☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Florida | 59-0739250 | |||||||||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||||||
11690 N.W. 105th Street | ||||||||||||||||||||||||||
Miami, | Florida | 33178 | (305) 500-3726 | |||||||||||||||||||||||
(Address of principal executive offices, including zip code) | (Registrant's telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Ryder System, Inc. Common Stock ($0.50 par value) | R | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page No. | ||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | (In millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | (In millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Lease & related maintenance and rental revenue | Lease & related maintenance and rental revenue | $ | 976 | $ | 1,050 | $ | 1,955 | $ | 2,075 | Lease & related maintenance and rental revenue | $ | 986 | $ | 1,044 | $ | 2,941 | $ | 3,119 | ||||||||||||||||||||||||||||||||||
Services revenue | Services revenue | 1,778 | 1,777 | 3,599 | 3,447 | Services revenue | 1,799 | 1,811 | 5,399 | 5,258 | ||||||||||||||||||||||||||||||||||||||||||
Fuel services revenue | Fuel services revenue | 130 | 207 | 282 | 366 | Fuel services revenue | 139 | 180 | 420 | 546 | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | 2,884 | 3,034 | 5,836 | 5,888 | Total revenue | 2,924 | 3,035 | 8,760 | 8,923 | ||||||||||||||||||||||||||||||||||||||||||
Cost of lease & related maintenance and rental | Cost of lease & related maintenance and rental | 661 | 688 | 1,335 | 1,387 | Cost of lease & related maintenance and rental | 666 | 691 | 2,001 | 2,078 | ||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 1,507 | 1,523 | 3,114 | 2,973 | Cost of services | 1,524 | 1,550 | 4,638 | 4,523 | ||||||||||||||||||||||||||||||||||||||||||
Cost of fuel services | Cost of fuel services | 126 | 199 | 275 | 354 | Cost of fuel services | 137 | 176 | 412 | 530 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 343 | 361 | 706 | 703 | Selling, general and administrative expenses | 347 | 350 | 1,053 | 1,053 | ||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | 10 | 2 | 20 | 5 | Non-operating pension costs, net | 10 | 3 | 30 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Used vehicle sales, net | Used vehicle sales, net | (55) | (130) | (127) | (243) | Used vehicle sales, net | (47) | (113) | (174) | (356) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 72 | 56 | 137 | 108 | Interest expense | 75 | 57 | 212 | 165 | ||||||||||||||||||||||||||||||||||||||||||
Miscellaneous income, net | Miscellaneous income, net | (11) | (14) | (31) | (14) | Miscellaneous income, net | (5) | (9) | (36) | (23) | ||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | 188 | — | Currency translation adjustment loss | — | — | 188 | — | ||||||||||||||||||||||||||||||||||||||||||
Restructuring and other items, net | Restructuring and other items, net | (1) | 11 | (26) | 25 | Restructuring and other items, net | 4 | (4) | (22) | 21 | ||||||||||||||||||||||||||||||||||||||||||
2,840 | 2,696 | 5,591 | 5,298 | 2,711 | 2,701 | 8,302 | 7,999 | |||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | Earnings from continuing operations before income taxes | 44 | 338 | 245 | 590 | Earnings from continuing operations before income taxes | 213 | 334 | 458 | 924 | ||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 62 | 98 | 123 | 174 | Provision for income taxes | 53 | 87 | 176 | 261 | ||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | (18) | 240 | 122 | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | — | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (18) | $ | 239 | $ | 121 | $ | 415 | ||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | 160 | 247 | 282 | 663 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax | Earnings (loss) from discontinued operations, net of tax | 1 | (1) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 161 | $ | 246 | $ | 282 | $ | 661 | |||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share — Basic | Earnings (loss) per common share — Basic | Earnings (loss) per common share — Basic | ||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | Continuing operations | $ | (0.39) | $ | 4.80 | $ | 2.64 | $ | 8.20 | Continuing operations | $ | 3.51 | $ | 4.92 | $ | 6.11 | $ | 13.12 | ||||||||||||||||||||||||||||||||||
Discontinued operations | Discontinued operations | (0.01) | (0.02) | (0.02) | (0.02) | Discontinued operations | 0.03 | (0.01) | 0.01 | (0.03) | ||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (0.40) | $ | 4.78 | $ | 2.61 | $ | 8.18 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 3.55 | $ | 4.91 | $ | 6.12 | $ | 13.09 | |||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share — Diluted | Earnings (loss) per common share — Diluted | Earnings (loss) per common share — Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | Continuing operations | $ | (0.39) | $ | 4.72 | $ | 2.60 | $ | 8.05 | Continuing operations | $ | 3.44 | $ | 4.82 | $ | 6.01 | $ | 12.86 | ||||||||||||||||||||||||||||||||||
Discontinued operations | Discontinued operations | (0.01) | (0.02) | (0.02) | (0.02) | Discontinued operations | 0.03 | (0.01) | 0.01 | (0.03) | ||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (0.40) | $ | 4.70 | $ | 2.57 | $ | 8.03 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 3.47 | $ | 4.82 | $ | 6.02 | $ | 12.82 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (18) | $ | 239 | $ | 121 | $ | 415 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 161 | $ | 246 | $ | 282 | $ | 661 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cumulative translation adjustment and unrealized gains from cash flow hedges | 207 | (44) | 216 | (42) | ||||||||||||||||||||||||||||||||||||||||||||||||
Changes in cumulative translation adjustment and unrealized gains from cash flow hedges, net of taxes | Changes in cumulative translation adjustment and unrealized gains from cash flow hedges, net of taxes | (14) | (54) | 202 | (96) | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of pension and postretirement items | Amortization of pension and postretirement items | 6 | 5 | 13 | 11 | Amortization of pension and postretirement items | 7 | 5 | 20 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense related to amortization of pension and postretirement items | Income tax expense related to amortization of pension and postretirement items | (1) | (2) | (3) | (3) | Income tax expense related to amortization of pension and postretirement items | (2) | (1) | (5) | (4) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of pension and postretirement items, net of taxes | Amortization of pension and postretirement items, net of taxes | 5 | 3 | 10 | 8 | Amortization of pension and postretirement items, net of taxes | 5 | 4 | 15 | 12 | ||||||||||||||||||||||||||||||||||||||||||
Change in net actuarial loss and prior service cost | Change in net actuarial loss and prior service cost | — | 2 | — | 2 | Change in net actuarial loss and prior service cost | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense related to change in net actuarial loss and prior service cost | Income tax expense related to change in net actuarial loss and prior service cost | — | (1) | — | (1) | Income tax expense related to change in net actuarial loss and prior service cost | — | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||
Change in net actuarial loss and prior service cost, net of taxes | Change in net actuarial loss and prior service cost, net of taxes | — | 1 | — | 1 | Change in net actuarial loss and prior service cost, net of taxes | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | Other comprehensive income (loss), net of taxes | 212 | (40) | 226 | (33) | Other comprehensive income (loss), net of taxes | (9) | (50) | 217 | (83) | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 194 | $ | 199 | $ | 347 | $ | 382 | Comprehensive income | $ | 152 | $ | 196 | $ | 499 | $ | 578 |
(In millions, except share amounts) | (In millions, except share amounts) | June 30, 2023 | December 31, 2022 | (In millions, except share amounts) | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 218 | $ | 267 | Cash and cash equivalents | $ | 159 | $ | 267 | ||||||||||||||||||
Receivables, net | Receivables, net | 1,572 | 1,610 | Receivables, net | 1,647 | 1,610 | ||||||||||||||||||||||
Inventories | Inventories | 74 | 78 | Inventories | 75 | 78 | ||||||||||||||||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets | 253 | 245 | Prepaid expenses and other current assets | 231 | 245 | ||||||||||||||||||||||
Total current assets | Total current assets | 2,117 | 2,200 | Total current assets | 2,112 | 2,200 | ||||||||||||||||||||||
Revenue earning equipment, net | Revenue earning equipment, net | 8,795 | 8,190 | Revenue earning equipment, net | 8,875 | 8,190 | ||||||||||||||||||||||
Operating property and equipment, net of accumulated depreciation of $1,429 and $1,377 | 0 | 1,132 | 1,148 | |||||||||||||||||||||||||
Operating property and equipment, net of accumulated depreciation of $1,468 and $1,377 | Operating property and equipment, net of accumulated depreciation of $1,468 and $1,377 | 1,164 | 1,148 | |||||||||||||||||||||||||
Goodwill | Goodwill | 861 | 861 | Goodwill | 860 | 861 | ||||||||||||||||||||||
Intangible assets, net | Intangible assets, net | 281 | 295 | Intangible assets, net | 274 | 295 | ||||||||||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 766 | 715 | Operating lease right-of-use assets | 974 | 715 | ||||||||||||||||||||||
Sales-type leases and other assets | Sales-type leases and other assets | 1,019 | 986 | Sales-type leases and other assets | 1,071 | 986 | ||||||||||||||||||||||
Total assets | Total assets | $ | 14,971 | $ | 14,395 | Total assets | $ | 15,330 | $ | 14,395 | ||||||||||||||||||
Liabilities and shareholders' equity: | Liabilities and shareholders' equity: | Liabilities and shareholders' equity: | ||||||||||||||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | Short-term debt and current portion of long-term debt | $ | 1,330 | $ | 1,349 | Short-term debt and current portion of long-term debt | $ | 1,888 | $ | 1,349 | ||||||||||||||||||
Accounts payable | Accounts payable | 934 | 767 | Accounts payable | 911 | 767 | ||||||||||||||||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | 1,147 | 1,200 | Accrued expenses and other current liabilities | 1,188 | 1,200 | ||||||||||||||||||||||
Total current liabilities | Total current liabilities | 3,411 | 3,316 | Total current liabilities | 3,987 | 3,316 | ||||||||||||||||||||||
Long-term debt | Long-term debt | 5,195 | 5,003 | Long-term debt | 4,733 | 5,003 | ||||||||||||||||||||||
Other non-current liabilities | Other non-current liabilities | 1,604 | 1,568 | Other non-current liabilities | 1,813 | 1,568 | ||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 1,665 | 1,571 | Deferred income taxes | 1,700 | 1,571 | ||||||||||||||||||||||
Total liabilities | Total liabilities | 11,875 | 11,458 | Total liabilities | 12,233 | 11,458 | ||||||||||||||||||||||
Commitments and contingencies (Note 14) | Commitments and contingencies (Note 14) | Commitments and contingencies (Note 14) | ||||||||||||||||||||||||||
Shareholders' equity: | Shareholders' equity: | Shareholders' equity: | ||||||||||||||||||||||||||
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, June 30, 2023 and December 31, 2022 | — | — | ||||||||||||||||||||||||||
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, June 30, 2023 — 45,527,262 and December 31, 2022 — 46,286,664 | 23 | 23 | ||||||||||||||||||||||||||
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, September 30, 2023 and December 31, 2022 | Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, September 30, 2023 and December 31, 2022 | — | — | |||||||||||||||||||||||||
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, September 30, 2023 — 44,322,243 and December 31, 2022 — 46,286,664 | Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, September 30, 2023 — 44,322,243 and December 31, 2022 — 46,286,664 | 22 | 23 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 1,154 | 1,192 | Additional paid-in capital | 1,149 | 1,192 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 2,489 | 2,518 | Retained earnings | 2,505 | 2,518 | ||||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (570) | (796) | Accumulated other comprehensive loss | (579) | (796) | ||||||||||||||||||||||
Total shareholders' equity | Total shareholders' equity | 3,096 | 2,937 | Total shareholders' equity | 3,097 | 2,937 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | Total liabilities and shareholders' equity | $ | 14,971 | $ | 14,395 | Total liabilities and shareholders' equity | $ | 15,330 | $ | 14,395 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Cash flows from operating activities from continuing operations: | Cash flows from operating activities from continuing operations: | Cash flows from operating activities from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 121 | $ | 415 | Net earnings | $ | 282 | $ | 661 | ||||||||||||||||||||||||||||||
Less: Loss from discontinued operations, net of tax | Less: Loss from discontinued operations, net of tax | (1) | (1) | Less: Loss from discontinued operations, net of tax | — | (2) | ||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | 122 | 416 | Earnings from continuing operations | 282 | 663 | ||||||||||||||||||||||||||||||||||
Depreciation expense | Depreciation expense | 857 | 854 | Depreciation expense | 1,274 | 1,275 | ||||||||||||||||||||||||||||||||||
Used vehicle sales, net | Used vehicle sales, net | (127) | (243) | Used vehicle sales, net | (174) | (356) | ||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | Currency translation adjustment loss | 188 | — | ||||||||||||||||||||||||||||||||||
Amortization expense and other non-cash charges, net | Amortization expense and other non-cash charges, net | 44 | 50 | Amortization expense and other non-cash charges, net | 67 | 78 | ||||||||||||||||||||||||||||||||||
Non-cash lease expense | Non-cash lease expense | 124 | 93 | Non-cash lease expense | 190 | 143 | ||||||||||||||||||||||||||||||||||
Non-operating pension costs, net and share-based compensation expense | Non-operating pension costs, net and share-based compensation expense | 41 | 28 | Non-operating pension costs, net and share-based compensation expense | 63 | 42 | ||||||||||||||||||||||||||||||||||
Deferred income tax expense | Deferred income tax expense | 94 | 123 | Deferred income tax expense | 129 | 186 | ||||||||||||||||||||||||||||||||||
Collections on sales-type leases | Collections on sales-type leases | 63 | 64 | Collections on sales-type leases | 91 | 99 | ||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Receivables | Receivables | 92 | (187) | Receivables | 18 | (142) | ||||||||||||||||||||||||||||||||||
Inventories | Inventories | 4 | (13) | Inventories | 3 | (10) | ||||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | Prepaid expenses and other assets | (4) | (31) | Prepaid expenses and other assets | (7) | (34) | ||||||||||||||||||||||||||||||||||
Accounts payable | Accounts payable | (2) | 82 | Accounts payable | 13 | (8) | ||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | Accrued expenses and other liabilities | (275) | (133) | Accrued expenses and other liabilities | (295) | (150) | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities from continuing operations | Net cash provided by operating activities from continuing operations | 1,221 | 1,103 | Net cash provided by operating activities from continuing operations | 1,842 | 1,786 | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities from continuing operations: | Cash flows from investing activities from continuing operations: | Cash flows from investing activities from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Purchases of property and revenue earning equipment | Purchases of property and revenue earning equipment | (1,652) | (1,195) | Purchases of property and revenue earning equipment | (2,457) | (1,917) | ||||||||||||||||||||||||||||||||||
Sales of revenue earning equipment | Sales of revenue earning equipment | 394 | 601 | Sales of revenue earning equipment | 587 | 922 | ||||||||||||||||||||||||||||||||||
Sales of operating property and equipment | Sales of operating property and equipment | 53 | 35 | Sales of operating property and equipment | 60 | 54 | ||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | Acquisitions, net of cash acquired | — | (430) | Acquisitions, net of cash acquired | — | (448) | ||||||||||||||||||||||||||||||||||
Other investing activities | Other investing activities | (2) | 7 | Other investing activities | (4) | 38 | ||||||||||||||||||||||||||||||||||
Net cash used in investing activities from continuing operations | Net cash used in investing activities from continuing operations | (1,207) | (982) | Net cash used in investing activities from continuing operations | (1,814) | (1,351) | ||||||||||||||||||||||||||||||||||
Cash flows from financing activities from continuing operations: | Cash flows from financing activities from continuing operations: | Cash flows from financing activities from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Net borrowings (repayments) of commercial paper and other | (27) | 208 | ||||||||||||||||||||||||||||||||||||||
Net borrowings of commercial paper and other | Net borrowings of commercial paper and other | 85 | 311 | |||||||||||||||||||||||||||||||||||||
Debt proceeds | Debt proceeds | 1,314 | 951 | Debt proceeds | 1,314 | 1,006 | ||||||||||||||||||||||||||||||||||
Debt repayments | Debt repayments | (1,124) | (1,111) | Debt repayments | (1,144) | (1,511) | ||||||||||||||||||||||||||||||||||
Dividends on common stock | Dividends on common stock | (63) | (63) | Dividends on common stock | (96) | (94) | ||||||||||||||||||||||||||||||||||
Common stock issued | Common stock issued | (18) | (9) | Common stock issued | 1 | (6) | ||||||||||||||||||||||||||||||||||
Common stock repurchased | Common stock repurchased | (133) | (300) | Common stock repurchased | (282) | (300) | ||||||||||||||||||||||||||||||||||
Other financing activities | Other financing activities | (6) | (6) | Other financing activities | (4) | (6) | ||||||||||||||||||||||||||||||||||
Net cash used in financing activities from continuing operations | Net cash used in financing activities from continuing operations | (57) | (330) | Net cash used in financing activities from continuing operations | (126) | (600) | ||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6) | (15) | Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (10) | (51) | ||||||||||||||||||||||||||||||||||
Decrease in cash, cash equivalents, and restricted cash | Decrease in cash, cash equivalents, and restricted cash | (49) | (224) | Decrease in cash, cash equivalents, and restricted cash | (108) | (216) | ||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | Cash, cash equivalents, and restricted cash at beginning of period | 267 | 672 | Cash, cash equivalents, and restricted cash at beginning of period | 267 | 672 | ||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | Cash, cash equivalents, and restricted cash at end of period | $ | 218 | $ | 448 | Cash, cash equivalents, and restricted cash at end of period | $ | 159 | $ | 456 |
Three months ended June 30, 2023 | Three months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except share amounts in thousands) | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2023 | $ | — | 46,492 | $ | 23 | $ | 1,168 | $ | 2,596 | $ | (782) | $ | 3,005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of July 1, 2023 | Balance as of July 1, 2023 | $ | — | 45,527 | $ | 23 | $ | 1,154 | $ | 2,489 | $ | (570) | $ | 3,096 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | — | — | — | — | (18) | 212 | 194 | Comprehensive income | — | — | — | — | 161 | (9) | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$0.62 per share | — | — | — | — | (29) | — | (29) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$0.71 per share | Common stock dividends declared —$0.71 per share | — | — | — | — | (34) | — | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock award and stock purchase plans and other (1) | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 115 | 1 | 2 | — | — | 3 | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 281 | — | 21 | — | — | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | Common stock repurchases | — | (1,080) | (1) | (27) | (60) | — | (88) | Common stock repurchases | — | (1,486) | (1) | (37) | (111) | — | (149) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | — | — | 11 | — | — | 11 | Share-based compensation | — | — | — | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | — | 45,527 | $ | 23 | $ | 1,154 | $ | 2,489 | $ | (570) | $ | 3,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | Balance as of September 30, 2023 | $ | — | 44,322 | $ | 22 | $ | 1,149 | $ | 2,505 | $ | (579) | $ | 3,097 |
Three months ended June 30, 2022 | Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except share amounts in thousands) | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2022 | $ | — | 51,137 | $ | 26 | $ | 1,134 | $ | 2,171 | $ | (682) | $ | 2,649 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of July 1, 2022 | Balance as of July 1, 2022 | $ | — | 51,195 | $ | 26 | $ | 1,149 | $ | 2,380 | $ | (722) | $ | 2,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | — | — | — | — | 239 | (40) | 199 | Comprehensive income | — | — | — | — | 246 | (50) | 196 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$0.58 per share | — | — | — | — | (30) | — | (30) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$0.62 per share | Common stock dividends declared —$0.62 per share | — | — | — | — | (32) | — | (32) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock award and stock purchase plans and other (1) | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 58 | — | 3 | — | — | 3 | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 32 | (1) | 4 | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | Common stock repurchases | — | — | — | — | — | — | — | Common stock repurchases | — | (976) | — | 63 | (63) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | — | — | 12 | — | — | 12 | Share-based compensation | — | — | — | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | — | 51,195 | $ | 26 | $ | 1,149 | $ | 2,380 | $ | (722) | $ | 2,833 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | Balance as of September 30, 2022 | $ | — | 50,251 | $ | 25 | $ | 1,227 | $ | 2,531 | $ | (772) | $ | 3,011 |
Six months ended June 30, 2023 | Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except share amounts in thousands) | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | Balance as of January 1, 2023 | $ | — | 46,287 | $ | 23 | $ | 1,192 | $ | 2,518 | $ | (796) | $ | 2,937 | Balance as of January 1, 2023 | $ | — | 46,287 | $ | 23 | $ | 1,192 | $ | 2,518 | $ | (796) | $ | 2,937 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | — | — | — | — | 121 | 226 | 347 | Comprehensive income | — | — | — | — | 282 | 217 | 499 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$1.24 per share | — | — | — | — | (59) | — | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$1.95 per share | Common stock dividends declared —$1.95 per share | — | — | — | — | (93) | — | (93) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock award and stock purchase plans and other (1) | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 785 | 1 | (21) | 2 | — | (18) | Common stock issued under employee stock award and stock purchase plans and other (1) | — | 1,066 | 1 | — | 2 | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | Common stock repurchases | — | (1,545) | (1) | (39) | (93) | — | (133) | Common stock repurchases | — | (3,031) | (2) | (76) | (204) | — | (282) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | — | — | 22 | — | — | 22 | Share-based compensation | — | — | — | 33 | — | — | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | — | 45,527 | $ | 23 | $ | 1,154 | $ | 2,489 | $ | (570) | $ | 3,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | Balance as of September 30, 2023 | $ | — | 44,322 | $ | 22 | $ | 1,149 | $ | 2,505 | $ | (579) | $ | 3,097 |
Six months ended June 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except share amounts in thousands) | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | (In millions, except share amounts in thousands) | Amount | Shares | Par | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | Balance as of January 1, 2022 | $ | — | 53,789 | $ | 27 | $ | 1,194 | $ | 2,266 | $ | (689) | $ | 2,798 | Balance as of January 1, 2022 | $ | — | 53,789 | $ | 27 | $ | 1,194 | $ | 2,266 | $ | (689) | $ | 2,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | — | — | — | — | 415 | (33) | 382 | Comprehensive income | — | — | — | — | 661 | (83) | 578 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$1.16 per share | — | — | — | — | (61) | — | (61) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock option and stock purchase plans and other (1) | — | 458 | — | (9) | — | — | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared —$1.78 per share | Common stock dividends declared —$1.78 per share | — | — | — | — | (93) | — | (93) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock purchased under employee stock option and stock purchase plans and other (1) | Common stock purchased under employee stock option and stock purchase plans and other (1) | — | 490 | — | (6) | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | Common stock repurchases | — | (3,052) | (1) | (59) | (240) | — | (300) | Common stock repurchases | — | (4,028) | (2) | 5 | (303) | — | (300) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | — | — | 23 | — | — | 23 | Share-based compensation | — | — | — | 34 | — | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | — | 51,195 | $ | 26 | $ | 1,149 | $ | 2,380 | $ | (722) | $ | 2,833 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | Balance as of September 30, 2022 | $ | — | 50,251 | $ | 25 | $ | 1,227 | $ | 2,531 | $ | (772) | $ | 3,011 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions: | Fleet Management Solutions: | Fleet Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||||||
ChoiceLease | ChoiceLease | $ | 781 | $ | 763 | $ | 1,557 | $ | 1,527 | ChoiceLease | $ | 799 | $ | 772 | $ | 2,356 | $ | 2,299 | ||||||||||||||||||||||||||||||||||
Commercial rental | Commercial rental | 301 | 336 | 605 | 642 | Commercial rental | 293 | 349 | 898 | 991 | ||||||||||||||||||||||||||||||||||||||||||
SelectCare and other | SelectCare and other | 172 | 153 | 354 | 301 | SelectCare and other | 174 | 159 | 528 | 460 | ||||||||||||||||||||||||||||||||||||||||||
FMS Europe (1) | FMS Europe (1) | — | 55 | — | 119 | FMS Europe (1) | — | 23 | — | 142 | ||||||||||||||||||||||||||||||||||||||||||
Fuel services revenue | Fuel services revenue | 205 | 314 | 446 | 561 | Fuel services revenue | 221 | 279 | 667 | 840 | ||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | 1,459 | 1,621 | 2,962 | 3,150 | Fleet Management Solutions | 1,487 | 1,582 | 4,449 | 4,732 | ||||||||||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 1,179 | 1,174 | 2,380 | 2,263 | Supply Chain Solutions | 1,194 | 1,206 | 3,574 | 3,469 | ||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 440 | 450 | 894 | 875 | Dedicated Transportation Solutions | 448 | 455 | 1,342 | 1,330 | ||||||||||||||||||||||||||||||||||||||||||
Eliminations (2) | Eliminations (2) | (194) | (211) | (400) | (400) | Eliminations (2) | (205) | (208) | (605) | (608) | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 2,884 | $ | 3,034 | $ | 5,836 | $ | 5,888 | Total revenue | $ | 2,924 | $ | 3,035 | $ | 8,760 | $ | 8,923 | ||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes: | Earnings from continuing operations before income taxes: | Earnings from continuing operations before income taxes: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | $ | 180 | $ | 286 | $ | 362 | $ | 535 | Fleet Management Solutions | $ | 169 | $ | 266 | $ | 531 | $ | 801 | ||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 76 | 62 | 93 | 105 | Supply Chain Solutions | 81 | 71 | 174 | 176 | ||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 33 | 23 | 62 | 43 | Dedicated Transportation Solutions | 28 | 28 | 90 | 72 | ||||||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (24) | (30) | (49) | (56) | Eliminations | (23) | (27) | (73) | (84) | ||||||||||||||||||||||||||||||||||||||||||
265 | 341 | 468 | 627 | 255 | 338 | 722 | 965 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated Central Support Services | Unallocated Central Support Services | (20) | (24) | (35) | (40) | Unallocated Central Support Services | (20) | (21) | (54) | (61) | ||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense (3) | Intangible amortization expense (3) | (8) | (9) | (17) | (19) | Intangible amortization expense (3) | (8) | (8) | (25) | (27) | ||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net (4) | Non-operating pension costs, net (4) | (10) | (2) | (20) | (5) | Non-operating pension costs, net (4) | (10) | (3) | (30) | (8) | ||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability, net (5) | Other items impacting comparability, net (5) | (183) | 32 | (151) | 27 | Other items impacting comparability, net (5) | (4) | 28 | (155) | 55 | ||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | Earnings from continuing operations before income taxes | $ | 44 | $ | 338 | $ | 245 | $ | 590 | Earnings from continuing operations before income taxes | $ | 213 | $ | 334 | $ | 458 | $ | 924 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | $ | 971 | $ | 561 | $ | 1,592 | $ | 1,112 | Fleet Management Solutions | $ | 754 | $ | 656 | $ | 2,346 | $ | 1,768 | ||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 32 | 40 | 44 | 66 | Supply Chain Solutions | 44 | 58 | 88 | 124 | ||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 1 | 1 | 1 | 1 | Dedicated Transportation Solutions | — | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Central Support Services | Central Support Services | 7 | 9 | 15 | 16 | Central Support Services | 7 | 7 | 22 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Purchases of property and revenue earning equipment | Purchases of property and revenue earning equipment | $ | 1,011 | $ | 611 | $ | 1,652 | $ | 1,195 | Purchases of property and revenue earning equipment | $ | 805 | $ | 722 | $ | 2,457 | $ | 1,917 |
Three months ended June 30, 2023 | Three months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | FMS | SCS | DTS | Eliminations | Total | (In millions) | FMS | SCS | DTS | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 1,381 | $ | 1,035 | $ | 440 | $ | (185) | $ | 2,671 | United States | $ | 1,407 | $ | 1,042 | $ | 448 | $ | (193) | $ | 2,704 | ||||||||||||||||||||||||||||||||||||||||||
Canada | Canada | 78 | 65 | — | (9) | 134 | Canada | 80 | 69 | — | (12) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mexico | Mexico | — | 79 | — | — | 79 | Mexico | — | 83 | — | — | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 1,459 | $ | 1,179 | $ | 440 | $ | (194) | $ | 2,884 | Total revenue | $ | 1,487 | $ | 1,194 | $ | 448 | $ | (205) | $ | 2,924 |
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
(In millions) | FMS | SCS | DTS | Eliminations | Total | |||||||||||||||||||||||||||
United States | $ | 1,479 | $ | 1,077 | $ | 455 | $ | (198) | $ | 2,813 | ||||||||||||||||||||||
Canada | 80 | 61 | — | (10) | 131 | |||||||||||||||||||||||||||
Europe (1) | 23 | — | — | — | 23 | |||||||||||||||||||||||||||
Mexico | — | 68 | — | — | 68 | |||||||||||||||||||||||||||
Total revenue | $ | 1,582 | $ | 1,206 | $ | 455 | $ | (208) | $ | 3,035 | ||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In millions) | FMS | SCS | DTS | Eliminations | Total | |||||||||||||||||||||||||||
United States | $ | 1,485 | $ | 1,040 | $ | 450 | $ | (201) | $ | 2,774 | ||||||||||||||||||||||
Canada | 81 | 69 | — | (10) | 140 | |||||||||||||||||||||||||||
Europe (1) | 55 | — | — | — | 55 | |||||||||||||||||||||||||||
Mexico | — | 65 | — | — | 65 | |||||||||||||||||||||||||||
Total revenue | $ | 1,621 | $ | 1,174 | $ | 450 | $ | (211) | $ | 3,034 | ||||||||||||||||||||||
Six months ended June 30, 2023 | Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | FMS | SCS | DTS | Eliminations | Total | (In millions) | FMS | SCS | DTS | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 2,807 | $ | 2,103 | $ | 894 | $ | (381) | $ | 5,423 | United States | $ | 4,214 | $ | 3,145 | $ | 1,342 | $ | (573) | $ | 8,128 | ||||||||||||||||||||||||||||||||||||||||||
Canada | Canada | 155 | 127 | — | (19) | 263 | Canada | 235 | 197 | — | (32) | 400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mexico | Mexico | — | 150 | — | — | 150 | Mexico | — | 232 | — | — | 232 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 2,962 | $ | 2,380 | $ | 894 | $ | (400) | $ | 5,836 | Total revenue | $ | 4,449 | $ | 3,574 | $ | 1,342 | $ | (605) | $ | 8,760 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | FMS | SCS | DTS | Eliminations | Total | (In millions) | FMS | SCS | DTS | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | United States | $ | 2,872 | $ | 2,012 | $ | 875 | $ | (380) | $ | 5,379 | United States | $ | 4,351 | $ | 3,089 | $ | 1,330 | $ | (578) | $ | 8,192 | ||||||||||||||||||||||||||||||||||||||||||
Canada | Canada | 159 | 129 | — | (20) | 268 | Canada | 239 | 190 | — | (30) | 399 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe (1) | Europe (1) | 119 | — | — | — | 119 | Europe (1) | 142 | — | — | — | 142 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mexico | Mexico | — | 122 | — | — | 122 | Mexico | — | 190 | — | — | 190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 3,150 | $ | 2,263 | $ | 875 | $ | (400) | $ | 5,888 | Total revenue | $ | 4,732 | $ | 3,469 | $ | 1,330 | $ | (608) | $ | 8,923 | ||||||||||||||||||||||||||||||||||||||||||
(1)Refer to Note 13, "Other Items Impacting Comparability" for further information on the exit of the FMS U.K. business. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Omnichannel retail | Omnichannel retail | $ | 405 | $ | 451 | $ | 858 | $ | 869 | Omnichannel retail | $ | 421 | $ | 474 | $ | 1,279 | $ | 1,343 | ||||||||||||||||||||||||||||||||||
Automotive | Automotive | 410 | 389 | 803 | 743 | Automotive | 388 | 392 | 1,192 | 1,135 | ||||||||||||||||||||||||||||||||||||||||||
Consumer packaged goods | Consumer packaged goods | 231 | 208 | 458 | 404 | Consumer packaged goods | 237 | 218 | 695 | 622 | ||||||||||||||||||||||||||||||||||||||||||
Industrial and other | Industrial and other | 133 | 126 | 261 | 247 | Industrial and other | 148 | 122 | 408 | 369 | ||||||||||||||||||||||||||||||||||||||||||
Total SCS revenue | Total SCS revenue | $ | 1,179 | $ | 1,174 | $ | 2,380 | $ | 2,263 | Total SCS revenue | $ | 1,194 | $ | 1,206 | $ | 3,574 | $ | 3,469 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Balance as of beginning of period | Balance as of beginning of period | $ | 544 | $ | 593 | Balance as of beginning of period | $ | 544 | $ | 593 | ||||||||||||||||||
Recognized as revenue during period from beginning balance | Recognized as revenue during period from beginning balance | (93) | (163) | Recognized as revenue during period from beginning balance | (131) | (143) | ||||||||||||||||||||||
Consideration deferred during period, net | Consideration deferred during period, net | 96 | 123 | Consideration deferred during period, net | 137 | 111 | ||||||||||||||||||||||
Foreign currency translation adjustment and other | Foreign currency translation adjustment and other | 2 | 11 | Foreign currency translation adjustment and other | — | (10) | ||||||||||||||||||||||
Balance as of end of period | Balance as of end of period | $ | 549 | $ | 564 | Balance as of end of period | $ | 550 | $ | 551 |
(In millions) | (In millions) | June 30, 2023 | December 31, 2022 | (In millions) | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Trade | Trade | $ | 1,376 | $ | 1,476 | Trade | $ | 1,434 | $ | 1,476 | ||||||||||||||||||
Sales-type lease | Sales-type lease | 124 | 120 | Sales-type lease | 136 | 120 | ||||||||||||||||||||||
Other, primarily warranty and insurance | Other, primarily warranty and insurance | 106 | 55 | Other, primarily warranty and insurance | 111 | 55 | ||||||||||||||||||||||
1,606 | 1,651 | 1,681 | 1,651 | |||||||||||||||||||||||||
Allowance for credit losses and other | Allowance for credit losses and other | (34) | (41) | Allowance for credit losses and other | (34) | (41) | ||||||||||||||||||||||
Receivables, net | Receivables, net | $ | 1,572 | $ | 1,610 | Receivables, net | $ | 1,647 | $ | 1,610 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Balance as of beginning of period | Balance as of beginning of period | $ | 41 | $ | 31 | Balance as of beginning of period | $ | 41 | $ | 31 | ||||||||||||||||||
Changes to provisions for credit losses | Changes to provisions for credit losses | 9 | 18 | Changes to provisions for credit losses | 13 | 22 | ||||||||||||||||||||||
Write-offs and other | Write-offs and other | (16) | (11) | Write-offs and other | (20) | (15) | ||||||||||||||||||||||
Balance as of end of period | Balance as of end of period | $ | 34 | $ | 38 | Balance as of end of period | $ | 34 | $ | 38 |
Estimated Useful Lives (In Years) | June 30, 2023 | December 31, 2022 | Estimated Useful Lives (In Years) | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Cost | Accumulated Depreciation | Net | Cost | Accumulated Depreciation | Net | (Dollars in millions) | Cost | Accumulated Depreciation | Net | Cost | Accumulated Depreciation | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for use: | Held for use: | Held for use: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trucks | Trucks | 3 — 7 | $ | 5,499 | $ | (2,153) | $ | 3,346 | $ | 5,282 | $ | (2,114) | $ | 3,168 | Trucks | 3 — 7 | $ | 5,563 | $ | (2,168) | $ | 3,395 | $ | 5,282 | $ | (2,114) | $ | 3,168 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tractors | Tractors | 4 — 7.5 | 7,283 | (2,972) | 4,311 | 7,153 | (3,153) | 4,000 | Tractors | 4 — 7.5 | 7,133 | (2,819) | 4,314 | 7,153 | (3,153) | 4,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trailers and other | Trailers and other | 9.5 — 12 | 1,679 | (686) | 993 | 1,610 | (690) | 920 | Trailers and other | 9.5 — 12 | 1,689 | (685) | 1,004 | 1,610 | (690) | 920 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for sale (1) | Held for sale (1) | 630 | (485) | 145 | 388 | (286) | 102 | Held for sale (1) | 723 | (561) | 162 | 388 | (286) | 102 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 15,091 | $ | (6,296) | $ | 8,795 | $ | 14,433 | $ | (6,243) | $ | 8,190 | Total | $ | 15,108 | $ | (6,233) | $ | 8,875 | $ | 14,433 | $ | (6,243) | $ | 8,190 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Gains on used vehicle sales, net (1) | Gains on used vehicle sales, net (1) | $ | (57) | $ | (132) | $ | (131) | $ | (247) | Gains on used vehicle sales, net (1) | $ | (52) | $ | (116) | $ | (183) | $ | (362) | ||||||||||||||||||||||||||||||||||
Losses from valuation adjustments | Losses from valuation adjustments | 2 | 2 | 4 | 4 | Losses from valuation adjustments | 5 | 3 | 9 | 6 | ||||||||||||||||||||||||||||||||||||||||||
Used vehicle sales, net | Used vehicle sales, net | $ | (55) | $ | (130) | $ | (127) | $ | (243) | Used vehicle sales, net | $ | (47) | $ | (113) | $ | (174) | $ | (356) |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In millions) | Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||||||||||||||||||||
Salaries and wages | $ | 155 | $ | — | $ | 155 | $ | 259 | $ | — | $ | 259 | ||||||||||||||||||||||||||
Deferred compensation | 5 | 93 | 98 | 5 | 80 | 85 | ||||||||||||||||||||||||||||||||
Pension and other employee benefits | 19 | 183 | 202 | 29 | 179 | 208 | ||||||||||||||||||||||||||||||||
Insurance obligations, primarily self-insured | 173 | 299 | 472 | 179 | 309 | 488 | ||||||||||||||||||||||||||||||||
Operating taxes | 138 | — | 138 | 132 | — | 132 | ||||||||||||||||||||||||||||||||
Interest | 51 | — | 51 | 41 | — | 41 | ||||||||||||||||||||||||||||||||
Deposits, mainly from customers | 73 | — | 73 | 84 | — | 84 | ||||||||||||||||||||||||||||||||
Operating lease liabilities | 196 | 586 | 782 | 191 | 541 | 732 | ||||||||||||||||||||||||||||||||
Deferred revenue (1) | 198 | 351 | 549 | 178 | 366 | 544 | ||||||||||||||||||||||||||||||||
Other | 139 | 92 | 231 | 102 | 93 | 195 | ||||||||||||||||||||||||||||||||
Total | $ | 1,147 | $ | 1,604 | $ | 2,751 | $ | 1,200 | $ | 1,568 | $ | 2,768 |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In millions) | Accrued Expenses | Non-Current Liabilities | Total | Accrued Expenses | Non-Current Liabilities | Total | ||||||||||||||||||||||||||||||||
Salaries and wages | $ | 179 | $ | — | $ | 179 | $ | 259 | $ | — | $ | 259 | ||||||||||||||||||||||||||
Deferred compensation | 5 | 92 | 97 | 5 | 80 | 85 | ||||||||||||||||||||||||||||||||
Pension and other employee benefits | 24 | 184 | 208 | 29 | 179 | 208 | ||||||||||||||||||||||||||||||||
Insurance obligations, primarily self-insured | 176 | 306 | 482 | 179 | 309 | 488 | ||||||||||||||||||||||||||||||||
Operating taxes | 143 | — | 143 | 132 | — | 132 | ||||||||||||||||||||||||||||||||
Interest | 47 | — | 47 | 41 | — | 41 | ||||||||||||||||||||||||||||||||
Deposits, mainly from customers | 71 | — | 71 | 84 | — | 84 | ||||||||||||||||||||||||||||||||
Operating lease liabilities | 215 | 783 | 998 | 191 | 541 | 732 | ||||||||||||||||||||||||||||||||
Deferred revenue | 193 | 357 | 550 | 178 | 366 | 544 | ||||||||||||||||||||||||||||||||
Other | 135 | 91 | 226 | 102 | 93 | 195 | ||||||||||||||||||||||||||||||||
Total | $ | 1,188 | $ | 1,813 | $ | 3,001 | $ | 1,200 | $ | 1,568 | $ | 2,768 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Operating leases | Operating leases | Operating leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease income related to ChoiceLease | Lease income related to ChoiceLease | $ | 368 | $ | 378 | $ | 728 | $ | 760 | Lease income related to ChoiceLease | $ | 375 | $ | 367 | $ | 1,103 | $ | 1,127 | ||||||||||||||||||||||||||||||||||
Lease income related to commercial rental (1) | Lease income related to commercial rental (1) | $ | 287 | $ | 325 | $ | 575 | $ | 623 | Lease income related to commercial rental (1) | $ | 281 | $ | 333 | $ | 856 | $ | 956 | ||||||||||||||||||||||||||||||||||
Sales-type leases | Sales-type leases | Sales-type leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income related to net investment in leases | Interest income related to net investment in leases | $ | 11 | $ | 10 | $ | 26 | $ | 21 | Interest income related to net investment in leases | $ | 14 | $ | 12 | $ | 40 | $ | 33 | ||||||||||||||||||||||||||||||||||
Variable lease income excluding commercial rental (1) | Variable lease income excluding commercial rental (1) | $ | 70 | $ | 71 | $ | 142 | $ | 145 | Variable lease income excluding commercial rental (1) | $ | 74 | $ | 81 | $ | 216 | $ | 226 |
(In millions) | (In millions) | June 30, 2023 | December 31, 2022 | (In millions) | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Net investment in the lease — lease payment receivable | Net investment in the lease — lease payment receivable | $ | 607 | $ | 598 | Net investment in the lease — lease payment receivable | $ | 680 | $ | 598 | ||||||||||||||||||||||||||||||
Net investment in the lease — unguaranteed residual value in assets | Net investment in the lease — unguaranteed residual value in assets | 65 | 43 | Net investment in the lease — unguaranteed residual value in assets | 42 | 43 | ||||||||||||||||||||||||||||||||||
672 | 641 | 722 | 641 | |||||||||||||||||||||||||||||||||||||
Estimated loss allowance | Estimated loss allowance | (4) | (6) | Estimated loss allowance | (3) | (6) | ||||||||||||||||||||||||||||||||||
Total | Total | $ | 668 | $ | 635 | Total | $ | 719 | $ | 635 |
Weighted Average Interest Rate | Weighted Average Interest Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | June 30, 2023 | Maturities | June 30, 2023 | December 31, 2022 | (Dollars in millions) | September 30, 2023 | Maturities | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Debt: | Debt: | Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. commercial paper | U.S. commercial paper | 5.50% | 2026 | $ | 646 | $ | 672 | U.S. commercial paper | 5.62% | 2026 | $ | 758 | $ | 672 | ||||||||||||||||||||||||||||||||||||||
Trade receivables financing program | Trade receivables financing program | 6.02% | 2024 | 50 | 50 | Trade receivables financing program | 5.83% | 2024 | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Global revolving credit facility | Global revolving credit facility | — | 2026 | — | — | Global revolving credit facility | — | 2026 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Unsecured U.S. obligations | Unsecured U.S. obligations | 4.16% | 2024-2027 | 375 | 375 | Unsecured U.S. obligations | 4.13% | 2024-2027 | 375 | 375 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued February 2018 | Unsecured medium-term note issued February 2018 | — | 2023 | — | 450 | Unsecured medium-term note issued February 2018 | — | 2023 | — | 450 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued June 2018 | Unsecured medium-term note issued June 2018 | — | 2023 | — | 450 | Unsecured medium-term note issued June 2018 | — | 2023 | — | 450 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued October 2018 | Unsecured medium-term note issued October 2018 | 3.88% | 2023 | 300 | 300 | Unsecured medium-term note issued October 2018 | 3.88% | 2023 | 300 | 300 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued February 2019 | Unsecured medium-term note issued February 2019 | 3.65% | 2024 | 600 | 600 | Unsecured medium-term note issued February 2019 | 3.65% | 2024 | 600 | 600 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued August 2019 | Unsecured medium-term note issued August 2019 | 2.50% | 2024 | 550 | 550 | Unsecured medium-term note issued August 2019 | 2.50% | 2024 | 550 | 550 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued April 2020 | Unsecured medium-term note issued April 2020 | 4.63% | 2025 | 400 | 400 | Unsecured medium-term note issued April 2020 | 4.63% | 2025 | 400 | 400 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued May 2020 | Unsecured medium-term note issued May 2020 | 3.35% | 2025 | 400 | 400 | Unsecured medium-term note issued May 2020 | 3.35% | 2025 | 400 | 400 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued December 1995 | Unsecured medium-term note issued December 1995 | 6.95% | 2025 | 150 | 150 | Unsecured medium-term note issued December 1995 | 6.95% | 2025 | 150 | 150 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued November 2021 (1) | Unsecured medium-term note issued November 2021 (1) | 6.03% | 2026 | 270 | 270 | Unsecured medium-term note issued November 2021 (1) | 6.19% | 2026 | 270 | 270 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued November 2019 | Unsecured medium-term note issued November 2019 | 2.90% | 2026 | 400 | 400 | Unsecured medium-term note issued November 2019 | 2.90% | 2026 | 400 | 400 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued February 2022 (1) | Unsecured medium-term note issued February 2022 (1) | 4.29% | 2027 | 433 | 434 | Unsecured medium-term note issued February 2022 (1) | 4.47% | 2027 | 432 | 434 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued May 2022 | Unsecured medium-term note issued May 2022 | 4.30% | 2027 | 300 | 300 | Unsecured medium-term note issued May 2022 | 4.30% | 2027 | 300 | 300 | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued February 2023 | Unsecured medium-term note issued February 2023 | 5.65% | 2028 | 500 | — | Unsecured medium-term note issued February 2023 | 5.65% | 2028 | 500 | — | ||||||||||||||||||||||||||||||||||||||||||
Unsecured medium-term note issued May 2023 | Unsecured medium-term note issued May 2023 | 5.25% | 2028 | 650 | — | Unsecured medium-term note issued May 2023 | 5.25% | 2028 | 650 | — | ||||||||||||||||||||||||||||||||||||||||||
Unsecured foreign obligations | Unsecured foreign obligations | 2.88% | 2024 | 50 | 50 | Unsecured foreign obligations | 2.88% | 2024 | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed U.S. obligations (2) | Asset-backed U.S. obligations (2) | 3.22% | 2023-2030 | 432 | 477 | Asset-backed U.S. obligations (2) | 3.39% | 2023-2030 | 415 | 477 | ||||||||||||||||||||||||||||||||||||||||||
Finance lease obligations and other | Finance lease obligations and other | 2023-2041 | 44 | 42 | Finance lease obligations and other | 2023-2031 | 44 | 42 | ||||||||||||||||||||||||||||||||||||||||||||
6,550 | 6,370 | 6,644 | 6,370 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs and original issue discounts | Debt issuance costs and original issue discounts | (25) | (18) | Debt issuance costs and original issue discounts | (23) | (18) | ||||||||||||||||||||||||||||||||||||||||||||||
Total debt (3) | Total debt (3) | 6,525 | 6,352 | Total debt (3) | 6,621 | 6,352 | ||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | Short-term debt and current portion of long-term debt | (1,330) | (1,349) | Short-term debt and current portion of long-term debt | (1,888) | (1,349) | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 5,195 | $ | 5,003 | Long-term debt | $ | 4,733 | $ | 5,003 |
Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2023 | Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | Debt Proceeds | Debt Repayments | (In millions) | Debt Proceeds | Debt Repayments | ||||||||||||||||||||||||||||||||||
Medium-term notes (1) | Medium-term notes (1) | $ | 1,142 | Medium-term notes | $ | 900 | Medium-term notes (1) | $ | 1,142 | Medium-term notes | $ | 900 | ||||||||||||||||||||||||||||
U.S. and foreign term loans, finance lease obligations and other | U.S. and foreign term loans, finance lease obligations and other | 172 | U.S. and foreign term loans, finance lease obligations and other | 224 | U.S. and foreign term loans, finance lease obligations and other | 172 | U.S. and foreign term loans, finance lease obligations and other | 244 | ||||||||||||||||||||||||||||||||
Total debt proceeds | Total debt proceeds | $ | 1,314 | Total debt repaid | $ | 1,124 | Total debt proceeds | $ | 1,314 | Total debt repaid | $ | 1,144 |
(In millions) | (In millions) | Currency Translation Adjustments | Net Actuarial (Loss) Gain and Prior Service Costs | Unrealized Gain (Loss) from Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Gain | (In millions) | Currency Translation Adjustments | Net Actuarial (Loss) Gain and Prior Service Costs | Unrealized Gain (Loss) from Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Gain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2023 | January 1, 2023 | $ | (238) | $ | (566) | $ | 8 | $ | (796) | January 1, 2023 | $ | (238) | $ | (566) | $ | 8 | $ | (796) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain (loss), net of tax, before reclassifications | 35 | — | 1 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain, net of tax, before reclassifications | Other comprehensive gain, net of tax, before reclassifications | 20 | — | 4 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI, net of tax | Amounts reclassified from AOCI, net of tax | 183 | 10 | (3) | 190 | Amounts reclassified from AOCI, net of tax | 183 | 15 | (5) | 193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive gain (loss), net of tax | Net current-period other comprehensive gain (loss), net of tax | 218 | 10 | (2) | 226 | Net current-period other comprehensive gain (loss), net of tax | 203 | 15 | (1) | 217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | $ | (20) | $ | (556) | $ | 6 | $ | (570) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | $ | (35) | $ | (551) | $ | 7 | $ | (579) |
(In millions) | (In millions) | Currency Translation Adjustments | Net Actuarial (Loss) Gain and Prior Service Costs | Unrealized Gain (Loss) from Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Gain | (In millions) | Currency Translation Adjustments | Net Actuarial (Loss) Gain and Prior Service Costs | Unrealized (Loss) Gain from Cash Flow Hedges | Accumulated Other Comprehensive (Loss) Gain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2022 | January 1, 2022 | $ | (153) | $ | (529) | $ | (7) | $ | (689) | January 1, 2022 | $ | (153) | $ | (529) | $ | (7) | $ | (689) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain (loss), net of tax, before reclassifications | Other comprehensive gain (loss), net of tax, before reclassifications | (53) | — | 8 | (45) | Other comprehensive gain (loss), net of tax, before reclassifications | (111) | — | 12 | (99) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI, net of tax | Amounts reclassified from AOCI, net of tax | — | 9 | 3 | 12 | Amounts reclassified from AOCI, net of tax | — | 13 | 3 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive gain (loss), net of tax | Net current-period other comprehensive gain (loss), net of tax | (53) | 9 | 11 | (33) | Net current-period other comprehensive gain (loss), net of tax | (111) | 13 | 15 | (83) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | $ | (206) | $ | (520) | $ | 4 | $ | (722) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | $ | (264) | $ | (516) | $ | 8 | $ | (772) |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions and shares in thousands) | (Dollars in millions and shares in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share — Basic: | Earnings per share — Basic: | Earnings per share — Basic: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (18) | $ | 240 | $ | 122 | $ | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | $ | 160 | $ | 247 | $ | 282 | $ | 663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Distributed and undistributed earnings allocated to unvested stock | Less: Distributed and undistributed earnings allocated to unvested stock | — | (1) | (1) | (2) | Less: Distributed and undistributed earnings allocated to unvested stock | (1) | (1) | (2) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations available to common shareholders | $ | (18) | $ | 239 | $ | 121 | 414 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations available to common shareholders | Earnings from continuing operations available to common shareholders | $ | 159 | $ | 246 | $ | 280 | 660 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | Weighted average common shares outstanding | 45,975 | 49,852 | 46,176 | 50,474 | Weighted average common shares outstanding | 45,087 | 49,806 | 45,813 | 50,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations per common share — Basic | $ | (0.39) | $ | 4.80 | $ | 2.64 | $ | 8.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations per common share — Basic | Earnings from continuing operations per common share — Basic | $ | 3.51 | $ | 4.92 | $ | 6.11 | $ | 13.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share — Diluted: | Earnings per share — Diluted: | Earnings per share — Diluted: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (18) | $ | 240 | $ | 122 | $ | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | $ | 160 | $ | 247 | $ | 282 | $ | 663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Distributed and undistributed earnings allocated to unvested stock | Less: Distributed and undistributed earnings allocated to unvested stock | — | — | — | — | Less: Distributed and undistributed earnings allocated to unvested stock | — | — | — | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations available to common shareholders — Diluted | $ | (18) | $ | 240 | $ | 122 | $ | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations available to common shareholders — Diluted | Earnings from continuing operations available to common shareholders — Diluted | $ | 160 | $ | 247 | $ | 282 | $ | 660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding — Basic | Weighted average common shares outstanding — Basic | 45,975 | 49,852 | 46,176 | 50,474 | Weighted average common shares outstanding — Basic | 45,087 | 49,806 | 45,813 | 50,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive equity awards | Effect of dilutive equity awards | — | 1,073 | 980 | 1,226 | Effect of dilutive equity awards | 1,183 | 1,267 | 1,047 | 1,026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding — Diluted | Weighted average common shares outstanding — Diluted | 45,975 | 50,925 | 47,156 | 51,700 | Weighted average common shares outstanding — Diluted | 46,270 | 51,073 | 46,860 | 51,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations per common share — Diluted | $ | (0.39) | $ | 4.72 | $ | 2.60 | $ | 8.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations per common share — Diluted | Earnings from continuing operations per common share — Diluted | $ | 3.44 | $ | 4.82 | $ | 6.01 | $ | 12.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anti-dilutive equity awards not included in diluted EPS | Anti-dilutive equity awards not included in diluted EPS | 2,531 | 1,068 | 1,579 | 765 | Anti-dilutive equity awards not included in diluted EPS | 73 | 726 | 1,077 | 752 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Company-administered plans: | Company-administered plans: | Company-administered plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 1 | $ | — | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||||
Interest cost | Interest cost | $ | 23 | $ | 16 | $ | 45 | $ | 32 | Interest cost | 22 | 16 | 67 | 47 | ||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (19) | (18) | (38) | (37) | Expected return on plan assets | (20) | (18) | (58) | (55) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss and prior service cost | Amortization of net actuarial loss and prior service cost | 6 | 5 | 13 | 11 | Amortization of net actuarial loss and prior service cost | 7 | 5 | 20 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Net pension expense | Net pension expense | $ | 10 | $ | 3 | $ | 20 | $ | 6 | Net pension expense | $ | 10 | $ | 3 | $ | 30 | $ | 9 | ||||||||||||||||||||||||||||||||||
Company-administered plans: | Company-administered plans: | Company-administered plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | $ | 7 | $ | 4 | $ | 15 | $ | 7 | U.S. | $ | 8 | $ | 3 | $ | 23 | $ | 10 | ||||||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 3 | (1) | 5 | (1) | Non-U.S. | 2 | — | 7 | (1) | ||||||||||||||||||||||||||||||||||||||||||
Net pension expense | Net pension expense | $ | 10 | $ | 3 | $ | 20 | $ | 6 | Net pension expense | $ | 10 | $ | 3 | $ | 30 | $ | 9 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
FMS Europe results (1) | FMS Europe results (1) | $ | (1) | $ | — | $ | 3 | $ | — | FMS Europe results (1) | $ | 4 | $ | — | $ | 7 | $ | — | ||||||||||||||||||||||||||||||||||
Gains on sale of U.K. revenue earning equipment (2) | Gains on sale of U.K. revenue earning equipment (2) | — | (20) | (2) | (28) | Gains on sale of U.K. revenue earning equipment (2) | — | (15) | (2) | (43) | ||||||||||||||||||||||||||||||||||||||||||
Gains on sale of U.K. properties (3) | Gains on sale of U.K. properties (3) | (4) | (23) | (9) | (24) | Gains on sale of U.K. properties (3) | — | (10) | (9) | (34) | ||||||||||||||||||||||||||||||||||||||||||
Commercial claims proceeds, net of fees (1) | Commercial claims proceeds, net of fees (1) | — | 5 | (31) | 12 | Commercial claims proceeds, net of fees (1) | — | (5) | (31) | 7 | ||||||||||||||||||||||||||||||||||||||||||
Severance and other, net (1) | Severance and other, net (1) | — | 6 | 3 | 9 | Severance and other, net (1) | — | 3 | 3 | 12 | ||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit | FMS U.K. exit | (5) | (32) | (36) | (31) | FMS U.K. exit | 4 | (27) | (32) | (58) | ||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | 188 | — | Currency translation adjustment loss | — | — | 188 | — | ||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | — | — | (1) | 4 | Other, net (1) | — | (1) | (1) | 3 | ||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability | Other items impacting comparability | $ | 183 | $ | (32) | $ | 151 | $ | (27) | Other items impacting comparability | $ | 4 | $ | (28) | $ | 155 | $ | (55) |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Interest paid | Interest paid | $ | 123 | $ | 100 | Interest paid | $ | 199 | $ | 157 | ||||||||||||||||||||||||||||||
Income taxes paid | Income taxes paid | $ | 67 | $ | 67 | Income taxes paid | $ | 78 | $ | 96 | ||||||||||||||||||||||||||||||
Cash paid for operating lease liabilities | Cash paid for operating lease liabilities | $ | 115 | $ | 86 | Cash paid for operating lease liabilities | $ | 175 | $ | 133 | ||||||||||||||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | Right-of-use assets obtained in exchange for lease obligations: | Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||||||||||||||||||||||||||
Finance leases | Finance leases | $ | 11 | $ | 5 | Finance leases | $ | 18 | $ | 5 | ||||||||||||||||||||||||||||||
Operating leases | Operating leases | $ | 154 | $ | 118 | Operating leases | $ | 422 | $ | 229 | ||||||||||||||||||||||||||||||
Capital expenditures acquired but not yet paid | Capital expenditures acquired but not yet paid | $ | 361 | $ | 290 | Capital expenditures acquired but not yet paid | $ | 324 | $ | 292 |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share) | (Dollars in millions, except per share) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions, except per share) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 2,884 | $ | 3,034 | $ | 5,836 | $ | 5,888 | (5)% | (1)% | Total revenue | $ | 2,924 | $ | 3,035 | $ | 8,760 | $ | 8,923 | (4)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue (1) | Operating revenue (1) | 2,326 | 2,307 | 4,672 | 4,523 | 1% | 3% | Operating revenue (1) | 2,379 | 2,347 | 7,051 | 6,870 | 1% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes (EBT) | Earnings from continuing operations before income taxes (EBT) | $ | 44 | $ | 338 | $ | 245 | $ | 590 | (87)% | (58)% | Earnings from continuing operations before income taxes (EBT) | $ | 213 | $ | 334 | $ | 458 | $ | 924 | (36)% | (50)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable EBT (1) | Comparable EBT (1) | 237 | 308 | 416 | 568 | (23)% | (27)% | Comparable EBT (1) | 227 | 309 | 643 | 877 | (27)% | (27)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | (18) | 240 | 122 | 416 | NM | (71)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | 160 | 247 | 282 | 663 | (35)% | (57)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable earnings from continuing operations (1) | Comparable earnings from continuing operations (1) | 170 | 226 | 303 | 414 | (25)% | (27)% | Comparable earnings from continuing operations (1) | 165 | 227 | 468 | 641 | (27)% | (27)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | (18) | 239 | 121 | 415 | NM | (71)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | 161 | 246 | 282 | 661 | (35)% | (57)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable EBITDA (1) | Comparable EBITDA (1) | 674 | 688 | 1,302 | 1,335 | (2)% | (2)% | Comparable EBITDA (1) | 680 | 696 | 1,982 | 2,031 | (2)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share (EPS) — Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per common share (EPS) — Diluted | Earnings per common share (EPS) — Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | Continuing operations | $ | (0.39) | $ | 4.72 | $ | 2.60 | $ | 8.05 | NM | (68)% | Continuing operations | $ | 3.44 | $ | 4.82 | $ | 6.01 | $ | 12.86 | (29)% | (53)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable (1) | Comparable (1) | 3.61 | 4.43 | 6.42 | 8.00 | (19)% | (20)% | Comparable (1) | 3.58 | 4.45 | 10.00 | 12.44 | (20)% | (20)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | (0.40) | 4.70 | 2.57 | 8.03 | NM | (68)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | 3.47 | 4.82 | 6.02 | 12.82 | (28)% | (53)% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease & related maintenance and rental revenue | Lease & related maintenance and rental revenue | $ | 976 | $ | 1,050 | $ | 1,955 | $ | 2,075 | (7)% | (6)% | Lease & related maintenance and rental revenue | $ | 986 | $ | 1,044 | $ | 2,941 | $ | 3,119 | (6)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of lease & related maintenance and rental | Cost of lease & related maintenance and rental | 661 | 688 | 1,335 | 1,387 | (4)% | (4)% | Cost of lease & related maintenance and rental | 666 | 691 | 2,001 | 2,078 | (4)% | (4)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | Gross margin | $ | 315 | $ | 362 | $ | 620 | $ | 688 | (13)% | (10)% | Gross margin | $ | 320 | $ | 353 | $ | 940 | $ | 1,041 | (9)% | (10)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | Gross margin % | 32% | 34% | 32% | 33% | Gross margin % | 32% | 34% | 32% | 33% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Services revenue | Services revenue | $ | 1,778 | $ | 1,777 | $ | 3,599 | $ | 3,447 | —% | 4% | Services revenue | $ | 1,799 | $ | 1,811 | $ | 5,399 | $ | 5,258 | (1)% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 1,507 | 1,523 | 3,114 | 2,973 | (1)% | 5% | Cost of services | 1,524 | 1,550 | 4,638 | 4,523 | (2)% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | Gross margin | $ | 271 | $ | 254 | $ | 485 | $ | 474 | 7% | 2% | Gross margin | $ | 275 | $ | 261 | $ | 761 | $ | 735 | 5% | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | Gross margin % | 15% | 14% | 13% | 14% | Gross margin % | 15% | 14% | 14% | 14% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel services revenue | Fuel services revenue | $ | 130 | $ | 207 | $ | 282 | $ | 366 | (37)% | (23)% | Fuel services revenue | $ | 139 | $ | 180 | $ | 420 | $ | 546 | (23)% | (23)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of fuel services | Cost of fuel services | 126 | 199 | 275 | 354 | (37)% | (22)% | Cost of fuel services | 137 | 176 | 412 | 530 | (22)% | (22)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin | Gross margin | $ | 4 | $ | 8 | $ | 7 | $ | 12 | (50)% | (42)% | Gross margin | $ | 2 | $ | 4 | $ | 8 | $ | 16 | (50)% | (50)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | Gross margin % | 3% | 4% | 2% | 3% | Gross margin % | 2% | 2% | 2% | 3% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses (SG&A) | Selling, general and administrative expenses (SG&A) | $ | 343 | $ | 361 | $ | 706 | $ | 703 | (5)% | —% | Selling, general and administrative expenses (SG&A) | $ | 347 | $ | 350 | $ | 1,053 | $ | 1,053 | (1)% | —% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of total revenue | Percentage of total revenue | 12% | 12% | 12% | 12% | Percentage of total revenue | 12% | 12% | 12% | 12% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | $ | 10 | $ | 3 | $ | 30 | $ | 8 | NM | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | $ | 10 | $ | 2 | $ | 20 | $ | 5 | NM | NM |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Used vehicle sales, net | Used vehicle sales, net | $ | (55) | $ | (130) | $ | (127) | $ | (243) | (58)% | (48)% | Used vehicle sales, net | $ | (47) | $ | (113) | $ | (174) | $ | (356) | (58)% | (51)% |
Proceeds per unit change 2023/2022 (1) | Proceeds per unit change 2023/2022 (1) | |||||||||||||||||||||||||||
Three Months | Six Months | Three Months | Nine Months | |||||||||||||||||||||||||
Tractors | Tractors | (41)% | (38)% | Tractors | (31)% | (35)% | ||||||||||||||||||||||
Trucks | Trucks | (34)% | (26)% | Trucks | (30)% | (27)% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | $ | 72 | $ | 56 | $ | 137 | $ | 108 | 29% | 27% | Interest expense | $ | 75 | $ | 57 | $ | 212 | $ | 165 | 32% | 28% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective interest rate | Effective interest rate | 4.5% | 3.4% | 4.3% | 3.3% | Effective interest rate | 4.6% | 3.6% | 4.4% | 3.4% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous income, net | Miscellaneous income, net | $ | (11) | $ | (14) | $ | (31) | $ | (14) | (21)% | 121% | Miscellaneous income, net | $ | (5) | $ | (9) | $ | (36) | $ | (23) | (44)% | 57% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | $ | 188 | $ | — | $ | 188 | $ | — | NM | NM | Currency translation adjustment loss | $ | — | $ | — | $ | 188 | $ | — | NM | NM |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other items, net | Restructuring and other items, net | $ | (1) | $ | 11 | $ | (26) | $ | 25 | NM | NM | Restructuring and other items, net | $ | 4 | $ | (4) | $ | (22) | $ | 21 | NM | NM |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | $ | 62 | $ | 98 | $ | 123 | $ | 174 | (37)% | (29)% | Provision for income taxes | $ | 53 | $ | 87 | $ | 176 | $ | 261 | (39)% | (33)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate on continuing operations | Effective tax rate on continuing operations | 140.8% | 29.0% | 50.0% | 29.5% | Effective tax rate on continuing operations | 25.2% | 26.3% | 38.5% | 28.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable tax rate on continuing operations (1) | Comparable tax rate on continuing operations (1) | 28.6% | 26.8% | 27.3% | 27.2% | Comparable tax rate on continuing operations (1) | 27.0% | 26.3% | 27.2% | 26.9% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | Revenue: | Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | $ | 1,459 | $ | 1,621 | $ | 2,962 | $ | 3,150 | (10)% | (6)% | Fleet Management Solutions | $ | 1,487 | $ | 1,582 | $ | 4,449 | $ | 4,732 | (6)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 1,179 | 1,174 | 2,380 | 2,263 | —% | 5% | Supply Chain Solutions | 1,194 | 1,206 | 3,574 | 3,469 | (1)% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 440 | 450 | 894 | 875 | (2)% | 2% | Dedicated Transportation Solutions | 448 | 455 | 1,342 | 1,330 | (1)% | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (194) | (211) | (400) | (400) | 8% | —% | Eliminations | (205) | (208) | (605) | (608) | 1% | —% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,884 | $ | 3,034 | $ | 5,836 | $ | 5,888 | (5)% | (1)% | Total | $ | 2,924 | $ | 3,035 | $ | 8,760 | $ | 8,923 | (4)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Revenue: (1) | Operating Revenue: (1) | Operating Revenue: (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | $ | 1,254 | $ | 1,307 | $ | 2,516 | $ | 2,589 | (4)% | (3)% | Fleet Management Solutions | $ | 1,266 | $ | 1,303 | $ | 3,782 | $ | 3,892 | (3)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 865 | 798 | 1,744 | 1,536 | 8% | 14% | Supply Chain Solutions | 909 | 835 | 2,653 | 2,371 | 9% | 12% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 327 | 306 | 649 | 602 | 7% | 8% | Dedicated Transportation Solutions | 325 | 317 | 974 | 919 | 3% | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (120) | (104) | (237) | (204) | (15)% | (16)% | Eliminations | (121) | (108) | (358) | (312) | (12)% | (15)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,326 | $ | 2,307 | $ | 4,672 | $ | 4,523 | 1% | 3% | Total | $ | 2,379 | $ | 2,347 | $ | 7,051 | $ | 6,870 | 1% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes: | Earnings from continuing operations before income taxes: | Earnings from continuing operations before income taxes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fleet Management Solutions | Fleet Management Solutions | $ | 180 | $ | 286 | $ | 362 | $ | 535 | (37)% | (32)% | Fleet Management Solutions | $ | 169 | $ | 266 | $ | 531 | $ | 801 | (36)% | (34)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | 76 | 62 | 93 | 105 | 23% | (11)% | Supply Chain Solutions | 81 | 71 | 174 | 176 | 14% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 33 | 23 | 62 | 43 | 43% | 44% | Dedicated Transportation Solutions | 28 | 28 | 90 | 72 | (2)% | 26% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliminations | Eliminations | (24) | (30) | (49) | (56) | 20% | 13% | Eliminations | (23) | (27) | (73) | (84) | 17% | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
265 | 341 | 468 | 627 | (22)% | (25)% | 255 | 338 | 722 | 965 | (25)% | (25)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated Central Support Services | Unallocated Central Support Services | (20) | (24) | (35) | (40) | (17)% | (13)% | Unallocated Central Support Services | (20) | (21) | (54) | (61) | (5)% | (11)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | Intangible amortization expense | (8) | (9) | (17) | (19) | (11)% | (11)% | Intangible amortization expense | (8) | (8) | (25) | (27) | (1)% | (8)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net (2) | Non-operating pension costs, net (2) | (10) | (2) | (20) | (5) | NM | NM | Non-operating pension costs, net (2) | (10) | (3) | (30) | (8) | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability, net (3) | Other items impacting comparability, net (3) | (183) | 32 | (151) | 27 | NM | NM | Other items impacting comparability, net (3) | (4) | 28 | (155) | 55 | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | Earnings from continuing operations before income taxes | $ | 44 | $ | 338 | $ | 245 | $ | 590 | (87)% | (58)% | Earnings from continuing operations before income taxes | $ | 213 | $ | 334 | $ | 458 | $ | 924 | (36)% | (50)% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Contribution: | Equipment Contribution: | Equipment Contribution: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Chain Solutions | Supply Chain Solutions | $ | 11 | $ | 11 | $ | 21 | $ | 21 | —% | —% | Supply Chain Solutions | $ | 10 | $ | 12 | $ | 32 | $ | 33 | (17)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | Dedicated Transportation Solutions | 13 | 19 | 28 | 35 | (32)% | (20)% | Dedicated Transportation Solutions | 13 | 15 | 41 | 51 | (13)% | (20)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 24 | $ | 30 | $ | 49 | $ | 56 | (20)% | (13)% | Total | $ | 23 | $ | 27 | $ | 73 | $ | 84 | (15)% | (13)% |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Description | Classification | 2023 | 2022 | 2023 | 2022 | Description | Classification | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS Europe results (1) | FMS Europe results (1) | Restructuring and other items, net | $ | 1 | $ | — | $ | (3) | $ | — | FMS Europe results (1) | Restructuring and other items, net | $ | (4) | $ | — | $ | (7) | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Gains on sale of U.K. revenue earning equipment (1) | Gains on sale of U.K. revenue earning equipment (1) | Used vehicles sales, net | — | 20 | 2 | 28 | Gains on sale of U.K. revenue earning equipment (1) | Used vehicles sales, net | — | 15 | 2 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains on sale of U.K. properties (1) | Gains on sale of U.K. properties (1) | Miscellaneous income, net | 4 | 23 | 9 | 24 | Gains on sale of U.K. properties (1) | Miscellaneous income, net | — | 10 | 9 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial claims proceeds, net of fees (1) | Commercial claims proceeds, net of fees (1) | Restructuring and other items, net | — | (5) | 31 | (12) | Commercial claims proceeds, net of fees (1) | Restructuring and other items, net | — | 5 | 31 | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance and other, net (1) | Severance and other, net (1) | Restructuring and other items, net | — | (6) | (3) | (9) | Severance and other, net (1) | Restructuring and other items, net | — | (3) | (3) | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit (1) | FMS U.K. exit (1) | 5 | 32 | 36 | 31 | FMS U.K. exit (1) | (4) | 27 | 32 | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss (1) | Currency translation adjustment loss (1) | Currency translation adjustment loss | (188) | — | (188) | — | Currency translation adjustment loss (1) | Currency translation adjustment loss | — | — | (188) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | Restructuring and other items, net | — | — | 1 | (4) | Other, net (1) | Restructuring and other items, net | — | 1 | 1 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability, net | Other items impacting comparability, net | (183) | 32 | (151) | 27 | Other items impacting comparability, net | (4) | 28 | (155) | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs (2) | Non-operating pension costs (2) | Non-operating pension costs | (10) | (2) | (20) | (5) | Non-operating pension costs (2) | Non-operating pension costs | (10) | (3) | (30) | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (193) | $ | 30 | $ | (171) | $ | 22 | $ | (14) | $ | 25 | $ | (185) | $ | 47 |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ChoiceLease | ChoiceLease | $ | 781 | $ | 763 | $ | 1,557 | $ | 1,527 | 2% | 2% | ChoiceLease | $ | 799 | $ | 772 | $ | 2,356 | $ | 2,299 | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial rental (1) | Commercial rental (1) | 301 | 336 | 605 | 642 | (10)% | (6)% | Commercial rental (1) | 293 | 349 | 898 | 991 | (16)% | (9)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SelectCare and other | SelectCare and other | 172 | 153 | 354 | 301 | 12% | 18% | SelectCare and other | 174 | 159 | 528 | 460 | 9% | 15% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS Europe | FMS Europe | — | 55 | — | 119 | NM | NM | FMS Europe | — | 23 | — | 142 | (100)% | (100)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel services revenue | Fuel services revenue | 205 | 314 | 446 | 561 | (35)% | (20)% | Fuel services revenue | 221 | 279 | 667 | 840 | (21)% | (21)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS total revenue | FMS total revenue | $ | 1,459 | $ | 1,621 | $ | 2,962 | $ | 3,150 | (10)% | (6)% | FMS total revenue | $ | 1,487 | $ | 1,582 | $ | 4,449 | $ | 4,732 | (6)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS operating revenue (2) | FMS operating revenue (2) | $ | 1,254 | $ | 1,307 | $ | 2,516 | $ | 2,589 | (4)% | (3)% | FMS operating revenue (2) | $ | 1,266 | $ | 1,303 | $ | 3,782 | $ | 3,892 | (3)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT | FMS EBT | $ | 180 | $ | 286 | $ | 362 | $ | 535 | (37)% | (32)% | FMS EBT | $ | 169 | $ | 266 | $ | 531 | $ | 801 | (36)% | (34)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS total revenue | FMS EBT as a % of FMS total revenue | 12.3% | 17.6% | 12.2% | 17.0% | (530) bps | (480) bps | FMS EBT as a % of FMS total revenue | 11.4% | 16.8% | 11.9% | 16.9% | (540) bps | (500) bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS operating revenue (2) | FMS EBT as a % of FMS operating revenue (2) | 14.4% | 21.9% | 14.4% | 20.7% | (750) bps | (630) bps | FMS EBT as a % of FMS operating revenue (2) | 13.4% | 20.4% | 14.0% | 20.6% | (700) bps | (660) bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve months ended June 30, | Change 2023/2022 | Twelve months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS total revenue | FMS EBT as a % of FMS total revenue | 14.4 | % | 16.1% | (170) bps | FMS EBT as a % of FMS total revenue | 13.0% | 17.0% | (400) bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS operating revenue (3) | FMS EBT as a % of FMS operating revenue (3) | 17.2 | % | 19.0% | (180) bps | FMS EBT as a % of FMS operating revenue (3) | 15.4% | 20.4% | (500) bps |
Change | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2022 | June 2023/ Dec 2022 | June 2023/ June 2022 | September 30, 2023 | December 31, 2022 | September 30, 2022 | Sept 2023/ Dec 2022 | Sept 2023/ Sept 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
End of period vehicle count | End of period vehicle count | End of period vehicle count | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By type: | By type: | By type: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trucks (1) | Trucks (1) | 74,100 | 72,100 | 71,400 | 3% | 4% | Trucks (1) | 75,100 | 72,100 | 72,400 | 4% | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tractors (2) | Tractors (2) | 71,100 | 69,300 | 69,400 | 3% | 2% | Tractors (2) | 70,500 | 69,300 | 69,100 | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Trailers and other (3) | Trailers and other (3) | 42,000 | 41,200 | 39,700 | 2% | 6% | Trailers and other (3) | 41,400 | 41,200 | 40,100 | —% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 187,200 | 182,600 | 180,500 | 3% | 4% | Total | 187,000 | 182,600 | 181,600 | 2% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
By product line: | By product line: | By product line: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ChoiceLease | ChoiceLease | 139,000 | 134,600 | 133,400 | 3% | 4% | ChoiceLease | 139,300 | 134,600 | 134,100 | 3% | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial rental | Commercial rental | 39,200 | 41,800 | 41,100 | (6)% | (5)% | Commercial rental | 37,900 | 41,800 | 41,800 | (9)% | (9)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Service vehicles and other | Service vehicles and other | 2,000 | 2,100 | 2,100 | (5)% | (5)% | Service vehicles and other | 2,000 | 2,100 | 2,000 | (5)% | —% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
180,200 | 178,500 | 176,600 | 1% | 2% | 179,200 | 178,500 | 177,900 | —% | 1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for sale | Held for sale | 7,000 | 4,100 | 3,900 | 71% | 79% | Held for sale | 7,800 | 4,100 | 3,600 | 90% | 117% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 187,200 | 182,600 | 180,500 | 3% | 4% | Total | 187,000 | 182,600 | 181,500 | 2% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Memo: U.K. Vehicle Count (excluded from above) | Memo: U.K. Vehicle Count (excluded from above) | — | 1,000 | 5,900 | (100)% | (100)% | Memo: U.K. Vehicle Count (excluded from above) | — | 1,000 | 3,300 | (100)% | (100)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer vehicles under SelectCare contracts (4) | Customer vehicles under SelectCare contracts (4) | 51,700 | 54,600 | 55,200 | (5)% | (6)% | Customer vehicles under SelectCare contracts (4) | 52,300 | 54,600 | 55,100 | (4)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly average vehicle count | Quarterly average vehicle count | Quarterly average vehicle count | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By product line: | By product line: | By product line: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ChoiceLease | ChoiceLease | 137,800 | 134,500 | 133,600 | 2% | 3% | ChoiceLease | 139,200 | 134,500 | 133,900 | 3% | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial rental | Commercial rental | 40,200 | 41,800 | 40,500 | (4)% | (1)% | Commercial rental | 38,700 | 41,800 | 41,500 | (7)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Service vehicles and other | Service vehicles and other | 2,100 | 2,000 | 2,000 | 5% | 5% | Service vehicles and other | 2,000 | 2,000 | 2,000 | —% | —% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
180,100 | 178,300 | 176,100 | 1% | 2% | 179,900 | 178,300 | 177,400 | 1% | 1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for sale | Held for sale | 5,900 | 3,700 | 3,500 | 59% | 69% | Held for sale | 7,400 | 3,700 | 3,700 | 100% | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 186,000 | 182,000 | 179,600 | 2% | 4% | Total | 187,300 | 182,000 | 181,100 | 3% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer vehicles under SelectCare contracts (4) | Customer vehicles under SelectCare contracts (4) | 52,600 | 55,300 | 55,000 | (5)% | (4)% | Customer vehicles under SelectCare contracts (4) | 52,100 | 55,300 | 55,000 | (6)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer vehicles under SelectCare on-demand (5) | Customer vehicles under SelectCare on-demand (5) | 3,900 | 5,800 | 6,200 | (33)% | (37)% | Customer vehicles under SelectCare on-demand (5) | 3,000 | 5,800 | 6,300 | (48)% | (52)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total vehicles serviced | Total vehicles serviced | 242,500 | 243,100 | 240,800 | —% | 1% | Total vehicles serviced | 242,400 | 243,100 | 242,400 | —% | —% |
Change | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2022 | June 2023/ Dec 2022 | June 2023/ June 2022 | September 30, 2023 | December 31, 2022 | September 30, 2022 | Sept 2023/ Dec 2022 | Sept 2023/ Sept 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Active ChoiceLease fleet | Active ChoiceLease fleet | Active ChoiceLease fleet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
End of period vehicle count (1) | End of period vehicle count (1) | 130,500 | 128,400 | 128,900 | 2% | 1% | End of period vehicle count (1) | 130,500 | 128,400 | 129,100 | 2% | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly average vehicle count (1) | Quarterly average vehicle count (1) | 129,700 | 128,800 | 128,500 | 1% | 1% | Quarterly average vehicle count (1) | 130,500 | 128,800 | 128,800 | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial rental statistics | Commercial rental statistics | Commercial rental statistics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly commercial rental utilization - power fleet (2) | Quarterly commercial rental utilization - power fleet (2) | 75 | % | 82 | % | 85 | % | (700) bps | (1,000) bps | Quarterly commercial rental utilization - power fleet (2) | 75% | 82% | 83% | (700) bps | (800) bps | |||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-date commercial rental utilization - power fleet (2) | Year-to-date commercial rental utilization - power fleet (2) | 75 | % | 83 | % | 83 | % | (800) bps | (800) | bps | Year-to-date commercial rental utilization - power fleet (2) | 75% | 83% | 83% | (800) bps | (800) bps |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | ||||||||||||||||||||||||||||||||
Omnichannel retail | $ | 275 | $ | 292 | $ | 586 | $ | 562 | (6)% | 4% | ||||||||||||||||||||||||||||
Automotive | 262 | 217 | 516 | 412 | 21% | 25% | ||||||||||||||||||||||||||||||||
Consumer packaged goods | 223 | 198 | 441 | 385 | 13% | 15% | ||||||||||||||||||||||||||||||||
Industrial and other | 105 | 91 | 201 | 177 | 15% | 14% | ||||||||||||||||||||||||||||||||
Subcontracted transportation and fuel | 314 | 376 | 636 | 727 | (16)% | (13)% | ||||||||||||||||||||||||||||||||
SCS total revenue | $ | 1,179 | $ | 1,174 | $ | 2,380 | $ | 2,263 | —% | 5% | ||||||||||||||||||||||||||||
SCS operating revenue (1) | $ | 865 | $ | 798 | $ | 1,744 | $ | 1,536 | 8% | 14% | ||||||||||||||||||||||||||||
SCS EBT | $ | 76 | $ | 62 | $ | 93 | $ | 105 | 23% | (11)% | ||||||||||||||||||||||||||||
SCS EBT as a % of SCS total revenue | 6.4% | 5.3% | 3.9% | 4.6% | 110 bps | (70) bps | ||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS operating revenue (1) | 8.7% | 7.8% | 5.3% | 6.8% | 90 bps | (150) bps | ||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||
End of period fleet count (2) | 13,600 | 11,700 | 13,600 | 11,700 | 16% | 16% | ||||||||||||||||||||||||||||||||
Twelve months ended June 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS total revenue | 4.3% | 3.9% | 40 bps | |||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS operating revenue (1) | 6.0% | 5.6% | 40 bps | |||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions, except fleet count) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | ||||||||||||||||||||||||||||||||
DTS total revenue | $ | 440 | $ | 450 | $ | 894 | $ | 875 | (2)% | 2% | ||||||||||||||||||||||||||||
DTS operating revenue (1) | $ | 327 | $ | 306 | $ | 649 | $ | 602 | 7% | 8% | ||||||||||||||||||||||||||||
DTS EBT | $ | 33 | $ | 23 | $ | 62 | $ | 43 | 43% | 44% | ||||||||||||||||||||||||||||
DTS EBT as a % of DTS total revenue | 7.6% | 5.1% | 7.0% | 4.9% | 250 bps | 210 bps | ||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS operating revenue (1) | 10.3% | 7.5% | 9.6% | 7.1% | 280 bps | 250 bps | ||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||
End of period fleet count (2) | 11,300 | 11,600 | 11,300 | 11,600 | (3)% | (3)% | ||||||||||||||||||||||||||||||||
Twelve months ended June 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS total revenue | 6.8% | 4.0% | 280 bps | |||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS operating revenue (1) | 9.5% | 5.7% | 380 bps | |||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||
Omnichannel retail | $ | 291 | $ | 309 | $ | 877 | $ | 871 | (6)% | 1% | ||||||||||||||||||||||||||||
Automotive | 274 | 226 | 790 | 638 | 21% | 24% | ||||||||||||||||||||||||||||||||
Consumer packaged goods | 228 | 208 | 669 | 593 | 10% | 13% | ||||||||||||||||||||||||||||||||
Industrial and other | 116 | 92 | 317 | 269 | 25% | 18% | ||||||||||||||||||||||||||||||||
Subcontracted transportation and fuel | 285 | 371 | 921 | 1,098 | (23)% | (16)% | ||||||||||||||||||||||||||||||||
SCS total revenue | $ | 1,194 | $ | 1,206 | $ | 3,574 | $ | 3,469 | (1)% | 3% | ||||||||||||||||||||||||||||
SCS operating revenue (1) | $ | 909 | $ | 835 | $ | 2,653 | $ | 2,371 | 9% | 12% | ||||||||||||||||||||||||||||
SCS EBT | $ | 81 | $ | 71 | $ | 174 | $ | 176 | 14% | (1)% | ||||||||||||||||||||||||||||
SCS EBT as a % of SCS total revenue | 6.8% | 5.9% | 4.9% | 5.1% | 90 bps | (20) bps | ||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS operating revenue (1) | 9.0% | 8.6% | 6.6% | 7.4% | 40 bps | (80) bps | ||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||
End of period fleet count (2) | 14,100 | 12,500 | 14,100 | 12,500 | 13% | 13% | ||||||||||||||||||||||||||||||||
Twelve months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS total revenue | 4.5% | 4.6% | (10) bps | |||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS operating revenue (1) | 6.1% | 6.7% | (60) bps | |||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions, except fleet count) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||
DTS total revenue | $ | 448 | $ | 455 | $ | 1,342 | $ | 1,330 | (1)% | 1% | ||||||||||||||||||||||||||||
DTS operating revenue (1) | $ | 325 | $ | 317 | $ | 974 | $ | 919 | 3% | 6% | ||||||||||||||||||||||||||||
DTS EBT | $ | 28 | $ | 28 | $ | 90 | $ | 72 | (2)% | 26% | ||||||||||||||||||||||||||||
DTS EBT as a % of DTS total revenue | 6.2% | 6.2% | 6.7% | 5.4% | — bps | 130 bps | ||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS operating revenue (1) | 8.5% | 8.9% | 9.3% | 7.8% | (40) bps | 150 bps | ||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||
End of period fleet count (2) | 11,100 | 11,400 | 11,100 | 11,400 | (3)% | (3)% | ||||||||||||||||||||||||||||||||
Twelve months ended September 30, | Change 2023/2022 | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS total revenue | 6.7% | 4.9% | 180 bps | |||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS operating revenue (1) | 9.4% | 6.9% | 250 bps | |||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Nine Months | ||||||||||||||||||||||||||||||||
Total CSS | 106 | 109 | 312 | 313 | (3)% | —% | ||||||||||||||||||||||||||||||||
Allocation of CSS to business segments | (86) | (88) | (258) | (252) | (2)% | 2% | ||||||||||||||||||||||||||||||||
Unallocated CSS | $ | 20 | $ | 21 | $ | 54 | $ | 61 | (5)% | (11)% |
Three months ended June 30, | Six months ended June 30, | Change 2023/2022 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | 2023 | 2022 | Three Months | Six Months | ||||||||||||||||||||||||||||||||
Total CSS | 104 | 107 | 207 | 204 | (3)% | 1% | ||||||||||||||||||||||||||||||||
Allocation of CSS to business segments | (84) | (83) | (172) | (164) | 1% | 5% | ||||||||||||||||||||||||||||||||
Unallocated CSS | $ | 20 | $ | 24 | $ | 35 | $ | 40 | (17)% | (13)% |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Net cash provided by (used in): | Net cash provided by (used in): | Net cash provided by (used in): | ||||||||||||||||||||||||||
Operating activities | Operating activities | $ | 1,221 | $ | 1,103 | Operating activities | $ | 1,842 | $ | 1,786 | ||||||||||||||||||
Investing activities | Investing activities | (1,207) | (982) | Investing activities | (1,814) | (1,351) | ||||||||||||||||||||||
Financing activities | Financing activities | (57) | (330) | Financing activities | (126) | (600) | ||||||||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (6) | (15) | Effect of exchange rate changes on cash | (10) | (51) | ||||||||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | Net change in cash, cash equivalents, and restricted cash | $ | (49) | $ | (224) | Net change in cash, cash equivalents, and restricted cash | $ | (108) | $ | (216) | ||||||||||||||||||
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | Net cash provided by operating activities | ||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | $ | 122 | $ | 416 | Earnings from continuing operations | $ | 282 | $ | 663 | ||||||||||||||||||
Non-cash and other, net | Non-cash and other, net | 1,033 | 905 | Non-cash and other, net | 1,549 | 1,368 | ||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | Currency translation adjustment loss | 188 | — | ||||||||||||||||||||||
Collections on sales-type leases | Collections on sales-type leases | 63 | 64 | Collections on sales-type leases | 91 | 99 | ||||||||||||||||||||||
Changes in operating assets and liabilities | Changes in operating assets and liabilities | (185) | (282) | Changes in operating assets and liabilities | (268) | (344) | ||||||||||||||||||||||
Cash flows from operating activities from continuing operations | Cash flows from operating activities from continuing operations | $ | 1,221 | $ | 1,103 | Cash flows from operating activities from continuing operations | $ | 1,842 | $ | 1,786 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | $ | 1,221 | $ | 1,103 | Net cash provided by operating activities | $ | 1,842 | $ | 1,786 | ||||||||||||||||||
Sales of revenue earning equipment (1) | Sales of revenue earning equipment (1) | 394 | 601 | Sales of revenue earning equipment (1) | 587 | 922 | ||||||||||||||||||||||
Sales of operating property and equipment (1) | Sales of operating property and equipment (1) | 53 | 35 | Sales of operating property and equipment (1) | 60 | 54 | ||||||||||||||||||||||
Other (1) | Other (1) | — | 7 | Other (1) | — | 42 | ||||||||||||||||||||||
Total cash generated (2) | Total cash generated (2) | 1,668 | 1,746 | Total cash generated (2) | 2,489 | 2,804 | ||||||||||||||||||||||
Purchases of property and revenue earning equipment (1) | Purchases of property and revenue earning equipment (1) | (1,652) | (1,195) | Purchases of property and revenue earning equipment (1) | (2,457) | (1,917) | ||||||||||||||||||||||
Free cash flow (2) | Free cash flow (2) | $ | 16 | $ | 551 | Free cash flow (2) | $ | 32 | $ | 887 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||
Revenue earning equipment: | Revenue earning equipment: | Revenue earning equipment: | ||||||||||||||||||||||||||
ChoiceLease | ChoiceLease | $ | 1,382 | $ | 810 | ChoiceLease | $ | 1,994 | $ | 1,317 | ||||||||||||||||||
Commercial rental | Commercial rental | 310 | 364 | Commercial rental | 388 | 492 | ||||||||||||||||||||||
1,692 | 1,174 | 2,382 | 1,809 | |||||||||||||||||||||||||
Operating property and equipment | Operating property and equipment | 121 | 133 | Operating property and equipment | 200 | 224 | ||||||||||||||||||||||
Gross capital expenditures | Gross capital expenditures | 1,813 | 1,307 | Gross capital expenditures | 2,582 | 2,033 | ||||||||||||||||||||||
Changes to liabilities related to purchases of property and revenue earning equipment | Changes to liabilities related to purchases of property and revenue earning equipment | (161) | (112) | Changes to liabilities related to purchases of property and revenue earning equipment | (125) | (116) | ||||||||||||||||||||||
Cash paid for purchases of property and revenue earning equipment | Cash paid for purchases of property and revenue earning equipment | $ | 1,652 | $ | 1,195 | Cash paid for purchases of property and revenue earning equipment | $ | 2,457 | $ | 1,917 |
Rating Summary | ||||||||||||||||||||||||||
Short-term | Short-term Outlook | Long-term | Long-term Outlook | |||||||||||||||||||||||
Standard & Poor’s Ratings Services | A2 | — | BBB+ | Stable | ||||||||||||||||||||||
Moody’s Investors Service | P2 | Stable | Baa2 | Stable | ||||||||||||||||||||||
Fitch Ratings | F2 | — | BBB+ |
(In millions) | |||||
Global revolving credit facility | $ | ||||
Trade receivables financing program | $ |
Non-GAAP Financial Measure | Comparable GAAP Measure | ||||
Operating Revenue Measures: | |||||
Operating Revenue | Total Revenue | ||||
FMS Operating Revenue | FMS Total Revenue | ||||
SCS Operating Revenue | SCS Total Revenue | ||||
DTS Operating Revenue | DTS Total Revenue | ||||
FMS EBT as a % of FMS Operating Revenue | FMS EBT as a % of FMS Total Revenue | ||||
SCS EBT as a % of SCS Operating Revenue | SCS EBT as a % of SCS Total Revenue | ||||
DTS EBT as a % of DTS Operating Revenue | DTS EBT as a % of DTS Total Revenue | ||||
Comparable Earnings Measures: | |||||
Comparable Earnings Before Income Tax | Earnings Before Income Tax | ||||
Comparable Earnings | Earnings from Continuing Operations | ||||
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | Net Earnings | ||||
Comparable EPS | EPS from Continuing Operations | ||||
Comparable Tax Rate | Effective Tax Rate from Continuing Operations | ||||
Adjusted Return on Equity (ROE) | 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 shareholders' equity to adjusted average equity is provided in the following reconciliations. | ||||
Cash Flow Measures: | |||||
Total Cash Generated and Free Cash Flow | Cash Provided by Operating Activities from Continuing Operations |
Operating Revenue Measures: | |||||||||||
Operating Revenue FMS Operating Revenue SCS Operating Revenue DTS Operating Revenue FMS EBT as a % of FMS Operating Revenue SCS EBT as a % of SCS Operating Revenue DTS EBT as a % of DTS Operating Revenue | Operating revenue is defined as total revenue for Ryder or each business segment (FMS, SCS and DTS) 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, SCS EBT and DTS EBT, our primary measures of segment performance, are not non-GAAP measures. Fuel: We exclude FMS, SCS and DTS fuel from the calculation of our operating revenue measures, as fuel is an ancillary service that we provide our customers. Fuel revenue 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 current market fuel costs. Subcontracted transportation: We 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 SCS and DTS 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 Taxes (EBT) Comparable Earnings Comparable Earnings per Diluted Common Share (EPS) Comparable Tax Rate Adjusted Return on Equity (ROE) | 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, net and (2) other items impacting comparability (as further described below). 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, net: Our comparable earnings measures exclude non-operating pension costs, net, which include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. We exclude non-operating pension costs, net because we consider these to be impacted by financial market performance and outside the operational performance of our business. Other Items Impacting Comparability: Our comparable and adjusted earnings measures also exclude other significant items that are not representative of our business operations as detailed in the reconciliation table below. These other significant items vary from period to period and, in some periods, there may be no such significant items. Comparable Tax Rate 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 marginal tax rates to which the non-GAAP adjustments are related. Adjusted ROE is defined as adjusted net earnings divided by adjusted average shareholders' equity and represents the rate of return on shareholders' investment. Other items impacting comparability described above are excluded, as applicable, from the calculation of adjusted net earnings and adjusted average shareholders' equity. We use adjusted ROE as an internal measure of how effectively we use the owned capital invested in our operations. |
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | Comparable EBITDA is defined as net earnings, first adjusted to exclude discontinued operations and the following items, all from continuing operations: (1) non-operating pension costs, net and (2) any other items that are not representative of our business operations (these items are the same items that are excluded from comparable earnings measures for the relevant periods as described immediately above) and then adjusted further for (1) interest expense, (2) income taxes, (3) depreciation, (4) used vehicle sales results and (5) amortization. We believe comparable EBITDA provides investors with useful information, as it is a standard measure commonly reported and widely used by analysts, investors and other interested parties to measure financial performance and our ability to service debt and meet our payment obligations. In addition, we believe that the inclusion of comparable EBITDA provides consistency in financial reporting and enables analysts and investors to perform meaningful comparisons of past, present and future operating results. Other companies may calculate comparable EBITDA differently; therefore, our presentation of comparable EBITDA may not be comparable to similarly-titled measures used by other companies. Comparable EBITDA should not be considered as an alternative to net earnings, earnings from continuing operations before income taxes or earnings from continuing operations determined in accordance with GAAP, as an indicator of our operating performance, as an alternative to cash flows from operating activities (determined in accordance with GAAP), as an indicator of cash flows, or as a measure of liquidity. | ||||||||||
Cash Flow Measures: | |||||||||||
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 is defined as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment, (3) net cash provided by the sale of operating property and equipment and (4) 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 is defined as the net amount of cash generated from operating activities and investing activities (excluding changes in restricted cash and acquisitions) from continuing operations. 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 operating property and equipment, and (3) other cash inflows from investing activities, less (4) 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. * See Total Cash Generated and Free Cash Flow reconciliations in the Financial Resources and Liquidity section of Management's Discussion and Analysis. |
Continuing Operations | Continuing Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | (In millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | (In millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBT | EBT | $ | 44 | $ | 338 | $ | 245 | $ | 590 | EBT | $ | 213 | $ | 334 | $ | 458 | $ | 924 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | 10 | 2 | 20 | 5 | Non-operating pension costs, net | 10 | 3 | 30 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit (1) | FMS U.K. exit (1) | (5) | (32) | (36) | (31) | FMS U.K. exit (1) | 4 | (27) | (32) | (58) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | 188 | — | Currency translation adjustment loss | — | — | 188 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | — | — | (1) | 4 | Other, net (1) | — | (1) | (1) | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable EBT | Comparable EBT | $ | 237 | $ | 308 | $ | 416 | $ | 568 | Comparable EBT | $ | 227 | $ | 309 | $ | 643 | $ | 877 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (18) | $ | 240 | $ | 122 | $ | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations | Earnings from continuing operations | $ | 160 | $ | 247 | $ | 282 | $ | 663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | 8 | 1 | 16 | 3 | Non-operating pension costs, net | 8 | 2 | 24 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit (1) | FMS U.K. exit (1) | (5) | (32) | (36) | (31) | FMS U.K. exit (1) | 4 | (27) | (32) | (58) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 183 | — | 183 | — | Currency translation adjustment loss | — | — | 183 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | 1 | 1 | — | 5 | Other, net (1) | — | (3) | (1) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax adjustments, net (2) | Tax adjustments, net (2) | 1 | 16 | 18 | 21 | Tax adjustments, net (2) | (7) | 8 | 12 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable Earnings | Comparable Earnings | $ | 170 | $ | 226 | $ | 303 | $ | 414 | Comparable Earnings | $ | 165 | $ | 227 | $ | 468 | $ | 641 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS | Diluted EPS | $ | (0.39) | $ | 4.72 | $ | 2.60 | $ | 8.05 | Diluted EPS | $ | 3.44 | $ | 4.82 | $ | 6.01 | $ | 12.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | 0.17 | 0.03 | 0.34 | 0.07 | Non-operating pension costs, net | 0.17 | 0.03 | 0.51 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit (1) | FMS U.K. exit (1) | (0.11) | (0.62) | (0.77) | (0.60) | FMS U.K. exit (1) | 0.09 | (0.53) | (0.68) | (1.13) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 3.90 | — | 3.87 | — | Currency translation adjustment loss | — | — | 3.91 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | 0.02 | (0.01) | — | 0.07 | Other, net (1) | — | (0.01) | (0.02) | 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax adjustments, net (2) | Tax adjustments, net (2) | 0.02 | 0.31 | 0.38 | 0.41 | Tax adjustments, net (2) | (0.12) | 0.14 | 0.27 | 0.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable EPS | Comparable EPS | $ | 3.61 | $ | 4.43 | $ | 6.42 | $ | 8.00 | Comparable EPS | $ | 3.58 | $ | 4.45 | $ | 10.00 | $ | 12.44 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Effective tax rate on continuing operations (1) | Effective tax rate on continuing operations (1) | 140.8 | % | 29.0 | % | 50.0 | % | 29.5 | % | Effective tax rate on continuing operations (1) | 25.2 | % | 26.3 | % | 38.5 | % | 28.3 | % | ||||||||||||||||||||||||||||
Tax adjustments and income tax effects of non-GAAP adjustments (2) | Tax adjustments and income tax effects of non-GAAP adjustments (2) | (112.2) | % | (2.2) | % | (22.7) | % | (2.3) | % | Tax adjustments and income tax effects of non-GAAP adjustments (2) | 1.8 | % | — | % | (11.3) | % | (1.4) | % | ||||||||||||||||||||||||||||
Comparable tax rate on continuing operations (1) | Comparable tax rate on continuing operations (1) | 28.6 | % | 26.8 | % | 27.3 | % | 27.2 | % | Comparable tax rate on continuing operations (1) | 27.0 | % | 26.3 | % | 27.2 | % | 26.9 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (18) | $ | 239 | $ | 121 | $ | 415 | ||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | — | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 161 | $ | 246 | $ | 282 | $ | 661 | |||||||||||||||||||||||||||||||||||||||||||
(Earnings) loss from discontinued operations, net of tax | (Earnings) loss from discontinued operations, net of tax | (1) | 1 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 62 | 98 | 123 | 174 | Provision for income taxes | 53 | 87 | 176 | 261 | ||||||||||||||||||||||||||||||||||||||||||
EBT | EBT | 44 | 338 | 245 | 590 | EBT | 213 | 334 | 458 | 924 | ||||||||||||||||||||||||||||||||||||||||||
Non-operating pension costs, net | Non-operating pension costs, net | 10 | 2 | 20 | 5 | Non-operating pension costs, net | 10 | 3 | 30 | 8 | ||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit (1) | FMS U.K. exit (1) | (5) | (32) | (36) | (31) | FMS U.K. exit (1) | 4 | (27) | (32) | (58) | ||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss (1) | Currency translation adjustment loss (1) | 188 | — | 188 | — | Currency translation adjustment loss (1) | — | — | 188 | — | ||||||||||||||||||||||||||||||||||||||||||
Other, net (1) | Other, net (1) | — | — | (1) | 4 | Other, net (1) | — | (1) | (1) | 3 | ||||||||||||||||||||||||||||||||||||||||||
Comparable EBT | Comparable EBT | 237 | 308 | 416 | 568 | Comparable EBT | 227 | 309 | 643 | 877 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 72 | 56 | 137 | 108 | Interest expense | 75 | 57 | 212 | 165 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation | Depreciation | 412 | 424 | 857 | 854 | Depreciation | 417 | 421 | 1,274 | 1,275 | ||||||||||||||||||||||||||||||||||||||||||
Used vehicle sales, net (2) | Used vehicle sales, net (2) | (55) | (109) | (125) | (214) | Used vehicle sales, net (2) | (47) | (99) | (172) | (313) | ||||||||||||||||||||||||||||||||||||||||||
Amortization | Amortization | 8 | 9 | 17 | 19 | Amortization | 8 | 8 | 25 | 27 | ||||||||||||||||||||||||||||||||||||||||||
Comparable EBITDA | Comparable EBITDA | $ | 674 | $ | 688 | $ | 1,302 | $ | 1,335 | Comparable EBITDA | $ | 680 | $ | 696 | $ | 1,982 | $ | 2,031 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | $ | 2,884 | $ | 3,034 | $ | 5,836 | $ | 5,888 | Total revenue | $ | 2,924 | $ | 3,035 | $ | 8,760 | $ | 8,923 | ||||||||||||||||||||||||||||||||||
Subcontracted transportation and fuel | Subcontracted transportation and fuel | (558) | (727) | (1,164) | (1,365) | Subcontracted transportation and fuel | (545) | (688) | (1,709) | (2,053) | ||||||||||||||||||||||||||||||||||||||||||
Operating revenue | Operating revenue | $ | 2,326 | $ | 2,307 | $ | 4,672 | $ | 4,523 | Operating revenue | $ | 2,379 | $ | 2,347 | $ | 7,051 | $ | 6,870 |
Three months ended June 30, | Six months ended June 30, | Twelve months ended June 30, | Three months ended September 30, | Nine months ended September 30, | Twelve months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS total revenue | FMS total revenue | $ | 1,459 | $ | 1,621 | $ | 2,962 | $ | 3,150 | $ | 6,139 | $ | 6,086 | FMS total revenue | $ | 1,487 | $ | 1,582 | $ | 4,449 | $ | 4,732 | $ | 6,044 | $ | 6,231 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel services revenue | Fuel services revenue | (205) | (314) | (446) | (561) | (999) | (949) | Fuel services revenue | (221) | (279) | (667) | (840) | (941) | (1,039) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS operating revenue | FMS operating revenue | $ | 1,254 | $ | 1,307 | $ | 2,516 | $ | 2,589 | $ | 5,140 | $ | 5,137 | FMS operating revenue | $ | 1,266 | $ | 1,303 | $ | 3,782 | $ | 3,892 | $ | 5,103 | $ | 5,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT | FMS EBT | $ | 180 | $ | 286 | $ | 362 | $ | 535 | $ | 884 | $ | 977 | FMS EBT | $ | 169 | $ | 266 | $ | 531 | $ | 801 | $ | 787 | $ | 1,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS total revenue | FMS EBT as a % of FMS total revenue | 12.3% | 17.6% | 12.2% | 17.0% | 14.4% | 16.1% | FMS EBT as a % of FMS total revenue | 11.4% | 16.8% | 11.9% | 16.9% | 13.0% | 17.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FMS EBT as a % of FMS operating revenue | FMS EBT as a % of FMS operating revenue | 14.4% | 21.9% | 14.4% | 20.7% | 17.2% | 19.0% | FMS EBT as a % of FMS operating revenue | 13.4% | 20.4% | 14.0% | 20.6% | 15.4% | 20.4% |
Three months ended June 30, | Six months ended June 30, | Twelve months ended June 30, | Three months ended September 30, | Nine months ended September 30, | Twelve months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCS total revenue | SCS total revenue | $ | 1,179 | $ | 1,174 | $ | 2,380 | $ | 2,263 | $ | 4,837 | $ | 3,935 | SCS total revenue | $ | 1,194 | $ | 1,206 | $ | 3,574 | $ | 3,469 | $ | 4,825 | $ | 4,339 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subcontracted transportation and fuel | Subcontracted transportation and fuel | (314) | (376) | (636) | (727) | (1,375) | (1,225) | Subcontracted transportation and fuel | (285) | (371) | (921) | (1,098) | (1,289) | (1,354) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCS operating revenue | SCS operating revenue | $ | 865 | $ | 798 | $ | 1,744 | $ | 1,536 | $ | 3,462 | $ | 2,710 | SCS operating revenue | $ | 909 | $ | 835 | $ | 2,653 | $ | 2,371 | $ | 3,536 | $ | 2,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||
SCS EBT | SCS EBT | $ | 76 | $ | 62 | $ | 93 | $ | 105 | $ | 207 | $ | 152 | SCS EBT | $ | 81 | $ | 71 | $ | 174 | $ | 176 | $ | 217 | $ | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS total revenue | SCS EBT as a % of SCS total revenue | 6.4% | 5.3% | 3.9% | 4.6% | 4.3% | 3.9% | SCS EBT as a % of SCS total revenue | 6.8% | 5.9% | 4.9% | 5.1% | 4.5% | 4.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCS EBT as a % of SCS operating revenue | SCS EBT as a % of SCS operating revenue | 8.7% | 7.8% | 5.3% | 6.8% | 6.0% | 5.6% | SCS EBT as a % of SCS operating revenue | 9.0% | 8.6% | 6.6% | 7.4% | 6.1% | 6.7% |
Three months ended June 30, | Six months ended June 30, | Twelve months ended June 30, | Three months ended September 30, | Nine months ended September 30, | Twelve months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DTS total revenue | DTS total revenue | $ | 440 | $ | 450 | $ | 894 | $ | 875 | $ | 1,805 | $ | 1,657 | DTS total revenue | $ | 448 | $ | 455 | $ | 1,342 | $ | 1,330 | $ | 1,798 | $ | 1,731 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subcontracted transportation and fuel | Subcontracted transportation and fuel | (113) | (144) | (245) | (273) | (519) | (493) | Subcontracted transportation and fuel | (123) | (138) | (368) | (411) | (504) | (521) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DTS operating revenue | DTS operating revenue | $ | 327 | $ | 306 | $ | 649 | $ | 602 | $ | 1,286 | $ | 1,164 | DTS operating revenue | $ | 325 | $ | 317 | $ | 974 | $ | 919 | $ | 1,294 | $ | 1,210 | ||||||||||||||||||||||||||||||||||||||||||||||||||
DTS EBT | DTS EBT | $ | 33 | $ | 23 | $ | 62 | $ | 43 | $ | 122 | $ | 66 | DTS EBT | $ | 28 | $ | 28 | $ | 90 | $ | 72 | $ | 121 | $ | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS total revenue | DTS EBT as a % of DTS total revenue | 7.6% | 5.1% | 7.0% | 4.9% | 6.8% | 4.0% | DTS EBT as a % of DTS total revenue | 6.2% | 6.2% | 6.7% | 5.4% | 6.7% | 4.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DTS EBT as a % of DTS operating revenue | DTS EBT as a % of DTS operating revenue | 10.3% | 7.5% | 9.6% | 7.1% | 9.5% | 5.7% | DTS EBT as a % of DTS operating revenue | 8.5% | 8.9% | 9.3% | 7.8% | 9.4% | 6.9% |
Twelve months ended June 30, | Twelve months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 574 | $ | 734 | Net earnings | $ | 488 | $ | 842 | ||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability, net (1) | Other items impacting comparability, net (1) | 96 | (18) | Other items impacting comparability, net (1) | 128 | (46) | ||||||||||||||||||||||||||||||||||||||||||||||
Income taxes (2) | Income taxes (2) | 302 | 272 | Income taxes (2) | 268 | 316 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings before income taxes | Adjusted earnings before income taxes | 972 | 988 | Adjusted earnings before income taxes | 884 | 1,112 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted income taxes (3) | Adjusted income taxes (3) | (264) | (251) | Adjusted income taxes (3) | (243) | (288) | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net earnings | Adjusted net earnings | $ | 708 | $ | 737 | Adjusted net earnings | $ | 641 | $ | 824 | ||||||||||||||||||||||||||||||||||||||||||
Average shareholders' equity | Average shareholders' equity | $ | 2,976 | $ | 2,642 | Average shareholders' equity | $ | 3,029 | $ | 2,761 | ||||||||||||||||||||||||||||||||||||||||||
Average adjustments to shareholders' equity (4) | Average adjustments to shareholders' equity (4) | (19) | (7) | Average adjustments to shareholders' equity (4) | (21) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted average shareholders' equity | Adjusted average shareholders' equity | $ | 2,957 | $ | 2,635 | Adjusted average shareholders' equity | $ | 3,008 | $ | 2,752 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted return on equity (5) | Adjusted return on equity (5) | 24% | 28% | Adjusted return on equity (5) | 21% | 30% |
Twelve months ended June 30, | Twelve months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
FMS U.K. exit | FMS U.K. exit | $ | (87) | $ | (31) | FMS U.K. exit | $ | (56) | $ | (58) | ||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment loss | Currency translation adjustment loss | 188 | — | Currency translation adjustment loss | 188 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | (5) | 13 | Other, net | (4) | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Other items impacting comparability (1) | Other items impacting comparability (1) | $ | 96 | $ | (18) | Other items impacting comparability (1) | $ | 128 | $ | (46) |
(Dollars in millions, except per share) | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares That May Yet Be Purchased Under the Discretionary and Anti-Dilutive Programs (2) | ||||||||||||||||||||||||||||
April 1 through April 30, 2023 | 49,818 | $ | 78.45 | 49,596 | 3,059,901 | |||||||||||||||||||||||||||
May 1 through May 31, 2023 | 1,030,417 | 80.60 | 1,030,400 | 2,029,501 | ||||||||||||||||||||||||||||
June 1 through June 30, 2023 | 5,402 | 84.38 | — | 2,029,501 | ||||||||||||||||||||||||||||
Total | 1,085,637 | $ | 80.52 | 1,079,996 |
(Dollars in millions, except per share) | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares That May Yet Be Purchased Under the Discretionary and Anti-Dilutive Programs (2) | ||||||||||||||||||||||||||||
July 1 through July 31, 2023 | 81,292 | $ | 101.10 | 81,077 | 1,948,424 | |||||||||||||||||||||||||||
August 1 through August 31, 2023 | 823,818 | 98.80 | 820,866 | 1,127,558 | ||||||||||||||||||||||||||||
September 1 through September 30, 2023 | 589,489 | 100.37 | 584,391 | 543,167 | ||||||||||||||||||||||||||||
Total | 1,494,599 | $ | 99.54 | 1,486,334 |
Exhibit Number | Description | |||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | |||||||
RYDER SYSTEM, INC. | |||||||||||
(Registrant) | |||||||||||
Date: | By: | /s/ JOHN J. DIEZ | |||||||||
John J. Diez | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
Date: | By: | /s/ CRISTINA GALLO-AQUINO | |||||||||
Cristina Gallo-Aquino | |||||||||||
Senior Vice President and Controller | |||||||||||
(Principal Accounting Officer) | |||||||||||