XML 40 R24.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Debt | 12 Months Ended
--- | ---
Dec. 31, 2015
Debt Disclosure [Abstract] |
DEBT | DEBT
|  | Weighted-Average Interest Rate |  |  |  |  |  |
|  | December 31, |  |  |  | December 31,
|  | 2015 |  | 2014 |  | Maturities |  | 2015 |  | 2014
|  |  |  |  |  |  |  | (In thousands)
Short-term debt and current portion of long-term debt: |  |  |  |  |  |  |  |  |  |
Short-term debt |  | 2.26 | % |  | 1.30 | % |  |  |  | $ | 35,947 |  |  | 3,773 |
Current portion of long-term debt, including capital leases |  |  |  |  |  |  |  | 598,583 |  |  | 32,511 |
Total short-term debt and current portion of long-term debt |  |  |  |  |  |  |  | 634,530 |  |  | 36,284 |
Total long-term debt: |  |  |  |  |  |  |  |  |  |
U.S. commercial paper(1) |  | 0.55 | % |  | 0.35 | % |  | 2020 |  | 547,130 |  |  | 276,694 |
Global revolving credit facility |  | 2.31 | % |  | 1.60 | % |  | 2020 |  | 25,291 |  |  | 11,190 |
Unsecured U.S. notes – Medium-term notes(1) |  | 2.84 | % |  | 3.29 | % |  | 2016-2025 |  | 4,112,519 |  |  | 3,772,159 |
Unsecured U.S. obligations, principally bank term loans |  | 1.73 | % |  | 0.76 | % |  | 2018 |  | 50,000 |  |  | 110,500 |
Unsecured foreign obligations |  | 1.92 | % |  | 2.01 | % |  | 2016-2020 |  | 275,661 |  |  | 295,776 |
Asset backed U.S. obligations(2) |  | 1.81 | % |  | 1.81 | % |  | 2016-2022 |  | 434,001 |  |  | 218,137 |
Capital lease obligations |  | 3.31 | % |  | 3.65 | % |  | 2016-2022 |  | 32,054 |  |  | 37,560 |
Total before fair market value adjustment |  |  |  |  |  |  |  | 5,476,656 |  |  | 4,722,016 |
Fair market value adjustment on notes subject to hedging(3) |  |  |  |  |  |  |  | 5,253 |  |  | 4,830 |
|  |  |  |  |  |  |  | 5,481,909 |  |  | 4,726,846 |
Current portion of long-term debt, including capital leases |  |  |  |  |  |  |  | (598,583 | ) |  | (32,511 | )
Long-term debt |  |  |  |  |  |  |  | 4,883,326 |  |  | 4,694,335 |
Total debt |  |  |  |  |  |  |  | $ | 5,517,856 |  |  | 4,730,619 |
_________________
(1) | We had unamortized original issue discounts of $8 million at December 31, 2015 and 2014.
(2) | Asset-backed U.S. obligations are related to financing transactions involving revenue earning equipment. See Note 3, "Revision of Prior Period Financial Statements" for further information related to our evaluation of accounting for these transactions.
(3) | The notional amount of the executed interest rate swaps designated as fair value hedges was $825 million and $600 million at December 31, 2015 and 2014, respectively. Refer to Note 17, "Derivatives", for additional information.
Maturities of total debt are as follows:
|  | Capital Leases |  | Debt
|  | (In thousands)
2016 |  | $ | 8,469 |  |  | 928,722 |
2017 |  | 9,550 |  |  | 750,009 |
2018 |  | 7,135 |  |  | 783,177 |
2019 |  | 6,132 |  |  | 1,060,365 |
2020 |  | 639 |  |  | 1,645,441 |
Thereafter |  | 2,241 |  |  | 312,835 |
Total |  | 34,166 |  |  | 5,480,549 |
Imputed interest |  | (2,112 | ) |  |
Present value of minimum capitalized lease payments |  | 32,054 |  |  |
Current portion |  | (7,720 | ) |  |
Long-term capitalized lease obligation |  | $ | 24,334 |  |  |
Debt Facilities We maintain a $1.2 billion global revolving credit facility with a syndicate of twelve lending institutions led by Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, Lloyds Bank Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. The facility matures in January 2020. The agreement provides for annual facility fees which range from 7.5 basis points to 25 basis points based on Ryder’s long-term credit ratings. The annual facility fee is currently 10 basis points, which applies to the total facility size of $1.2 billion. The credit facility is used primarily to finance working capital but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at December 31, 2015). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions and certain affirmative and negative covenants. In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. Net worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at December 31, 2015 was 215%. At December 31, 2015, there was $591 million available under the credit facility, net of outstanding commercial paper borrowings. Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. In addition, we have the intent and ability to refinance the current portion of long-term debt on a long-term basis. At December 31, 2015, we classified $547 million of short-term commercial paper and $300 million of the current portion of long-term debt as long-term debt. At December 31, 2014, we classified $277 million of short-term commercial paper, $60 million of trade receivables borrowings and $699 million of the current portion of long-term debt as long-term debt. In September and April 2015, we received $93 million and $156 million, respectively, from financing transactions backed by a portion of our revenue earning equipment. The proceeds from these transactions were used to fund capital expenditures. We have provided end of term guarantees for the residual value of the revenue earning equipment in these transactions. The transaction proceeds, along with the end of term residual value guarantees, have been included within "asset-backed U.S. obligations" in the preceding table. In August 2015, we issued $300 million of unsecured medium-term notes maturing in September 2020. In May 2015, we issued $300 million of unsecured medium-term notes maturing in May 2020. In February 2015, we issued $400 million of unsecured medium-term notes maturing in March 2020. The proceeds from these notes were used to payoff maturing debt and for general corporate purposes. If these notes are downgraded below investment grade following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal plus accrued and unpaid interest. We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. In October 2015, we renewed the trade receivables purchase and sale program. If no event occurs which causes early termination, the 364-day program will expire on October 21, 2016. The program contained provisions restricting its availability in the event of a material adverse change to our business operations or the collectibility of the collateralized receivables. No amounts were outstanding under the program at December 31, 2015. There was $60 million outstanding under the program at December 31, 2014. Sales of receivables under this program are accounted for as secured borrowings based on our continuing involvement in the transferred assets. The total fair value of debt (excluding capital lease and asset backed U.S. obligations) was $5.08 billion at December 31, 2015 and $4.59 billion at December 31, 2014. For publicly-traded debt, estimates of fair value are based on market prices. Since our publicly-traded debt is not actively traded, the fair value measurement was classified within Level 2 of the fair value hierarchy. For other debt, fair value is estimated based on rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy.

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

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration