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Segment Reporting | 12 Months Ended
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Dec. 31, 2012
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING We operate in two business segments: Fleet Management Solutions (FMS), which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; and Supply Chain Solutions (SCS), which provides comprehensive supply chain consulting including distribution and transportation services in North America and Asia. The SCS segment also provides dedicated contract carriage (DCC) services, which includes vehicles and drivers as part of a dedicated transportation solution in the U.S. Prior to 2012, DCC was reported as a separate business segment. In 2012, SCS and DCC were combined as a result of aligning our internal reporting with how we operate our business. While this change did not impact our consolidated results, segment data for prior periods have been recast to be consistent with the current year presentation. Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of CSS and excludes non-operating pension costs, restructuring and other charges, net described in Note 5, “Restructuring and Other Charges” and excludes the items discussed in Note 26, “Other Items Impacting Comparability.” CSS represents those costs incurred to support all business segments, including human resources, finance, corporate services, public affairs, information technology, health and safety, legal and corporate communications. Beginning in 2012, we adjusted our segment financial performance measurement to exclude the non-operating components of pension costs in order to more accurately reflect the operating performance of the business segments. Prior year segment EBT has been recast to conform to the current year presentation. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS and SCS as follows: •Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization; •Human resources — individual costs within this category are allocated in several ways, including allocation based on estimated utilization and number of personnel supported; •Information technology — principally allocated based upon utilization-related metrics such as number of users or minutes of CPU time. Customer-related project costs and expenses are allocated to the business segment responsible for the project; and •Other — represents legal and other centralized costs and expenses including certain share-based incentive compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported. Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS segment. Inter-segment revenue and EBT are accounted for at rates similar to those executed with third parties. EBT related to inter-segment equipment and services billed to customers (equipment contribution) is included in both FMS and SCS and then eliminated (presented as “Eliminations”). Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Each business segment follows the same accounting policies as described in Note 1, “Summary of Significant Accounting Policies.” Business segment revenue and EBT from continuing operations is as follows:
|  | Years ended December 31,
|  | 2012 |  | 2011 |  | 2010
|  | (In thousands)
Revenue: |  |  |  |  |  |
Fleet Management Solutions: |  |  |  |  |  |
Full service lease |  | $ | 1,956,812 |  |  | 1,862,304 |  |  | 1,804,420 |
Commercial rental |  | 738,564 |  |  | 691,573 |  |  | 505,396 |
Full service lease and commercial rental |  | 2,695,376 |  |  | 2,553,877 |  |  | 2,309,816 |
Contract maintenance |  | 169,769 |  |  | 169,678 |  |  | 168,293 |
Contract-related maintenance |  | 184,703 |  |  | 164,334 |  |  | 139,173 |
Other |  | 71,955 |  |  | 69,124 |  |  | 67,448 |
Fuel services revenue |  | 854,578 |  |  | 887,483 |  |  | 716,871 |
Total Fleet Management Solutions from external customers |  | 3,976,381 |  |  | 3,844,496 |  |  | 3,401,601 |
Inter-segment revenue |  | 428,944 |  |  | 373,834 |  |  | 310,552 |
Fleet Management Solutions |  | 4,405,325 |  |  | 4,218,330 |  |  | 3,712,153 |
Supply Chain Solutions from external customers |  | 2,280,586 |  |  | 2,206,038 |  |  | 1,734,834 |
Eliminations |  | (428,944 | ) |  | (373,834 | ) |  | (310,552 | )
Total revenue |  | $ | 6,256,967 |  |  | 6,050,534 |  |  | 5,136,435 |
EBT: |  |  |  |  |  |
Fleet Management Solutions |  | $ | 307,628 |  |  | 265,691 |  |  | 194,909 |
Supply Chain Solutions |  | 115,193 |  |  | 104,898 |  |  | 81,683 |
Eliminations |  | (29,265 | ) |  | (24,212 | ) |  | (19,275 | )
|  | $ | 393,556 |  |  | 346,377 |  |  | 257,317 |
Unallocated Central Support Services |  | (42,348 | ) |  | (42,549 | ) |  | (41,310 | )
Non-operating pension costs |  | (31,423 | ) |  | (18,652 | ) |  | (26,551 | )
Restructuring and other charges, net and other items(1) |  | (16,668 | ) |  | (5,789 | ) |  | (3,151 | )
Earnings before income taxes from continuing operations |  | $ | 303,117 |  |  | 279,387 |  |  | 186,305 |
______________
(1) | See Note 26, “Other Items Impacting Comparability,” for a discussion of items, in addition to restructuring and other charges, net that are excluded from our primary measure of segment performance.
The following table sets forth share-based compensation, depreciation expense, (gains) losses on vehicle sales, net, other non-cash charges (credits), net, interest expense (income), capital expenditures and total assets for the years ended December 31, 2012, 2011 and 2010 as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
|  | FMS |  | SCS |  | CSS |  | Eliminations |  | Total
|  | (In thousands)
2012 |  |  |  |  |  |  |  |  |  |
Share-based compensation expense |  | $ | 5,359 |  |  | 4,433 |  |  | 9,072 |  |  | — |  |  | 18,864 |
Depreciation expense (1) |  | $ | 910,352 |  |  | 28,275 |  |  | 1,050 |  |  | — |  |  | 939,677 |
Gains on vehicles sales, net |  | $ | (89,075 | ) |  | (33 | ) |  | — |  |  | — |  |  | (89,108 | )
Other non-cash charges (credits), net (2) |  | $ | 15,567 |  |  | 2,768 |  |  | 30,874 |  |  | — |  |  | 49,209 |
Interest expense (income) (3) |  | $ | 140,747 |  |  | 11 |  |  | (201 | ) |  | — |  |  | 140,557 |
Capital expenditures paid (4) |  | $ | 2,090,443 |  |  | 19,278 |  |  | 23,514 |  |  | — |  |  | 2,133,235 |
Total assets |  | $ | 7,556,509 |  |  | 807,935 |  |  | 144,355 |  |  | (189,820 | ) |  | 8,318,979 |
2011 |  |  |  |  |  |  |  |  |  |
Share-based compensation expense |  | $ | 5,388 |  |  | 4,312 |  |  | 7,723 |  |  | — |  |  | 17,423 |
Depreciation expense (1) |  | $ | 842,094 |  |  | 29,118 |  |  | 1,050 |  |  | — |  |  | 872,262 |
Gains on vehicles sales, net |  | $ | (62,496 | ) |  | (383 | ) |  | — |  |  | — |  |  | (62,879 | )
Other non-cash charges (credits), net (2) |  | $ | 16,271 |  |  | 3,214 |  |  | 20,443 |  |  | — |  |  | 39,928 |
Interest expense (income) (3) |  | $ | 133,245 |  |  | (74 | ) |  | (7 | ) |  | — |  |  | 133,164 |
Capital expenditures paid (4) |  | $ | 1,653,425 |  |  | 30,209 |  |  | 14,955 |  |  | — |  |  | 1,698,589 |
Total assets |  | $ | 6,815,404 |  |  | 827,169 |  |  | 198,476 |  |  | (223,214 | ) |  | 7,617,835 |
2010 |  |  |  |  |  |  |  |  |  |
Share-based compensation expense |  | $ | 5,011 |  |  | 3,430 |  |  | 8,102 |  |  | — |  |  | 16,543 |
Depreciation expense (1) |  | $ | 812,588 |  |  | 20,285 |  |  | 968 |  |  | — |  |  | 833,841 |
Gains on vehicle sales, net |  | $ | (28,765 | ) |  | 38 |  |  | — |  |  | — |  |  | (28,727 | )
Other non-cash charges, net (2) |  | $ | 19,351 |  |  | 1,021 |  |  | 20,528 |  |  | — |  |  | 40,900 |
Interest expense (income) (3) |  | $ | 130,742 |  |  | (759 | ) |  | 11 |  |  | — |  |  | 129,994 |
Capital expenditures paid (4) |  | $ | 1,043,280 |  |  | 16,345 |  |  | 10,467 |  |  | — |  |  | 1,070,092 |
Total assets |  | $ | 5,944,971 |  |  | 791,791 |  |  | 106,906 |  |  | (191,294 | ) |  | 6,652,374 |
____________
(1) | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $12 million, $9 million, and $9 million during 2012, 2011, and 2010, respectively, associated with CSS assets was allocated to other business segments.
(2) | Includes amortization expense.
(3) | 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 expense (income) was also reflected in SCS based on targeted segment leverage ratios.
(4) | Excludes acquisition payments of $5 million, $362 million, and $212 million in 2012, 2011, and 2010, respectively, comprised primarily of long-lived assets. See Note 3, “Acquisitions,” for additional information.
Geographic Information
|  | Years ended December 31,
|  | 2012 |  | 2011 |  | 2010
|  | (In thousands)
Revenue: |  |  |  |  |  |
United States |  | $ | 5,231,899 |  |  | 5,075,432 |  |  | 4,313,483 |
Foreign: |  |  |  |  |  |
Canada |  | 477,495 |  |  | 481,593 |  |  | 466,405 |
Europe |  | 384,105 |  |  | 324,214 |  |  | 219,508 |
Mexico |  | 143,282 |  |  | 147,464 |  |  | 122,312 |
Asia |  | 20,186 |  |  | 21,831 |  |  | 14,727 |
|  | 1,025,068 |  |  | 975,102 |  |  | 822,952 |
Total |  | $ | 6,256,967 |  |  | 6,050,534 |  |  | 5,136,435 |
Long-lived assets: |  |  |  |  |  |
United States |  | $ | 5,261,622 |  |  | 4,708,086 |  |  | 4,098,735 |
Foreign: |  |  |  |  |  |
Canada |  | 557,351 |  |  | 481,139 |  |  | 468,062 |
Europe |  | 534,728 |  |  | 463,848 |  |  | 219,178 |
Mexico |  | 24,973 |  |  | 19,931 |  |  | 21,194 |
Asia |  | 787 |  |  | 847 |  |  | 892 |
|  | 1,117,839 |  |  | 965,765 |  |  | 709,326 |
Total |  | $ | 6,379,461 |  |  | 5,673,851 |  |  | 4,808,061 |
Certain Concentrations We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many indu stries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of full service lease and commercial rental customers is not concentrated in any one particular industry or geographic region. We derive a significant portion of our SCS revenue from the automotive industry, mostly from manufacturers and suppliers of original equipment parts. During 2012, 2011 and 2010, the automotive industry accounted for approximately 30%, 27% and 31%, respectively, of SCS total revenue.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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