XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.10.0.1

REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended
--- | ---
Dec. 31, 2018
Revenue from Contract with Customer [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS In 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a customer contract are satisfied. The standard also requires new and expanded disclosures regarding revenue recognition. We adopted the new standard on January 1, 2018, using the modified retrospective transition method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the January 1, 2018 opening balance of retained earnings. The comparative information for previous periods has not been restated and continues to be reported under ASC 605, Revenue Recognition. The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of ASU 2014-09 were as follows (dollars in thousands):
|  | Balance at December 31, 2017 |  | Adjustments |  | Balance at January 1, 2018
Balance Sheet |  |  |  |  |  |
Assets: |  |  |  |  |  |
Receivables, net of allowance for doubtful accounts |  | $ | 2,113,930 |  |  | $ | (101,718 | ) |  | $ | 2,012,212 |
Contract assets |  | — |  |  | 147,764 |  |  | 147,764 |
Prepaid expenses and other |  | 63,116 |  |  | 4,021 |  |  | 67,137 |
Liabilities: |  |  |  |  |  |
Accounts payable |  | 1,000,305 |  |  | (56,493 | ) |  | 943,812 |
Accrued expenses - compensation |  | 105,316 |  |  | 1,964 |  |  | 107,280 |
Accrued expenses - transportation expense |  | — |  |  | 94,811 |  |  | 94,811 |
Accrued expenses - other accrued liabilities |  | 58,229 |  |  | (2,752 | ) |  | 55,477 |
Deferred tax liabilities |  | 45,355 |  |  | 3,298 |  |  | 48,653 |
Equity: |  |  |  |  |  |
Retained earnings |  | 3,437,093 |  |  | 9,239 |  |  | 3,446,332 |
The impact of adoption of ASU 2014-09 on our consolidated statements of operations and consolidated balance sheets were as follows (dollars in thousands). The adoption of ASU 2014-09 did not have a material impact upon our consolidated statements of cash flows.
|  | Twelve Months Ended December 31, 2018
|  | As reported |  | Balances without adoption of ASU 2014-09 |  | Effect of change higher / (lower)
Income Statement |  |  |  |  |  |
Revenues: |  |  |  |  |  |
Transportation |  | $ | 15,515,921 |  |  | $ | 15,462,328 |  |  | $ | 53,593 |
Sourcing (1) |  | 1,115,251 |  |  | 1,235,713 |  |  | (120,462 | )
Total revenues |  | 16,631,172 |  |  | 16,698,041 |  |  | (66,869 | )
Costs and expenses: |  |  |  |  |  |
Purchased transportation and related services |  | 12,922,177 |  |  | 12,875,875 |  |  | 46,302 |
Purchased products sourced for resale (1) |  | 1,003,760 |  |  | 1,124,222 |  |  | (120,462 | )
Personnel expenses |  | 1,343,542 |  |  | 1,343,159 |  |  | 383 |
Other selling, general, and administrative expenses |  | 449,610 |  |  | 449,610 |  |  | — |
Total costs and expenses |  | 15,719,089 |  |  | 15,792,866 |  |  | (73,777 | )
Income from operations |  | 912,083 |  |  | 905,175 |  |  | 6,908 |
Interest and other expense |  | (31,810 | ) |  | (31,810 | ) |  | — |
Income before provision for income taxes |  | 880,273 |  |  | 873,365 |  |  | 6,908 |
Provision for income taxes |  | 215,768 |  |  | 213,882 |  |  | 1,886 |
Net income |  | $ | 664,505 |  |  | $ | 659,483 |  |  | $ | 5,022 |
(1) We have identified certain customer contracts in our sourcing managed procurement business that changed from a principal to an agent relationship under the new standard. This change resulted in these contracts being recognized at the net amount we charge our customers but had no impact on income from operations.
|  | As of December 31, 2018
|  | As reported |  | Balances without adoption of ASU 2014-09 |  | Effect of change higher / (lower)
Balance Sheet |  |  |  |  |  |
Assets: |  |  |  |  |  |
Receivables, net of allowance for doubtful accounts |  | $ | 2,162,438 |  |  | $ | 2,223,632 |  |  | $ | (61,194 | )
Contract assets |  | 159,635 |  |  | — |  |  | 159,635 |
Prepaid expenses and other |  | 52,386 |  |  | 50,683 |  |  | 1,703 |
Liabilities: |  |  |  |  |  |
Accounts payable |  | $ | 971,023 |  |  | $ | 1,009,758 |  |  | $ | (38,735 | )
Accrued expenses - compensation |  | 153,626 |  |  | 151,280 |  |  | 2,346 |
Accrued expenses - transportation expense |  | 119,820 |  |  | — |  |  | 119,820 |
Accrued expenses - other accrued liabilities |  | 63,410 |  |  | 66,116 |  |  | (2,706 | )
Deferred tax liabilities |  | 35,757 |  |  | 30,599 |  |  | 5,158 |
Equity: |  |  |  |  |  |
Retained earnings |  | $ | 3,845,593 |  |  | $ | 3,831,332 |  |  | $ | 14,261 |
We typically do not receive consideration and amounts are not due from our customer prior to the completion of our performance obligations and as such contract liabilities as of December 31, 2018, and revenue recognized in the twelve months ended months ended December 31, 2018, resulting from contract liabilities were not significant. Contract assets and accrued expenses - transportation expense fluctuate from period to period primarily based upon shipments in-transit at period end. A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the twelve months ended months ended December 31, 2018, as follows (dollars in thousands):
| Twelve Months Ended December 31, 2018
| NAST |  | Global Forwarding |  | Robinson Fresh |  | All Other and Corporate |  | Total
Major service lines: |  |  |  |  |  |  |  |  |
Transportation and logistics services | $ | 11,247,900 |  |  | $ | 2,487,744 |  |  | $ | 1,153,649 |  |  | $ | 626,628 |  |  | $ | 15,515,921 |
Sourcing | — |  |  | — |  |  | 1,115,251 |  |  | — |  |  | 1,115,251 |
Total | $ | 11,247,900 |  |  | $ | 2,487,744 |  |  | $ | 2,268,900 |  |  | $ | 626,628 |  |  | $ | 16,631,172 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |
Performance obligations completed over time | $ | 11,247,900 |  |  | $ | 2,487,744 |  |  | $ | 1,153,649 |  |  | $ | 626,628 |  |  | $ | 15,515,921 |
Performance obligations completed at a point in time | — |  |  | — |  |  | 1,115,251 |  |  | — |  |  | 1,115,251 |
Total | $ | 11,247,900 |  |  | $ | 2,487,744 |  |  | $ | 2,268,900 |  |  | $ | 626,628 |  |  | $ | 16,631,172 |
Approximately 91 percent of our total revenues for the twelve months ended December 31, 2018 are attributable to arranging for the transportation of our customers’ freight for which we transfer control and satisfy our performance obligation over the requisite transit period. A days in transit output method is used to measure the progress of our performance as of the reporting date. We determine the transit period based upon the departure date and the delivery date, which may be estimated if delivery has not occurred as of the reporting date. Determining the transit period and how much of it has been completed as of the reporting date may require management to make judgments that affect the timing of revenue recognized. We have determined that revenue recognition over the transit period provides a faithful depiction of the transfer of goods and services to our customer as our obligation is performed over the transit period. The transaction price for our performance obligation under these arrangements is generally fixed and readily determinable upon contract inception and is not contingent upon the occurrence or non-occurrence of another event. Approximately seven percent of our total revenues for the twelve months ended December 31, 2018 are attributable to buying, selling, and/or marketing of produce including fresh fruits, vegetables, and other value-added perishable items. Of these transactions, nearly all of our gross revenues are recognized at a point in time upon completion of our performance obligation, which is generally when the produce is received by our customer. The transaction price for our performance obligation under these arrangements is generally fixed and readily determinable upon contract inception and is not contingent upon the occurrence or non-occurrence of another event. Approximately two percent of our total revenues for the twelve months ended December 31, 2018 are attributable to value-added logistics services, such as customs brokerage, fee-based managed services, warehousing services, small parcel, and supply chain consulting and optimization services. Of these services, nearly all are recognized over time as we complete our performance obligation. Transaction price is determined and allocated to these performance obligations at their fixed fee or agreed upon rate multiplied by their associated measure of progress, which may be transactional volumes, labor hours, or time elapsed. Practical Expedients - Upon the adoption of ASU 2014-09, we have determined that we qualify for certain practical expedients to facilitate the adoption of the standard. We have elected to expense incremental costs of obtaining customer contracts (i.e., sales commissions) due to the short duration of our arrangements as the amortization period of such amounts is expected to be less than one year. These amounts are included within personnel expenses in our consolidated statements of operations and comprehensive income. In addition, we do not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as our contracts have an expected length of one year or less. Finally, for certain of our performance obligations such as fee-based managed services, supply chain consulting and optimization services, and warehousing services we have recognized revenue in the amount for which we have the right to invoice our customer as we have determined this amount corresponds directly with the value provided to the customer for our performance completed to date. Critical Accounting Policies and Estimates - We have updated our revenue recognition critical accounting policy to reflect the adoption of ASU 2014-09.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration