2)
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|||||
October 1 through October 31, 2016
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92
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$
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70.88
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—
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1,620,104
|
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November 1 through November 30, 2016
|
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143,547
|
|
|
73.72
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|
|
143,547
|
|
|
1,476,557
|
|
|
December 1 through December 31, 2016
|
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13,288
|
|
|
79.96
|
|
|
12,855
|
|
|
1,463,702
|
|
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Total
|
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156,927
|
|
|
$
|
74.24
|
|
|
156,402
|
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(1)
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During the three months ended
December 31, 2016
, we purchased an aggregate of
525
shares of our common stock in employee-related transactions. Employee-related transactions may include: (i) shares of common stock delivered as payment for the exercise price of options exercised or to satisfy the option holders’ tax withholding liability associated with our share-based compensation programs and (ii) open-market purchases by the trustee of Ryder’s deferred compensation plans relating to investments by employees in our stock, one of the investment options available under the plans.
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(2)
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In December 2015, our Board of Directors authorized a new share repurchase program intended to mitigate the dilutive impact of shares issued under our employee stock plans. Under the December 2015 program, management is authorized to repurchase (i) up to 1.5 million shares of common stock, the sum of which will not exceed the number of shares issued to employees under the Company’s employee stock plans from December 1, 2015 to December 9, 2017, plus (ii) 0.5 million shares issued to employees that were not purchased under the Company’s previous share repurchase program. The December 2015 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 2015 program, which allow for share repurchases during Ryder’s quarterly blackout periods as set forth in the trading plan.
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Years ended December 31
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|||||||||||||||
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2016
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2015
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2014
|
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2013
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2012
|
||||||
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(Dollars and shares in thousands, except per share amounts)
|
||||||||||||||
Operating Data:
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|
||||||
Total Revenue
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$
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6,786,984
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|
|
6,571,893
|
|
|
6,638,774
|
|
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6,419,285
|
|
|
6,256,967
|
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Operating Revenue
(1)
|
|
$
|
5,790,897
|
|
|
5,561,077
|
|
|
5,252,217
|
|
|
4,965,818
|
|
|
4,770,259
|
|
Earnings from continuing operations
|
|
$
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
|
243,275
|
|
|
200,668
|
|
Comparable earnings from continuing operations
(2)
|
|
$
|
290,357
|
|
|
327,331
|
|
|
296,868
|
|
|
256,640
|
|
|
226,584
|
|
Net earnings
(3)
|
|
$
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
|
237,871
|
|
|
209,748
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings from continuing operations -Diluted
|
|
$
|
4.94
|
|
|
5.73
|
|
|
4.14
|
|
|
4.63
|
|
|
3.90
|
|
Comparable earnings from continuing operations -Diluted
(2)
|
|
$
|
5.42
|
|
|
6.13
|
|
|
5.58
|
|
|
4.88
|
|
|
4.40
|
|
Net earnings -Diluted
(3)
|
|
$
|
4.90
|
|
|
5.71
|
|
|
4.11
|
|
|
4.53
|
|
|
4.08
|
|
Cash dividends
|
|
$
|
1.76
|
|
|
1.56
|
|
|
1.42
|
|
|
1.30
|
|
|
1.20
|
|
Book value
(4)
|
|
$
|
38.39
|
|
|
37.15
|
|
|
34.30
|
|
|
35.56
|
|
|
28.56
|
|
Financial Data:
|
|
|
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
10,902,454
|
|
|
10,952,580
|
|
|
9,837,776
|
|
|
9,156,175
|
|
|
8,439,027
|
|
Average assets
(5)
|
|
$
|
11,056,740
|
|
|
10,464,001
|
|
|
9,594,878
|
|
|
8,692,120
|
|
|
8,168,023
|
|
Return on average assets (%)
(5)
|
|
2.4
|
|
|
2.9
|
|
|
2.3
|
|
|
2.7
|
|
|
2.6
|
|
|
Long-term debt
|
|
$
|
4,599,864
|
|
|
4,868,097
|
|
|
4,681,240
|
|
|
4,010,810
|
|
|
3,577,289
|
|
Total debt
|
|
$
|
5,391,274
|
|
|
5,502,627
|
|
|
4,717,524
|
|
|
4,283,013
|
|
|
3,982,044
|
|
Shareholders’ equity
(4)
|
|
$
|
2,052,275
|
|
|
1,987,111
|
|
|
1,819,087
|
|
|
1,896,561
|
|
|
1,467,237
|
|
Debt to equity (%)
(4)
|
|
263
|
|
|
277
|
|
|
259
|
|
|
226
|
|
|
271
|
|
|
Average shareholders’ equity
(4), (5)
|
|
$
|
2,052,371
|
|
|
1,894,917
|
|
|
1,925,824
|
|
|
1,593,942
|
|
|
1,405,640
|
|
Adjusted return on average capital (%)
(5), (6)
|
|
4.8
|
|
|
5.8
|
|
|
5.8
|
|
|
5.8
|
|
|
5.7
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
1,601,022
|
|
|
1,441,788
|
|
|
1,382,818
|
|
|
1,251,811
|
|
|
1,160,175
|
|
Net cash (used)/provided by financing activities from continuing operations
|
|
$
|
(185,922
|
)
|
|
731,485
|
|
|
311,650
|
|
|
347,070
|
|
|
333,805
|
|
Net cash used in investing activities from continuing operations
|
|
$
|
(1,405,833
|
)
|
|
(2,161,355
|
)
|
|
(1,704,510
|
)
|
|
(1,603,818
|
)
|
|
(1,504,273
|
)
|
Free cash flow
(7)
|
|
$
|
193,675
|
|
|
(727,714
|
)
|
|
(315,116
|
)
|
|
(339,596
|
)
|
|
(488,373
|
)
|
Capital expenditures paid
|
|
$
|
1,905,157
|
|
|
2,667,978
|
|
|
2,259,164
|
|
|
2,122,628
|
|
|
2,133,235
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
||||||
Average common shares — Diluted
|
|
53,361
|
|
|
53,260
|
|
|
53,036
|
|
|
52,071
|
|
|
50,740
|
|
|
Number of vehicles — Owned and leased
|
|
185,100
|
|
|
185,200
|
|
|
174,100
|
|
|
172,100
|
|
|
172,500
|
|
|
Average number of vehicles — Owned and leased
|
|
185,400
|
|
|
180,500
|
|
|
172,800
|
|
|
171,200
|
|
|
173,700
|
|
|
Number of employees
|
|
34,500
|
|
|
33,100
|
|
|
30,600
|
|
|
28,900
|
|
|
27,700
|
|
(1)
|
Non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section in Item 7 for a reconciliation of total revenue to operating revenue, as well as the reasons management believes these measures are important to investors.
|
(2)
|
Non-GAAP financial measures. Refer to the “Non-GAAP Financial Measures” section in Item 7 of this report for a reconciliation of net earnings from continuing operations to comparable earnings from continuing operations and net earnings from continuing operations per diluted common share to comparable earnings per diluted common share, as well as the reasons management believes these measures are important to investors.
|
(3)
|
Net earnings in
2016
,
2015
,
2014
,
2013
and
2012
, included (losses)/earnings from discontinued operations of $
(2) million
, or
$(0.04)
per diluted common share,
$(1) million
, or
$(0.02)
per diluted common share,
$(2) million
, or
$(0.03)
per diluted common share,
$(5) million
, or
$(0.10)
per diluted common share, and
$9 million
, or
$0.18
per diluted common share, respectively.
|
(4)
|
Shareholders’ equity at
December 31, 2016
,
2015
,
2014
,
2013
and
2012
, reflected cumulative after-tax equity charges of
$627 million
,
$577 million
,
$584 million
,
$474 million
, and
$645 million
, respectively, related to our pension and postretirement plans.
|
(5)
|
Amounts were computed using an 8-point average based on quarterly information.
|
(6)
|
Non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section in Item 7 of this report for a reconciliation of the non-GAAP elements of this calculation and a numerical reconciliation of net earnings to adjusted net earnings and average total debt and average shareholders' equity to adjusted average total capital used to calculate adjusted return on average capital, as well as the reasons management believes these measures are important to investors.
|
(7)
|
Non-GAAP financial measure. Refer to the “Non-GAAP financial measures” section in Item 7 of this report for a reconciliation of net cash provided by operating activities to free cash flow, as well as the reasons why management believes this measure is important to investors.
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
||||||||
Total revenue
|
|
$
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
|
3%
|
|
(1)%
|
Operating revenue
(1)
|
|
5,790,897
|
|
|
5,561,077
|
|
|
5,252,217
|
|
|
4%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings before income taxes (EBT)
|
|
$
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
|
(13)%
|
|
39%
|
Comparable EBT
(2)
|
|
448,833
|
|
|
505,960
|
|
|
462,991
|
|
|
(11)%
|
|
9%
|
|
Earnings from continuing operations
|
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
|
(14)%
|
|
39%
|
|
Comparable earnings from continuing operations
(2)
|
|
290,357
|
|
|
327,331
|
|
|
296,868
|
|
|
(11)%
|
|
10%
|
|
Net earnings
|
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
|
(14)%
|
|
40%
|
|
Earnings per common share — Diluted
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations
|
|
$
|
4.94
|
|
|
5.73
|
|
|
4.14
|
|
|
(14)%
|
|
38%
|
Comparable
(2)
|
|
5.42
|
|
|
6.13
|
|
|
5.58
|
|
|
(12)%
|
|
10%
|
|
Net earnings
|
|
4.90
|
|
|
5.71
|
|
|
4.11
|
|
|
(14)%
|
|
39%
|
(1)
|
Non-GAAP financial measure. Refer to the“Non-GAAP Financial Measures” section of this MD&A for a reconciliation of total revenue to operating revenue and the reasons why management believes this measure is important to investors
.
|
(2)
|
Non-GAAP financial measures. Refer to the “Non-GAAP Financial Measures” section for a reconciliation of EBT, net earnings and earnings per diluted common share to the comparable measures and the reasons why management believes these measures are important to investors.
|
|
|
2016
|
|
2015
|
||||
|
|
Total
|
|
Operating
|
|
Total
|
|
Operating
|
Organic, including price and volume
|
|
6%
|
|
5%
|
|
7%
|
|
8%
|
Fuel
|
|
(2)
|
|
—
|
|
(6)
|
|
—
|
Foreign exchange
|
|
(1)
|
|
(1)
|
|
(2)
|
|
(2)
|
Total increase/(decrease)
|
|
3%
|
|
4%
|
|
(1)%
|
|
6%
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Lease and rental revenues
|
|
$
|
3,170,952
|
|
|
3,121,553
|
|
|
2,939,422
|
|
|
2%
|
|
6%
|
Cost of lease and rental
|
|
2,234,284
|
|
|
2,153,450
|
|
|
2,036,881
|
|
|
4%
|
|
6%
|
|
Gross margin
|
|
936,668
|
|
|
968,103
|
|
|
902,541
|
|
|
(3)%
|
|
7%
|
|
Gross margin %
|
|
30
|
%
|
|
31
|
%
|
|
31
|
%
|
|
|
|
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Services revenue
|
|
$
|
3,152,294
|
|
|
2,912,063
|
|
|
2,911,465
|
|
|
8%
|
|
—%
|
Cost of services
|
|
2,602,978
|
|
|
2,413,156
|
|
|
2,447,867
|
|
|
8%
|
|
(1)%
|
|
Gross margin
|
|
549,316
|
|
|
498,907
|
|
|
463,598
|
|
|
10%
|
|
8%
|
|
Gross margin %
|
|
17
|
%
|
|
17
|
%
|
|
16
|
%
|
|
|
|
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Fuel services revenue
|
|
$
|
463,738
|
|
|
538,277
|
|
|
787,887
|
|
|
(14)%
|
|
(32)%
|
Cost of fuel services
|
|
448,306
|
|
|
519,843
|
|
|
768,292
|
|
|
(14)%
|
|
(32)%
|
|
Gross margin
|
|
15,432
|
|
|
18,434
|
|
|
19,595
|
|
|
(16)%
|
|
(6)%
|
|
Gross margin %
|
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(In thousands)
|
|
|
|
|
||||||||
Other operating expenses
|
|
$
|
113,461
|
|
|
117,082
|
|
|
115,808
|
|
|
(3)%
|
|
1%
|
|
|
|
|
|
|
|
|
Change
|
||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Selling, general and administrative expenses (SG&A)
|
|
$
|
842,697
|
|
|
844,497
|
|
|
816,975
|
|
|
—%
|
|
3%
|
Percentage of total revenue
|
|
12
|
%
|
|
13
|
%
|
|
12
|
%
|
|
|
|
|
|
|
2014
|
||
|
|
(In thousands)
|
||
Pension lump sum settlement expense
|
|
$
|
97,231
|
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(In thousands)
|
|
|
|
|
||||||||
Used vehicle sales, net
|
|
$
|
972
|
|
|
99,853
|
|
|
116,060
|
|
|
(99)%
|
|
(14)%
|
|
|
|
|
|
|
|
|
Change
|
||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Interest expense
|
|
$
|
147,843
|
|
|
150,434
|
|
|
144,739
|
|
|
(2)%
|
|
4%
|
Effective interest rate
|
|
2.7
|
%
|
|
2.9
|
%
|
|
3.1
|
%
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Miscellaneous income, net
|
|
$
|
13,068
|
|
|
10,156
|
|
|
13,613
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Restructuring and other charges, net
|
|
$
|
5,074
|
|
|
14,225
|
|
|
2,387
|
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Provision for income taxes
|
|
$
|
141,741
|
|
|
163,226
|
|
|
118,042
|
|
|
(13)%
|
|
38%
|
Effective tax rate from continuing operations
|
|
34.9
|
%
|
|
34.8
|
%
|
|
34.9
|
%
|
|
|
|
|
|
|
|
|
Change
|
||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||||
|
|
(In thousands)
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet Management Solutions
|
|
$
|
4,556,194
|
|
|
4,545,692
|
|
|
4,655,758
|
|
|
—
|
%
|
|
(2
|
)%
|
Dedicated Transportation Solutions
|
|
1,020,895
|
|
|
895,538
|
|
|
899,802
|
|
|
14
|
|
|
—
|
|
|
Supply Chain Solutions
|
|
1,637,850
|
|
|
1,547,763
|
|
|
1,561,347
|
|
|
6
|
|
|
(1
|
)
|
|
Eliminations
|
|
(427,955
|
)
|
|
(417,100
|
)
|
|
(478,133
|
)
|
|
(3
|
)
|
|
13
|
|
|
Total
|
|
$
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
|
3
|
%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Revenue:
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet Management Solutions
|
|
$
|
3,947,740
|
|
|
3,846,046
|
|
|
3,630,521
|
|
|
3
|
%
|
|
6
|
%
|
Dedicated Transportation Solutions
|
|
774,319
|
|
|
714,453
|
|
|
661,228
|
|
|
8
|
|
|
8
|
|
|
Supply Chain Solutions
|
|
1,352,077
|
|
|
1,256,309
|
|
|
1,201,250
|
|
|
8
|
|
|
5
|
|
|
Eliminations
|
|
(283,239
|
)
|
|
(255,731
|
)
|
|
(240,782
|
)
|
|
(11
|
)
|
|
(6
|
)
|
|
Total
|
|
$
|
5,790,897
|
|
|
5,561,077
|
|
|
5,252,217
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
EBT:
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet Management Solutions
|
|
$
|
370,754
|
|
|
462,109
|
|
|
433,736
|
|
|
(20
|
)%
|
|
7
|
%
|
Dedicated Transportation Solutions
|
|
63,611
|
|
|
45,800
|
|
|
44,556
|
|
|
39
|
|
|
3
|
|
|
Supply Chain Solutions
|
|
105,561
|
|
|
93,754
|
|
|
77,800
|
|
|
13
|
|
|
21
|
|
|
Eliminations
|
|
(50,148
|
)
|
|
(47,193
|
)
|
|
(41,361
|
)
|
|
(6
|
)
|
|
(14
|
)
|
|
|
|
489,778
|
|
|
554,470
|
|
|
514,731
|
|
|
(12
|
)
|
|
8
|
|
|
Unallocated Central Support Services
|
|
(40,945
|
)
|
|
(48,510
|
)
|
|
(51,740
|
)
|
|
16
|
|
|
6
|
|
|
Non-operating pension costs
|
|
(29,728
|
)
|
|
(19,186
|
)
|
|
(9,768
|
)
|
|
(55
|
)
|
|
(96
|
)
|
|
Restructuring and other charges, net and other items
|
|
(12,724
|
)
|
|
(17,559
|
)
|
|
(114,956
|
)
|
|
NM
|
|
|
NM
|
|
|
Earnings from continuing operations before income taxes
|
|
$
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
|
(13
|
)%
|
|
39
|
%
|
(1)
|
Non-GAAP financial measures. Refer to the “Non-GAAP Financial Measures” section of this MD&A for a reconciliation of total revenue to operating revenue, and segment total revenue to segment operating revenue for FMS, DTS and SCS, as well as the reasons why management believes these measures are important to investors.
|
|
|
|
|
|
|
|
Change
|
||||||
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Equipment Contribution:
|
|
|
|
|
|
|
|
|
|
||||
Dedicated Transportation Solutions
|
$
|
32,731
|
|
|
32,471
|
|
|
28,436
|
|
|
1%
|
|
14%
|
Supply Chain Solutions
|
17,417
|
|
|
14,722
|
|
|
12,925
|
|
|
18
|
|
14
|
|
Total
|
$
|
50,148
|
|
|
47,193
|
|
|
41,361
|
|
|
6%
|
|
14%
|
|
|
|
|
|
||||||||
Description
|
|
Consolidated
Statements of Earnings Line Item
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
|
|
(In thousands)
|
||||||||
Non-operating pension costs
|
|
SG&A
|
|
$
|
(29,728
|
)
|
|
(19,186
|
)
|
|
(9,768
|
)
|
Restructuring and other charges, net
(1)
|
|
Restructuring and other charges
|
|
(5,074
|
)
|
|
(14,225
|
)
|
|
(2,387
|
)
|
|
Consulting fees
(2)
|
|
SG&A
|
|
—
|
|
|
(3,843
|
)
|
|
(400
|
)
|
|
Pension-related adjustments
(3)
|
|
SG&A
|
|
(7,650
|
)
|
|
509
|
|
|
(12,564
|
)
|
|
Pension lump sum settlement expense
(3)
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
—
|
|
|
(97,231
|
)
|
|
Acquisition-related tax adjustment
(2)
|
|
SG&A
|
|
—
|
|
|
—
|
|
|
(1,808
|
)
|
|
Acquisition transaction costs
|
|
SG&A
|
|
—
|
|
|
—
|
|
|
(566
|
)
|
|
|
|
|
|
$
|
(42,452
|
)
|
|
(36,745
|
)
|
|
(124,724
|
)
|
(1)
|
See
Note 4
, “
Restructuring and Other Charges
,” in the Notes to Consolidated Financial Statements for additional information.
|
(2)
|
See
Note 24
, “
Other Items Impacting Comparability
,” in the Notes to Consolidated Financial Statements for additional information.
|
(3)
|
See
Note 22
, “
Employee Benefit Plans
,” in the Notes to Consolidated Financial Statements for additional information.
|
|
|
|
|
|
|
|
|
Change
|
||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Full service lease
|
|
$
|
2,573,638
|
|
|
2,406,711
|
|
|
2,276,381
|
|
|
7%
|
|
6%
|
Contract maintenance
|
|
199,923
|
|
|
192,470
|
|
|
184,591
|
|
|
4
|
|
4
|
|
Contractual revenue
|
|
2,773,561
|
|
|
2,599,181
|
|
|
2,460,972
|
|
|
7
|
|
6
|
|
Commercial rental
|
|
846,331
|
|
|
940,045
|
|
|
876,994
|
|
|
(10)
|
|
7
|
|
Contract-related maintenance
|
|
249,806
|
|
|
229,195
|
|
|
221,491
|
|
|
9
|
|
3
|
|
Other
|
|
78,042
|
|
|
77,625
|
|
|
71,064
|
|
|
1
|
|
9
|
|
Fuel services revenue
|
|
608,454
|
|
|
699,646
|
|
|
1,025,237
|
|
|
(13)
|
|
(32)
|
|
FMS Total revenue
(1)
|
|
$
|
4,556,194
|
|
|
4,545,692
|
|
|
4,655,758
|
|
|
—%
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
||||
FMS Operating revenue
(2)
|
|
$
|
3,947,740
|
|
|
3,846,046
|
|
|
3,630,521
|
|
|
3
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
||||
FMS EBT
|
|
$
|
370,754
|
|
|
462,109
|
|
|
433,736
|
|
|
(20)%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
||||
FMS Segment EBT as a % of FMS total revenue
|
|
8.1
|
%
|
|
10.2
|
%
|
|
9.3
|
%
|
|
(210) bps
|
|
90 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FMS Segment EBT as a % of FMS operating revenue
(1)
|
|
9.4
|
%
|
|
12.0
|
%
|
|
11.9
|
%
|
|
(260) bps
|
|
10 bps
|
(1)
|
Includes intercompany fuel sales from FMS to DTS and SCS.
|
(2)
|
Non-GAAP financial measures. Reconciliations of FMS total revenue to FMS operating revenue, and FMS EBT as a % of FMS total revenue to FMS EBT as a % of FMS operating revenue, as well as the reasons why management believes these measures are important to investors are included in the “Non-GAAP Financial Measures” section of this MD&A.
|
|
|
2016
|
|
2015
|
||||
|
|
Total
|
|
Operating
(1)
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
3%
|
|
4%
|
|
7%
|
|
8%
|
Fuel
|
|
(2)
|
|
—
|
|
(7)
|
|
—
|
Foreign exchange
|
|
(1)
|
|
(1)
|
|
(2)
|
|
(2)
|
Total (decrease)/increase
|
|
—%
|
|
3%
|
|
(2)%
|
|
6%
|
(1)
|
Non-GAAP financial measures. A reconciliation of FMS total revenue to FMS operating revenue as well as the reasons why management believes these measures are important to investors are included in the "Non-GAAP Financial Measures" section of this MD&A.
|
|
|
|
|
|
|
|
|
Change
|
||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
(Dollars in thousands)
|
|
|
|
||||||||||
Rental revenue from non-lease customers
|
|
$
|
528,892
|
|
|
571,985
|
|
|
523,063
|
|
|
(8)%
|
|
9%
|
Rental revenue from lease customers
(1)
|
|
$
|
317,439
|
|
|
368,060
|
|
|
353,931
|
|
|
(14)%
|
|
4%
|
Average commercial rental power fleet size – in service
(2), (3)
|
|
31,500
|
|
|
33,800
|
|
|
31,200
|
|
|
(7)%
|
|
8%
|
|
Commercial rental utilization – power fleet
(2)
|
|
74.7
|
%
|
|
76.5
|
%
|
|
77.6
|
%
|
|
(180) bps
|
|
(110) bps
|
(1)
|
Represents revenue from rental vehicles provided to our existing full service lease customers, generally in place of a lease vehicle.
|
(2)
|
Number of units rounded to nearest hundred and calculated using quarterly average unit counts.
|
(3)
|
Excluding trailers.
|
|
|
|
|
|
|
|
|
|
|
|
|||
Our global fleet of owned and leased revenue earning equipment and contract maintenance vehicles is summarized as follows (number of units rounded to the nearest hundred):
|
|||||||||||||
|
|
|
|
|
|
|
|
Change
|
|||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
|||
End of period vehicle count
|
|
|
|
|
|
|
|
|
|
|
|||
By type:
|
|
|
|
|
|
|
|
|
|
|
|||
Trucks
(1)
|
|
73,300
|
|
|
72,800
|
|
|
68,900
|
|
|
1%
|
|
6%
|
Tractors
(2)
|
|
67,900
|
|
|
68,700
|
|
|
62,400
|
|
|
(1)
|
|
10
|
Trailers
(3), (4)
|
|
42,800
|
|
|
42,400
|
|
|
41,400
|
|
|
1
|
|
2
|
Other
|
|
1,100
|
|
|
1,300
|
|
|
1,400
|
|
|
(15)
|
|
(7)
|
Total
|
|
185,100
|
|
|
185,200
|
|
|
174,100
|
|
|
—%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|||
By ownership:
|
|
|
|
|
|
|
|
|
|
|
|||
Owned
|
|
183,700
|
|
|
184,700
|
|
|
172,300
|
|
|
(1)%
|
|
7%
|
Leased
|
|
1,400
|
|
|
500
|
|
|
1,800
|
|
|
180
|
|
(72)
|
Total
|
|
185,100
|
|
|
185,200
|
|
|
174,100
|
|
|
—%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|||
By product line:
(4)
|
|
|
|
|
|
|
|
|
|
|
|||
Full service lease
|
|
136,500
|
|
|
131,800
|
|
|
125,500
|
|
|
4%
|
|
5%
|
Commercial rental
|
|
37,800
|
|
|
42,100
|
|
|
39,900
|
|
|
(10)
|
|
6
|
Service vehicles and other
|
|
3,300
|
|
|
3,300
|
|
|
3,200
|
|
|
—
|
|
3
|
Active units
|
|
177,600
|
|
|
177,200
|
|
|
168,600
|
|
|
—
|
|
5
|
Held for sale
|
|
7,500
|
|
|
8,000
|
|
|
5,500
|
|
|
(6)
|
|
45
|
Total
|
|
185,100
|
|
|
185,200
|
|
|
174,100
|
|
|
—
|
|
6
|
Customer vehicles under contract maintenance
|
|
49,000
|
|
|
46,700
|
|
|
42,400
|
|
|
5
|
|
10
|
Total vehicles serviced
|
|
234,100
|
|
|
231,900
|
|
|
216,500
|
|
|
1%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|||
Average vehicle count
|
|
|
|
|
|
|
|
|
|
|
|||
By product line:
|
|
|
|
|
|
|
|
|
|
|
|||
Full service lease
|
|
134,400
|
|
|
128,800
|
|
|
123,400
|
|
|
4%
|
|
4%
|
Commercial rental
|
|
39,200
|
|
|
42,400
|
|
|
39,800
|
|
|
(8)
|
|
7
|
Service vehicles and other
|
|
3,400
|
|
|
3,200
|
|
|
3,100
|
|
|
6
|
|
3
|
Active units
|
|
177,000
|
|
|
174,400
|
|
|
166,300
|
|
|
1
|
|
5
|
Held for sale
|
|
8,400
|
|
|
6,100
|
|
|
6,500
|
|
|
38
|
|
(6)
|
Total
|
|
185,400
|
|
|
180,500
|
|
|
172,800
|
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|||
Customer vehicles under contract maintenance
|
|
49,200
|
|
|
43,300
|
|
|
39,500
|
|
|
14%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|||
Customer vehicles under on-demand maintenance
(5)
|
|
21,000
|
|
|
20,000
|
|
|
17,000
|
|
|
5%
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total vehicles serviced
|
|
255,600
|
|
|
243,800
|
|
|
229,300
|
|
|
5%
|
|
6%
|
(1)
|
Generally comprised of Class 1 through Class 7 type vehicles with a Gross Vehicle Weight (GVW) up to 33,000 pounds.
|
(2)
|
Generally comprised of over the road on highway tractors and are primarily comprised of Class 8 type vehicles with a GVW of over 33,000 pounds.
|
(3)
|
Generally comprised of dry, flatbed and refrigerated type trailers.
|
(4)
|
Includes
5,300
UK trailers (
3,300
full service lease and
2,000
commercial rental),
6,100
UK trailers (
3,900
full service lease and
2,200
commercial rental) and
6,800
UK trailers (
4,400
full service lease and
2,400
commercial rental) as of December 31,
2016
,
2015
and
2014
, respectively, primarily acquired as part of the Hill Hire acquisition.
|
(5)
|
Comprised of the number of unique vehicles serviced under on-demand maintenance agreements. Vehicles included in the end of period count may have been serviced more than one time during the respective annual period.
|
Note:
|
Average vehicle counts were computed using a 24-point average based on monthly information.
|
|
|
|
|
Change
|
|||||||||
Number of Units
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
|||
Not yet earning revenue (NYE)
|
|
1,700
|
|
|
2,800
|
|
|
2,300
|
|
|
(39)%
|
|
22%
|
No longer earning revenue (NLE):
|
|
|
|
|
|
|
|
|
|
|
|||
Units held for sale
|
|
7,500
|
|
|
8,000
|
|
|
5,500
|
|
|
(6)
|
|
45
|
Other NLE units
|
|
4,400
|
|
|
3,300
|
|
|
3,000
|
|
|
33
|
|
10
|
Total
|
|
13,600
|
|
|
14,100
|
|
|
10,800
|
|
|
(4)%
|
|
31%
|
|
|
|
|
|
Change
|
|||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
DTS Total revenue
(1)
|
|
$
|
1,020,895
|
|
|
895,538
|
|
|
899,802
|
|
|
14%
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
DTS Operating revenue
(2)
|
|
$
|
774,319
|
|
|
714,453
|
|
|
661,228
|
|
|
8%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
||||
DTS EBT
|
|
$
|
63,611
|
|
|
45,800
|
|
|
44,556
|
|
|
39%
|
|
3%
|
DTS EBT as a % of DTS total revenue
|
|
6.2
|
%
|
|
5.1
|
%
|
|
5.0
|
%
|
|
110 bps
|
|
10 bps
|
|
DTS EBT as a % of DTS operating revenue
(1)
|
|
8.2
|
%
|
|
6.4
|
%
|
|
6.7
|
%
|
|
180 bps
|
|
(30) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Memo:
|
|
|
|
|
|
|
|
|
|
|
||||
Average fleet
|
|
8,200
|
|
|
7,700
|
|
|
7,300
|
|
|
6%
|
|
5%
|
(1)
|
Includes intercompany fuel sales from FMS to DTS.
|
(2)
|
Non-GAAP financial measures. Reconciliations of DTS total revenue to DTS operating revenue, DTS EBT as a % of DTS total revenue to DTS EBT as a % of DTS operating revenue, as well as the reasons why management believes these measures are important to investors are included in the “Non-GAAP Financial Measures” section of this MD&A.
|
|
|
2016
|
|
2015
|
||||
|
|
Total
|
|
Operating
(1)
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
16%
|
|
8%
|
|
5%
|
|
8%
|
Fuel
|
|
(2)
|
|
—
|
|
(5)
|
|
—
|
Total increase
|
|
14%
|
|
8%
|
|
—%
|
|
8%
|
(1)
|
Non-GAAP financial measure. A reconciliation of DTS total revenue to DTS operating revenue, as well as the reasons why management believes this measure is important to investors is included in the "Non-GAAP Financial Measures" section of this MD&A.
|
|
|
|
|
Change
|
||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||||
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||||
Automotive
|
|
$
|
548,659
|
|
|
469,178
|
|
|
454,888
|
|
|
17%
|
|
3%
|
||
Technology and healthcare
|
|
242,474
|
|
|
251,188
|
|
|
236,380
|
|
|
(3)
|
|
6
|
|||
CPG and retail
|
|
436,368
|
|
|
431,571
|
|
|
405,929
|
|
|
1
|
|
6
|
|||
Industrial and other
|
|
124,576
|
|
|
104,372
|
|
|
104,053
|
|
|
19
|
|
—
|
|||
Subcontracted transportation
|
|
224,060
|
|
|
226,880
|
|
|
264,377
|
|
|
(1)
|
|
(14)
|
|||
Fuel costs
(1)
|
|
61,713
|
|
|
64,574
|
|
|
95,720
|
|
|
(4)
|
|
(33)
|
|||
SCS total revenue
|
|
$
|
1,637,850
|
|
|
$
|
1,547,763
|
|
|
$
|
1,561,347
|
|
|
6%
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
SCS operating revenue
(2)
|
|
1,352,077
|
|
|
1,256,309
|
|
|
1,201,250
|
|
|
8%
|
|
5%
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
SCS EBT
|
|
$
|
105,561
|
|
|
93,754
|
|
|
77,800
|
|
|
13%
|
|
21%
|
||
SCS EBT as a % of SCS total revenue
|
|
6.4
|
%
|
|
6.1
|
%
|
|
5.0
|
%
|
|
30 bps
|
|
110 bps
|
|||
SCS EBT as a % of SCS operating revenue
(2)
|
|
7.8
|
%
|
|
7.5
|
%
|
|
6.5
|
%
|
|
30 bps
|
|
100 bps
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Memo:
|
|
|
|
|
|
|
|
|
|
|
||||||
Average fleet
|
|
7,200
|
|
|
6,300
|
|
|
6,000
|
|
|
14%
|
|
5%
|
(1)
|
Includes intercompany fuel sales from FMS to SCS.
|
(2)
|
Non-GAAP financial measures. Reconciliations of SCS total revenue to SCS operating revenue, SCS EBT as a % of SCS total revenue to SCS EBT as a % of SCS operating revenue, as well as the reasons why management believes these measures are important to investors are included in the “Non-GAAP Financial Measures” section of this MD&A.
|
|
|
2016
|
|
2015
|
||||
|
|
Total
|
|
Operating
(1)
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
8%
|
|
9%
|
|
5%
|
|
8%
|
Foreign exchange
|
|
(2)
|
|
(1)
|
|
(4)
|
|
(3)
|
Fuel
|
|
—
|
|
—
|
|
(2)
|
|
—
|
Total increase/(decrease)
|
|
6%
|
|
8%
|
|
(1)%
|
|
5%
|
(1)
|
Non-GAAP financial measure. A reconciliation of SCS total revenue to SCS operating revenue, as well as the reasons why management believes this measure is important to investors is included in the "Non-GAAP Financial Measures" section of this MD&A.
|
|
|
|
|
Change
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016/2015
|
|
2015/2014
|
||||
|
|
(In thousands)
|
|
|
|
|
||||||||
Human resources
|
|
$
|
17,501
|
|
|
20,150
|
|
|
19,255
|
|
|
(13)%
|
|
5%
|
Finance
|
|
59,445
|
|
|
60,998
|
|
|
57,510
|
|
|
(3)
|
|
6
|
|
Corporate services and public affairs
|
|
11,682
|
|
|
12,303
|
|
|
11,142
|
|
|
(5)
|
|
10
|
|
Information technology
|
|
82,087
|
|
|
84,729
|
|
|
79,498
|
|
|
(3)
|
|
7
|
|
Legal and safety
|
|
23,977
|
|
|
24,522
|
|
|
23,917
|
|
|
(2)
|
|
3
|
|
Marketing
|
|
18,029
|
|
|
22,206
|
|
|
21,409
|
|
|
(19)
|
|
4
|
|
Other
|
|
24,353
|
|
|
33,698
|
|
|
36,689
|
|
|
(28)
|
|
(8)
|
|
Total CSS
|
|
237,074
|
|
|
258,606
|
|
|
249,420
|
|
|
(8)
|
|
4
|
|
Allocation of CSS to business segments
|
|
(196,129
|
)
|
|
(210,096
|
)
|
|
(197,680
|
)
|
|
(7)
|
|
6
|
|
Unallocated CSS
|
|
$
|
40,945
|
|
|
48,510
|
|
|
51,740
|
|
|
(16)%
|
|
(6)%
|
|
|
Three months ended December 31,
|
|
Change
|
|||||
|
|
2016
|
|
2015
|
|
2016/2015
|
|||
|
|
(Dollars in thousands, except
per share amounts)
|
|
|
|||||
Total revenue
|
|
$
|
1,729,150
|
|
|
1,672,743
|
|
|
3%
|
Operating revenue
(1)
|
|
1,466,878
|
|
|
1,441,708
|
|
|
2
|
|
|
|
|
|
|
|
|
|||
EBT
|
|
$
|
69,196
|
|
|
111,691
|
|
|
(38)%
|
Comparable EBT
(2)
|
|
82,307
|
|
|
130,751
|
|
|
(37)
|
|
Earnings from continuing operations
|
|
49,275
|
|
|
75,935
|
|
|
(35)
|
|
Comparable earnings from continuing operations
(2)
|
|
57,519
|
|
|
88,832
|
|
|
(35)
|
|
Net earnings
|
|
48,181
|
|
|
76,201
|
|
|
(37)
|
|
|
|
|
|
|
|
|
|||
Earnings per common share (EPS) — Diluted
|
|
|
|
|
|
|
|||
Continuing operations
|
|
$
|
0.92
|
|
|
1.42
|
|
|
(35)%
|
Comparable
(2)
|
|
1.07
|
|
|
1.66
|
|
|
(36)
|
|
Net earnings
|
|
$
|
0.91
|
|
|
1.43
|
|
|
(36)
|
(1)
|
Non-GAAP financial measure. Refer to the“Non-GAAP Financial Measures” section of this MD&A for a reconciliation of total revenue to operating revenue and the reasons why management believes this measure is important to investors.
|
(2)
|
Non-GAAP financial measures. Refer to the “Non-GAAP Financial Measures” section for a reconciliation of EBT, net earnings and earnings per diluted common share to their respective comparable measures and the reasons why management believes these measures are important to investors.
|
|
|
Three months ended December 31, 2016
|
||
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
5%
|
|
3%
|
Foreign exchange
|
|
(2)
|
|
(1)
|
Total increase
|
|
3%
|
|
2%
|
(1)
|
Non-GAAP financial measure. Refer to the“Non-GAAP Financial Measures” section of this MD&A for a reconciliation of total revenue to operating revenue and the reasons why management believes this measure is important to investors.
|
|
|
Three months ended December 31,
|
|
Change
|
|||||
|
|
2016
|
|
2015
|
|
2016/2015
|
|||
|
|
(In thousands)
|
|
|
|||||
Revenue:
|
|
|
|
|
|
|
|||
Fleet Management Solutions
|
|
$
|
1,151,742
|
|
|
1,151,615
|
|
|
—%
|
Dedicated Transportation Solutions
|
|
256,870
|
|
|
232,444
|
|
|
11
|
|
Supply Chain Solutions
|
|
430,185
|
|
|
392,463
|
|
|
10
|
|
Eliminations
|
|
(109,647
|
)
|
|
(103,779
|
)
|
|
(6)
|
|
Total
|
|
$
|
1,729,150
|
|
|
1,672,743
|
|
|
3%
|
Operating Revenue:
(1)
|
|
|
|
|
|
|
|||
Fleet Management Solutions
|
|
$
|
992,274
|
|
|
999,385
|
|
|
(1)%
|
Dedicated Transportation Solutions
|
|
193,106
|
|
|
187,571
|
|
|
3
|
|
Supply Chain Solutions
|
|
352,650
|
|
|
322,056
|
|
|
9
|
|
Eliminations
|
|
(71,152
|
)
|
|
(67,304
|
)
|
|
(6)
|
|
Total
|
|
$
|
1,466,878
|
|
|
1,441,708
|
|
|
2%
|
EBT:
|
|
|
|
|
|
|
|||
Fleet Management Solutions
|
|
$
|
64,367
|
|
|
123,506
|
|
|
(48)%
|
Dedicated Transportation Solutions
|
|
15,284
|
|
|
11,099
|
|
|
38
|
|
Supply Chain Solutions
|
|
26,440
|
|
|
23,793
|
|
|
11
|
|
Eliminations
|
|
(13,032
|
)
|
|
(12,073
|
)
|
|
(8)
|
|
|
|
93,059
|
|
|
146,325
|
|
|
(36)
|
|
Unallocated Central Support Services
|
|
(10,752
|
)
|
|
(15,574
|
)
|
|
31
|
|
Non-operating pension costs
|
|
(8,037
|
)
|
|
(4,835
|
)
|
|
(66)
|
|
Restructuring and other charges, net and other items
|
|
(5,074
|
)
|
|
(14,225
|
)
|
|
NM
|
|
Earnings from continuing operations before income taxes
|
|
$
|
69,196
|
|
|
111,691
|
|
|
(38)%
|
(1)
|
Non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section of this MD&A for a reconciliation of total revenue to operating revenue, and segment total revenue to segment operating revenue, as well as the reasons why management believes these measures are important to investors.
|
|
|
Three months ended December 31, 2016
|
||
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
1%
|
|
1%
|
Fuel
|
|
1
|
|
—
|
Foreign exchange
|
|
(2)
|
|
(2)
|
Total decrease
|
|
—%
|
|
(1)%
|
(1)
|
Non-GAAP financial measure. A reconciliation of FMS total revenue to FMS operating revenue as well as the reasons why management believes this measure is important to investors is included in the "Non-GAAP Financial Measures" section of this MD&A.
|
|
|
Three months ended December 31, 2016
|
||
|
|
Total
|
|
Operating
(1)
|
Organic, including price and volume
|
|
12%
|
|
11%
|
Foreign exchange
|
|
(2)
|
|
(2)
|
Total increase/(decrease)
|
|
10%
|
|
9%
|
(1)
|
Non-GAAP financial measure. A reconciliation of SCS total revenue to SCS operating revenue, as well as the reasons why management believes this measure is important to investors is included in the "Non-GAAP Financial Measures" section of this MD&A.
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Net cash provided by (used in):
|
|
|
|
|
|
|
||||
Operating activities
|
|
$
|
1,601,022
|
|
|
1,441,788
|
|
|
1,382,818
|
|
Financing activities
|
|
(185,922
|
)
|
|
731,485
|
|
|
311,650
|
|
|
Investing activities
|
|
(1,405,833
|
)
|
|
(2,161,355
|
)
|
|
(1,704,510
|
)
|
|
Effect of exchange rates on cash
|
|
(9,482
|
)
|
|
37
|
|
|
297
|
|
|
Net change in cash and cash equivalents
|
|
$
|
(215
|
)
|
|
11,955
|
|
|
(9,745
|
)
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Net cash provided by operating activities
|
|
$
|
1,601,022
|
|
|
1,441,788
|
|
|
1,382,818
|
|
Sales of revenue earning equipment
(1)
|
|
414,249
|
|
|
423,605
|
|
|
493,477
|
|
|
Sales of operating property and equipment
(1)
|
|
7,051
|
|
|
3,891
|
|
|
3,486
|
|
|
Collections on direct finance leases and other
(1)
|
|
76,510
|
|
|
70,980
|
|
|
64,267
|
|
|
Total cash generated
(2)
|
|
2,098,832
|
|
|
1,940,264
|
|
|
1,944,048
|
|
|
Purchases of property and revenue earning equipment
(1)
|
|
(1,905,157
|
)
|
|
(2,667,978
|
)
|
|
(2,259,164
|
)
|
|
Free cash flow
(2)
|
|
$
|
193,675
|
|
|
(727,714
|
)
|
|
(315,116
|
)
|
|
|
|
|
|
|
|
||||
Memo:
|
|
|
|
|
|
|
||||
Net cash (used in) provided by financing activities
|
|
$
|
(185,922
|
)
|
|
731,485
|
|
|
311,650
|
|
Net cash used in investing activities
|
|
$
|
(1,405,833
|
)
|
|
(2,161,355
|
)
|
|
(1,704,510
|
)
|
(1)
|
Included in cash flows from investing activities.
|
(2)
|
Non-GAAP financial measures. Reconciliations of net cash provided by operating activities to total cash generated and to free cash flow are set forth in this table. Refer to the “Non-GAAP Financial Measures” section of this MD&A for the reasons why management believes these measures are important to investors.
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Revenue earning equipment:
|
|
|
|
|
|
|
||||
Full service lease
|
|
$
|
1,547,717
|
|
|
2,060,254
|
|
|
1,732,904
|
|
Commercial rental
|
|
82,580
|
|
|
522,940
|
|
|
415,186
|
|
|
|
|
1,630,297
|
|
|
2,583,194
|
|
|
2,148,090
|
|
|
Operating property and equipment
|
|
132,603
|
|
|
112,918
|
|
|
150,145
|
|
|
Total capital expenditures
(1)
|
|
1,762,900
|
|
|
2,696,112
|
|
|
2,298,235
|
|
|
Changes in accounts payable related to purchases of revenue earning equipment
|
|
142,257
|
|
|
(28,134
|
)
|
|
(39,071
|
)
|
|
Cash paid for purchases of property and revenue earning equipment
|
|
$
|
1,905,157
|
|
|
2,667,978
|
|
|
2,259,164
|
|
(1)
|
Non-cash additions exclude approximately
$1 million
,
$6 million
and
$8 million
in
2016
,
2015
and
2014
, respectively, in assets held under capital leases resulting from the extension of existing operating leases and other additions.
|
|
|
2016
|
|
2015
|
||||
|
|
(In thousands)
|
||||||
Current assets
|
|
$
|
1,101,557
|
|
|
$
|
1,098,302
|
|
Current liabilities
|
|
1,744,069
|
|
|
1,680,255
|
|
||
Working capital
|
|
$
|
(642,512
|
)
|
|
$
|
(581,953
|
)
|
|
|
Short-term
|
|
Long-term
|
||||
|
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Moody’s Investors Service
|
|
P2
|
|
Stable
|
|
Baa1
|
|
Stable (affirmed February 2016)
|
Standard & Poor’s Ratings Services
|
|
A2
|
|
Stable
|
|
BBB+
|
|
Stable (upgraded December 2016)
|
Fitch Ratings
|
|
F2
|
|
Stable
|
|
A-
|
|
Stable (affirmed October 2016)
|
|
(In millions)
|
Global revolving credit facility
|
$675
|
Trade receivables program
|
$175
|
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Debt balance at January 1
|
|
$
|
5,502,627
|
|
|
4,717,524
|
|
Cash-related changes in debt:
|
|
|
|
|
|||
Net change in commercial paper borrowings and revolving credit facilities
|
|
(77,798
|
)
|
|
323,359
|
|
|
Proceeds from issuance of medium-term notes
|
|
596,283
|
|
|
998,576
|
|
|
Proceeds from issuance of other debt instruments
|
|
78,645
|
|
|
284,647
|
|
|
Retirement of medium-term notes
|
|
(600,000
|
)
|
|
(660,000
|
)
|
|
Other debt repaid
|
|
(69,047
|
)
|
|
(138,311
|
)
|
|
Debt issuance costs paid
|
|
(1,254
|
)
|
|
(2,134
|
)
|
|
|
|
(73,171
|
)
|
|
806,137
|
|
|
Non-cash changes in debt:
|
|
|
|
|
|||
Fair market value adjustment on notes subject to hedging
|
|
(4,143
|
)
|
|
423
|
|
|
Addition of capital lease obligations
|
|
1,231
|
|
|
5,959
|
|
|
Changes in foreign currency exchange rates and other non-cash items
|
|
(35,270
|
)
|
|
(27,416
|
)
|
|
Total changes in debt
|
|
(111,353
|
)
|
|
785,103
|
|
|
Debt balance at December 31
|
|
$
|
5,391,274
|
|
|
5,502,627
|
|
|
|
2017
|
|
2018-2019
|
|
2020-2021
|
|
Thereafter
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||||||
Debt
|
|
$
|
957,358
|
|
|
1,859,981
|
|
|
2,310,795
|
|
|
237,846
|
|
|
5,365,980
|
|
Capital lease obligations
|
|
8,827
|
|
|
12,316
|
|
|
2,304
|
|
|
737
|
|
|
24,184
|
|
|
Total debt, including capital leases
(1)
|
|
966,185
|
|
|
1,872,297
|
|
|
2,313,099
|
|
|
238,583
|
|
|
5,390,164
|
|
|
Interest on debt
(2)
|
|
137,179
|
|
|
203,595
|
|
|
105,818
|
|
|
53,992
|
|
|
500,584
|
|
|
Operating leases
(3)
|
|
73,064
|
|
|
93,178
|
|
|
33,774
|
|
|
22,276
|
|
|
222,292
|
|
|
Purchase obligations
(4)
|
|
248,743
|
|
|
29,905
|
|
|
11,757
|
|
|
663
|
|
|
291,068
|
|
|
Total contractual cash obligations
|
|
458,986
|
|
|
326,678
|
|
|
151,349
|
|
|
76,931
|
|
|
1,013,944
|
|
|
Insurance obligations (primarily self-insurance)
|
|
107,136
|
|
|
100,773
|
|
|
40,468
|
|
|
93,096
|
|
|
341,473
|
|
|
Other long-term liabilities
(5), (6), (7)
|
|
5,233
|
|
|
6,848
|
|
|
4,740
|
|
|
59,846
|
|
|
76,667
|
|
|
Total
|
|
$
|
1,537,540
|
|
|
2,306,596
|
|
|
2,509,656
|
|
|
468,456
|
|
|
6,822,248
|
|
(1)
|
Net of unamortized discount and excludes the fair market value adjustment on notes subject to hedging.
|
(2)
|
Total debt matures at various dates through fiscal year
2025
and bears interest principally at fixed rates. Interest on variable-rate debt is calculated based on the applicable rate at
December 31, 2016
. Amounts are based on existing debt obligations, including capital leases, and do not consider potential refinancing of expiring debt obligations.
|
(3)
|
Represents future lease payments associated with vehicles, equipment and properties under operating leases. Amounts are based upon the general assumption that the leased asset will remain on lease for the length of time specified by the respective lease agreements. No effect has been given to renewals, cancellations, contingent rentals or future rate changes.
|
(4)
|
The majority of our purchase obligations are pay-as-you-go transactions made in the ordinary course of business. Purchase obligations include agreements to purchase goods or services that are legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed minimum or variable price provisions; and the approximate timing of the transaction. The most significant item included in the above table are purchase obligations related to vehicles. Purchase orders made in the ordinary course of business that are cancelable are excluded from the above table. Any amounts for which we are liable under purchase orders for goods received are reflected in our Consolidated Balance Sheets as “Accounts payable” and “Accrued expenses and other current liabilities” and are excluded from the above table.
|
(5)
|
Represents other long-term liability amounts reflected in our Consolidated Balance Sheets that have known payment streams. The most significant items included were asset retirement obligations and deferred compensation obligations.
|
(6)
|
The amounts exclude our estimated pension contributions. For
2017
, our pension contributions, including our minimum funding requirements as set forth by ERISA and international regulatory bodies, are expected to be
$22 million
. Our minimum funding requirements after
2017
are dependent on several factors. However, we estimate that the undiscounted required global contributions over the next five years are approximately
$272 million
(pre-tax) (assuming expected long-term rate of return realized and other assumptions remain unchanged). We also have payments due under our other postretirement benefit (OPEB) plans. These plans are not required to be funded in advance, but are pay-as-you-go. See
Note 22
,“
Employee Benefit Plans
,” in the Notes to Consolidated Financial Statements for further discussion.
|
(7)
|
The amounts exclude
$67 million
of liabilities associated with uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement. See
Note 13
, “
Income Taxes
,” in the Notes to Consolidated Financial Statements for further discussion.
|
2017
|
|
2016
|
|
2015
|
($4 million)
|
|
$35 million
|
|
$40 million
|
|
|
Assumed Rate
|
|
Change
|
|
Impact on 2016 Net
Pension Expense |
|
Effect on
December 31, 2016 Projected Benefit Obligation |
|
Expected long-term rate of return on assets
|
|
5.85
|
%
|
|
+/- 0.25
|
|
+/- $3.0 million
|
|
|
Discount rate increase
|
|
4.50
|
%
|
|
+ 0.25
|
|
+ $4.0 million
|
|
- $54 million
|
Discount rate decrease
|
|
4.50
|
%
|
|
- 0.25
|
|
- $4.0 million
|
|
+ $54 million
|
Actual return on assets
|
|
5.85
|
%
|
|
+/- 0.25
|
|
-/+ $0.2 million
|
|
|
Contributions at the beginning of the year
|
|
|
|
|
+ $50 million
|
|
- $2.8 million
|
|
|
Non-GAAP Financial Measure
|
Comparable GAAP Measure
|
Reconciliation in Section Entitled
|
Page
|
Operating Revenue Measures:
|
|
|
|
Operating Revenue
|
Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
60
|
FMS Operating Revenue
|
FMS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
DTS Operating Revenue
|
DTS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
SCS Operating Revenue
|
SCS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
FMS EBT as a % of FMS Operating Revenue
|
FMS EBT as a % of FMS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
DTS EBT as a % of DTS Operating Revenue
|
DTS EBT as a % of DTS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
SCS EBT as a % of SCS Operating Revenue
|
SCS EBT as a % of SCS Total Revenue
|
MD&A - Non-GAAP Financial Measures section
|
61
|
Comparable Earnings Measures:
|
|
|
|
Comparable Earnings Before Income Tax
|
Earnings Before Income Tax
|
MD&A - Non-GAAP Financial Measures section
|
58
|
Comparable Earnings
|
Earnings from Continuing Operations
|
58
|
|
Comparable EPS
|
EPS from Continuing Operations
|
63
|
|
Adjusted Return on Average Capital (ROC)
|
Not Applicable. However, non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average total debt and average shareholders' equity to adjusted average total capital is provided.
|
62
|
|
Cash Flow Measures:
|
|
|
|
Total Cash Generated and Free Cash Flow
|
Cash Provided by Operating Activities
|
MD&A - Non-GAAP Financial Measures section
|
60
|
Operating Revenue Measures:
|
|
|
|
|
Operating Revenue
FMS Operating Revenue
DTS Operating Revenue SCS Operating Revenue FMS EBT as a % of FMS Operating Revenue DTS EBT as a % of DTS Operating Revenue SCS EBT as a % of SCS Operating Revenue |
Operating revenue is defined as total revenue for Ryder System, Inc. or each business segment (FMS, DTS and SCS), respectively, excluding any (1) fuel and (2) subcontracted transportation. We believe operating revenue provides useful information to investors as we use it to evaluate the operating performance of our core businesses and as a measure of sales activity at the consolidated level for Ryder System, Inc., as well as for each of our business segments. We also use segment EBT as a percentage of segment operating revenue for each business segment for the same reason. Note: FMS EBT, DTS EBT and SCS EBT, our primary measures of segment performance, are not non-GAAP measures.
Fuel : We exclude FMS, DTS and SCS fuel from the calculation of our operating revenue measures, as fuel is an ancillary service that we provide our customers, which is impacted by fluctuations in market fuel prices, and the costs are largely a pass-through to our customers, resulting in minimal changes in our profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by rapid changes in market fuel prices during a short period of time, as customer pricing for fuel services is established based on trailing market fuel costs. Subcontracted transportation : We also exclude subcontracted transportation from the calculation of our operating revenue measures, as these services are also typically a pass-through to our customers and, therefore, fluctuations result in minimal changes to our profitability. While our DTS and SCS business segments subcontract certain transportation services to third party providers, our FMS business segment does not engage in subcontracted transportation and, therefore, this item is not applicable to FMS. |
|||
Comparable Earnings Measures:
|
|
|
|
|
Comparable earnings before income tax (EBT)
Comparable Earnings Comparable earnings per diluted common share (EPS) |
Comparable EBT, comparable earnings and comparable EPS are defined, respectively, as GAAP EBT, earnings and EPS, all from continuing operations, excluding (1) non-operating pension costs and (2) any other significant items that are not representative of our business operations. We believe these comparable earnings measures provide useful information to investors and allow for better year-over-year comparison of operating performance.
Non-Operating Pension Costs : Our comparable earnings measures exclude non-operating pension costs, which include the amortization of net actuarial loss, interest cost and expected return on plan assets components of pension and postretirement costs. We exclude non-operating pension costs because we consider these to be impacted by financial market performance and outside the operational performance of our business. Other Significant Items : Our comparable earnings measures also exclude other significant items that are not representative of our business operations as detailed in the reconciliation table below page 58. These other significant items vary from period to period and, in some periods, there may be no such significant items. Calculation of comparable tax rate : The comparable provision for income taxes is computed using the same methodology as the GAAP provision for income taxes. Income tax effects of non-GAAP adjustments are calculated based on the statutory tax rates of the jurisdictions to which the non-GAAP adjustments relate. |
|||
Adjusted Return on Average Capital (ROC)
|
Adjusted ROC: Adjusted ROC is defined as adjusted net earnings divided by average total capital and represents the rate of return generated by the capital deployed in our business. The adjustments represent the comparable items described above, which are excluded, as applicable, from the calculation of net earnings and average shareholders' equity (a component of average total capital).
We use adjusted ROC as an internal measure of how effectively we use the capital invested (borrowed or owned) in our operations.
|
|||
|
|
|
|
Total Cash Generated
Free Cash Flow |
We consider total cash generated and free cash flow to be important measures of comparative operating performance, as our principal sources of operating liquidity are cash from operations and proceeds from the sale of revenue earning equipment.
Total Cash Generated : Total cash generated is defined as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment and (3) operating property and equipment, (4) collections on direct finance leases and (5) other cash inflows from investing activities. We believe total cash generated is an important measure of total cash flows generated from our ongoing business activities. Free Cash Flow : We refer to the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and acquisitions) from continuing operations as “free cash flow”. We calculate free cash flow as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment and (3) operating property and equipment, (4) collections on direct finance leases and (5) other cash inflows from investing activities, less (6) purchases of property and revenue earning equipment. We believe free cash flow provides investors with an important perspective on the cash available for debt service and for shareholders, after making capital investments required to support ongoing business operations. Our calculation of free cash flow may be different from the calculation used by other companies and, therefore, comparability may be limited. |
|
|
Continuing Operations
|
||||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||
EBT
|
|
$
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
|
369,015
|
|
|
302,768
|
|
Non-operating pension costs
(1)
|
|
29,728
|
|
|
19,186
|
|
|
9,768
|
|
|
24,285
|
|
|
31,423
|
|
|
Pension lump sum settlement expense
(2)
|
|
—
|
|
|
—
|
|
|
97,231
|
|
|
—
|
|
|
—
|
|
|
Pension-related adjustments
(2)
|
|
7,650
|
|
|
(509
|
)
|
|
12,564
|
|
|
2,820
|
|
|
—
|
|
|
Restructuring and other charges (recoveries), net
(3)
|
|
5,074
|
|
|
14,225
|
|
|
2,387
|
|
|
(470
|
)
|
|
8,070
|
|
|
Acquisition-related tax adjustment
(4)
|
|
—
|
|
|
—
|
|
|
1,808
|
|
|
—
|
|
|
—
|
|
|
Acquisition transaction costs
|
|
—
|
|
|
—
|
|
|
566
|
|
|
—
|
|
|
368
|
|
|
Consulting fees
(4)
|
|
—
|
|
|
3,843
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
Superstorm Sandy vehicle-related (recoveries) losses
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(600
|
)
|
|
8,230
|
|
|
Foreign currency translation benefit
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,904
|
)
|
|
—
|
|
|
Comparable EBT
(6)
|
|
$
|
448,833
|
|
|
505,960
|
|
|
462,991
|
|
|
393,146
|
|
|
350,859
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings
|
|
$
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
|
243,275
|
|
|
200,668
|
|
Non-operating pension costs
(1)
|
|
17,387
|
|
|
10,982
|
|
|
5,411
|
|
|
14,292
|
|
|
19,370
|
|
|
Pension lump sum settlement expense
(2)
|
|
—
|
|
|
—
|
|
|
61,333
|
|
|
—
|
|
|
—
|
|
|
Pension-related adjustments
(2)
|
|
4,817
|
|
|
(309
|
)
|
|
7,623
|
|
|
1,711
|
|
|
—
|
|
|
Restructuring and other charges (recoveries), net
(3)
|
|
3,513
|
|
|
10,358
|
|
|
1,548
|
|
|
(360
|
)
|
|
5,263
|
|
|
Acquisition-related tax adjustment
(4)
|
|
—
|
|
|
—
|
|
|
1,808
|
|
|
—
|
|
|
—
|
|
|
Acquisition transaction costs
|
|
—
|
|
|
—
|
|
|
444
|
|
|
—
|
|
|
277
|
|
|
Consulting fees
(4)
|
|
—
|
|
|
2,424
|
|
|
252
|
|
|
—
|
|
|
—
|
|
|
Tax law changes and/or benefits from reserve reversals
(5)
|
|
—
|
|
|
(2,113
|
)
|
|
(1,776
|
)
|
|
—
|
|
|
856
|
|
|
Superstorm Sandy vehicle-related (recoveries) losses
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|
5,117
|
|
|
Foreign currency translation benefit
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,904
|
)
|
|
—
|
|
|
Tax benefit associated with resolution of prior year tax item
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,967
|
)
|
|
Comparable Earnings
(6)
|
|
$
|
290,357
|
|
|
327,331
|
|
|
296,868
|
|
|
256,640
|
|
|
226,584
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted EPS
|
|
$
|
4.94
|
|
|
5.73
|
|
|
4.14
|
|
|
4.63
|
|
|
3.90
|
|
Non-operating pension costs
(1)
|
|
0.33
|
|
|
0.21
|
|
|
0.10
|
|
|
0.28
|
|
|
0.37
|
|
|
Pension lump sum settlement expense
(2)
|
|
—
|
|
|
—
|
|
|
1.16
|
|
|
—
|
|
|
—
|
|
|
Pension-related adjustments
(2)
|
|
0.09
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
0.03
|
|
|
—
|
|
|
Restructuring and other charges (recoveries), net
(3)
|
|
0.06
|
|
|
0.19
|
|
|
0.03
|
|
|
(0.01
|
)
|
|
0.11
|
|
|
Acquisition-related tax adjustment
(4)
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
Acquisition transaction costs
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
Consulting fees
(4)
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tax law changes and/or benefits from reserve reversals
(5)
|
|
—
|
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
0.02
|
|
|
Superstorm Sandy vehicle-related (recoveries) losses
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
0.10
|
|
|
Foreign currency translation benefit
(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|
Tax benefit associated with resolution of prior year tax item
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|
Comparable EPS
(6)
|
|
$
|
5.42
|
|
|
6.13
|
|
|
5.58
|
|
|
4.88
|
|
|
4.40
|
|
(1)
|
Includes the amortization of actuarial loss, interest cost and expected return on plan assets components of pension and post-retirement costs, which are tied to financial market performance.
2013
also includes
$4 million
($2 million after-tax) or $0.05 charge related to an understatement of pension obligations.
|
(2)
|
Refer to
Note 22
, “
Employee Benefit Plans
,” in the Notes to Consolidated Financial Statements for further discussion.
|
(3)
|
Refer to
Note 4
, “
Restructuring and Other Charges
,” in the Notes to Consolidated Financial Statements for additional information.
|
(4)
|
Refer to
Note 24
, “
Other Items Impacting Comparability
,” in the Notes to Consolidated Financial Statements for further discussion.
|
(5)
|
Refer to
Note 13
, “
Income Taxes
,” in the Notes to Consolidated Financial Statements for further discussion.
|
(6)
|
Refer to page 59 for information on the tax impact of our comparable earnings measures.
|
|
|
Continuing Operations
|
|||||||||||||||||||
|
|
EBT
|
|
Earnings
|
|
Diluted EPS
|
|||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
|
|
(Dollars in thousands except per share amounts)
|
|||||||||||||||||||
Three months ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EBT/Earnings/EPS
|
|
$
|
69,196
|
|
|
111,691
|
|
|
$
|
49,275
|
|
|
75,935
|
|
|
$
|
0.92
|
|
|
1.42
|
|
Non-operating pension costs
(1)
|
|
8,037
|
|
|
4,835
|
|
|
4,734
|
|
|
2,792
|
|
|
0.09
|
|
|
0.05
|
|
|||
Restructuring and other charges (recoveries), net
(2)
|
|
5,074
|
|
|
14,225
|
|
|
3,510
|
|
|
10,358
|
|
|
0.06
|
|
|
0.19
|
|
|||
Tax law change
(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(253
|
)
|
|
—
|
|
|
—
|
|
|||
Comparable
|
|
$
|
82,307
|
|
|
130,751
|
|
|
$
|
57,519
|
|
|
88,832
|
|
|
$
|
1.07
|
|
|
1.66
|
|
(1)
|
Includes the amortization of actuarial loss, interest cost and expected return on plan assets components of pension and post-retirement costs, which are tied to financial market performance.
|
(2)
|
Refer to
Note 4
, "
Restructuring and Other Charges
,” in the Notes to Consolidated Financial Statements for additional information.
|
(3)
|
Refer to the table below for the information on the tax impact of our comparable earnings measures.
|
|
Three months ended December 31,
|
|
Twelve months ended December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||
Provision for income taxes
(1)
|
$
|
(19,921
|
)
|
|
(35,756
|
)
|
|
$
|
(141,741
|
)
|
|
(163,226
|
)
|
|
(118,042
|
)
|
|
(125,740
|
)
|
|
(102,218
|
)
|
Income tax effects of non-GAAP adjustments
(1)
|
(4,867
|
)
|
|
(5,910
|
)
|
|
(16,735
|
)
|
|
(13,290
|
)
|
|
(46,305
|
)
|
|
(10,766
|
)
|
|
(23,031
|
)
|
||
Tax law change
(1)
|
—
|
|
|
(253
|
)
|
|
—
|
|
|
(2,113
|
)
|
|
(1,776
|
)
|
|
—
|
|
|
856
|
|
||
Comparable provision for income taxes
(1)
|
$
|
(24,788
|
)
|
|
(41,919
|
)
|
|
$
|
(158,476
|
)
|
|
(178,629
|
)
|
|
(166,123
|
)
|
|
(136,506
|
)
|
|
(124,393
|
)
|
(1)
|
The comparable provision for income taxes is computed using the same methodology as the GAAP provision of income taxes. Income tax effects of non-GAAP adjustments are calculated based on statutory tax rates of the jurisdictions to which the non-GAAP adjustments related.
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||||||
Net cash provided by operating activities
|
$
|
1,601,022
|
|
|
1,441,788
|
|
|
1,382,818
|
|
|
1,251,811
|
|
|
1,160,175
|
|
Sales of revenue earning equipment
(1)
|
414,249
|
|
|
423,605
|
|
|
493,477
|
|
|
445,589
|
|
|
405,440
|
|
|
Sales of operating property and equipment
(1)
|
7,051
|
|
|
3,891
|
|
|
3,486
|
|
|
6,782
|
|
|
7,350
|
|
|
Collections on direct finance leases
(1)
|
76,510
|
|
|
70,980
|
|
|
64,267
|
|
|
70,677
|
|
|
71,897
|
|
|
Other, net
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
8,173
|
|
|
—
|
|
|
Total cash generated
|
2,098,832
|
|
|
1,940,264
|
|
|
1,944,048
|
|
|
1,783,032
|
|
|
1,644,862
|
|
|
Purchases of property and revenue earning equipment
|
(1,905,157
|
)
|
|
(2,667,978
|
)
|
|
(2,259,164
|
)
|
|
(2,122,628
|
)
|
|
(2,133,235
|
)
|
|
Free cash flow
|
$
|
193,675
|
|
|
(727,714
|
)
|
|
(315,116
|
)
|
|
(339,596
|
)
|
|
(488,373
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
Memo:
|
|
|
|
|
|
|
|
|
|
||||||
Net cash (used)/provided by financing activities
|
$
|
(185,922
|
)
|
|
731,485
|
|
|
311,650
|
|
|
347,070
|
|
|
333,805
|
|
Net cash used in investing activities
|
$
|
(1,405,833
|
)
|
|
(2,161,355
|
)
|
|
(1,704,510
|
)
|
|
(1,603,818
|
)
|
|
(1,504,273
|
)
|
(1)
|
Included in cash flows from investing activities.
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(In thousands)
|
||||||||||||||
Total revenue
|
|
$
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
|
6,419,285
|
|
|
6,256,967
|
|
Fuel
|
|
(628,525
|
)
|
|
(722,734
|
)
|
|
(1,050,135
|
)
|
|
(1,098,843
|
)
|
|
(1,113,458
|
)
|
|
Subcontracted transportation
|
|
(367,562
|
)
|
|
(288,082
|
)
|
|
(336,422
|
)
|
|
(354,624
|
)
|
|
(373,250
|
)
|
|
Operating revenue
|
|
$
|
5,790,897
|
|
|
5,561,077
|
|
|
5,252,217
|
|
|
4,965,818
|
|
|
4,770,259
|
|
|
|
Three months ended December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Total revenue
|
|
$
|
1,729,150
|
|
|
1,672,743
|
|
Fuel
|
|
(164,349
|
)
|
|
(157,727
|
)
|
|
Subcontracted transportation
|
|
(97,923
|
)
|
|
(73,308
|
)
|
|
Operating revenue
|
|
$
|
1,466,878
|
|
|
1,441,708
|
|
|
Three months ended December 31,
|
|
Twelve months ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2014
|
|||||||
|
(In thousands)
|
|||||||||||||||
FMS total revenue
|
$
|
1,151,742
|
|
|
1,151,615
|
|
|
$
|
4,556,194
|
|
|
4,545,692
|
|
|
4,655,758
|
|
Fuel
(1)
|
(159,468
|
)
|
|
(152,230
|
)
|
|
(608,454
|
)
|
|
(699,646
|
)
|
|
(1,025,237
|
)
|
||
FMS operating revenue
|
$
|
992,274
|
|
|
999,385
|
|
|
$
|
3,947,740
|
|
|
3,846,046
|
|
|
3,630,521
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
FMS EBT
|
$
|
64,367
|
|
|
123,506
|
|
|
$
|
370,754
|
|
|
462,109
|
|
|
433,736
|
|
FMS EBT as a % of FMS total revenue
|
5.6
|
%
|
|
10.7
|
%
|
|
8.1
|
%
|
|
10.2
|
%
|
|
9.3
|
%
|
||
FMS EBT as a % of FMS operating revenue
|
6.5
|
%
|
|
12.4
|
%
|
|
9.4
|
%
|
|
12.0
|
%
|
|
11.9
|
%
|
(1)
|
Includes intercompany fuel sales from FMS to DTS and SCS.
|
|
Three months ended December 31,
|
|
Twelve months ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2014
|
|||||||
|
(In thousands)
|
|||||||||||||||
DTS total revenue
|
$
|
256,870
|
|
|
232,444
|
|
|
$
|
1,020,895
|
|
|
895,538
|
|
|
899,802
|
|
Subcontracted transportation
|
(36,606
|
)
|
|
(18,385
|
)
|
|
(143,502
|
)
|
|
(61,202
|
)
|
|
(72,045
|
)
|
||
Fuel
(1)
|
(27,158
|
)
|
|
(26,488
|
)
|
|
(103,074
|
)
|
|
(119,883
|
)
|
|
(166,529
|
)
|
||
DTS operating revenue
|
$
|
193,106
|
|
|
187,571
|
|
|
$
|
774,319
|
|
|
714,453
|
|
|
661,228
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
DTS EBT
|
$
|
15,284
|
|
|
11,099
|
|
|
$
|
63,611
|
|
|
45,800
|
|
|
44,556
|
|
DTS EBT as a % of DTS total revenue
|
6.0
|
%
|
|
4.8
|
%
|
|
6.2
|
%
|
|
5.1
|
%
|
|
5.0
|
%
|
||
DTS EBT as a % of DTS operating revenue
|
7.9
|
%
|
|
5.9
|
%
|
|
8.2
|
%
|
|
6.4
|
%
|
|
6.7
|
%
|
(1)
|
Includes intercompany fuel sales from FMS to DTS.
|
|
Three months ended December 31,
|
|
Twelve months ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2014
|
|||||||
|
(In thousands)
|
|||||||||||||||
SCS total revenue
|
$
|
430,185
|
|
|
392,463
|
|
|
$
|
1,637,850
|
|
|
1,547,763
|
|
|
1,561,347
|
|
Subcontracted transportation
|
(61,317
|
)
|
|
(54,923
|
)
|
|
(224,060
|
)
|
|
(226,880
|
)
|
|
(264,377
|
)
|
||
Fuel
(1)
|
(16,218
|
)
|
|
(15,484
|
)
|
|
(61,713
|
)
|
|
(64,574
|
)
|
|
(95,720
|
)
|
||
SCS operating revenue
|
$
|
352,650
|
|
|
322,056
|
|
|
$
|
1,352,077
|
|
|
1,256,309
|
|
|
1,201,250
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
SCS EBT
|
$
|
26,440
|
|
|
23,793
|
|
|
$
|
105,561
|
|
|
93,754
|
|
|
77,800
|
|
SCS EBT as a % of SCS total revenue
|
6.1
|
%
|
|
6.1
|
%
|
|
6.4
|
%
|
|
6.1
|
%
|
|
5.0
|
%
|
||
SCS EBT as a % of SCS operating revenue
|
7.5
|
%
|
|
7.4
|
%
|
|
7.8
|
%
|
|
7.5
|
%
|
|
6.5
|
%
|
(1)
|
Includes intercompany fuel sales from FMS to SCS.
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||||
Net earnings
|
|
$
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
|
237,871
|
|
|
209,748
|
|
Restructuring and other charges (recoveries), net and other items
(1)
|
|
12,585
|
|
|
17,559
|
|
|
114,956
|
|
|
(154
|
)
|
|
16,668
|
|
|
Income taxes
|
|
141,623
|
|
|
163,649
|
|
|
118,120
|
|
|
125,693
|
|
|
90,943
|
|
|
Adjusted earnings before income taxes
|
|
416,685
|
|
|
485,976
|
|
|
451,417
|
|
|
363,410
|
|
|
317,359
|
|
|
Adjusted interest expense
(2)
|
|
148,043
|
|
|
150,640
|
|
|
144,991
|
|
|
140,738
|
|
|
143,530
|
|
|
Adjusted income taxes
(3)
|
|
(198,248
|
)
|
|
(224,033
|
)
|
|
(213,738
|
)
|
|
(177,308
|
)
|
|
(166,666
|
)
|
|
Adjusted net earnings for adjusted return on average capital
[A]
|
|
$
|
366,480
|
|
|
412,583
|
|
|
382,670
|
|
|
326,840
|
|
|
294,223
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average total debt
|
|
$
|
5,549,458
|
|
|
5,177,012
|
|
|
4,653,476
|
|
|
4,015,178
|
|
|
3,777,881
|
|
Average off-balance sheet debt
|
|
1,472
|
|
|
1,467
|
|
|
1,919
|
|
|
961
|
|
|
1,555
|
|
|
Average shareholders’ equity
|
|
2,052,371
|
|
|
1,894,917
|
|
|
1,925,824
|
|
|
1,593,942
|
|
|
1,405,640
|
|
|
Average adjustments to shareholders’ equity
(4)
|
|
1,728
|
|
|
10,843
|
|
|
7,758
|
|
|
(2,088
|
)
|
|
(2,933
|
)
|
|
Adjusted average total capital
[B]
|
|
$
|
7,605,029
|
|
|
7,084,239
|
|
|
6,588,977
|
|
|
5,607,993
|
|
|
5,182,143
|
|
Adjusted return on average capital
[A]/[B]
|
|
4.8
|
%
|
|
5.8
|
%
|
|
5.8
|
%
|
|
5.8
|
%
|
|
5.7
|
%
|
(1)
|
For
2016
,
2015
and
2014
, see
Note 4
, “
Restructuring and Other Charges
” and
Note 24
, “
Other Items Impacting Comparability
,” in the Notes to Consolidated Financial Statements;
2012
includes
$8 million
of restructuring and other charges primarily related to position eliminations as a result of cost containment actions.
|
(2)
|
Represents reported interest expense plus imputed interest on off-balance sheet obligations.
|
(3)
|
Represents provision for income taxes plus income taxes on restructuring and other items and adjusted interest expense.
|
(4)
|
Represents the impact to equity of items to arrive at comparable earnings.
|
|
|
2017
|
|
EPS from continuing operations forecast
|
|
$4.78 - 5.08
|
|
Non-operating pension costs
|
|
0.32
|
|
Comparable EPS from continuing operations forecast
|
|
$5.10 - 5.40
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Full service lease revenue
|
|
$
|
2,573,638
|
|
|
2,406,711
|
|
|
2,276,381
|
|
Commercial rental revenue
|
|
846,331
|
|
|
940,045
|
|
|
876,994
|
|
|
Full service lease and commercial rental revenue
|
|
3,419,969
|
|
|
3,346,756
|
|
|
3,153,375
|
|
|
Intercompany revenue
|
|
(249,017
|
)
|
|
(225,203
|
)
|
|
(213,953
|
)
|
|
Full service lease and commercial rental revenue from external customers
|
|
$
|
3,170,952
|
|
|
3,121,553
|
|
|
2,939,422
|
|
|
|
|
|
|
|
|
||||
FMS services revenue
|
|
$
|
527,771
|
|
|
499,290
|
|
|
477,146
|
|
Intercompany revenue
|
|
(34,222
|
)
|
|
(30,528
|
)
|
|
(26,830
|
)
|
|
FMS services revenue from external customers
|
|
$
|
493,549
|
|
|
468,762
|
|
|
450,316
|
|
|
|
|
|
|
|
|
||||
FMS fuel services revenue
|
|
$
|
608,454
|
|
|
699,646
|
|
|
1,025,237
|
|
Intercompany revenue
|
|
(144,716
|
)
|
|
(161,369
|
)
|
|
(237,350
|
)
|
|
FMS fuel services revenue from external customers
|
|
$
|
463,738
|
|
|
538,277
|
|
|
787,887
|
|
•
|
our expectations as to anticipated revenue and earnings growth specifically, total revenue, operating revenue and product line revenues, used vehicle sales, demand, pricing, inventory and volumes, contract revenues, full service lease growth, on-demand maintenance growth, commercial rental pricing and demand, and actual and planned new sales activity in lease, DTS and SCS;
|
•
|
our expectations relating to further deterioration in the used vehicle sales market;
|
•
|
the size and impact of strategic investments;
|
•
|
our expected cost savings from workforce reductions and restructuring actions;
|
•
|
the continuing benefits of our maintenance initiatives and a newer fleet;
|
•
|
our ability to successfully achieve the operational goals that are the basis of our business strategies, including driving fleet growth, delivering a consistent, industry-leading and cost-effective maintenance program, optimizing asset utilization and management, providing differentiated quality of service and best execution, developing broad-based capabilities, creating a culture of innovation, focusing on continuous improvement and standardization and successfully implementing sales and marketing strategies;
|
•
|
impact of losses from conditional obligations arising from guarantees;
|
•
|
number of NLE and used vehicles in inventory and the appropriate size of our commercial rental fleet given commercial rental market expectations;
|
•
|
estimates of cash flows from operations, free cash flow and capital expenditures for
2017
;
|
•
|
the adequacy of our accounting estimates and reserves for pension expense, compensation-related expense, postretirement benefit expense, depreciation and residual value guarantees, rent expense under operating leases, self-insurance reserves, goodwill impairment, accounting changes and income taxes;
|
•
|
our ability to meet our operating, investing and financing needs in the foreseeable future through internally generated funds and outside funding sources;
|
•
|
our expected level of use of outside funding sources, anticipated future payments under debt, lease and purchase agreements, and risk of losses resulting from counterparty default under hedging and derivative agreements;
|
•
|
anticipated impact of exchange rate fluctuations;
|
•
|
the anticipated impact of fuel price fluctuations on our operations, cash flows and financial position;
|
•
|
our expectations as to future pension expense and contributions, as well as the continued effect of the freeze of our pension plans on our benefit funding requirements;
|
•
|
the anticipated deferral of tax gains on disposal of eligible revenue earning equipment under our vehicle like-kind exchange program;
|
•
|
our expectations relating to withdrawal liabilities and funding levels of multi-employer plans;
|
•
|
the status of our unrecognized tax benefits related to the U.S. federal, state and foreign tax positions;
|
•
|
our expectations regarding the completion and ultimate outcome of certain tax audits;
|
•
|
the ultimate disposition of legal proceedings and estimated environmental liabilities;
|
•
|
our expectations relating to compliance with new regulatory requirements;
|
•
|
our expectations regarding the effects of the adoption of recent accounting pronouncements; and
|
•
|
our plans regarding renewal of our automatic shelf registration statement.
|
|
|
|
|
|
Page No.
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Notes to Consolidated Financial Statements:
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Consolidated Financial Statement Schedule for the Years Ended December 31, 2015, 2014 and 2013:
|
|
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands, except per share amounts)
|
||||||||
Lease and rental revenues
|
|
$
|
3,170,952
|
|
|
3,121,553
|
|
|
2,939,422
|
|
Services revenue
|
|
3,152,294
|
|
|
2,912,063
|
|
|
2,911,465
|
|
|
Fuel services revenue
|
|
463,738
|
|
|
538,277
|
|
|
787,887
|
|
|
Total revenues
|
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
|
|
|
|
|
|
|
|
||||
Cost of lease and rental
|
|
2,234,284
|
|
|
2,153,450
|
|
|
2,036,881
|
|
|
Cost of services
|
|
2,602,978
|
|
|
2,413,156
|
|
|
2,447,867
|
|
|
Cost of fuel services
|
|
448,306
|
|
|
519,843
|
|
|
768,292
|
|
|
Other operating expenses
|
|
113,461
|
|
|
117,082
|
|
|
115,808
|
|
|
Selling, general and administrative expenses
|
|
842,697
|
|
|
844,497
|
|
|
816,975
|
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
—
|
|
|
97,231
|
|
|
Used vehicle sales, net
|
|
(972
|
)
|
|
(99,853
|
)
|
|
(116,060
|
)
|
|
Interest expense
|
|
147,843
|
|
|
150,434
|
|
|
144,739
|
|
|
Miscellaneous income, net
|
|
(13,068
|
)
|
|
(10,156
|
)
|
|
(13,613
|
)
|
|
Restructuring and other charges, net
|
|
5,074
|
|
|
14,225
|
|
|
2,387
|
|
|
|
|
6,380,603
|
|
|
6,102,678
|
|
|
6,300,507
|
|
|
|
|
|
|
|
|
|
||||
Earnings from continuing operations before income taxes
|
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
|
Provision for income taxes
|
|
141,741
|
|
|
163,226
|
|
|
118,042
|
|
|
Earnings from continuing operations
|
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
|
Loss from discontinued operations, net of tax
|
|
(2,163
|
)
|
|
(1,221
|
)
|
|
(1,884
|
)
|
|
Net earnings
|
|
$
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per common share — Basic
|
|
|
|
|
|
|
||||
Continuing operations
|
|
$
|
4.98
|
|
|
5.78
|
|
|
4.18
|
|
Discontinued operations
|
|
(0.04
|
)
|
|
(0.02
|
)
|
|
(0.04
|
)
|
|
Net earnings
|
|
$
|
4.94
|
|
|
5.75
|
|
|
4.14
|
|
Earnings (loss) per common share — Diluted
|
|
|
|
|
|
|
||||
Continuing operations
|
|
$
|
4.94
|
|
|
5.73
|
|
|
4.14
|
|
Discontinued operations
|
|
(0.04
|
)
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
Net earnings
|
|
$
|
4.90
|
|
|
5.71
|
|
|
4.11
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Net earnings
|
|
$
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
|
|
|
|
|
|
|
||||
Other comprehensive loss:
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Changes in cumulative translation adjustment and other
|
|
(70,590
|
)
|
|
(99,933
|
)
|
|
(71,962
|
)
|
|
|
|
|
|
|
|
|
||||
Amortization of pension and postretirement items
|
|
29,493
|
|
|
27,731
|
|
|
18,601
|
|
|
Income tax expense related to amortization of pension and postretirement items
|
|
(10,452
|
)
|
|
(9,637
|
)
|
|
(6,411
|
)
|
|
Amortization of pension and postretirement items, net of tax
|
|
19,041
|
|
|
18,094
|
|
|
12,190
|
|
|
|
|
|
|
|
|
|
||||
Reclassification of net actuarial loss from pension settlement
|
|
—
|
|
|
—
|
|
|
97,231
|
|
|
Change in net actuarial loss and prior service credit
|
|
(98,092
|
)
|
|
(23,979
|
)
|
|
(281,173
|
)
|
|
Income tax benefit (expense) related to change in net actuarial loss and prior service credit
|
|
28,344
|
|
|
13,353
|
|
|
61,692
|
|
|
Change in net actuarial loss and prior service credit, net of taxes
|
|
(69,748
|
)
|
|
(10,626
|
)
|
|
(122,250
|
)
|
|
|
|
|
|
|
|
|
||||
Other comprehensive loss, net of taxes
|
|
(121,297
|
)
|
|
(92,465
|
)
|
|
(182,022
|
)
|
|
|
|
|
|
|
|
|
||||
Comprehensive income
|
|
$
|
141,180
|
|
|
212,303
|
|
|
36,319
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(Dollars in thousands, except
per share amount)
|
|||||
Assets:
|
|
|
|
|
|||
Current assets:
|
|
|
|
|
|||
Cash and cash equivalents
|
|
$
|
58,801
|
|
|
60,945
|
|
Receivables, net
|
|
831,947
|
|
|
835,489
|
|
|
Inventories
|
|
69,529
|
|
|
63,725
|
|
|
Prepaid expenses and other current assets
|
|
141,280
|
|
|
138,143
|
|
|
Total current assets
|
|
1,101,557
|
|
|
1,098,302
|
|
|
Revenue earning equipment, net
|
|
8,147,722
|
|
|
8,184,735
|
|
|
Operating property and equipment, net
|
|
745,870
|
|
|
714,970
|
|
|
Goodwill
|
|
386,772
|
|
|
389,135
|
|
|
Intangible assets
|
|
48,249
|
|
|
55,192
|
|
|
Direct financing leases and other assets
|
|
472,284
|
|
|
510,246
|
|
|
Total assets
|
|
$
|
10,902,454
|
|
|
10,952,580
|
|
|
|
|
|
|
|||
Liabilities and shareholders’ equity:
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|||
Short-term debt and current portion of long-term debt
|
|
$
|
791,410
|
|
|
634,530
|
|
Accounts payable
|
|
445,470
|
|
|
502,373
|
|
|
Accrued expenses and other current liabilities
|
|
507,189
|
|
|
543,352
|
|
|
Total current liabilities
|
|
1,744,069
|
|
|
1,680,255
|
|
|
Long-term debt
|
|
4,599,864
|
|
|
4,868,097
|
|
|
Other non-current liabilities
|
|
817,565
|
|
|
829,595
|
|
|
Deferred income taxes
|
|
1,688,681
|
|
|
1,587,522
|
|
|
Total liabilities
|
|
8,850,179
|
|
|
8,965,469
|
|
|
|
|
|
|
|
|||
Shareholders’ equity:
|
|
|
|
|
|||
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, December 31, 2016 or 2015
|
|
—
|
|
|
—
|
|
|
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, December 31, 2016 — 53,463,118; December 31, 2015 — 53,490,603
|
|
26,732
|
|
|
26,745
|
|
|
Additional paid-in capital
|
|
1,032,549
|
|
|
1,006,021
|
|
|
Retained earnings
|
|
1,827,026
|
|
|
1,667,080
|
|
|
Accumulated other comprehensive loss
|
|
(834,032
|
)
|
|
(712,735
|
)
|
|
Total shareholders’ equity
|
|
2,052,275
|
|
|
1,987,111
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
10,902,454
|
|
|
10,952,580
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
262,477
|
|
|
304,768
|
|
|
218,341
|
|
Less: Loss from discontinued operations, net of tax
|
|
(2,163
|
)
|
|
(1,221
|
)
|
|
(1,884
|
)
|
|
Earnings from continuing operations
|
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
|
Depreciation expense
|
|
1,187,050
|
|
|
1,121,966
|
|
|
1,047,049
|
|
|
Used vehicle sales, net
|
|
(972
|
)
|
|
(99,853
|
)
|
|
(116,060
|
)
|
|
Share-based compensation expense
|
|
18,664
|
|
|
21,181
|
|
|
20,905
|
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
—
|
|
|
97,231
|
|
|
Amortization expense and other non-cash charges, net
|
|
68,260
|
|
|
70,762
|
|
|
47,263
|
|
|
Deferred income tax expense
|
|
124,886
|
|
|
154,042
|
|
|
104,713
|
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
||||
Receivables
|
|
(51,754
|
)
|
|
(40,323
|
)
|
|
(20,687
|
)
|
|
Inventories
|
|
(5,906
|
)
|
|
1,448
|
|
|
(2,153
|
)
|
|
Prepaid expenses and other assets
|
|
(14,211
|
)
|
|
(292
|
)
|
|
(16,040
|
)
|
|
Accounts payable
|
|
94,320
|
|
|
(74,381
|
)
|
|
53,481
|
|
|
Accrued expenses and other non-current liabilities
|
|
(83,955
|
)
|
|
(18,751
|
)
|
|
(53,109
|
)
|
|
Net cash provided by operating activities from continuing operations
|
|
1,601,022
|
|
|
1,441,788
|
|
|
1,382,818
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from financing activities from continuing operations:
|
|
|
|
|
|
|
||||
Net change in commercial paper borrowings and revolving credit facilities
|
|
(77,798
|
)
|
|
323,359
|
|
|
(221,082
|
)
|
|
Debt proceeds
|
|
674,928
|
|
|
1,283,223
|
|
|
965,533
|
|
|
Debt repaid, including capital lease obligations
|
|
(669,047
|
)
|
|
(798,311
|
)
|
|
(293,488
|
)
|
|
Dividends on common stock
|
|
(91,043
|
)
|
|
(83,201
|
)
|
|
(74,871
|
)
|
|
Common stock issued
|
|
18,087
|
|
|
23,635
|
|
|
46,568
|
|
|
Common stock repurchased
|
|
(37,274
|
)
|
|
(6,141
|
)
|
|
(106,286
|
)
|
|
Debt issuance costs and other items
|
|
(3,775
|
)
|
|
(11,079
|
)
|
|
(4,724
|
)
|
|
Net cash (used in) provided by financing activities from continuing operations
|
|
(185,922
|
)
|
|
731,485
|
|
|
311,650
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from investing activities from continuing operations:
|
|
|
|
|
|
|
||||
Purchases of property and revenue earning equipment
|
|
(1,905,157
|
)
|
|
(2,667,978
|
)
|
|
(2,259,164
|
)
|
|
Sales of revenue earning equipment
|
|
414,249
|
|
|
423,605
|
|
|
493,477
|
|
|
Sales of operating property and equipment
|
|
7,051
|
|
|
3,891
|
|
|
3,486
|
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
(9,972
|
)
|
|
Collections on direct finance leases and other
|
|
76,510
|
|
|
70,980
|
|
|
64,267
|
|
|
Changes in restricted cash
|
|
1,514
|
|
|
8,147
|
|
|
3,396
|
|
|
Net cash used in investing activities from continuing operations
|
|
(1,405,833
|
)
|
|
(2,161,355
|
)
|
|
(1,704,510
|
)
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rates on cash
|
|
(9,482
|
)
|
|
37
|
|
|
297
|
|
|
(Decrease) increase in cash and cash equivalents from continuing operations
|
|
(215
|
)
|
|
11,955
|
|
|
(9,745
|
)
|
|
Decrease in cash and cash equivalents from discontinued operations
|
|
(1,929
|
)
|
|
(1,102
|
)
|
|
(1,725
|
)
|
|
(Decrease) increase in cash and cash equivalents
|
|
(2,144
|
)
|
|
10,853
|
|
|
(11,470
|
)
|
|
Cash and cash equivalents at January 1
|
|
60,945
|
|
|
50,092
|
|
|
61,562
|
|
|
Cash and cash equivalents at December 31
|
|
$
|
58,801
|
|
|
60,945
|
|
|
50,092
|
|
|
|
Preferred
Stock
|
|
Common Stock
|
|
Additional
Paid-In Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Loss
|
|
|
|||||||||||
|
|
Amount
|
|
Shares
|
|
Par
|
|
|
|
|
Total
|
||||||||||||
|
|
(Dollars in thousands, except per share amounts)
|
|||||||||||||||||||||
Balance at January 1, 2014
|
|
$
|
—
|
|
|
53,335,386
|
|
|
$
|
26,667
|
|
|
917,539
|
|
|
1,390,603
|
|
|
(438,248
|
)
|
|
1,896,561
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
218,341
|
|
|
(182,022
|
)
|
|
36,319
|
|
||
Common stock dividends declared and paid—$1.42 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75,631
|
)
|
|
—
|
|
|
(75,631
|
)
|
||
Common stock issued under employee stock option and stock purchase plans
(1)
|
|
—
|
|
|
1,019,341
|
|
|
511
|
|
|
45,371
|
|
|
—
|
|
|
—
|
|
|
45,882
|
|
||
Benefit plan stock purchases
(2)
|
|
—
|
|
|
8,239
|
|
|
4
|
|
|
682
|
|
|
—
|
|
|
—
|
|
|
686
|
|
||
Common stock repurchases
|
|
—
|
|
|
(1,323,278
|
)
|
|
(662
|
)
|
|
(22,820
|
)
|
|
(82,804
|
)
|
|
—
|
|
|
(106,286
|
)
|
||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,905
|
|
|
—
|
|
|
—
|
|
|
20,905
|
|
||
Tax benefits from share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
651
|
|
|
—
|
|
|
—
|
|
|
651
|
|
||
Balance at December 31, 2014
|
|
—
|
|
|
53,039,688
|
|
|
26,520
|
|
|
962,328
|
|
|
1,450,509
|
|
|
(620,270
|
)
|
|
1,819,087
|
|
||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
304,768
|
|
|
(92,465
|
)
|
|
212,303
|
|
||
Common stock dividends declared and paid—$1.56 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83,306
|
)
|
|
—
|
|
|
(83,306
|
)
|
||
Common stock issued under employee stock option and stock purchase plans
(1)
|
|
—
|
|
|
519,271
|
|
|
260
|
|
|
23,292
|
|
|
—
|
|
|
—
|
|
|
23,552
|
|
||
Benefit plan stock sales
(2)
|
|
—
|
|
|
751
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
83
|
|
||
Common stock repurchases
|
|
—
|
|
|
(69,107
|
)
|
|
(35
|
)
|
|
(1,215
|
)
|
|
(4,891
|
)
|
|
—
|
|
|
(6,141
|
)
|
||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,181
|
|
|
—
|
|
|
—
|
|
|
21,181
|
|
||
Tax benefits from share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
352
|
|
|
—
|
|
|
—
|
|
|
352
|
|
||
Balance at December 31, 2015
|
|
—
|
|
|
53,490,603
|
|
|
26,745
|
|
|
1,006,021
|
|
|
1,667,080
|
|
|
(712,735
|
)
|
|
1,987,111
|
|
||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
262,477
|
|
|
(121,297
|
)
|
|
141,180
|
|
||
Common stock dividends declared—$1.70 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91,100
|
)
|
|
—
|
|
|
(91,100
|
)
|
||
Common stock issued under employee stock option and stock purchase plans
(1)
|
|
—
|
|
|
507,104
|
|
|
254
|
|
|
17,752
|
|
|
—
|
|
|
—
|
|
|
18,006
|
|
||
Benefit plan stock sales
(2)
|
|
—
|
|
|
1,709
|
|
|
1
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||
Common stock repurchases
|
|
—
|
|
|
(536,298
|
)
|
|
(268
|
)
|
|
(9,968
|
)
|
|
(27,038
|
)
|
|
—
|
|
|
(37,274
|
)
|
||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,664
|
|
|
—
|
|
|
—
|
|
|
18,664
|
|
||
Adoption of new accounting standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,607
|
|
|
—
|
|
|
15,607
|
|
||
Balance at December 31, 2016
|
|
$
|
—
|
|
|
53,463,118
|
|
|
$
|
26,732
|
|
|
1,032,549
|
|
|
1,827,026
|
|
|
(834,032
|
)
|
|
2,052,275
|
|
(1)
|
Net of common shares delivered as payment for the exercise price or to satisfy the holders’ withholding tax liability upon exercise of options.
|
(2)
|
Represents open-market transactions of common shares by the trustee of Ryder’s deferred compensation plans.
|
•
|
The majority of our leases and all of our rental arrangements are classified as operating leases and, therefore, we recognize lease and commercial rental revenue on a straight-line basis as it becomes receivable over the term of the lease or rental arrangement. Lease and rental agreements do not usually provide for scheduled rent increases or escalations. However, most lease agreements allow for rate changes based upon changes in the Consumer Price Index (CPI). Lease and rental agreements also provide for vehicle usage charges based on a time charge and/or a fixed per-mile charge. The fixed time charge, the fixed per-mile charge and the changes in rates attributed to changes in the CPI are considered contingent rentals and are not considered fixed or determinable until the effect of CPI changes is implemented or the equipment usage occurs.
|
•
|
The non-lease deliverables of our full service lease arrangements are comprised of access to substitute vehicles, emergency road service, and safety services. These services are available to our customers throughout the lease term. Accordingly, revenue is recognized on a straight-line basis over the lease term.
|
•
|
Leases not classified as operating leases are generally considered direct financing leases. We recognize revenue for direct financing leases using the effective interest method, which provides a constant periodic rate of return on the outstanding investment on the lease. Cash receipts on impaired direct financing lease receivables are first applied to the direct financing lease receivable and then to any unrecognized income. A direct financing lease receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms of the lease.
|
Level 1
|
Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
|
Level 2
|
Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3
|
Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability.
|
|
|
Employee Termination Costs
|
|
Other Charges
|
|
Total
|
||||
Balance as of December 31, 2013
|
|
$
|
340
|
|
|
319
|
|
|
659
|
|
Workforce reduction charges
|
|
2,387
|
|
|
—
|
|
|
2,387
|
|
|
Utilization
(1)
|
|
(241
|
)
|
|
(319
|
)
|
|
(560
|
)
|
|
Balance as of December 31, 2014
|
|
2,486
|
|
|
—
|
|
|
2,486
|
|
|
Workforce reduction charges
|
|
8,830
|
|
|
—
|
|
|
8,830
|
|
|
CRSAL divestiture and RCT shut-down
|
|
3,225
|
|
|
—
|
|
|
3,225
|
|
|
Utilization
(1)
|
|
(2,208
|
)
|
|
—
|
|
|
(2,208
|
)
|
|
Balance as of December 31, 2015
|
|
12,333
|
|
|
—
|
|
|
12,333
|
|
|
Workforce reduction charges
|
|
5,074
|
|
|
—
|
|
|
5,074
|
|
|
Utilization
(1)
|
|
(10,129
|
)
|
|
—
|
|
|
(10,129
|
)
|
|
Balance as of December 31, 2016
(2)
|
|
$
|
7,278
|
|
|
—
|
|
|
7,278
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Fleet Management Solutions
|
|
$
|
3,550
|
|
|
4,817
|
|
|
515
|
|
Dedicated Transportation Solutions
|
|
22
|
|
|
250
|
|
|
154
|
|
|
Supply Chain Solutions
|
|
278
|
|
|
7,033
|
|
|
797
|
|
|
Central Support Services
|
|
1,224
|
|
|
2,125
|
|
|
921
|
|
|
Total
|
|
$
|
5,074
|
|
|
14,225
|
|
|
2,387
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Trade
|
|
$
|
739,743
|
|
|
708,832
|
|
Direct financing leases
|
|
76,322
|
|
|
90,055
|
|
|
Other, primarily warranty and insurance
|
|
30,797
|
|
|
52,162
|
|
|
|
|
846,862
|
|
|
851,049
|
|
|
Allowance
|
|
(14,915
|
)
|
|
(15,560
|
)
|
|
Total
|
|
$
|
831,947
|
|
|
835,489
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Restricted cash
|
|
$
|
3,838
|
|
|
5,352
|
|
Prepaid vehicle licenses
|
|
50,343
|
|
|
47,806
|
|
|
Prepaid operating taxes
|
|
20,242
|
|
|
18,510
|
|
|
Prepaid sales commission
|
|
9,731
|
|
|
11,446
|
|
|
Prepaid Insurance
|
|
12,074
|
|
|
9,057
|
|
|
Other
|
|
45,052
|
|
|
45,972
|
|
|
Total
|
|
$
|
141,280
|
|
|
138,143
|
|
|
|
Estimated
Useful
Lives
|
|
December 31, 2016
|
|
December 31, 2015
|
|||||||||||||||
Cost
|
|
Accumulated
Depreciation
|
|
Net
(1)
|
|
Cost
|
|
Accumulated
Depreciation
|
|
Net
(1)
|
|||||||||||
(In years)
|
|
(In thousands)
|
|||||||||||||||||||
Held for use:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Full service lease
|
|
3 — 12
|
|
$
|
9,486,977
|
|
|
(3,031,937
|
)
|
|
6,455,040
|
|
|
8,839,941
|
|
|
(2,723,605
|
)
|
|
6,116,336
|
|
Commercial rental
|
|
4.5 — 12
|
|
2,499,010
|
|
|
(935,346
|
)
|
|
1,563,664
|
|
|
2,811,715
|
|
|
(907,412
|
)
|
|
1,904,303
|
|
|
Held for sale
|
|
|
|
494,355
|
|
|
(365,337
|
)
|
|
129,018
|
|
|
496,634
|
|
|
(332,538
|
)
|
|
164,096
|
|
|
Total
|
|
|
|
$
|
12,480,342
|
|
|
(4,332,620
|
)
|
|
8,147,722
|
|
|
12,148,290
|
|
|
(3,963,555
|
)
|
|
8,184,735
|
|
(1)
|
Revenue earning equipment, net includes vehicles under capital leases of
$43 million
, less accumulated depreciation of
$22 million
, at
December 31, 2016
and
$47 million
, less accumulated depreciation of
$22 million
, at
December 31, 2015
.
|
|
|
|
|
|
|
Total Losses
(2)
|
||||||||
|
|
December 31,
|
|
Year ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Assets held for sale:
|
|
|
|
|
|
|
|
|
||||||
Revenue earning equipment:
(1)
|
|
|
|
|
|
|
|
|
||||||
Trucks
|
|
$
|
28,638
|
|
|
11,469
|
|
|
$
|
14,645
|
|
|
7,660
|
|
Tractors
|
|
82,576
|
|
|
19,479
|
|
|
47,597
|
|
|
7,620
|
|
||
Trailers
|
|
2,839
|
|
|
2,475
|
|
|
5,173
|
|
|
2,676
|
|
||
Total assets at fair value
|
|
$
|
114,053
|
|
|
33,423
|
|
|
$
|
67,415
|
|
|
17,956
|
|
(1)
|
Assets held for sale in the above table only include the portion of revenue earning equipment held for sale where net book values exceeded fair values and fair value adjustments were recorded. The net book value of assets held for sale not exceeding fair value was
$15 million
and
$131 million
as of
December 31, 2016
and
2015
, respectively.
|
(2)
|
Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value less costs to sell was less than carrying value.
|
|
Twelve months ended December 31,
|
||||||||
|
2016
|
|
2015
|
|
2014
|
||||
|
(In thousands)
|
||||||||
Gains on vehicle sales, net
|
$
|
(68,387
|
)
|
|
(117,809
|
)
|
|
(126,824
|
)
|
Losses from fair value adjustments
|
67,415
|
|
|
17,956
|
|
|
10,764
|
|
|
Used vehicle sales, net
|
$
|
(972
|
)
|
|
(99,853
|
)
|
|
(116,060
|
)
|
|
|
Estimated
Useful Lives
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||||
|
|
(In years)
|
|
(In thousands)
|
|||||
Land
|
|
—
|
|
$
|
212,660
|
|
|
203,543
|
|
Buildings and improvements
|
|
10 — 40
|
|
808,909
|
|
|
776,304
|
|
|
Machinery and equipment
|
|
3 — 10
|
|
737,899
|
|
|
709,173
|
|
|
Other
|
|
3 — 10
|
|
114,442
|
|
|
109,554
|
|
|
|
|
|
|
1,873,910
|
|
|
1,798,574
|
|
|
Accumulated depreciation
|
|
|
|
(1,128,040
|
)
|
|
(1,083,604
|
)
|
|
Total
|
|
|
|
$
|
745,870
|
|
|
714,970
|
|
|
|
Fleet
Management
Solutions
|
|
Dedicated Transportation Solutions
|
|
Supply
Chain
Solutions
|
|
Total
|
|||||
|
|
(In thousands)
|
|||||||||||
Balance at January 1, 2015
|
|
|
|
|
|
|
|
|
|||||
Goodwill
|
|
$
|
233,217
|
|
|
40,808
|
|
|
148,225
|
|
|
422,250
|
|
Accumulated impairment losses
|
|
(10,322
|
)
|
|
—
|
|
|
(18,899
|
)
|
|
(29,221
|
)
|
|
|
|
222,895
|
|
|
40,808
|
|
|
129,326
|
|
|
393,029
|
|
|
Reclassification to assets held for sale
|
|
—
|
|
|
—
|
|
|
(852
|
)
|
|
(852
|
)
|
|
Foreign currency translation adjustment
|
|
(1,859
|
)
|
|
—
|
|
|
(1,183
|
)
|
|
(3,042
|
)
|
|
Balance at December 31, 2015
|
|
|
|
|
|
|
|
|
|||||
Goodwill
|
|
231,358
|
|
|
40,808
|
|
|
146,190
|
|
|
418,356
|
|
|
Accumulated impairment losses
|
|
(10,322
|
)
|
|
—
|
|
|
(18,899
|
)
|
|
(29,221
|
)
|
|
|
|
221,036
|
|
|
40,808
|
|
|
127,291
|
|
|
389,135
|
|
|
Foreign currency translation adjustment
|
|
(2,526
|
)
|
|
—
|
|
|
163
|
|
|
(2,363
|
)
|
|
Balance at December 31, 2016
|
|
|
|
|
|
|
|
|
|||||
Goodwill
|
|
228,832
|
|
|
40,808
|
|
|
146,353
|
|
|
415,993
|
|
|
Accumulated impairment losses
|
|
(10,322
|
)
|
|
—
|
|
|
(18,899
|
)
|
|
(29,221
|
)
|
|
|
|
$
|
218,510
|
|
|
40,808
|
|
|
127,454
|
|
|
386,772
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Indefinite lived intangible assets — Trade name
|
|
$
|
8,731
|
|
|
8,731
|
|
Finite lived intangible assets:
|
|
|
|
|
|||
Customer relationship intangibles
|
|
91,523
|
|
|
91,523
|
|
|
Other intangibles, primarily trade name
|
|
2,367
|
|
|
2,367
|
|
|
Accumulated amortization
|
|
(51,578
|
)
|
|
(45,736
|
)
|
|
|
|
42,312
|
|
|
48,154
|
|
|
Foreign currency translation adjustment
|
|
(2,794
|
)
|
|
(1,693
|
)
|
|
Total
|
|
$
|
48,249
|
|
|
55,192
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Direct financing leases, net
|
|
$
|
333,152
|
|
|
347,703
|
|
Investments held in Rabbi Trusts
|
|
48,451
|
|
|
41,720
|
|
|
Contract incentives
|
|
27,324
|
|
|
23,691
|
|
|
Insurance receivables
|
|
18,402
|
|
|
28,999
|
|
|
Debt issuance costs
|
|
2,593
|
|
|
3,365
|
|
|
Prepaid pension asset
|
|
14,049
|
|
|
44,124
|
|
|
Interest rate swap agreements
|
|
1,864
|
|
|
5,421
|
|
|
Other
|
|
26,449
|
|
|
15,223
|
|
|
Total
|
|
$
|
472,284
|
|
|
510,246
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Cash and cash equivalents
|
|
$
|
5,391
|
|
|
5,214
|
|
U.S. equity mutual funds
|
|
30,229
|
|
|
24,824
|
|
|
Foreign equity mutual funds
|
|
5,232
|
|
|
4,713
|
|
|
Fixed income mutual funds
|
|
7,599
|
|
|
6,969
|
|
|
Total Investments held in Rabbi Trusts
|
|
$
|
48,451
|
|
|
41,720
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|||||||||||||||
|
|
Accrued
Expenses
|
|
Non-Current
Liabilities
|
|
Total
|
|
Accrued
Expenses
|
|
Non-Current
Liabilities
|
|
Total
|
|||||||
|
|
(In thousands)
|
|||||||||||||||||
Salaries and wages
|
|
$
|
90,913
|
|
|
—
|
|
|
90,913
|
|
|
99,032
|
|
|
—
|
|
|
99,032
|
|
Deferred compensation
|
|
2,992
|
|
|
46,541
|
|
|
49,533
|
|
|
2,252
|
|
|
41,691
|
|
|
43,943
|
|
|
Pension benefits
|
|
3,796
|
|
|
451,940
|
|
|
455,736
|
|
|
3,790
|
|
|
484,892
|
|
|
488,682
|
|
|
Other postretirement benefits
|
|
1,506
|
|
|
19,459
|
|
|
20,965
|
|
|
1,624
|
|
|
20,002
|
|
|
21,626
|
|
|
Other employee benefits
|
|
29,358
|
|
|
5,854
|
|
|
35,212
|
|
|
8,956
|
|
|
9,706
|
|
|
18,662
|
|
|
Insurance obligations
(1)
|
|
127,470
|
|
|
234,336
|
|
|
361,806
|
|
|
157,014
|
|
|
213,256
|
|
|
370,270
|
|
|
Operating taxes
|
|
92,150
|
|
|
—
|
|
|
92,150
|
|
|
101,649
|
|
|
—
|
|
|
101,649
|
|
|
Income taxes
|
|
4,197
|
|
|
23,174
|
|
|
27,371
|
|
|
3,378
|
|
|
22,366
|
|
|
25,744
|
|
|
Interest
|
|
27,277
|
|
|
—
|
|
|
27,277
|
|
|
31,218
|
|
|
—
|
|
|
31,218
|
|
|
Deposits, mainly from customers
|
|
61,225
|
|
|
4,569
|
|
|
65,794
|
|
|
61,869
|
|
|
5,085
|
|
|
66,954
|
|
|
Deferred revenue
|
|
14,064
|
|
|
—
|
|
|
14,064
|
|
|
13,038
|
|
|
—
|
|
|
13,038
|
|
|
Other
|
|
52,241
|
|
|
31,692
|
|
|
83,933
|
|
|
59,532
|
|
|
32,597
|
|
|
92,129
|
|
|
Total
|
|
$
|
507,189
|
|
|
817,565
|
|
|
1,324,754
|
|
|
543,352
|
|
|
829,595
|
|
|
1,372,947
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Earnings from continuing operations before income taxes:
|
|
|
|
|
|
|
||||
United States
|
|
$
|
344,614
|
|
|
408,757
|
|
|
275,630
|
|
Foreign
|
|
61,767
|
|
|
60,458
|
|
|
62,637
|
|
|
Total
|
|
$
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
Current tax expense (benefit) from continuing operations:
|
|
|
|
|
|
|
||||
Federal
(1)
|
|
$
|
2,731
|
|
|
(1,836
|
)
|
|
(230
|
)
|
State
(1)
|
|
7,713
|
|
|
5,748
|
|
|
6,396
|
|
|
Foreign
|
|
6,411
|
|
|
5,272
|
|
|
7,163
|
|
|
|
|
16,855
|
|
|
9,184
|
|
|
13,329
|
|
|
Deferred tax expense from continuing operations:
|
|
|
|
|
|
|
||||
Federal
|
|
106,513
|
|
|
135,585
|
|
|
90,056
|
|
|
State
|
|
16,259
|
|
|
20,111
|
|
|
12,429
|
|
|
Foreign
|
|
2,114
|
|
|
(1,654
|
)
|
|
2,228
|
|
|
|
|
124,886
|
|
|
154,042
|
|
|
104,713
|
|
|
Provision for income taxes from continuing operations
|
|
$
|
141,741
|
|
|
163,226
|
|
|
118,042
|
|
(1)
|
Excludes federal and state tax benefits resulting from the exercise of stock options and vesting of restricted stock awards, which were credited directly to “Additional paid-in capital” for years ended December 31, 2015 and 2014.
|
|
|
Years ended December 31,
|
|||||||
|
|
2016
|
|
2015
|
|
2014
|
|||
|
|
(Percentage of pre-tax earnings)
|
|||||||
Federal statutory tax rate
|
|
35.0
|
|
|
35.0
|
|
|
35.0
|
|
Impact on deferred taxes for changes in tax rates
|
|
(0.7
|
)
|
|
(0.9
|
)
|
|
(0.9
|
)
|
State income taxes, net of federal income tax benefit
|
|
5.0
|
|
|
5.0
|
|
|
5.2
|
|
Foreign rates varying from federal statutory tax rate
|
|
(3.3
|
)
|
|
(3.3
|
)
|
|
(3.7
|
)
|
Tax reviews and audits
|
|
(0.7
|
)
|
|
(1.3
|
)
|
|
(1.1
|
)
|
Other, net
|
|
(0.4
|
)
|
|
0.3
|
|
|
0.4
|
|
Effective tax rate
|
|
34.9
|
|
|
34.8
|
|
|
34.9
|
|
Tax Jurisdiction
|
|
Enactment Date
|
|
Net Earnings
|
|
|
|
|
(in thousands)
|
2016
|
|
|
|
|
North Carolina
|
|
August 4, 2016
|
|
$585
|
|
|
|
|
|
2015
|
|
|
|
|
Connecticut
|
|
June 30, 2015
|
|
$1,616
|
Other Jurisdictions
|
|
April 13, 2015 - November 18, 2015
|
|
$497
|
|
|
|
|
|
2014
|
|
|
|
|
New York
|
|
March 31, 2014
|
|
$1,776
|
Rhode Island
|
|
June 19, 2014
|
|
$626
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Deferred income tax assets:
|
|
|
|
|
|||
Self-insurance accruals
|
|
$
|
107,252
|
|
|
93,352
|
|
Net operating loss carryforwards
|
|
396,313
|
|
|
429,458
|
|
|
Alternative minimum taxes
|
|
13,901
|
|
|
10,727
|
|
|
Accrued compensation and benefits
|
|
81,454
|
|
|
76,363
|
|
|
Federal benefit on state tax positions
|
|
19,247
|
|
|
18,912
|
|
|
Pension benefits
|
|
162,141
|
|
|
148,671
|
|
|
Miscellaneous other accruals
|
|
28,313
|
|
|
32,763
|
|
|
|
|
808,621
|
|
|
810,246
|
|
|
Valuation allowance
|
|
(16,387
|
)
|
|
(14,991
|
)
|
|
|
|
792,234
|
|
|
795,255
|
|
|
Deferred income tax liabilities:
|
|
|
|
|
|||
Property and equipment basis difference
|
|
(2,451,151
|
)
|
|
(2,362,194
|
)
|
|
Other
|
|
(20,735
|
)
|
|
(20,583
|
)
|
|
|
|
(2,471,886
|
)
|
|
(2,382,777
|
)
|
|
Net deferred income tax liability
(1)
|
|
$
|
(1,679,652
|
)
|
|
(1,587,522
|
)
|
(1)
|
Deferred tax assets of
$9 million
have been included in "Direct financing leases and other assets" at December 31, 2016.
|
|
|
December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Balance at January 1
|
|
$
|
60,740
|
|
|
60,482
|
|
|
56,813
|
|
Additions based on tax positions related to the current year
|
|
3,855
|
|
|
4,220
|
|
|
6,896
|
|
|
Reductions due to lapse of applicable statutes of limitation
|
|
(2,946
|
)
|
|
(3,962
|
)
|
|
(3,227
|
)
|
|
Gross balance at December 31
|
|
61,649
|
|
|
60,740
|
|
|
60,482
|
|
|
Interest and penalties
|
|
5,219
|
|
|
4,912
|
|
|
5,125
|
|
|
Balance at December 31
|
|
$
|
66,868
|
|
|
65,652
|
|
|
65,607
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Total minimum lease payments receivable
|
|
$
|
647,111
|
|
|
684,600
|
|
Less: Executory costs
|
|
(196,469
|
)
|
|
(205,865
|
)
|
|
Minimum lease payments receivable
|
|
450,642
|
|
|
478,735
|
|
|
Less: Allowance for uncollectibles
|
|
(248
|
)
|
|
(243
|
)
|
|
Net minimum lease payments receivable
|
|
450,394
|
|
|
478,492
|
|
|
Unguaranteed residuals
|
|
45,748
|
|
|
52,885
|
|
|
Less: Unearned income
|
|
(86,668
|
)
|
|
(93,619
|
)
|
|
Net investment in direct financing and sales-type leases
|
|
409,474
|
|
|
437,758
|
|
|
Current portion
|
|
(76,322
|
)
|
|
(90,055
|
)
|
|
Non-current portion
|
|
$
|
333,152
|
|
|
347,703
|
|
|
December 31,
|
|||||
|
2016
|
|
2015
|
|||
|
(In thousands)
|
|||||
Very low risk to low risk
|
$
|
192,853
|
|
|
203,388
|
|
Moderate
|
194,234
|
|
|
197,484
|
|
|
Moderately high to high risk
|
63,555
|
|
|
77,863
|
|
|
|
$
|
450,642
|
|
|
478,735
|
|
|
|
As Lessor
(1)
|
|
As Lessee
|
||||||
|
|
Operating
Leases
|
|
Direct Financing and Sales-Type
Leases
|
|
Operating
Leases
|
||||
|
|
(In thousands)
|
||||||||
2017
|
|
$
|
1,093,917
|
|
|
97,877
|
|
|
73,064
|
|
2018
|
|
888,570
|
|
|
87,195
|
|
|
55,481
|
|
|
2019
|
|
601,994
|
|
|
71,547
|
|
|
37,697
|
|
|
2020
|
|
461,278
|
|
|
62,298
|
|
|
20,663
|
|
|
2021
|
|
285,233
|
|
|
49,515
|
|
|
13,111
|
|
|
Thereafter
|
|
227,563
|
|
|
82,210
|
|
|
22,276
|
|
|
Total
|
|
$
|
3,558,555
|
|
|
450,642
|
|
|
222,292
|
|
(1)
|
Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue were $
342 million
in
2016
and $
329 million
in both
2015
and
2014
. Contingent rentals from direct financing leases included in revenue were
$12 million
in
2016
,
$12 million
in
2015
and
$11 million
in
2014
.
|
|
|
Weighted-Average
Interest Rate
|
|
|
|
|
|
|
|||||||
|
|
December 31,
|
|
|
|
December 31,
|
|||||||||
|
|
2016
|
|
2015
|
|
Maturities
|
|
2016
|
|
2015
|
|||||
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||
Short-term debt and current portion of long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|||||
Short-term debt
|
|
1.07
|
%
|
|
2.26
|
%
|
|
|
|
$
|
177,629
|
|
|
35,947
|
|
Current portion of long-term debt, including capital leases
|
|
|
|
|
|
|
|
613,781
|
|
|
598,583
|
|
|||
Total short-term debt and current portion of long-term debt
|
|
|
|
|
|
|
|
791,410
|
|
|
634,530
|
|
|||
Total long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. commercial paper
(1)
|
|
0.87
|
%
|
|
0.55
|
%
|
|
2020
|
|
342,480
|
|
|
547,130
|
|
|
Global revolving credit facility
|
|
2.06
|
%
|
|
2.31
|
%
|
|
2020
|
|
4,703
|
|
|
25,291
|
|
|
Unsecured U.S. notes – Medium-term notes
(1)
|
|
2.67
|
%
|
|
2.84
|
%
|
|
2017-2025
|
|
4,113,421
|
|
|
4,112,519
|
|
|
Unsecured U.S. obligations, principally bank term loans
|
|
2.19
|
%
|
|
1.73
|
%
|
|
2018
|
|
50,000
|
|
|
50,000
|
|
|
Unsecured foreign obligations
|
|
1.55
|
%
|
|
1.92
|
%
|
|
2017-2020
|
|
232,092
|
|
|
275,661
|
|
|
Asset backed U.S. obligations
(2)
|
|
1.80
|
%
|
|
1.81
|
%
|
|
2017-2022
|
|
459,876
|
|
|
434,001
|
|
|
Capital lease obligations
|
|
3.17
|
%
|
|
3.31
|
%
|
|
2017-2023
|
|
24,184
|
|
|
32,054
|
|
|
Total before fair market value adjustment
|
|
|
|
|
|
|
|
5,226,756
|
|
|
5,476,656
|
|
|||
Fair market value adjustment on notes subject to hedging
(3)
|
|
|
|
|
|
|
|
1,110
|
|
|
5,253
|
|
|||
Debt issuance costs
(4)
|
|
|
|
|
|
|
|
(14,221
|
)
|
|
(15,229
|
)
|
|||
|
|
|
|
|
|
|
|
5,213,645
|
|
|
5,466,680
|
|
|||
Current portion of long-term debt, including capital leases
|
|
|
|
|
|
|
|
(613,781
|
)
|
|
(598,583
|
)
|
|||
Long-term debt
|
|
|
|
|
|
|
|
4,599,864
|
|
|
4,868,097
|
|
|||
Total debt
|
|
|
|
|
|
|
|
$
|
5,391,274
|
|
|
5,502,627
|
|
(1)
|
We had unamortized original issue discounts of
$7 million
and
$8 million
at
December 31, 2016
and
2015
, respectively.
|
(2)
|
Asset-backed U.S. obligations are related to financing transactions involving revenue earning equipment.
|
(3)
|
The notional amount of the executed interest rate swaps designated as fair value hedges was
$825 million
at
December 31, 2016
and
2015
. Refer to
Note 16
, "
Derivatives
," for additional information.
|
(4)
|
See
Note 2
, "
Recent Accounting Pronouncements
," for further discussion of the presentation of debt issuance costs.
|
|
|
Capital Leases
|
|
Debt
|
|||
|
|
(In thousands)
|
|||||
2017
|
|
$
|
9,303
|
|
|
957,358
|
|
2018
|
|
6,939
|
|
|
791,324
|
|
|
2019
|
|
6,041
|
|
|
1,068,657
|
|
|
2020
|
|
880
|
|
|
1,606,313
|
|
|
2021
|
|
1,548
|
|
|
704,482
|
|
|
Thereafter
|
|
777
|
|
|
237,846
|
|
|
Total
|
|
25,488
|
|
|
5,365,980
|
|
|
Imputed interest
|
|
(1,304
|
)
|
|
|
||
Present value of minimum capitalized lease payments
|
|
24,184
|
|
|
|
||
Current portion
|
|
(8,695
|
)
|
|
|
||
Long-term capitalized lease obligation
|
|
$
|
15,489
|
|
|
|
|
|
Currency
Translation
Adjustments and Other
|
|
Net Actuarial
Loss
(1)
|
|
Prior Service
Credit
(1)
|
|
Accumulated
Other
Comprehensive
Loss
|
|||||
|
|
(In thousands)
|
|||||||||||
January 1, 2014
|
|
$
|
35,875
|
|
|
(477,883
|
)
|
|
3,760
|
|
|
(438,248
|
)
|
Amortization
|
|
—
|
|
|
14,866
|
|
|
(2,676
|
)
|
|
12,190
|
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
61,333
|
|
|
—
|
|
|
61,333
|
|
|
Other current period change
|
|
(71,962
|
)
|
|
(184,257
|
)
|
|
674
|
|
|
(255,545
|
)
|
|
December 31, 2014
|
|
(36,087
|
)
|
|
(585,941
|
)
|
|
1,758
|
|
|
(620,270
|
)
|
|
Amortization
|
|
—
|
|
|
19,505
|
|
|
(1,411
|
)
|
|
18,094
|
|
|
Other current period change
|
|
(99,933
|
)
|
|
(10,557
|
)
|
|
(69
|
)
|
|
(110,559
|
)
|
|
December 31, 2015
|
|
(136,020
|
)
|
|
(576,993
|
)
|
|
278
|
|
|
(712,735
|
)
|
|
Amortization
|
|
—
|
|
|
18,876
|
|
|
165
|
|
|
19,041
|
|
|
Other current period change
|
|
(70,590
|
)
|
|
(62,175
|
)
|
|
(7,573
|
)
|
|
(140,338
|
)
|
|
December 31, 2016
|
|
$
|
(206,610
|
)
|
|
(620,292
|
)
|
|
(7,130
|
)
|
|
(834,032
|
)
|
(1)
|
These amounts are included in the computation of net periodic pension cost and pension settlement charge. See
Note 22
, "
Employee Benefit Plans
," for further information.
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands, except per share amounts)
|
||||||||
Earnings per share — Basic:
|
|
|
|
|
|
|
||||
Earnings from continuing operations
|
|
$
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
Less: Distributed and undistributed earnings allocated to unvested stock
|
|
(840
|
)
|
|
(877
|
)
|
|
(858
|
)
|
|
Earnings from continuing operations available to common shareholders — Basic
|
|
$
|
263,800
|
|
|
305,112
|
|
|
219,367
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding— Basic
|
|
53,015
|
|
|
52,814
|
|
|
52,536
|
|
|
|
|
|
|
|
|
|
||||
Earnings from continuing operations per common share — Basic
|
|
$
|
4.98
|
|
|
5.78
|
|
|
4.18
|
|
|
|
|
|
|
|
|
||||
Earnings per share — Diluted:
|
|
|
|
|
|
|
||||
Earnings from continuing operations
|
|
$
|
264,640
|
|
|
305,989
|
|
|
220,225
|
|
Less: Distributed and undistributed earnings allocated to unvested stock
|
|
(836
|
)
|
|
(872
|
)
|
|
(853
|
)
|
|
Earnings from continuing operations available to common shareholders — Diluted
|
|
$
|
263,804
|
|
|
305,117
|
|
|
219,372
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding— Basic
|
|
53,015
|
|
|
52,814
|
|
|
52,536
|
|
|
Effect of dilutive equity awards
|
|
346
|
|
|
446
|
|
|
500
|
|
|
Weighted average common shares outstanding— Diluted
|
|
53,361
|
|
|
53,260
|
|
|
53,036
|
|
|
|
|
|
|
|
|
|
||||
Earnings from continuing operations per common share — Diluted
|
|
$
|
4.94
|
|
|
5.73
|
|
|
4.14
|
|
Anti-dilutive equity awards and market-based restrictive stock rights not included above
|
|
716
|
|
|
392
|
|
|
161
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Stock option and stock purchase plans
|
|
$
|
7,244
|
|
|
8,048
|
|
|
9,023
|
|
Unvested stock awards
|
|
11,420
|
|
|
13,133
|
|
|
11,882
|
|
|
Share-based compensation expense
|
|
18,664
|
|
|
21,181
|
|
|
20,905
|
|
|
Income tax benefit
|
|
(6,644
|
)
|
|
(7,271
|
)
|
|
(7,300
|
)
|
|
Share-based compensation expense, net of tax
|
|
$
|
12,020
|
|
|
13,910
|
|
|
13,605
|
|
|
|
Years ended December 31
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Cash awards
|
|
$
|
689
|
|
|
532
|
|
|
1,900
|
|
|
|
Shares
|
|
Weighted-
Average
Exercise
Price
|
|
Weighted-
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic Value
|
|||||
|
|
(In thousands)
|
|
|
|
(In years)
|
|
(In thousands)
|
|||||
Options outstanding at January 1
|
|
1,263
|
|
|
$
|
68.13
|
|
|
|
|
|
||
Granted
|
|
512
|
|
|
55.32
|
|
|
|
|
|
|||
Exercised
|
|
(188
|
)
|
|
47.06
|
|
|
|
|
|
|||
Forfeited or expired
|
|
(58
|
)
|
|
70.15
|
|
|
|
|
|
|||
Options outstanding at December 31
|
|
1,529
|
|
|
$
|
66.35
|
|
|
7.1
|
|
$
|
18,400
|
|
Vested and expected to vest at December 31
|
|
1,473
|
|
|
$
|
66.42
|
|
|
7.0
|
|
$
|
17,727
|
|
Exercisable at December 31
|
|
725
|
|
|
$
|
65.35
|
|
|
5.4
|
|
$
|
8,737
|
|
|
|
Time-Vested
|
|
Market-Based
|
|
Performance-Based
|
||||||||||||
|
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
||||||
|
|
(In thousands)
|
|
|
|
(In thousands)
|
|
|
|
(In thousands)
|
|
|
||||||
Unvested stock outstanding at January 1
|
|
473
|
|
$
|
68.50
|
|
|
62
|
|
$
|
66.97
|
|
|
76
|
|
$
|
83.31
|
|
Granted
|
|
133
|
|
57.83
|
|
|
34
|
|
54.10
|
|
|
45
|
|
55.32
|
|
|||
Vested
(1)
|
|
(104)
|
|
58.83
|
|
|
(21)
|
|
53.43
|
|
|
(39)
|
|
74.35
|
|
|||
Forfeited
(2)
|
|
(26)
|
|
74.11
|
|
|
(9)
|
|
69.10
|
|
|
(10)
|
|
63.95
|
|
|||
Unvested stock outstanding at December 31
|
|
476
|
|
$
|
67.31
|
|
|
66
|
|
$
|
64.33
|
|
|
72
|
|
$
|
70.92
|
|
|
|
Years ended December 31,
|
||||
|
|
2016
|
|
2015
|
|
2014
|
Option plans:
|
|
|
|
|
|
|
Expected dividends
|
|
3.0%
|
|
1.6%
|
|
1.9%
|
Expected volatility
|
|
35.2%
|
|
26.4%
|
|
29.1%
|
Risk-free rate
|
|
1.1%
|
|
1.4%
|
|
1.3%
|
Expected term in years
|
|
4.3 years
|
|
4.3 years
|
|
4.3 years
|
Grant-date fair value
|
|
$12.53
|
|
$18.47
|
|
$14.99
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Company-administered plans:
|
|
|
|
|
|
|
||||
Service cost
|
|
$
|
12,977
|
|
|
13,820
|
|
|
13,023
|
|
Interest cost
|
|
94,476
|
|
|
88,013
|
|
|
100,909
|
|
|
Expected return on plan assets
|
|
(90,588
|
)
|
|
(98,892
|
)
|
|
(115,410
|
)
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
—
|
|
|
97,231
|
|
|
Amortization of:
|
|
|
|
|
|
|
||||
Net actuarial loss
|
|
31,777
|
|
|
30,741
|
|
|
23,573
|
|
|
Prior service loss (credit)
|
|
2,976
|
|
|
(306
|
)
|
|
(1,788
|
)
|
|
|
|
51,618
|
|
|
33,376
|
|
|
117,538
|
|
|
Union-administered plans
|
|
9,597
|
|
|
8,328
|
|
|
21,118
|
|
|
Net pension expense
|
|
$
|
61,215
|
|
|
41,704
|
|
|
138,656
|
|
|
|
|
|
|
|
|
||||
Company-administered plans:
|
|
|
|
|
|
|
||||
U.S.
|
|
$
|
53,319
|
|
|
34,986
|
|
|
118,797
|
|
Foreign
|
|
(1,701
|
)
|
|
(1,610
|
)
|
|
(1,259
|
)
|
|
|
|
51,618
|
|
|
33,376
|
|
|
117,538
|
|
|
Union-administered plans
|
|
9,597
|
|
|
8,328
|
|
|
21,118
|
|
|
|
|
$
|
61,215
|
|
|
41,704
|
|
|
138,656
|
|
|
|
U.S. Plans
Years ended December 31,
|
|
Foreign Plans
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
Discount rate
|
|
4.50%
|
|
4.15%
|
|
5.00%
|
|
3.70%
|
|
3.70%
|
|
4.57%
|
Rate of increase in compensation levels
|
|
3.00%
|
|
3.00%
|
|
3.00%
|
|
3.10%
|
|
3.10%
|
|
3.09%
|
Expected long-term rate of return on plan assets
|
|
5.85%
|
|
5.95%
|
|
6.50%
|
|
5.44%
|
|
5.50%
|
|
5.94%
|
Gain and loss amortization period (years)
|
|
23
|
|
23
|
|
23
|
|
27
|
|
27
|
|
27
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Change in benefit obligations:
|
|
|
|
|
|||
Benefit obligations at January 1
|
|
$
|
2,091,844
|
|
|
2,221,115
|
|
Service cost
|
|
12,977
|
|
|
13,820
|
|
|
Interest cost
|
|
94,476
|
|
|
88,013
|
|
|
Actuarial loss (gain)
|
|
189,523
|
|
|
(98,996
|
)
|
|
Benefits paid
|
|
(96,723
|
)
|
|
(98,528
|
)
|
|
Foreign currency exchange rate changes
|
|
(63,335
|
)
|
|
(33,580
|
)
|
|
Benefit obligations at December 31
|
|
2,228,762
|
|
|
2,091,844
|
|
|
|
|
|
|
|
|||
Change in plan assets:
|
|
|
|
|
|||
Fair value of plan assets at January 1
|
|
1,647,286
|
|
|
1,775,417
|
|
|
Actual return on plan assets
|
|
176,066
|
|
|
(29,024
|
)
|
|
Employer contribution
|
|
127,991
|
|
|
33,746
|
|
|
Benefits paid
|
|
(96,723
|
)
|
|
(98,528
|
)
|
|
Foreign currency exchange rate changes
|
|
(67,545
|
)
|
|
(34,325
|
)
|
|
Fair value of plan assets at December 31
|
|
1,787,075
|
|
|
1,647,286
|
|
|
Funded status
|
|
$
|
(441,687
|
)
|
|
(444,558
|
)
|
Funded percent
|
|
80
|
%
|
|
79
|
%
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Noncurrent asset
|
|
$
|
14,049
|
|
|
44,124
|
|
Current liability
|
|
(3,796
|
)
|
|
(3,790
|
)
|
|
Noncurrent liability
|
|
(451,940
|
)
|
|
(484,892
|
)
|
|
Net amount recognized
|
|
$
|
(441,687
|
)
|
|
(444,558
|
)
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Prior service credit
|
|
$
|
11,714
|
|
|
—
|
|
Net actuarial loss
|
|
961,010
|
|
|
905,944
|
|
|
Net amount recognized
|
|
$
|
972,724
|
|
|
905,944
|
|
|
|
U.S. Plans
December 31,
|
|
Foreign Plans
December 31,
|
||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Discount rate
|
|
4.20%
|
|
4.50%
|
|
3.90%
|
|
4.00%
|
Rate of increase in compensation levels
|
|
3.00%
|
|
3.00%
|
|
3.10%
|
|
3.10%
|
|
|
U.S. Plans
December 31,
|
|
Foreign Plans
December 31,
|
|
Total
December 31,
|
|||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||
|
|
(In thousands)
|
|||||||||||||||||
Total accumulated benefit obligations
|
|
$
|
1,748,171
|
|
|
1,640,844
|
|
|
454,301
|
|
|
423,555
|
|
|
2,202,472
|
|
|
2,064,399
|
|
Plans with pension obligations in excess of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
PBO
|
|
1,771,968
|
|
|
1,671,949
|
|
|
7,383
|
|
|
7,916
|
|
|
1,779,351
|
|
|
1,679,865
|
|
|
ABO
|
|
1,748,171
|
|
|
1,640,844
|
|
|
5,997
|
|
|
6,793
|
|
|
1,754,168
|
|
|
1,647,637
|
|
|
Fair value of plan assets
|
|
1,323,751
|
|
|
1,191,182
|
|
|
—
|
|
|
—
|
|
|
1,323,751
|
|
|
1,191,182
|
|
|
|
Fair Value Measurements at
December 31, 2016 |
|||||||||||
Asset Category
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||
|
|
(In thousands)
|
|||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. common collective trusts
|
|
$
|
429,456
|
|
|
—
|
|
|
429,456
|
|
|
—
|
|
Foreign common collective trusts
|
|
398,282
|
|
|
—
|
|
|
398,282
|
|
|
—
|
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
Corporate bonds
|
|
76,086
|
|
|
—
|
|
|
76,086
|
|
|
—
|
|
|
Common collective trusts
|
|
780,367
|
|
|
—
|
|
|
780,367
|
|
|
—
|
|
|
Private equity and hedge funds
|
|
102,884
|
|
|
—
|
|
|
—
|
|
|
102,884
|
|
|
Total
|
|
$
|
1,787,075
|
|
|
—
|
|
|
1,684,191
|
|
|
102,884
|
|
|
|
Fair Value Measurements at
December 31, 2015 |
|||||||||||
Asset Category
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||
|
|
(In thousands)
|
|||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. common collective trusts
|
|
$
|
387,123
|
|
|
—
|
|
|
387,123
|
|
|
—
|
|
Foreign common collective trusts
|
|
374,858
|
|
|
—
|
|
|
374,858
|
|
|
—
|
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
Corporate bonds
|
|
64,834
|
|
|
—
|
|
|
64,834
|
|
|
—
|
|
|
Common collective trusts
|
|
719,840
|
|
|
—
|
|
|
719,840
|
|
|
—
|
|
|
Private equity and hedge funds
|
|
100,631
|
|
|
—
|
|
|
—
|
|
|
100,631
|
|
|
Total
|
|
$
|
1,647,286
|
|
|
—
|
|
|
1,546,655
|
|
|
100,631
|
|
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Beginning balance at January 1
|
|
$
|
100,631
|
|
|
89,727
|
|
Return on plan assets:
|
|
|
|
|
|||
Relating to assets still held at the reporting date
|
|
1,548
|
|
|
5,399
|
|
|
Relating to assets sold during the period
|
|
703
|
|
|
226
|
|
|
Purchases, sales, settlements and expenses
|
|
2
|
|
|
5,279
|
|
|
Ending balance at December 31
|
|
$
|
102,884
|
|
|
100,631
|
|
|
|
|
|
Pension Protection Act Zone Status
|
|
|
|
Ryder Contributions
|
|
|
|
Expiration Date(s) of Collective-Bargaining Agreement(s)
|
||||||||||
Pension Fund
|
|
Employer Identification Number
|
|
2016
|
|
2015
|
|
FIP/RP Status Pending/ Implemented
(1)
|
|
2016
|
|
2015
|
|
2014
|
|
Surcharge Imposed
|
|
|||||
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
||||||||
Western Conference Teamsters
|
|
91-6145047
|
|
Green
|
|
Green
|
|
No
|
|
$
|
2,613
|
|
|
2,430
|
|
|
2,315
|
|
|
No
|
|
1/12/18 to 4/1/21
|
IAM National
|
|
51-6031295
|
|
Green
|
|
Green
|
|
No
|
|
4,162
|
|
|
3,801
|
|
|
3,311
|
|
|
No
|
|
3/31/17 to 11/30/19
|
|
Automobile Mechanics
Local No. 701 |
|
36-6042061
|
|
Yellow
|
|
Red
|
|
RP Adopted
|
|
2,201
|
|
|
1,902
|
|
|
1,632
|
|
|
Yes
|
|
10/31/17 to 5/31/19
|
|
Central States Southeast and Southwest Areas
|
|
36-6044243
|
|
Red
|
|
Red
|
|
RP Adopted
|
|
259
|
|
|
254
|
|
|
211
|
|
|
Yes
|
|
5/6/17 to 10/31/17
|
|
Other funds
|
|
|
|
|
|
|
|
|
|
501
|
|
|
450
|
|
|
1,085
|
|
|
|
|
|
|
Total contributions
|
|
|
|
|
|
|
|
|
|
9,736
|
|
|
8,837
|
|
|
8,554
|
|
|
|
|
|
|
Pension settlement (benefit) charges
|
|
|
|
|
|
|
|
|
|
(139
|
)
|
|
(509
|
)
|
|
12,564
|
|
|
|
|
|
|
Union-administered plans
|
|
|
|
|
|
|
|
|
|
$
|
9,597
|
|
|
8,328
|
|
|
21,118
|
|
|
|
|
|
(1)
|
The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented.
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Service cost
|
|
$
|
215
|
|
|
363
|
|
|
446
|
|
Interest cost
|
|
906
|
|
|
1,097
|
|
|
1,421
|
|
|
Amortization of:
|
|
|
|
|
|
|
||||
Net actuarial gain
|
|
(1,989
|
)
|
|
(1,773
|
)
|
|
(725
|
)
|
|
Prior service credit
|
|
(231
|
)
|
|
(1,083
|
)
|
|
(2,459
|
)
|
|
Postretirement benefit income
|
|
$
|
(1,099
|
)
|
|
(1,396
|
)
|
|
(1,317
|
)
|
|
|
|
|
|
|
|
||||
U.S.
|
|
$
|
(1,429
|
)
|
|
(1,887
|
)
|
|
(1,839
|
)
|
Foreign
|
|
330
|
|
|
491
|
|
|
522
|
|
|
|
|
$
|
(1,099
|
)
|
|
(1,396
|
)
|
|
(1,317
|
)
|
|
|
U.S. Plan
Years ended December 31,
|
|
Foreign Plan
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
Discount rate
|
|
4.50%
|
|
4.15%
|
|
5.00%
|
|
4.00%
|
|
4.00%
|
|
4.80%
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Benefit obligations at January 1
|
|
$
|
21,626
|
|
|
29,001
|
|
Service cost
|
|
215
|
|
|
363
|
|
|
Interest cost
|
|
906
|
|
|
1,097
|
|
|
Actuarial gain
|
|
(338
|
)
|
|
(6,164
|
)
|
|
Benefits paid
|
|
(1,609
|
)
|
|
(1,468
|
)
|
|
Foreign currency exchange rate changes
|
|
165
|
|
|
(1,203
|
)
|
|
Benefit obligations at December 31
|
|
$
|
20,965
|
|
|
21,626
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Current liability
|
|
$
|
1,506
|
|
|
1,624
|
|
Noncurrent liability
|
|
19,459
|
|
|
20,002
|
|
|
Amount recognized
|
|
$
|
20,965
|
|
|
21,626
|
|
|
|
December 31,
|
|||||
|
|
2016
|
|
2015
|
|||
|
|
(In thousands)
|
|||||
Prior service credit
|
|
$
|
(385
|
)
|
|
(616
|
)
|
Net actuarial gain
|
|
(10,186
|
)
|
|
(11,825
|
)
|
|
Net amount recognized
|
|
$
|
(10,571
|
)
|
|
(12,441
|
)
|
|
|
U.S. Plan
December 31,
|
|
Foreign Plan
December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Discount rate
|
|
4.50
|
%
|
|
4.50
|
%
|
|
3.90
|
%
|
|
4.00
|
%
|
Rate of increase in compensation levels
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Healthcare cost trend rate assumed for next year
|
|
7.50
|
%
|
|
6.75
|
%
|
|
5.00
|
%
|
|
5.50
|
%
|
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
|
|
5.00
|
%
|
|
5.00
|
%
|
|
5.00
|
%
|
|
5.00
|
%
|
Year that the rate reaches the ultimate trend rate
|
|
2027
|
|
|
2023
|
|
|
2018
|
|
|
2017
|
|
|
Years ended December 31,
|
||||||||
|
2016
|
|
2015
|
|
2014
|
||||
|
|
|
(In thousands)
|
|
|
||||
Pension-related adjustments
(1)
|
$
|
(7,650
|
)
|
|
509
|
|
|
(12,564
|
)
|
Restructuring and other charges, net
(2)
|
(5,074
|
)
|
|
(14,225
|
)
|
|
(2,387
|
)
|
|
Pension lump sum settlement loss
(1)
|
—
|
|
|
—
|
|
|
(97,231
|
)
|
|
Acquisition-related tax adjustment
|
—
|
|
|
—
|
|
|
(1,808
|
)
|
|
Acquisition transaction costs
|
—
|
|
|
—
|
|
|
(566
|
)
|
|
Consulting fees
|
—
|
|
|
(3,843
|
)
|
|
(400
|
)
|
|
Restructuring and other charges, net and other items
|
$
|
(12,724
|
)
|
|
(17,559
|
)
|
|
(114,956
|
)
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Interest paid
|
|
$
|
143,990
|
|
|
144,973
|
|
|
139,595
|
|
Income taxes paid
|
|
14,062
|
|
|
13,379
|
|
|
11,382
|
|
|
Changes in accounts payable related to purchases of revenue earning equipment
|
|
(142,256
|
)
|
|
28,134
|
|
|
39,071
|
|
|
Operating and revenue earning equipment acquired under capital leases
|
|
1,230
|
|
|
5,959
|
|
|
7,972
|
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Revenue:
|
|
|
|
|
|
|
||||
Fleet Management Solutions:
|
|
|
|
|
|
|
||||
Full service lease
|
|
$
|
2,362,040
|
|
|
2,220,929
|
|
|
2,102,703
|
|
Commercial rental
|
|
808,912
|
|
|
900,624
|
|
|
836,719
|
|
|
Full service lease and commercial rental
|
|
3,170,952
|
|
|
3,121,553
|
|
|
2,939,422
|
|
|
Contract maintenance
|
|
197,688
|
|
|
190,989
|
|
|
182,411
|
|
|
Contract-related maintenance
|
|
217,819
|
|
|
200,148
|
|
|
196,841
|
|
|
Other
|
|
78,042
|
|
|
77,625
|
|
|
71,064
|
|
|
Fuel services revenue
|
|
463,738
|
|
|
538,277
|
|
|
787,887
|
|
|
Total Fleet Management Solutions from external customers
|
|
4,128,239
|
|
|
4,128,592
|
|
|
4,177,625
|
|
|
Inter-segment revenue
|
|
427,955
|
|
|
417,100
|
|
|
478,133
|
|
|
Fleet Management Solutions
|
|
4,556,194
|
|
|
4,545,692
|
|
|
4,655,758
|
|
|
Dedicated Transportation Solutions
|
|
1,020,895
|
|
|
895,538
|
|
|
899,802
|
|
|
Supply Chain Solutions
|
|
1,637,850
|
|
|
1,547,763
|
|
|
1,561,347
|
|
|
Eliminations
|
|
(427,955
|
)
|
|
(417,100
|
)
|
|
(478,133
|
)
|
|
Total revenue
|
|
$
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
|
|
|
|
|
|
|
||||
EBT:
|
|
|
|
|
|
|
||||
Fleet Management Solutions
|
|
$
|
370,754
|
|
|
462,109
|
|
|
433,736
|
|
Dedicated Transportation Solutions
|
|
63,611
|
|
|
45,800
|
|
|
44,556
|
|
|
Supply Chain Solutions
|
|
105,561
|
|
|
93,754
|
|
|
77,800
|
|
|
Eliminations
|
|
(50,148
|
)
|
|
(47,193
|
)
|
|
(41,361
|
)
|
|
|
|
$
|
489,778
|
|
|
554,470
|
|
|
514,731
|
|
Unallocated Central Support Services
|
|
(40,945
|
)
|
|
(48,510
|
)
|
|
(51,740
|
)
|
|
Non-operating pension costs
|
|
(29,728
|
)
|
|
(19,186
|
)
|
|
(9,768
|
)
|
|
Restructuring and other charges, net and other items
(1)
|
|
(12,724
|
)
|
|
(17,559
|
)
|
|
(114,956
|
)
|
|
Earnings before income taxes from continuing operations
|
|
$
|
406,381
|
|
|
469,215
|
|
|
338,267
|
|
(1)
|
See
Note 24
, “
Other Items Impacting Comparability
,” for a discussion of items excluded from our primary measure of segment performance.
|
|
|
FMS
|
|
DTS
|
|
SCS
|
|
CSS
|
|
Eliminations
|
|
Total
|
|||||||
|
|
(In thousands)
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Share-based compensation expense
|
|
$
|
5,464
|
|
|
1,254
|
|
|
2,764
|
|
|
9,182
|
|
|
—
|
|
|
18,664
|
|
Depreciation expense
(1)
|
|
$
|
1,156,888
|
|
|
3,222
|
|
|
25,956
|
|
|
984
|
|
|
—
|
|
|
1,187,050
|
|
Used vehicle sales, net
|
|
$
|
(724
|
)
|
|
(90
|
)
|
|
(158
|
)
|
|
—
|
|
|
—
|
|
|
(972
|
)
|
Amortization expense and other non-cash charges, net
|
|
$
|
34,652
|
|
|
1,027
|
|
|
3,215
|
|
|
29,366
|
|
|
—
|
|
|
68,260
|
|
Interest expense (income)
(2)
|
|
$
|
151,297
|
|
|
(1,901
|
)
|
|
(1,663
|
)
|
|
110
|
|
|
—
|
|
|
147,843
|
|
Capital expenditures paid
|
|
$
|
1,814,146
|
|
|
2,551
|
|
|
64,186
|
|
|
24,274
|
|
|
—
|
|
|
1,905,157
|
|
Total assets
|
|
$
|
9,954,452
|
|
|
255,845
|
|
|
713,190
|
|
|
198,394
|
|
|
(219,427
|
)
|
|
10,902,454
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Share-based compensation expense
|
|
$
|
5,672
|
|
|
1,155
|
|
|
3,400
|
|
|
10,954
|
|
|
—
|
|
|
21,181
|
|
Depreciation expense
(1)
|
|
$
|
1,092,750
|
|
|
3,184
|
|
|
25,721
|
|
|
311
|
|
|
—
|
|
|
1,121,966
|
|
Used vehicle sales, net
|
|
$
|
(99,758
|
)
|
|
(54
|
)
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
(99,853
|
)
|
Amortization expense and other non-cash charges, net
|
|
$
|
36,348
|
|
|
1,878
|
|
|
2,971
|
|
|
29,565
|
|
|
—
|
|
|
70,762
|
|
Interest expense (income)
(2)
|
|
$
|
154,276
|
|
|
(1,597
|
)
|
|
(2,174
|
)
|
|
(71
|
)
|
|
—
|
|
|
150,434
|
|
Capital expenditures paid
|
|
$
|
2,595,961
|
|
|
3,570
|
|
|
27,841
|
|
|
40,606
|
|
|
—
|
|
|
2,667,978
|
|
Total assets
|
|
$
|
10,061,092
|
|
|
275,634
|
|
|
636,647
|
|
|
202,129
|
|
|
(222,922
|
)
|
|
10,952,580
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Share-based compensation expense
|
|
$
|
4,895
|
|
|
720
|
|
|
3,661
|
|
|
11,629
|
|
|
—
|
|
|
20,905
|
|
Depreciation expense
(1)
|
|
$
|
1,018,017
|
|
|
3,211
|
|
|
25,636
|
|
|
185
|
|
|
—
|
|
|
1,047,049
|
|
Used vehicle sales, net
|
|
$
|
(115,646
|
)
|
|
5
|
|
|
(419
|
)
|
|
—
|
|
|
—
|
|
|
(116,060
|
)
|
Pension lump sum settlement expense
|
|
$
|
76,239
|
|
|
3,335
|
|
|
3,277
|
|
|
14,380
|
|
|
—
|
|
|
97,231
|
|
Amortization expense and other non-cash charges, net
|
|
$
|
19,936
|
|
|
516
|
|
|
1,309
|
|
|
25,502
|
|
|
—
|
|
|
47,263
|
|
Interest expense (income)
(2)
|
|
$
|
147,247
|
|
|
(1,520
|
)
|
|
(807
|
)
|
|
(181
|
)
|
|
—
|
|
|
144,739
|
|
Capital expenditures paid
(3)
|
|
$
|
2,166,319
|
|
|
1,883
|
|
|
20,941
|
|
|
70,021
|
|
|
—
|
|
|
2,259,164
|
|
Total assets
|
|
$
|
8,998,788
|
|
|
211,388
|
|
|
673,876
|
|
|
193,484
|
|
|
(239,760
|
)
|
|
9,837,776
|
|
(1)
|
Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling
$24 million
,
$22 million
and
$21 million
during
2016
,
2015
and
2014
, respectively, associated with CSS assets was allocated to other business segments.
|
(2)
|
Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest income was also reflected in DTS and SCS based on targeted segment leverage ratios.
|
(3)
|
Excludes acquisition payments of
$10 million
in
2014
. See
Note 3
, “
Acquisitions
,” for additional information.
|
|
|
Years ended December 31,
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||
|
|
(In thousands)
|
||||||||
Revenue:
|
|
|
|
|
|
|
||||
United States
|
|
$
|
5,892,384
|
|
|
5,603,697
|
|
|
5,614,037
|
|
Foreign:
|
|
|
|
|
|
|
||||
Canada
|
|
387,713
|
|
|
408,325
|
|
|
435,280
|
|
|
Europe
|
|
339,420
|
|
|
391,339
|
|
|
400,853
|
|
|
Mexico
|
|
139,176
|
|
|
139,583
|
|
|
158,481
|
|
|
Asia
|
|
28,291
|
|
|
28,949
|
|
|
30,123
|
|
|
|
|
894,600
|
|
|
968,196
|
|
|
1,024,737
|
|
|
Total
|
|
$
|
6,786,984
|
|
|
6,571,893
|
|
|
6,638,774
|
|
Long-lived assets:
|
|
|
|
|
|
|
||||
United States
|
|
$
|
7,854,845
|
|
|
7,817,628
|
|
|
6,790,946
|
|
Foreign:
|
|
|
|
|
|
|
||||
Canada
|
|
532,403
|
|
|
504,027
|
|
|
530,316
|
|
|
Europe
|
|
472,027
|
|
|
545,630
|
|
|
553,467
|
|
|
Mexico
|
|
33,979
|
|
|
31,993
|
|
|
26,230
|
|
|
Asia
|
|
338
|
|
|
427
|
|
|
521
|
|
|
|
|
1,038,747
|
|
|
1,082,077
|
|
|
1,110,534
|
|
|
Total
|
|
$
|
8,893,592
|
|
|
8,899,705
|
|
|
7,901,480
|
|
|
|
|
|
Earnings from Continuing Operations Before Income Taxes
|
|
Earnings from
Continuing Operations
|
|
|
|
Earnings from
Continuing
Operations per
Common Share
|
|
Net Earnings per
Common Share
|
||||||||||||||
|
|
Revenue
|
|
|
|
Net Earnings
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First quarter
|
|
$
|
1,629,672
|
|
|
88,708
|
|
|
56,185
|
|
|
55,794
|
|
|
1.06
|
|
|
1.05
|
|
|
1.05
|
|
|
1.04
|
|
|
Second quarter
|
|
1,703,744
|
|
|
116,779
|
|
|
74,042
|
|
|
73,750
|
|
|
1.39
|
|
|
1.38
|
|
|
1.39
|
|
|
1.38
|
|
||
Third quarter
|
|
1,724,418
|
|
|
131,698
|
|
|
85,138
|
|
|
84,752
|
|
|
1.60
|
|
|
1.59
|
|
|
1.60
|
|
|
1.59
|
|
||
Fourth quarter
|
|
1,729,150
|
|
|
69,196
|
|
|
49,275
|
|
|
48,181
|
|
|
0.93
|
|
|
0.92
|
|
|
0.91
|
|
|
0.91
|
|
||
Full year
|
|
$
|
6,786,984
|
|
|
406,381
|
|
|
264,640
|
|
|
262,477
|
|
|
4.98
|
|
|
4.94
|
|
|
4.94
|
|
|
4.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First quarter
|
|
$
|
1,567,153
|
|
|
84,177
|
|
|
53,326
|
|
|
52,789
|
|
|
1.01
|
|
|
1.00
|
|
|
1.00
|
|
|
0.99
|
|
|
Second quarter
|
|
1,662,931
|
|
|
133,447
|
|
|
85,917
|
|
|
85,159
|
|
|
1.62
|
|
|
1.61
|
|
|
1.61
|
|
|
1.59
|
|
||
Third quarter
|
|
1,669,066
|
|
|
139,900
|
|
|
90,811
|
|
|
90,619
|
|
|
1.71
|
|
|
1.70
|
|
|
1.71
|
|
|
1.69
|
|
||
Fourth quarter
|
|
1,672,743
|
|
|
111,691
|
|
|
75,935
|
|
|
76,201
|
|
|
1.43
|
|
|
1.42
|
|
|
1.44
|
|
|
1.43
|
|
||
Full year
|
|
$
|
6,571,893
|
|
|
469,215
|
|
|
305,989
|
|
|
304,768
|
|
|
5.78
|
|
|
5.73
|
|
|
5.75
|
|
|
$
|
5.71
|
|
|
|
|
|
Additions
|
|
|
|
|
||||||||
Description
|
|
Balance at
Beginning
of Period
|
|
Charged to
Earnings
|
|
Transferred
from Other
Accounts
(1)
|
|
Deductions
(2)
|
|
Balance
at End
of Period
|
||||||
|
|
(In thousands)
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable allowance
|
|
$
|
15,560
|
|
|
13,118
|
|
|
—
|
|
|
13,763
|
|
|
14,915
|
|
Direct finance lease allowance
|
|
$
|
243
|
|
|
396
|
|
|
—
|
|
|
391
|
|
|
248
|
|
Self-insurance accruals
(3)
|
|
$
|
311,821
|
|
|
337,554
|
|
|
71,703
|
|
|
384,177
|
|
|
336,901
|
|
Valuation allowance on deferred tax assets
|
|
$
|
14,991
|
|
|
98
|
|
|
—
|
|
|
(1,298
|
)
|
|
16,387
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable allowance
|
|
$
|
16,388
|
|
|
11,172
|
|
|
—
|
|
|
12,000
|
|
|
15,560
|
|
Direct finance lease allowance
|
|
$
|
288
|
|
|
1,495
|
|
|
—
|
|
|
1,540
|
|
|
243
|
|
Self-insurance accruals
(3)
|
|
$
|
300,994
|
|
|
308,026
|
|
|
68,999
|
|
|
366,198
|
|
|
311,821
|
|
Valuation allowance on deferred tax assets
|
|
$
|
24,742
|
|
|
(1,150
|
)
|
|
—
|
|
|
8,601
|
|
|
14,991
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable allowance
|
|
$
|
16,955
|
|
|
7,086
|
|
|
—
|
|
|
7,653
|
|
|
16,388
|
|
Direct finance lease allowance
|
|
$
|
501
|
|
|
47
|
|
|
—
|
|
|
260
|
|
|
288
|
|
Self-insurance accruals
(3)
|
|
$
|
290,255
|
|
|
273,509
|
|
|
62,548
|
|
|
325,318
|
|
|
300,994
|
|
Valuation allowance on deferred tax assets
|
|
$
|
33,793
|
|
|
(976
|
)
|
|
—
|
|
|
8,075
|
|
|
24,742
|
|
(1)
|
Transferred from other accounts includes employee contributions made to the medical and dental self-insurance plans.
|
(2)
|
Deductions represent write-offs, lease termination payments, insurance claim payments during the period and net foreign currency translation adjustments.
|
(3)
|
Self-insurance accruals include vehicle liability, workers’ compensation, property damage, cargo and medical and dental, which comprise our self-insurance programs. Amounts charged to earnings include developments in prior year selected loss development factors which charged earnings by
$9 million
and
$4 million
in
2016
and
2015
, respectively, and benefited earnings by
$14 million
in
2014
.
|
Plans
|
|
Number of Securities to be issued upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Excluding Securities Reflected in Column (a)
|
|||||
|
|
(a)
|
|
|
(b)
|
|
|
(c)
|
|||
Equity compensation plans approved by security holders:
|
|
|
|
|
|
|
|
|
|||
Broad based employee stock plans
|
|
2,018,334
|
|
(1)
|
|
$66.35
|
(3)
|
|
3,535,433
|
|
|
Employee stock purchase plan
|
|
—
|
|
|
|
—
|
|
|
|
943,086
|
|
Non-employee directors' stock plans
|
|
182,328
|
|
(2)
|
|
—
|
|
|
|
39,098
|
|
Total
|
|
2,200,662
|
|
|
|
$66.35
|
|
|
4,517,617
|
|
(1)
|
Includes
1,529,365
stock options,
299,740
time-vested restricted stock awards,
66,420
market-based restricted stock awards and
122,809
performance-based restricted stock awards, which includes
50,662
performance-based restricted stock rights not considered granted under accounting guidance for stock compensation. Refer to
Note 21
, "
Share-Based Compensation Plans
", for additional information.
|
(2)
|
Includes
176,683
time-vested restricted stock awards, as well as,
5,645
time-vested restricted stock awards vested in previous years and are not exercisable until six months after the director's retirement.
|
(3)
|
Weighted-average exercise price of outstanding options excludes restricted stock awards and restricted stock units.
|
(a)
|
Items A through H and Schedule II are presented on the following pages of this Form 10-K Annual Report:
|
|
|
|
|
|
Page No.
|
1. Financial Statements for Ryder System, Inc. and Consolidated Subsidiaries:
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
2. Consolidated Financial Statement Schedule for the Years Ended December 31, 2016, 2015 and 2014
|
|
|
|
Exhibit
Number
|
|
Description
|
||
3.1
|
|
The Ryder System, Inc. Restated Articles of Incorporation dated May 1, 2015 (conformed copy incorporating all amendments through May 1, 2015), previously filed with the Commission on May 1, 2015 as an exhibit to Ryder's Current Report on Form 8-K, is incorporated by reference in this report.
|
|
|
3.2
|
|
The Ryder System, Inc. By-Laws, as amended through February 22, 2016, previously filed with the Commission as an exhibit to Ryder's Quarterly Report on Form 10-Q filed with the Commission on October 25, 2016, are incorporated by reference into this report.
|
|
|
4.1
|
|
Ryder hereby agrees, pursuant to paragraph (b)(4)(iii) of Item 601 of Regulation S-K, to furnish the Commission with a copy of any instrument defining the rights of holders of long-term debt of Ryder, where such instrument has not been filed as an exhibit hereto and the total amount of securities authorized there under does not exceed 10% of the total assets of Ryder and its subsidiaries on a consolidated basis.
|
|
|
4.2(a)
|
|
The Form of Indenture between Ryder System, Inc. and The Chase Manhattan Bank (National Association) dated as of June 1, 1984, filed with the Commission on November 19, 1985 as an exhibit to Ryder's Registration Statement on Form S-3 (No. 33-1632), is incorporated by reference into this report.
|
|
|
4.2(b)
|
|
The First Supplemental Indenture between Ryder System, Inc. and The Chase Manhattan Bank (National Association) dated October 1, 1987, previously filed with the Commission as an exhibit to Ryder's Annual Report on Form 10-K for the year ended December 31, 1994, is incorporated by reference into this report.
|
|
|
4.3
|
|
The Form of Indenture between Ryder System, Inc. and The Chase Manhattan Bank (National Association) dated as of May 1, 1987, and supplemented as of November 15, 1990 and June 24, 1992, filed with the Commission on July 30, 1992 as an exhibit to Ryder's Registration Statement on Form S-3 (No. 33-50232), is incorporated by reference into this report.
|
|
|
4.4
|
|
The Form of Indenture between Ryder System, Inc. and J.P. Morgan Trust Company (National Association) dated as of October 3, 2003 filed with the Commission on August 29, 2003 as an exhibit to Ryder's Registration Statement on Form S-3 (No. 333-108391), is incorporated by reference into this report.
|
|
|
10.1(a)
|
|
The Form of Amended and Restated Severance Agreement for Chief Executive Officer filed with the Commission as an exhibit to this Annual Report on Form 10-K.
|
|
|
10.1(b)
|
|
The Form of Amended and Restated Severance Agreement for other named executive officers filed with the Commission as an exhibit to this Annual Report on Form 10-K.
|
|
|
10.1(c)
|
|
The Ryder System, Inc. Executive Severance Plan, effective as of January 1, 2013, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 14, 2013, is incorporated by reference into this report.
|
|
|
10.1(d)
|
|
Agreement, dated April 14, 2016, between Ryder System, Inc. and Gregory F. Greene, previously filed with the Commission on April 26, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, is incorporated by reference into this report.
|
|
|
10.4(a)
|
|
The Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission on March 30, 2005 as Appendix A to Ryder's Definitive Proxy Statement on Schedule 14A, is incorporated by reference into this report.
|
|
|
10.4(b)
|
|
The Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission on March 21, 2008, as Appendix A to Ryder's Definitive Proxy Statement on Schedule 14A, is incorporated by reference into this report.
|
|
|
10.4(c)
|
|
The Ryder System, Inc. Stock Purchase Plan for Employees, previously filed with the Commission on March 29, 2010, as Appendix B to Ryder System, Inc.'s Definitive Proxy Statement on Schedule 14A, is incorporated by reference into this report.
|
|
|
10.4(d)
|
|
Terms and Conditions applicable to restricted stock rights granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 8, 2008, are incorporated by reference into this report.
|
|
|
10.4(e)
|
|
Terms and Conditions applicable to restricted stock units granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Quarterly Report on Form 8-K filed with the Commission on May 11, 2005, are incorporated by reference into this report.
|
|
|
10.4(f)
|
|
Terms and Conditions applicable to the 2012 Non-Qualified Stock Options granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
|
|
10.4(g)
|
|
Terms and Conditions applicable to the 2012 Non-Qualified Stock Options granted to the Company's Chief Executive Officer under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
|
Exhibit
Number
|
|
Description
|
10.4(h)
|
|
Terms and Conditions applicable to the 2012 Performance-Based Restricted Stock Rights granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
10.4(i)
|
|
Terms and Conditions applicable to the 2012 Performance-Based Restricted Stock Rights granted to the Company's Chief Executive Officer under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
10.4(j)
|
|
Terms and Conditions applicable to the 2012 Performance-Based Cash Awards granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
10.4(k)
|
|
Terms and Conditions applicable to the 2012 Performance-Based Cash Awards granted to the Company's Chief Executive Officer under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
10.4(l)
|
|
Terms and Conditions applicable to the 2012 Restricted Stock Rights granted under the Ryder System, Inc. 2005 Equity Compensation Plan, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, are incorporated by reference into this report.
|
10.4(m)
|
|
Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, is incorporated by reference into this report.
|
10.4(n)
|
|
Terms and Conditions applicable to non-qualified stock options granted under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, are incorporated by reference into this report.
|
10.4(o)
|
|
Terms and Conditions applicable to performance-based restricted stock rights granted under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, are incorporated by reference into this report.
|
10.4(p)
|
|
Terms and Conditions applicable to performance-based cash awards granted under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, are incorporated by reference into this report.
|
10.4(q)
|
|
Terms and Conditions applicable to restricted stock rights granted under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, are incorporated by reference into this report.
|
10.4(r)
|
|
Terms and Conditions applicable to restricted stock units granted under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on May 10, 2012, are incorporated by reference into this report.
|
10.4(s)
|
|
Terms and Conditions applicable to 2013 performance-based cash awards granted to named executive officers under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 14, 2013, are incorporated by reference into this report.
|
10.4(t)
|
|
Terms and Conditions applicable to 2013 performance-based restricted stock rights granted to named executive officers under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 14, 2013, are incorporated by reference into this report.
|
10.4(u)
|
|
Form of Terms and Conditions applicable to 2014 annual cash incentive awards granted to named executive officers under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed as an exhibit to Ryder’s Current Report on Form 8-K filed with the Commission on February 13, 2014, are incorporated by reference into this report.
|
10.4(v)
|
|
Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on May 10, 2016 as an exhibit to Ryder’s Quarterly Report on Form 8-K, is incorporated by reference to this report.
|
10.4(w)
|
|
Form of Terms and Conditions applicable to 2016 annual cash incentive awards granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
10.4(x)
|
|
Form of Terms and Conditions applicable to non-qualified stock options granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
Exhibit
Number
|
|
Description
|
10.4(y)
|
|
Form of Terms and Conditions applicable to performance-based restricted stock rights granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
10.4(z)
|
|
Form of Terms and Conditions applicable to performance-based cash awards granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
10.4(aa)
|
|
Form of Terms and Conditions applicable to restricted stock rights granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
10.4(bb)
|
|
Form of Terms and Conditions applicable to restricted stock units granted under the Amended and Restated Ryder System, Inc. 2012 Equity and Incentive Compensation Plan, previously filed with the Commission on July 27, 2016 as an exhibit to Ryder’s Quarterly Report on Form 10-Q, are incorporated by reference to this report.
|
10.5(a)
|
|
The Ryder System, Inc. Directors Stock Award Plan, as amended and restated at February 10, 2005, previously filed with the Commission as an exhibit to Ryder's Annual Report on Form 10-K for the year ended December 31, 2004, is incorporated by reference into this report.
|
10.5(b)
|
|
The Ryder System, Inc. Directors Stock Plan, as amended and restated at May 7, 2004, previously filed with the Commission as an exhibit to Ryder's Annual Report on Form 10-K for the year ended December 31, 2004, is incorporated by reference into this report.
|
10.6
|
|
The Ryder System Benefit Restoration Plan, as amended and restated, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 11, 2009, is incorporated by reference into this report.
|
10.7
|
|
Form of Indemnification Agreement for independent directors, effective as of February 24, 2016, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 29, 2016, is incorporated by reference into this report.
|
10.10
|
|
The Ryder System, Inc. Deferred Compensation Plan, effective as of January 1, 2009, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on February 11, 2009, is incorporated by reference to this report.
|
10.14(a)
|
|
Global Revolving Credit Agreement dated as of June 8, 2011, by and among, Ryder System, Inc., certain subsidiaries of Ryder System, Inc., and the lenders and agents named therein, previously filed with the Commission as an exhibit to Ryder's Current Report on Form 8-K filed with the Commission on June 8, 2011, is incorporated by reference into this report.
|
10.14(b)
|
|
Amendment No. 1 dated as of April 20, 2012 to Global Revolving Credit Agreement, by and among Ryder System, Inc., certain Ryder System, Inc. subsidiaries, and the lenders and agents named therein, previously filed with the Commission as an exhibit to Ryder's report on Form 10-Q for the quarter ended March 31, 2012, is incorporated by reference into this report.
|
10.14(c)
|
|
Amendment No. 2 dated as of October 18, 2013 to Global Revolving Credit Agreement, by and among Ryder System, Inc., certain subsidiaries of Ryder System, Inc., and the lenders and agents named therein, previously filed with the Commission as an exhibit to Ryder’s report on Form 10-Q for the quarter ended September 30, 2013, is incorporated by reference into this report.
|
10.14(d)
|
|
Amendment No. 3 dated as of January 30, 2015 to Global Revolving Credit Agreement, by and among Ryder System, Inc., certain subsidiaries of Ryder System, Inc., and the lenders and agents named therein, previously filed with the Commission as an exhibit to Ryder’s report on Form 8-K filed with the Commission on February 2, 2015, is incorporated by reference into this report.
|
12
|
|
Statements re: Computation of Ratios.
|
21.1
|
|
List of subsidiaries of the registrant, with the state or other jurisdiction of incorporation or organization of each, and the name under which each subsidiary does business.
|
23.1
|
|
PricewaterhouseCoopers LLP consent to incorporation by reference in certain Registration Statements on Form S-8 and on Form S-3 of their report on Consolidated Financial Statements financial statement schedule and effectiveness of internal controls over financial reporting of Ryder System, Inc.
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(b)
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Executive Compensation Plans and Arrangements:
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Date:
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February 14, 2017
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RYDER SYSTEM, INC.
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By: /s/ Robert E. Sanchez
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Robert E. Sanchez
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Chairman, President and Chief Executive Officer
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Date:
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February 14, 2017
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By: /s/ ROBERT E. SANCHEZ
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Robert E. Sanchez
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Chairman, President and Chief Executive Officer
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(Principal Executive Officer)
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Date:
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February 14, 2017
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By: /s/ ART A. GARCIA
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Art A. Garcia
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Executive Vice President and Chief Financial Officer
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(Principal Financial & Accounting Officer)
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Date:
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February 14, 2017
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By: JOHN M. BERRA *
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John M. Berra
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Director
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Date:
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February 14, 2017
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By: ROBERT J. ECK *
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Robert J. Eck
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Director
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Date:
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February 14, 2017
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By: ROBERT A. HAGEMANN *
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Robert A. Hagemann
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Director
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Date:
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February 14, 2017
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By: L. PATRICK HASSEY*
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L. Patrick Hassey
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Director
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Date:
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February 14, 2017
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By: MICHAEL F. HILTON*
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Michael F. Hilton
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Director
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Date:
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February 14, 2017
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By: TAMARA L. LUNDGREN*
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Tamara L. Lundgren
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Director
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Date:
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February 14, 2017
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By: LUIS P. NIETO, JR. *
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Luis P. Nieto, Jr.
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Director
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Date:
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February 14, 2017
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By: ABBIE J. SMITH *
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Abbie J. Smith
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Director
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Date:
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February 14, 2017
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By: E. FOLLIN SMITH *
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E. Follin Smith
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Director
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Date:
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February 14, 2017
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By: HANSEL E. TOOKES, II *
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Hansel E. Tookes, II
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Director
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Date:
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February 14, 2017
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*By: ALENA BRENNER
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Alena Brenner
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Attorney-in-Fact
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(A)
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ANY ACCRUED BENEFITS PAYABLE AS SOON AS PRACTICAL AFTER THE TERMINATION DATE, OR SUCH OTHER DATE AS THEIR TERMS REQUIRE;
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(B)
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CONTINUED PAYMENT OF THE EXECUTIVE’S BASE SALARY FOR THE APPLICABLE SEVERANCE PERIOD PAYABLE IN INSTALLMENTS IN ACCORDANCE WITH THE COMPANY’S STANDARD PAYROLL PRACTICES, BUT NO LESS FREQUENTLY THAN MONTHLY, BEGINNING WITHIN SIXTY (60) DAYS FOLLOWING THE TERMINATION DATE (WITH THE FIRST PAYMENT TO INCLUDE AMOUNTS ACCRUED BETWEEN THE TERMINATION DATE AND THE FIRST PAYMENT DATE); PROVIDED THAT, IF THE SIXTIETH (60TH) DAY FOLLOWING THE TERMINATION DATE FALLS IN THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE TERMINATION DATE OCCURS, PAYMENTS WILL NOT COMMENCE PRIOR TO THE FIRST DAY OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE TERMINATION DATE OCCURS; PROVIDED FURTHER THAT, IN THE EVENT THE EXECUTIVE IS A SPECIFIED EMPLOYEE ON THE TERMINATION DATE, PAYMENT SHALL BE MADE IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:
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a.
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IF THE AGGREGATE VALUE OF THE PAYMENTS DUE TO THE EXECUTIVE PURSUANT TO THIS SECTION 5(C)(I)(B) DURING THE SIX (6) MONTH PERIOD FOLLOWING HIS TERMINATION DATE DOES NOT EXCEED TWO (2) TIMES THE LESSER OF: (X) THE SPECIFIED EMPLOYEE’S BASE SALARY FOR THE YEAR PRIOR TO THE YEAR IN WHICH THE TERMINATION DATE OCCURS; OR (Y) THE MAXIMUM AMOUNT THAT MAY BE TAKEN INTO ACCOUNT UNDER A QUALIFIED RETIREMENT PLAN PURSUANT TO SECTION 401(A)(17) OF THE CODE FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS (SUCH AMOUNT, THE “SEPARATION PAY LIMIT”), THE EXECUTIVE SHALL RECEIVE CONTINUATION OF HIS BASE SALARY FOR THE SEVERANCE PERIOD PAYABLE IN INSTALLMENTS IN ACCORDANCE WITH THE COMPANY’S STANDARD PAYROLL PRACTICES, BUT NO LESS FREQUENTLY THAN MONTHLY, AS SET FORTH ABOVE.
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b.
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IF THE AGGREGATE VALUE OF THE PAYMENTS DUE TO THE EXECUTIVE PURSUANT TO THIS SECTION 5(C)(I)(B) DURING THE SIX (6) MONTH PERIOD FOLLOWING HIS TERMINATION DATE EXCEEDS THE SEPARATION PAY LIMIT, THE EXECUTIVE SHALL NOT RECEIVE ANY PAYMENTS OF CONTINUED BASE SALARY IN EXCESS OF THE SEPARATION PAY LIMIT DURING SUCH SIX (6) MONTH PERIOD. ANY AMOUNTS IN EXCESS OF THE SEPARATION PAY LIMIT WHICH WOULD HAVE OTHERWISE BEEN PAID DURING THE SIX (6) MONTH PERIOD FOLLOWING THE EXECUTIVE’S TERMINATION DATE SHALL BE PAID IN A LUMP SUM ON THE FIRST DAY FOLLOWING THE SIX (6) MONTH ANNIVERSARY OF THE EXECUTIVE’S TERMINATION DATE. BEGINNING WITH THE FIRST PAYROLL CYCLE OCCURRING ON OR AFTER THE FIRST DAY FOLLOWING THE SIX (6) MONTH ANNIVERSARY OF THE EXECUTIVE’S TERMINATION DATE AND CONTINUING UNTIL THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE SHALL RECEIVE CONTINUATION PAYMENTS OF THE
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c.
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FOR PURPOSES OF SECTION 409A OF THE CODE, EACH INSTALLMENT PAYMENT OF BASE SALARY MADE PURSUANT TO THIS SECTION 5(C)(I)(B) SHALL BE TREATED AS A SEPARATE PAYMENT OF COMPENSATION.
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(C)
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A LUMP SUM PAYMENT EQUAL TO (X) THE EXECUTIVE’S THREE-YEAR AVERAGE BONUS MULTIPLIED BY (Y) THE SEVERANCE MULTIPLE, PAYABLE ON THE RELEASE EFFECTIVE DATE OR AS SOON THEREAFTER AS IS REASONABLY PRACTICABLE, BUT IN NO EVENT SHALL SUCH PAYMENT OCCUR LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE TERMINATION DATE OCCURS;
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(D)
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A LUMP SUM PAYMENT EQUAL TO THE PRO-RATA CASH BONUS FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS WHICH SHALL BE PAID (X) WHEN SUCH ANNUAL BONUSES ARE PAID TO NON-TERMINATED EMPLOYEES (OR, IF LATER, UPON THE SATISFACTION OF ALL CONDITIONS FOR THE PAYMENT OF BENEFITS HEREUNDER, BUT IN NO EVENT SHALL SUCH PAYMENT OCCUR LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE TERMINATION DATE OCCURS) AND (Y) BASED ON THE ACTUAL ATTAINMENT OF THE PERFORMANCE GOALS UNDER THE ANNUAL BONUS PLAN FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS;
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(E)
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IF THE EXECUTIVE CONTINUES TO RECEIVE HEALTH BENEFITS (INCLUDING, MEDICAL, PRESCRIPTION, DENTAL, VISION AND HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS) PURSUANT TO THE COMPANY’S HEALTH PLANS UNDER THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985, AS AMENDED, SUPPLEMENTED OR SUBSTITUTED FROM TIME TO TIME (“COBRA”) AND PAYS THE FULL COBRA PREMIUMS, THE COMPANY WILL REIMBURSE THE EXECUTIVE FOR THE COBRA PREMIUMS PAID FOR SUCH BENEFITS FOR THE EXECUTIVE AND HIS FAMILY THROUGH COBRA (WITH THE EXCEPTION OF ANY COBRA PREMIUMS PAID FOR HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS), THROUGH THE BENEFITS CONTINUATION PERIOD, IN ACCORDANCE WITH THE APPLICABLE PLANS, PROGRAMS OR POLICIES OF THE COMPANY, AND ON SUCH TERMS APPLICABLE TO COMPARABLY SITUATED ACTIVE EMPLOYEES DURING SUCH PERIOD (WHICH SHALL OFFSET THE COMPANY’S COBRA OBLIGATION, IF ANY); PROVIDED THAT THE EXECUTIVE MAY CONTINUE TO RECEIVE HEALTH BENEFITS PURSUANT TO THE COMPANY’S HEALTH PLANS DURING A PERIOD OF TIME IN THE BENEFITS CONTINUATION PERIOD DURING WHICH THE EXECUTIVE WOULD NOT OTHERWISE BE ENTITLED TO COBRA CONTINUATION COVERAGE UNDER SECTION 4980B OF THE CODE IF THE EXECUTIVE CONTINUES TO PAY PREMIUMS FOR SUCH HEALTH BENEFITS, AND THE EXECUTIVE SHALL RECEIVE REIMBURSEMENT FOR ALL PREMIUMS PAID BY THE EXECUTIVE FOR SUCH CONTINUED HEALTH BENEFITS ON THE DATE NO LATER THAN DECEMBER 31 OF THE CALENDAR YEAR IMMEDIATELY FOLLOWING THE CALENDAR YEAR IN WHICH THE APPLICABLE EXPENSES HAVE BEEN INCURRED. IF THE EXECUTIVE FAILS TO ACCEPT AVAILABLE COVERAGE FROM ANOTHER EMPLOYER OR FAILS
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(F)
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THE COMPANY SHALL PROVIDE THE EXECUTIVE WITH PROFESSIONAL OUTPLACEMENT SERVICES AS DETERMINED IN THE COMPANY’S SOLE DISCRETION UNTIL THE EARLIEST OF: (W) THIRTY-SIX (36) MONTHS AFTER THE TERMINATION DATE, (X) THE DATE ON WHICH THE EXECUTIVE OBTAINS ANOTHER FULL-TIME JOB, AND (Y) THE DATE ON WHICH THE EXECUTIVE BECOMES SELF-EMPLOYED. THE AMOUNT OF OUTPLACEMENT SERVICES PROVIDED TO THE EXECUTIVE DURING ANY CALENDAR YEAR WILL NOT AFFECT THE AMOUNT OF OUTPLACEMENT SERVICES PROVIDED TO THE EXECUTIVE IN ANY SUBSEQUENT CALENDAR YEAR. THE COMPANY WILL NOT PAY THE EXECUTIVE CASH OR PROVIDE OTHER BENEFITS IN LIEU OF PROFESSIONAL OUTPLACEMENT SERVICES;
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(G)
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IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED EXECUTIVE LIFE INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE WILL HAVE THIRTY-ONE (31) DAYS FROM THE LAST DAY OF THE SEVERANCE PERIOD TO CONVERT HIS LIFE INSURANCE COVERAGE TO AN INDIVIDUAL POLICY;
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(H)
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IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED SUPPLEMENTAL LONG-TERM DISABILITY INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE SHALL BE ENTITLED TO KEEP THIS POLICY IF HE CONTINUES TO PAY THE ANNUAL PREMIUMS; AND
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(I)
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ANY BENEFITS OR RIGHTS TO WHICH THE EXECUTIVE IS ENTITLED UNDER ANY OF THE COMPANY’S STOCK OR EQUITY PLANS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THOSE PLANS.
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(A)
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A LUMP SUM PAYMENT EQUAL TO THE EXECUTIVE’S BASE SALARY MULTIPLIED BY THE SEVERANCE MULTIPLE PAYABLE WITHIN SIXTY (60) DAYS FOLLOWING THE CHANGE OF CONTROL; PROVIDED THAT, IF THE SIXTIETH (60TH) DAY FOLLOWING THE CHANGE OF CONTROL FALLS IN THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE CHANGE OF CONTROL OCCURS, PAYMENT WILL NOT BE MADE PRIOR TO THE FIRST DAY OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE CHANGE OF CONTROL OCCURS; PROVIDED FURTHER THAT, IF THE EXECUTIVE IS A SPECIFIED EMPLOYEE ON THE TERMINATION DATE, ANY AMOUNTS IN EXCESS OF THE SEPARATION PAY LIMIT SHALL BE PAID TO THE EXECUTIVE IN A LUMP SUM ON THE LATER OF (X) THE FIRST DAY FOLLOWING THE SIX (6) MONTH ANNIVERSARY OF THE TERMINATION DATE AND (Y) WITHIN SIXTY (60) DAYS FOLLOWING THE CHANGE OF CONTROL. IN THE EVENT THAT (I) A CHANGE OF CONTROL OCCURS AND PAYMENTS AND BENEFITS BECOME PAYABLE TO THE EXECUTIVE PURSUANT TO THIS SECTION 5(C)(IV); AND (II) SUCH CHANGE OF CONTROL DOES NOT CONSTITUTE A “CHANGE IN OWNERSHIP OR EFFECTIVE CONTROL” OR A CHANGE IN THE “OWNERSHIP OF A SUBSTANTIAL PORTION OF ASSETS” UNDER SECTION 409A OF THE CODE AND THE RULES AND REGULATIONS THEREUNDER, THE LUMP SUM PAYMENT SET FORTH HEREIN SHALL BE PAID ON THE FIRST ANNIVERSARY OF THE EXECUTIVE’S TERMINATION DATE;
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(B)
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A LUMP SUM PAYMENT EQUAL TO THE TARGET BONUS MULTIPLIED BY THE SEVERANCE MULTIPLE, PAYABLE ON THE RELEASE EFFECTIVE DATE OR AS SOON THEREAFTER AS IS PRACTICABLE, BUT NO LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE CHANGE OF CONTROL OCCURS;
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(C)
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A LUMP SUM PAYMENT EQUAL TO THE PRO-RATA CASH BONUS FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS WHICH SHALL BE PAID (I) WHEN SUCH ANNUAL BONUSES ARE PAID TO NON-TERMINATED EMPLOYEES (OR, IF LATER, UPON THE SATISFACTION OF ALL CONDITIONS FOR THE PAYMENT OF BENEFITS HEREUNDER, BUT IN NO EVENT SHALL SUCH PAYMENT OCCUR LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE CHANGE OF CONTROL OCCURS) AND (II) BASED ON THE ACTUAL ATTAINMENT OF THE PERFORMANCE GOALS UNDER THE ANNUAL BONUS PLAN FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS;
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(D)
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IF THE EXECUTIVE CONTINUES TO RECEIVE HEALTH BENEFITS (INCLUDING, MEDICAL, PRESCRIPTION, DENTAL, VISION AND HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS) PURSUANT TO THE COMPANY’S HEALTH PLANS UNDER COBRA AND PAYS THE FULL COBRA PREMIUMS, THE COMPANY WILL REIMBURSE THE EXECUTIVE FOR THE COBRA PREMIUMS PAID FOR SUCH BENEFITS FOR THE EXECUTIVE AND HIS FAMILY THROUGH COBRA (WITH THE EXCEPTION OF ANY COBRA PREMIUMS PAID FOR HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS), FOR THE REMAINDER OF THE BENEFITS CONTINUATION PERIOD, IN ACCORDANCE WITH THE APPLICABLE PLANS, PROGRAMS OR POLICIES, IF ANY, OF THE COMPANY OR ITS SUCCESSOR, AND ON SUCH TERMS APPLICABLE TO COMPARABLY SITUATED ACTIVE EMPLOYEES DURING SUCH PERIOD (WHICH SHALL OFFSET THE COMPANY’S COBRA OBLIGATION, IF ANY); PROVIDED THAT THE EXECUTIVE MAY CONTINUE TO
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(E)
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A LUMP SUM PAYMENT EQUAL TO THE VALUE OF THE COMPANY-SPONSORED OUTPLACEMENT PROGRAM MAINTAINED BY THE COMPANY IMMEDIATELY PRIOR TO THE CHANGE OF CONTROL, BASED ON THE EXECUTIVE’S MANAGEMENT LEVEL AS OF THE TERMINATION DATE, WHICH SHALL BE PAID WITHIN SIXTY (60) DAYS FOLLOWING THE CHANGE OF CONTROL; PROVIDED THAT, IF THE SIXTIETH (60TH) DAY FOLLOWING THE CHANGE OF CONTROL FALLS IN THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE CHANGE OF CONTROL OCCURS, PAYMENT WILL NOT BE MADE PRIOR TO THE FIRST DAY OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE CHANGE OF CONTROL OCCURS; PROVIDED FURTHER THAT, IF THE EXECUTIVE IS A SPECIFIED EMPLOYEE ON THE TERMINATION DATE, SUCH AMOUNT SHALL BE PAID ON THE LATER OF (X) WITHIN SIXTY (60) DAYS FOLLOWING THE CHANGE OF CONTROL AND (Y) THE FIRST DAY FOLLOWING THE SIX (6) MONTH ANNIVERSARY OF THE TERMINATION DATE. IN THE EVENT THAT (I) A CHANGE OF CONTROL OCCURS AND PAYMENTS AND BENEFITS BECOME PAYABLE TO THE EXECUTIVE PURSUANT TO THIS SECTION 5(C)(IV); AND (II) SUCH CHANGE OF CONTROL DOES NOT CONSTITUTE A “CHANGE IN OWNERSHIP OR EFFECTIVE CONTROL” OR A CHANGE IN THE “OWNERSHIP OF A SUBSTANTIAL PORTION OF ASSETS” UNDER SECTION 409A OF THE CODE AND THE RULES AND REGULATIONS THEREUNDER, THE LUMP SUM PAYMENT SET FORTH HEREIN SHALL BE PAID ON THE FIRST ANNIVERSARY OF THE EXECUTIVE’S TERMINATION DATE;
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(F)
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IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED EXECUTIVE LIFE INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY (OR THE TRUSTEE) SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT
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(G)
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IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED SUPPLEMENTAL LONG TERM DISABILITY INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY (OR THE TRUSTEE) SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE SHALL BE ENTITLED TO KEEP THIS POLICY IF HE CONTINUES TO PAY THE ANNUAL PREMIUMS; AND
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(H)
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ANY BENEFITS OR RIGHTS TO WHICH THE EXECUTIVE IS ENTITLED UNDER ANY OF THE COMPANY’S STOCK OR EQUITY PLANS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF ANY SUCH PLANS.
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(I)
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FOR THE AVOIDANCE OF DOUBT, NO PAYMENTS OR BENEFITS PAYABLE TO THE EXECUTIVE PURSUANT TO THIS SECTION 5(C)(IV) SHALL CONTINUE BEYOND THE DATE WHICH IS THIRTY-SIX (36) MONTHS FOLLOWING THE TERMINATION DATE.
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(J)
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THE EXECUTIVE SHALL NOT BE ENTITLED TO ANY PAYMENTS OR BENEFITS PURSUANT TO THIS SECTION 5(C)(IV), UNLESS PRIOR TO THE EXECUTIVE’S TERMINATION DATE, THE EXECUTIVE HAD GIVEN THE COMPANY NOTICE OF THE CIRCUMSTANCES FORMING THE BASIS OF TERMINATION FOR GOOD REASON AND AN OPPORTUNITY TO CURE SUCH CIRCUMSTANCES IN ACCORDANCE WITH SECTIONS 1(K) AND (M).
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(A)
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ANY ACCRUED BENEFITS PAYABLE AS SOON AS PRACTICAL AFTER THE TERMINATION DATE;
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(B)
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A LUMP SUM PAYMENT EQUAL TO THE EXECUTIVE’S BASE SALARY MULTIPLIED BY THE SEVERANCE MULTIPLE PAYABLE WITHIN SIXTY (60) DAYS FOLLOWING THE TERMINATION DATE; PROVIDED THAT, IF THE SIXTIETH (60TH) DAY FOLLOWING THE TERMINATION DATE FALLS IN THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE
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(C)
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A LUMP SUM PAYMENT EQUAL TO THE TARGET BONUS MULTIPLIED BY THE SEVERANCE MULTIPLE, PAYABLE ON THE RELEASE EFFECTIVE DATE OR AS SOON THEREAFTER AS IS PRACTICABLE, BUT NO LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE TERMINATION DATE OCCURS;
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(D)
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A LUMP SUM PAYMENT EQUAL TO THE PRO-RATA CASH BONUS FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS WHICH SHALL BE PAID (I) WHEN SUCH ANNUAL BONUSES ARE PAID TO NON-TERMINATED EMPLOYEES (OR, IF LATER, UPON THE SATISFACTION OF ALL CONDITIONS FOR THE PAYMENT OF BENEFITS HEREUNDER, BUT IN NO EVENT SHALL SUCH PAYMENT OCCUR LATER THAN MARCH 15 OF THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE TERMINATION DATE OCCURS) AND (II) BASED ON THE ACTUAL ATTAINMENT OF THE PERFORMANCE GOALS UNDER THE ANNUAL BONUS PLAN FOR THE YEAR IN WHICH THE TERMINATION DATE OCCURS;
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(E)
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IF THE EXECUTIVE CONTINUES TO RECEIVE HEALTH BENEFITS (INCLUDING, MEDICAL, PRESCRIPTION, DENTAL, VISION AND HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS) PURSUANT TO THE COMPANY’S HEALTH PLANS UNDER COBRA AND PAYS THE FULL COBRA PREMIUMS, THE COMPANY WILL REIMBURSE THE EXECUTIVE FOR THE COBRA PREMIUMS PAID FOR SUCH BENEFITS FOR THE EXECUTIVE AND HIS FAMILY THROUGH COBRA (WITH THE EXCEPTION OF ANY COBRA PREMIUMS PAID FOR HEALTH CARE REIMBURSEMENT ACCOUNT BENEFITS), FOR THE BENEFITS CONTINUATION PERIOD, IN ACCORDANCE WITH THE APPLICABLE PLANS, PROGRAMS OR POLICIES, IF ANY, OF THE COMPANY OR ITS SUCCESSOR, AND ON SUCH TERMS APPLICABLE TO COMPARABLY SITUATED ACTIVE EMPLOYEES DURING SUCH PERIOD (WHICH SHALL OFFSET THE COMPANY’S COBRA OBLIGATION, IF ANY); PROVIDED THAT THE EXECUTIVE MAY CONTINUE TO RECEIVE HEALTH BENEFITS PURSUANT TO THE COMPANY’S HEALTH PLANS DURING A PERIOD OF TIME IN THE BENEFITS CONTINUATION PERIOD DURING WHICH THE EXECUTIVE WOULD NOT OTHERWISE BE ENTITLED TO COBRA CONTINUATION COVERAGE UNDER SECTION 4980B OF THE CODE IF THE EXECUTIVE CONTINUES TO PAY PREMIUMS FOR SUCH HEALTH BENEFITS, AND THE EXECUTIVE SHALL RECEIVE REIMBURSEMENT FOR ALL PREMIUMS PAID BY THE EXECUTIVE FOR SUCH CONTINUED HEALTH BENEFITS ON THE DATE NO LATER THAN DECEMBER 31 OF THE CALENDAR YEAR IMMEDIATELY FOLLOWING THE CALENDAR YEAR IN WHICH THE APPLICABLE EXPENSES HAVE BEEN INCURRED. IF THE EXECUTIVE FAILS TO ACCEPT AVAILABLE COVERAGE FROM ANOTHER EMPLOYER OR FAILS TO NOTIFY THE COMPANY (OR THE TRUSTEE) WITHIN THIRTY (30) DAYS OF EXECUTIVE’S ELIGIBILITY TO RECEIVE COVERAGE UNDER ANOTHER EMPLOYER’S PLAN, THE EXECUTIVE’S REIMBURSEMENTS UNDER THIS
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(F)
|
THE COMPANY (OR THE TRUSTEE) SHALL PAY TO THE EXECUTIVE IN A LUMP SUM AN AMOUNT EQUAL TO THE VALUE OF THE COMPANY-SPONSORED OUTPLACEMENT PROGRAM MAINTAINED BY THE COMPANY IMMEDIATELY PRIOR TO THE CHANGE OF CONTROL, BASED ON THE EXECUTIVE’S MANAGEMENT LEVEL AS OF THE TERMINATION DATE, WHICH SHALL BE PAID WITHIN SIXTY (60) DAYS FOLLOWING THE TERMINATION DATE; PROVIDED THAT, IF THE SIXTIETH (60TH) DAY FOLLOWING THE TERMINATION DATE FALLS IN THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE TERMINATION DATE OCCURS, PAYMENT WILL NOT BE MADE PRIOR TO THE FIRST DAY OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE TERMINATION DATE OCCURS; PROVIDED FURTHER THAT, IF THE EXECUTIVE IS A SPECIFIED EMPLOYEE ON THE TERMINATION DATE, SUCH AMOUNT SHALL BE PAID ON THE FIRST DAY FOLLOWING THE SIX (6) MONTH ANNIVERSARY OF THE TERMINATION DATE;
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(G)
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IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED EXECUTIVE LIFE INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY (OR THE TRUSTEE) SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE WILL HAVE THIRTY-ONE (31) DAYS FROM THE LAST DAY OF THE SEVERANCE PERIOD TO CONVERT HIS LIFE INSURANCE COVERAGE TO AN INDIVIDUAL POLICY;
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(H)
|
IF THE EXECUTIVE IS COVERED BY ANY COMPANY-SPONSORED SUPPLEMENTAL LONG TERM DISABILITY INSURANCE PROGRAM AS OF THE TERMINATION DATE, THE COMPANY (OR THE TRUSTEE) SHALL CONTINUE TO PAY FOR THE EXECUTIVE’S COVERAGE UNTIL THE END OF THE SEVERANCE PERIOD. AT THE END OF THE SEVERANCE PERIOD, THE EXECUTIVE SHALL BE ENTITLED TO KEEP THIS POLICY IF HE CONTINUES TO PAY THE ANNUAL PREMIUMS; AND
|
(I)
|
ANY BENEFITS OR RIGHTS TO WHICH THE EXECUTIVE IS ENTITLED UNDER ANY OF THE COMPANY’S STOCK OR EQUITY PLANS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF ANY SUCH PLANS.
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(A)
|
REDUCTION IN PAYMENTS. IN THE EVENT ANY PAYMENT (AS DEFINED BELOW) WOULD CONSTITUTE AN “EXCESS PARACHUTE PAYMENT” WITHIN THE MEANING OF SECTION 280G OF THE CODE, THE COMPANY SHALL REDUCE (BUT NOT BELOW ZERO) THE AGGREGATE PRESENT VALUE OF THE PAYMENTS UNDER THIS AGREEMENT TO THE REDUCED AMOUNT (AS DEFINED BELOW), IF REDUCING THE PAYMENTS UNDER THIS AGREEMENT WILL PROVIDE THE EXECUTIVE WITH A GREATER NET AFTER-TAX AMOUNT THAN WOULD BE THE CASE IF NO REDUCTION WAS MADE.
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(B)
|
DETERMINING NET AFTER-TAX AMOUNTS. IN DETERMINING WHETHER A REDUCTION IN PAYMENTS UNDER THIS AGREEMENT WILL PROVIDE THE EXECUTIVE WITH A GREATER NET AFTER-TAX AMOUNT, THE FOLLOWING COMPUTATIONS SHALL BE MADE:
|
a.
|
THE NET AFTER-TAX BENEFIT TO THE EXECUTIVE WITHOUT ANY REDUCTION IN PAYMENTS SHALL BE DETERMINED BY REDUCING THE PAYMENTS BY THE AMOUNT OF FEDERAL, STATE, LOCAL AND OTHER APPLICABLE TAXES (INCLUDING THE EXCISE TAX (AS DEFINED BELOW)) APPLICABLE TO THE PAYMENTS. FOR THESE PURPOSES, THE TAX RATES SHALL BE DETERMINED USING THE MAXIMUM MARGINAL RATE APPLICABLE TO SUCH EXECUTIVE FOR EACH YEAR IN WHICH THE PAYMENTS SHALL BE PAID.
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b.
|
THE NET AFTER-TAX BENEFIT TO THE EXECUTIVE WITH A REDUCTION IN THE PAYMENTS TO THE REDUCED AMOUNT SHALL BE DETERMINED BY APPLYING THE TAX RATES UNDER SECTION 5(E)(III)(B)(A), WITH THE EXCEPTION OF THE EXCISE TAX.
|
(C)
|
REDUCTION METHODOLOGY. IN THE EVENT A REDUCTION IN THE PAYMENTS TO THE REDUCED AMOUNT WILL PROVIDE THE EXECUTIVE WITH A GREATER NET AFTER-TAX AMOUNT, THE FOLLOWING SHALL APPLY:
|
a.
|
REDUCTION OF PAYMENTS. THE REDUCTION IN THE PAYMENTS SHALL BE MADE FIRST BY REDUCING AS APPLICABLE, BUT NOT BELOW ZERO, THE CASH PAYMENTS UNDER SECTIONS 5(C)(I)(B), 5(C)(IV)(A), AND 5(E)(I)(B). IN THE EVENT THAT SUCH PAYMENTS ARE INSTALLMENT PAYMENTS, EACH SUCH INSTALLMENT PAYMENT SHALL BE REDUCED PRO-RATA. THE CASH PAYMENTS UNDER SECTIONS 5(C)(I)(C), 5(C)(I)(D), 5(C)(IV)(B), 5(C)(IV)(C), 5(E)(I)(C) AND 5(E)(I)(D) SHALL BE REDUCED NEXT, AS APPLICABLE, BUT NOT BELOW ZERO. IN THE EVENT THAT FOLLOWING REDUCTION OF THE AMOUNTS SET FORTH IN THE PRECEDING SENTENCE, ADDITIONAL AMOUNTS PAYABLE TO THE EXECUTIVE MUST BE REDUCED, ANY PAYMENTS DUE TO THE EXECUTIVE PURSUANT TO THE COMPANY’S EQUITY PLANS SHALL BE REDUCED ON A PRO-RATA BASIS, BUT NOT BELOW ZERO.
|
b.
|
RESTRICTIONS. ONLY AMOUNTS PAYABLE UNDER THIS AGREEMENT SHALL BE REDUCED PURSUANT TO THIS SECTION 5(E)(III). ANY REDUCTION SHALL BE MADE IN A MANNER CONSISTENT WITH THE REQUIREMENTS OF SECTION 409A OF THE CODE.
|
(D)
|
DEFINITIONS. FOR PURPOSES OF SECTION 5(E)(III), THE FOLLOWING DEFINITIONS SHALL APPLY.
|
a.
|
“PAYMENT” SHALL MEAN AN AMOUNT THAT IS RECEIVED BY THE EXECUTIVE OR PAID BY THE COMPANY ON HIS BEHALF, OR REPRESENTS ANY PROPERTY, OR ANY OTHER BENEFIT PROVIDED TO THE EXECUTIVE UNDER THIS AGREEMENT OR UNDER ANY OTHER PLAN, ARRANGEMENT OR AGREEMENT WITH THE COMPANY OR ANY OTHER PERSON, AND SUCH AMOUNT IS TREATED AS CONTINGENT ON A CHANGE IN CONTROL, AS PROVIDED UNDER SECTION 280G OF THE CODE.
|
b.
|
“REDUCED AMOUNT” SHALL MEAN AN AMOUNT, AS DETERMINED UNDER SECTION 280G OF THE CODE, WHICH DOES NOT CAUSE ANY PAYMENT TO BE SUBJECT TO THE EXCISE TAX.
|
c.
|
“EXCISE TAX” SHALL MEAN THE EXCISE TAX IMPOSED UNDER SECTION 4999 OF THE CODE.
|
(E)
|
DETERMINATION OF REDUCTION. ALL DETERMINATIONS REQUIRED TO BE MADE UNDER THIS SECTION 5(E)(III) SHALL BE MADE BY A NATIONALLY RECOGNIZED ACCOUNTING (OR COMPENSATION AND BENEFITS CONSULTING ) FIRM SELECTED BY THE COMPANY (THE “ACCOUNTING FIRM”) WHICH SHALL PROVIDE DETAILED SUPPORTING CALCULATIONS BOTH TO THE COMPANY AND THE EXECUTIVE WITHIN TEN (10) BUSINESS DAYS OF THE CHANGE OF CONTROL. ANY SUCH DETERMINATION BY THE ACCOUNTING FIRM SHALL BE BINDING UPON THE COMPANY AND THE EXECUTIVE. ALL FEES AND EXPENSES OF THE ACCOUNTING FIRM SHALL BE BORNE SOLELY BY THE COMPANY.
|
Ryder System, Inc. and Subsidiaries
|
||||||||||||||
Ratio of Earnings to Fixed Charges
|
||||||||||||||
Continuing Operations
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Years Ended
|
|||||||||||||
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|||||
EARNINGS:
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before income taxes
|
302,768
|
|
|
369,014
|
|
|
338,267
|
|
|
469,215
|
|
|
406,381
|
|
Fixed charges
|
183,902
|
|
|
181,460
|
|
|
187,291
|
|
|
194,573
|
|
|
190,083
|
|
Add: Amortization of capitalized interest
|
713
|
|
|
589
|
|
|
535
|
|
|
571
|
|
|
599
|
|
Less: Interest capitalized
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Earnings available for fixed charges (A)
|
487,383
|
|
|
551,063
|
|
|
526,093
|
|
|
664,359
|
|
|
597,063
|
|
|
|
|
|
|
|
|
|
|
|
|||||
FIXED CHARGES:
|
|
|
|
|
|
|
|
|
|
|||||
Interest and other financial charges
|
143,590
|
|
|
140,729
|
|
|
144,960
|
|
|
150,721
|
|
|
147,843
|
|
Portion of rents representing interest expense
|
40,312
|
|
|
40,731
|
|
|
42,331
|
|
|
43,852
|
|
|
42,240
|
|
Total fixed charges (B)
|
183,902
|
|
|
188,144
|
|
|
187,291
|
|
|
194,573
|
|
|
190,083
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RATIO OF EARNINGS TO FIXED CHARGES (A) / (B)
|
2.65x
|
|
3.04x
|
|
2.81x
|
|
3.41x
|
|
3.14x
|
|||||
|
|
|
|
|
|
|
|
|
|
Name of Subsidiary
|
State or Country of Incorporation or Organization
|
3241290 Nova Scotia Company
|
Nova Scotia
|
Associated Ryder Capital Services, Inc.
|
Florida
|
Bullwell Trailer Solutions Limited
|
England
|
CRTS Logistica Automotiva S.A.
|
Brazil
|
Euroway Vehicle Rental Limited
|
England
|
Euroway Group Holdings Limited
|
England
|
Euroway Group Limited
|
England
|
Euroway Vehicle Management Limited
|
England
|
Euroway Vehicle Engineering Limited
|
England
|
Euroway Vehicle Contracts Limited
|
England
|
Far East Freight, Inc.
|
Florida
|
Hill Hire Limited
|
England
|
Network Vehicle Central, Inc.
|
Florida
|
Network Vehicle Central, LLC
|
Florida
|
Road Master, Limited
|
Bermuda
|
RSI Holding B.V.
|
Netherlands
|
RSI Purchase Corp.
|
Delaware
|
RTI Argentina S.A.
|
Argentina
|
RTRC Finance LP
|
Canada
|
RTR Holdings (B.V.I.) Limited
|
British Virgin Islands
|
RTR Leasing I, Inc.
|
Delaware
|
RTR Leasing II, Inc.
|
Delaware
|
Ryder Argentina S.A.
|
Argentina
|
Ryder Ascent Logistics Pte Ltd.
|
Singapore
|
Ryder Asia Pacific Holdings B.V.
|
Netherlands
|
Ryder Capital (Barbados) SRL
|
Barbados
|
Ryder Canadian Financing US LLC
|
Delaware
|
Ryder Capital Ireland Holdings II LLC
|
Delaware
|
Ryder Capital Luxembourg Limited, S.A.R.L.
|
England
|
Ryder Capital Luxembourg Limited, Corp.
|
Florida
|
Ryder Capital S. de R.L. de C.V.
|
Mexico
|
Ryder Capital Services Corporation
|
Delaware
|
Ryder Capital UK Holdings LLP
|
England
|
Ryder Chile Sistemas Intergrados de Logistica Limitada
(1)
|
Chile
|
Ryder Container Terminals
|
Canada
|
Ryder CRSA Logistics
(2)
|
Canada
|
Ryder CRSA Logistics (HK) Limited
|
Hong Kong
|
Ryder de Mexico S. de R.L. de C.V.
|
Mexico
|
Ryder Dedicated Logistics, Inc.
|
Delaware
|
Ryder Deutschland GmbH
|
Germany
|
Ryder Distribution Services Limited
|
England
|
Ryder do Brasil Ltda.
|
Brazil
|
Ryder Energy Distribution Corporation
|
Florida
|
Ryder European B.V.
|
Netherlands
|
Ryder Europe Operations B.V.
|
Netherlands
|
Ryder Fleet Products, Inc.
|
Tennessee
|
Ryder Fuel Services, LLC
|
Florida
|
Ryder Funding LP
|
Delaware
|
Ryder Funding II LP
|
Delaware
|
Ryder Global Services, LLC
|
Florida
|
Ryder Hungary Logistics LLC
|
Hungary
|
Ryder Integrated Logistics, Inc.
(3)
|
Delaware
|
Ryder Integrated Logistics of California Contractors, LLC
|
Delaware
|
Ryder Integrated Logistics of Texas, LLC
|
Texas
|
Ryder International Acquisition Corp.
|
Florida
|
Ryder International, Inc.
|
Florida
|
Ryder Limited
|
England
|
Ryder Logistica Ltda.
|
Brazil
|
Ryder Logistics (Shanghai) Co., Ltd.
|
China
|
Ryder Mauritius Holdings, Ltd.
|
Mauritius
|
Ryder Mexican Holding B.V.
|
Netherlands
|
Ryder Mexican Investments I LP
|
Delaware
|
Ryder Mexican Investments II LP
|
Delaware
|
Ryder Mexicana, S. de R.L. de C.V.
|
Mexico
|
Ryder Offshore Holdings III LLC
|
Delaware
|
Ryder Pension Fund Limited
|
England
|
Ryder Puerto Rico, Inc.
|
Delaware
|
Ryder Purchasing LLC
|
Delaware
|
Ryder Receivable Funding III, L.L.C.
|
Delaware
|
Ryder Risk Solutions, LLC
|
Florida
|
Ryder Services Corporation
(4)
|
Florida
|
Ryder Servicios do Brasil Ltda.
|
Brazil
|
Ryder Servicios S. de R.L. de C.V.
|
Mexico
|
Ryder Singapore Pte Ltd.
|
Singapore
|
Ryder System B.V.
|
Netherlands
|
Ryder System Holdings (UK) Limited
|
England
|
Ryder Thailand I, LLC
|
Florida
|
Ryder Thailand II, LLC
|
Florida
|
Ryder Truck Rental Holdings Canada Ltd.
|
Canada
|
Ryder Truck Rental, Inc.
(5)
|
Florida
|
Ryder Truck Rental I LLC
|
Delaware
|
Ryder Truck Rental II LLC
|
Delaware
|
Ryder Truck Rental III LLC
|
Delaware
|
Ryder Truck Rental IV LLC
|
Delaware
|
(5)
|
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming: d/b/a Ryder Transportation Services
|
|
/s/ John M. Berra
|
|
/s/ Robert J. Eck
|
|
|
John M. Berra
|
|
Robert J. Eck
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Robert A. Hagemann
|
|
/s/ L. Patrick Hassey
|
|
|
Robert A Hagemann
|
|
L. Patrick Hassey
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Michael F. Hilton
|
|
/s/ Tamara L. Lundgren
|
|
|
Michael F. Hilton
|
|
Tamara L. Lundgren
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Luis P. Nieto, Jr.
|
|
/s/ E. Follin Smith
|
|
|
Luis P. Nieto, Jr.
|
|
E. Follin Smith
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Abbie J. Smith
|
|
|
|
|
Abbie J. Smith
|
|
|
|
|
|
|
|
|
|
/s/ Hansel E. Tookes II
|
|
|
|
|
Hansel E. Tookes, II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Ryder System, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 14, 2017
|
/s/ Robert E. Sanchez
|
|
|
Robert E. Sanchez
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Ryder System, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 14, 2017
|
/s/ Art A. Garcia
|
|
|
Art A. Garcia
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Robert E. Sanchez
|
|
Robert E. Sanchez
President and Chief Executive Officer
|
|
February 14, 2017
|
|
/s/ Art A. Garcia
|
|
Art A. Garcia
Executive Vice President and Chief Financial Officer
|
|
February 14, 2017
|
|