XML 55 R36.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Reporting | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. We report our financial performance in three business segments: (1) FMS, which provides leasing, commercial rental and maintenance of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) DTS, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S.; and (3) SCS, which provides comprehensive supply chain solutions including distribution and transportation services in North America and Singapore. Dedicated transportation services provided as part of an integrated, multi-service, supply chain solution to SCS customers are reported in the SCS business segment. Our primary measurement of segment financial performance, defined as “Earnings Before Tax” (EBT) from continuing operations, includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs, restructuring charges and fees, net discussed in Note 4, "Restructuring Charges and Fees, Net" and items discussed in Note 24, "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, marketing and corporate communications. 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 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, DTS 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 under various methods, 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 DTS and SCS segments. 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 DTS and SCS customers (equipment contribution) are included in both FMS and the business segment which served the customer and then eliminated (presented as “Eliminations”). Prior amounts have been reclassified to conform to the current period presentation. 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,
|  | 2017 |  | 2016 |  | 2015
|  | (In thousands)
Revenue: |  |  |  |  |  |
Fleet Management Solutions: |  |  |  |  |  |
ChoiceLease |  | $ | 2,460,424 |  |  | 2,362,040 |  |  | 2,220,929 |
Commercial rental |  | 777,261 |  |  | 808,912 |  |  | 900,624 |
ChoiceLease and commercial rental |  | 3,237,685 |  |  | 3,170,952 |  |  | 3,121,553 |
SelectCare |  | 428,422 |  |  | 415,507 |  |  | 391,137 |
Other |  | 77,450 |  |  | 78,042 |  |  | 77,625 |
Fuel services revenue |  | 520,500 |  |  | 463,738 |  |  | 538,277 |
Total Fleet Management Solutions from external customers |  | 4,264,057 |  |  | 4,128,239 |  |  | 4,128,592 |
Inter-segment revenue |  | 469,514 |  |  | 427,955 |  |  | 417,100 |
Fleet Management Solutions |  | 4,733,571 |  |  | 4,556,194 |  |  | 4,545,692 |
Dedicated Transportation Solutions |  | 1,096,042 |  |  | 1,020,895 |  |  | 895,538 |
Supply Chain Solutions |  | 1,969,500 |  |  | 1,637,850 |  |  | 1,547,763 |
Eliminations |  | (469,514 | ) |  | (427,955 | ) |  | (417,100 | )
Total revenue |  | $ | 7,329,599 |  |  | 6,786,984 |  |  | 6,571,893 |
EBT: |  |  |  |  |  |
Fleet Management Solutions |  | $ | 312,720 |  |  | 370,829 |  |  | 461,314 |
Dedicated Transportation Solutions |  | 55,328 |  |  | 63,571 |  |  | 45,575 |
Supply Chain Solutions |  | 103,102 |  |  | 105,532 |  |  | 93,575 |
Eliminations |  | (53,275 | ) |  | (50,148 | ) |  | (47,193 | )
|  | $ | 417,875 |  |  | 489,784 |  |  | 553,271 |
Unallocated Central Support Services |  | (48,128 | ) |  | (40,736 | ) |  | (48,700 | )
Non-operating pension costs (1) |  | (27,741 | ) |  | (29,943 | ) |  | (17,797 | )
Restructuring charges and fees, net and other items (2) |  | (28,220 | ) |  | (12,724 | ) |  | (17,559 | )
Earnings before income taxes from continuing operations |  | $ | 313,786 |  |  | 406,381 |  |  | 469,215 |
______________
(1) | Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest cost and expected return on plan assets
components of pension and postretirement benefit costs.
(2) | See Note 24, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.
The following table sets forth non-operating pension costs and share-based compensation expense, depreciation expense, used vehicle sales, net, amortization expense and other non-cash charges, net, interest expense (income), capital expenditures paid and total assets for the years ended December 31, 2017, 2016 and 2015, as provided to the chief operating decision-maker for each of Ryder’s reportable business segments:
|  | FMS |  | DTS |  | SCS |  | CSS |  | Eliminations |  | Total
|  | (In thousands)
2017 |  |  |  |  |  |  |  |  |  |  |  |
Non-operating pension costs and share-based compensation expense |  | $ | 5,339 |  |  | 1,270 |  |  | 2,982 |  |  | 37,117 |  |  | — |  |  | 46,708 |
Depreciation expense (1) |  | $ | 1,218,492 |  |  | 3,520 |  |  | 32,255 |  |  | 908 |  |  | — |  |  | 1,255,175 |
Used vehicle sales, net |  | $ | 17,553 |  |  | (113 | ) |  | (199 | ) |  | — |  |  | — |  |  | 17,241 |
Amortization expense and other non-cash charges, net |  | $ | 29,550 |  |  | (21,967 | ) |  | 1,015 |  |  | 3,516 |  |  | — |  |  | 12,114 |
Interest expense (income) (2) |  | $ | 144,137 |  |  | (1,659 | ) |  | (2,446 | ) |  | 318 |  |  | — |  |  | 140,350 |
Capital expenditures paid |  | $ | 1,783,917 |  |  | 3,375 |  |  | 50,117 |  |  | 23,027 |  |  | — |  |  | 1,860,436 |
Total assets |  | $ | 10,386,613 |  |  | 276,832 |  |  | 864,022 |  |  | 196,686 |  |  | (271,922 | ) |  | 11,452,231 |
2016 |  |  |  |  |  |  |  |  |  |  |  |
Non-operating pension costs and share-based compensation expense |  | $ | 5,464 |  |  | 1,254 |  |  | 2,764 |  |  | 46,775 |  |  | — |  |  | 56,257 |
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 |  |  | (8,227 | ) |  | — |  |  | 30,667 |
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 |  |  |  |  |  |  |  |  |  |  |  |
Non-operating pension costs and share-based compensation expense |  | $ | 5,672 |  |  | 1,155 |  |  | 3,400 |  |  | 28,751 |  |  | — |  |  | 38,978 |
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 |  |  | 11,768 |  |  | — |  |  | 52,965 |
Interest expense (income) (2) |  | $ | 154,276 |  |  | (1,597 | ) |  | (2,174 | ) |  | (71 | ) |  | — |  |  | 150,434 |
Capital expenditures paid (3) |  | $ | 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 |
____________
(1) | Depreciation expense associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. Depreciation expense totaling $24 million, $24 million and $22 million during 2017, 2016 and 2015, 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 $1 million in 2017. See Note 3, “Acquisitions,” for additional information.
Geographic Information
|  | Years ended December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (In thousands)
Revenue: |  |  |  |  |  |
United States |  | $ | 6,378,784 |  |  | 5,892,384 |  |  | 5,603,697 |
Foreign: |  |  |  |  |  |
Canada |  | 428,252 |  |  | 387,713 |  |  | 408,325 |
Europe |  | 321,375 |  |  | 339,420 |  |  | 391,339 |
Mexico |  | 170,398 |  |  | 139,176 |  |  | 139,583 |
Singapore |  | 30,790 |  |  | 28,291 |  |  | 28,949 |
|  | 950,815 |  |  | 894,600 |  |  | 968,196 |
Total |  | $ | 7,329,599 |  |  | 6,786,984 |  |  | 6,571,893 |
Long-lived assets: |  |  |  |  |  |
United States |  | $ | 7,935,167 |  |  | 7,854,845 |  |  | 7,817,628 |
Foreign: |  |  |  |  |  |
Canada |  | 623,576 |  |  | 532,403 |  |  | 504,027 |
Europe |  | 527,869 |  |  | 472,027 |  |  | 545,630 |
Mexico |  | 44,997 |  |  | 33,979 |  |  | 31,993 |
Singapore |  | 357 |  |  | 338 |  |  | 427 |
|  | 1,196,799 |  |  | 1,038,747 |  |  | 1,082,077 |
Total |  | $ | 9,131,966 |  |  | 8,893,592 |  |  | 8,899,705 |
Certain Concentrations We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many industries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of ChoiceLease 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 2017, 2016 and 2015, the automotive industry accounted for approximately 40%, 44% and 41%, respectively, of SCS total revenue.

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

X
- 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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration