Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38054 | ||
Entity Registrant Name | Schneider National, Inc. | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1258315 | ||
Entity Address, Address Line One | 3101 South Packerland Drive | ||
Entity Address, City or Town | Green Bay, | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54313 | ||
City Area Code | 920 | ||
Local Phone Number | 592-2000 | ||
Title of 12(b) Security | Class B common stock, no par value | ||
Trading Symbol | SNDR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1,280.3 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001692063 | ||
Current Fiscal Year End Date | --12-31 | ||
Class A Common Shares | |||
Document Information | |||
Entity Common Stock, Shares Outstanding (shares) | 83,029,500 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding (shares) | 94,324,846 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Operating revenues | $ 4,552.8 | $ 4,747 | $ 4,977 |
Operating expenses: | |||
Purchased transportation | 1,997.8 | 1,996.4 | 1,965.9 |
Salaries, wages, and benefits | 1,046.5 | 1,106 | 1,259.4 |
Fuel and fuel taxes | 204.4 | 289.7 | 344.8 |
Depreciation and amortization | 290.5 | 292.9 | 291.3 |
Operating supplies and expenses | 533 | 530.2 | 491.3 |
Insurance and related expenses | 86.1 | 109.6 | 102.2 |
Other general expenses | 106.8 | 116.1 | 144.3 |
Goodwill impairment charge | 0 | 34.6 | 2 |
Restructuring—net | 1 | 63.7 | 0 |
Total operating expenses | 4,266.1 | 4,539.2 | 4,601.2 |
Income from operations | 286.7 | 207.8 | 375.8 |
Other expenses (income): | |||
Interest income | (3.3) | (8.5) | (4.6) |
Interest expense | 13.6 | 16.6 | 17.1 |
Other expense (income)—net | (6.5) | 1.6 | (1.3) |
Total other expenses | 3.8 | 9.7 | 11.2 |
Income before income taxes | 282.9 | 198.1 | 364.6 |
Provision for income taxes | 71.2 | 51.1 | 95.7 |
Net income | 211.7 | 147 | 268.9 |
Other comprehensive income (loss): | |||
Foreign currency translation gain (loss) | 0.6 | 0 | (1) |
Net unrealized gains on marketable securities—net of tax | 0.1 | 1.1 | 0 |
Total other comprehensive income (loss) | 0.7 | 1.1 | (1) |
Comprehensive income | $ 212.4 | $ 148.1 | $ 267.9 |
Weighted average common shares outstanding (shares) | 177.3 | 177.1 | 177 |
Basic earnings per common share | $ 1.19 | $ 0.83 | $ 1.52 |
Weighted average diluted shares outstanding (shares) | 177.6 | 177.3 | 177.2 |
Diluted earnings per common share | $ 1.19 | $ 0.83 | $ 1.52 |
Dividends declared per share | $ 2.26 | $ 0.24 | $ 0.24 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 395.5 | $ 551.6 |
Marketable securities | 47.1 | 48.3 |
Trade accounts receivable—net of allowance of $3.7 million and $3.4 million, respectively | 537.7 | 465.8 |
Other receivables | 20.8 | 28.9 |
Current portion of lease receivables—net of allowance of $0.8 million and $0.6 million, respectively | 96.8 | 121.5 |
Inventories | 44.9 | 71.9 |
Prepaid expenses and other current assets | 77.9 | 117.7 |
Total current assets | 1,220.7 | 1,405.7 |
Property and equipment: | ||
Transportation equipment | 2,880.2 | 2,790.1 |
Land, buildings, and improvements | 202.3 | 199.3 |
Other property and equipment | 166.8 | 162.7 |
Total property and equipment | 3,249.3 | 3,152.1 |
Less accumulated depreciation | 1,417.4 | 1,300.5 |
Net property and equipment | 1,831.9 | 1,851.6 |
Lease receivables—noncurrent | 131.3 | 109.4 |
Capitalized software and other noncurrent assets | 204.2 | 165.9 |
Goodwill | 128.1 | 127.5 |
Total noncurrent assets | 2,295.5 | 2,254.4 |
Total Assets | 3,516.2 | 3,660.1 |
Current Liabilities: | ||
Trade accounts payable | 245.7 | 207.7 |
Accrued salaries, wages, and benefits | 110.7 | 63.8 |
Claims accruals—current | 36.4 | 42 |
Current maturities of debt and finance lease obligations | 40.4 | 55.5 |
Dividends payable—current | 12.2 | 10.8 |
Other current liabilities | 89.2 | 85.4 |
Total current liabilities | 534.6 | 465.2 |
Noncurrent Liabilities: | ||
Long-term debt and finance lease obligations | 266.4 | 305.8 |
Claims accruals—noncurrent | 129.9 | 118.7 |
Deferred income taxes | 450.4 | 449 |
Other noncurrent liabilities | 79.4 | 85 |
Total noncurrent liabilities | 926.1 | 958.5 |
Total Liabilities | 1,460.7 | 1,423.7 |
Shareholders' Equity: | ||
Additional paid-in capital | 1,552.2 | 1,542.7 |
Retained earnings | 502.5 | 693.6 |
Accumulated other comprehensive income | 0.8 | 0.1 |
Total Shareholders’ Equity | 2,055.5 | 2,236.4 |
Total Liabilities and Shareholders’ Equity | 3,516.2 | 3,660.1 |
Trade accounts receivable allowance | 3.7 | 3.4 |
Lease receivables allowance | 0.8 | 0.6 |
Class A Common Shares | ||
Shareholders' Equity: | ||
Common stock | $ 0 | $ 0 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (shares) | 83,029,500 | 83,029,500 |
Common stock, shares outstanding (shares) | 83,029,500 | 83,029,500 |
Class B Common Stock | ||
Shareholders' Equity: | ||
Common stock | $ 0 | $ 0 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (shares) | 95,159,635 | 94,837,673 |
Common stock, shares outstanding (shares) | 94,311,653 | 94,088,025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net income | $ 211.7 | $ 147 | $ 268.9 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 290.5 | 292.9 | 291.3 |
Goodwill impairment | 0 | 34.6 | 2 |
Losses (gains) on sales of property and equipment—net | 6.2 | (3.3) | (8.4) |
Impairment on assets held for sale | 4.3 | 14.3 | 0.3 |
Proceeds from lease receipts | 69 | 78.7 | 0 |
Deferred income taxes | 1.7 | (0.2) | 62.2 |
Long-term incentive and share-based compensation expense (benefit) | 8.9 | (3.6) | 22.8 |
Noncash restructuring—net | 1.1 | 50 | 0 |
Other noncash items | (5.7) | 3.4 | (3.5) |
Changes in operating assets and liabilities: | |||
Receivables | (65.4) | 119.9 | (62.8) |
Other assets | (15.3) | (3.3) | (9) |
Payables | 56.5 | (35.3) | 3 |
Claims reserves and other receivables—net | 3.8 | (12.6) | 8.8 |
Other liabilities | 50.9 | (46.2) | (9.1) |
Net cash provided by operating activities | 618.2 | 636.3 | 566.5 |
Investing Activities: | |||
Purchases of transportation equipment | (274.8) | (335.3) | (385.1) |
Purchases of other property and equipment | (49.7) | (61.7) | (36.9) |
Proceeds from sale of property and equipment | 87.4 | 90.1 | 90.5 |
Proceeds from lease receipts | 0 | 0 | 72.7 |
Proceeds from sale of off-lease inventory | 22.7 | 20.7 | 21.9 |
Purchases of lease equipment | (94.5) | (68.7) | (90.5) |
Proceeds from marketable securities | 24.2 | 22.1 | 9.9 |
Purchases of marketable securities | (23.6) | (17.4) | (20.1) |
Investment in equity securities | (10.4) | 0 | 0 |
Net cash used in investing activities | (318.7) | (350.2) | (337.6) |
Financing Activities: | |||
Payments of debt and finance lease obligations | (55.6) | (52) | (28.7) |
Payments of deferred consideration related to acquisition | 0 | (18.7) | (19.3) |
Dividends paid | (400) | (42.5) | (40.7) |
Net cash used in financing activities | (455.6) | (113.2) | (88.7) |
Net (decrease) increase in cash and cash equivalents | (156.1) | 172.9 | 140.2 |
Cash and Cash Equivalents: | |||
Beginning of period | 551.6 | 378.7 | 238.5 |
End of period | 395.5 | 551.6 | 378.7 |
Noncash investing and financing activity: | |||
Equipment and inventory purchases in accounts payable | 0.6 | 19.1 | 2.1 |
Dividends declared but not yet paid | 13.6 | 10.8 | 10.6 |
Ownership interest in Platform Science, Inc. | 0 | 0 | 3.5 |
Cash paid during the year for: | |||
Interest | 12.8 | 14.5 | 15.5 |
Income taxes—net of refunds | $ 61.6 | $ 51.6 | $ 39 |
Consolidated Statements Shareho
Consolidated Statements Shareholders' Equity - USD ($) $ in Millions | Total | Class A Common Shares | Class B Common Stock | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 31, 2017 | $ 1,890.2 | $ 0 | $ 1,534.6 | $ 355.6 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 268.9 | 0 | 0 | 268.9 | 0 | |||||||
Other comprehensive income (loss) | (1) | 0 | 0 | 0 | (1) | |||||||
Share-based compensation expense (benefit) | $ 10.9 | 0 | 10.9 | 0 | 0 | |||||||
Dividends declared per share | $ 0.24 | $ 0.24 | $ 0.24 | |||||||||
Dividends declared | $ (42.5) | 0 | 0 | (42.5) | 0 | |||||||
Share issuances | 0.5 | 0 | 0.5 | 0 | 0 | |||||||
Exercise of employee stock options | 0.2 | 0 | 0.2 | 0 | 0 | |||||||
Shares withheld for employee taxes | (2.3) | 0 | (2.3) | 0 | 0 | |||||||
Cumulative-effect adjustment of ASU 2014-09 adoption | $ 7.3 | $ 0 | $ 0 | $ 7.3 | $ 0 | |||||||
Other | 0.1 | 0 | 0.1 | 0 | 0 | |||||||
Balance at Dec. 31, 2018 | 2,132.3 | 0 | 1,544 | 589.3 | (1) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 147 | 0 | 0 | 147 | 0 | |||||||
Other comprehensive income (loss) | 1.1 | 0 | 0 | 0 | 1.1 | |||||||
Share-based compensation expense (benefit) | $ (0.4) | 0 | (0.4) | 0 | 0 | |||||||
Dividends declared per share | $ 0.24 | 0.24 | 0.24 | |||||||||
Dividends declared | $ (42.7) | 0 | 0 | (42.7) | 0 | |||||||
Share issuances | 0.3 | 0 | 0.3 | 0 | 0 | |||||||
Shares withheld for employee taxes | (1.2) | 0 | (1.2) | 0 | 0 | |||||||
Balance at Dec. 31, 2019 | 2,236.4 | 0 | 1,542.7 | 693.6 | 0.1 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 211.7 | 0 | 0 | 211.7 | 0 | |||||||
Other comprehensive income (loss) | 0.7 | 0 | 0 | 0 | 0.7 | |||||||
Share-based compensation expense (benefit) | $ 8.6 | 0 | 8.6 | 0 | 0 | |||||||
Dividends declared per share | $ 2.26 | $ 2.26 | $ 2.26 | |||||||||
Dividends declared | $ (402.8) | 0 | 0 | (402.8) | 0 | |||||||
Share issuances | 0.2 | 0 | 0.2 | 0 | 0 | |||||||
Exercise of employee stock options | 1.6 | 0 | 1.6 | 0 | 0 | |||||||
Shares withheld for employee taxes | (0.9) | 0 | (0.9) | 0 | 0 | |||||||
Balance at Dec. 31, 2020 | $ 2,055.5 | $ 0 | $ 1,552.2 | $ 502.5 | $ 0.8 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We are one of the largest providers of surface transportation and logistics solutions in North America that, together with our wholly owned subsidiaries, provides safe, reliable, and innovative truckload, intermodal, and logistics services to a diverse group of customers throughout the continental United States, Canada, and Mexico. Principles of Consolidation and Basis of Presentation Our consolidated financial statements have been prepared in conformity with GAAP and include all of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. COVID-19 In response to COVID-19 being declared a pandemic in March 2020, the Company has taken steps to mitigate the potential risks it poses. We have taken additional measures to keep our associates safe and minimize unnecessary risk of exposure to COVID-19 including taking precautions for our associates and owner-operators, implementing work from home policies, and imposing travel limitations on employees where appropriate as we continue to provide an essential service. Management makes estimates and assumptions that affect reported amounts and disclosures included in its financial statements and accompanying notes and assesses certain accounting matters that require consideration of forecasted financial information. Uncertainty remains regarding the ongoi ng impact of COVID-19 on our financial condition and future results of operations, as well as on the significant estimates and assumptions used in reporting certain assets and liabilities such as the Company’s goodwill, long-lived and held for sale asset valuations, current expected credit losses, and healthcare reserves. Use of Estimates We make estimates and assumptions that affect assets, liabilities, the disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Cash and Cash Equivalents Cash in excess of current operating requirements is invested in short-term, highly liquid investments. We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Receivables and Allowance Our trade accounts receivable is recorded net of an allowance for doubtful accounts and revenue adjustments. The allowance is based on an aging analysis using historical experience, as well as any current and forecasted trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed at least quarterly, and reserves for receivables not expected to be collected are established. In circumstances where we are aware of a customer’s inability to meet its financial obligations, a specific reserve is recorded to reduce the net receivable to the amount we reasonably expect to collect. Bad debt expense is included in other general expenses in the consolidated statements of comprehensive income. We record our lease receivables net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to be uncollectible. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation, which can be impacted by economic conditions, is not realized. Inventory Our inventories consist of tractors and trailing equipment owned by our equipment leasing company to be sold or leased to owner-operators, as well as parts, tires, supplies, and fuel. These inventories are valued at the lower of cost or market using specific identification or average cost. The following table shows the components of our inventory balances as of the dates shown. (in millions) December 31, 2020 December 31, 2019 Tractors and trailing equipment for sale or lease $ 33.3 $ 59.3 Replacement parts 10.7 11.3 Tires and other 0.9 1.3 Total $ 44.9 $ 71.9 Investments in Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or to our liquidity needs may cause us to sell certain securities in advance of their maturity date. With the adoption of ASU 2016-13, as discussed further within Accounting Standards Recently Adopted below, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. When adopting this standard, we elected to continue to present the accrued interest receivable balance associated with our investments in marketable securities separate from the marketable securities line in the consolidated balance sheets. As of December 31, 2020, accrued interest receivable associated with our investments in marketable securities was not material and is included within other receivables on the consolidated balance sheets. We have elected the practical expedient provided under the guidance to exclude the applicable accrued interest from the amortized cost basis disclosure of our marketable securities. We have also elected not to measure an allowance for credit losses on our accrued interest receivable and to write off accrued interest receivable by reversing interest income when it is not considered collectible. Fair Value Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability, which is referred to as the exit price. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows: Level 1 —Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date. Level 2 —Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 3 —Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method based on the estimated useful lives and residual values. Generally, the estimated useful lives are as follows: 2020 Tractors 3 - 8 years Trailing equipment 6 - 20 years Other transportation equipment 4 - 5 years Buildings and improvements 5 - 25 years Other property 3 - 10 years Salvage values, when applicable, generally don’t exceed 30% or 25% of the original cost for tractors and trailing equipment, respectively, and reflect any agreements with tractor suppliers for residual or trade-in values for certain new equipment. Long-lived assets require an impairment review when events or circumstances indicate that the carrying amount may not be recoverable. We base our evaluation of other long-lived assets on the presence of impairment indicators such as the future economic benefit of the assets, any historical or future profitability measurements, and other external market conditions or factors. The carrying amount of tangible long-lived assets held and used is considered not recoverable if the carrying amount exceeds the undiscounted sum of cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable, the impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Gains and losses on the sale or other disposition of equipment are based on the difference between the proceeds received less costs to sell and the net book value of the assets disposed. Gains and losses are recognized at the time of the sale or disposition and are classified in operating supplies and expenses in the consolidated statements of comprehensive income. Assets Held for Sale Assets held for sale consist of revenue equipment and are included in prepaid expenses and other current assets in the consolidated balance sheets. Reclassification to assets held for sale occurs when the required criteria, as defined by ASC 360, Property, Plant and Equipment , are satisfied. Assets held for sale are evaluated for impairment when transferred to held for sale status or as impairment indicators are present. The carrying amount of assets held for sale is not recoverable if the carrying amount exceeds the fair value less estimated costs to sell the asset. An impairment loss is recorded for the excess of the asset’s carrying amount over the fair value less estimated costs to sell. Impairment losses are recorded in operating supplies and expenses in the consolidated statements of comprehensive income. For the years ended December 31, 2020, 2019, and 2018, total impairment losses were $4.7 million, $42.4 million, and $0.3 million, respectively. Impairment losses for the year ended December 31, 2019 included a $28.1 million impairment related to the shutdown of our FTFM service offering and an $11.5 million impairment related to a bulk sale of tractors. Impairment losses related to the shutdown of our FTFM service offering were not material for the year ended December 31, 2020. As of December 31, 2020 and 2019, assets held for sale by segment were as follows: (in millions) 2020 2019 Truckload (1) $ 16.9 $ 63.5 Intermodal 1.9 3.9 Total $ 18.8 $ 67.4 (1) As of December 31, 2020 and 2019, $1.6 million and $33.4 million related to the shutdown of our FTFM service offering, respectively. Goodwill Goodwill is tested for impairment annually in October, or more frequently if impairment indicators exist. The carrying amount of a reporting unit’s goodwill is considered not recoverable, and an impairment loss is recorded if the carrying amount of the reporting unit exceeds the reporting unit’s fair value, as determined based on the combination of an income approach and a market approach. See Note 6, Goodwill , for more information on our goodwill. Revenue Recognition We recognize revenue during the delivery period based on relative transit time in each reporting period, in accordance with ASC 606, with expenses recognized as incurred. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. See Note 3, Revenue Recognition , for more information on ASC 606. When we use third-party carriers, we generally record revenues on the gross basis at amounts charged to our customers because we are the primary obligor, we are a principal in the transaction, we invoice our customers and retain all credit risks, and we maintain discretion over pricing. Additionally, we are responsible for selection of third-party transportation providers to the extent used to satisfy customer freight requirements. We record revenues net of pass-through taxes in our consolidated statements of comprehensive income. For the years ended December 31, 2020, 2019, and 2018, no customer accounted for more than 10% of our consolidated revenues. Income Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We record valuation allowances for deferred tax assets to the extent we believe these assets are not more likely than not to be realized through the reversal of existing taxable temporary differences, projected future taxable income, or tax-planning strategies. We record a liability for unrecognized tax benefits when the benefits of tax positions taken on a tax return are not more likely than not to be sustained upon audit. Interest and penalties related to uncertain tax positions are classified as income tax expense in the consolidated statements of comprehensive income. Earnings Per Share We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if holders of unvested restricted and performance share units or options exercised or converted their holdings into common stock. Awards that would have an anti-dilutive impact are excluded from the calculation. Share-based Compensation We have share-based compensation plans covering certain employees, including officers and directors. We account for share-based compensation using the fair value recognition provisions of current accounting standards for share-based payments. We grant restricted stock units, restricted shares, performance-based restricted stock units, performance-based restricted shares, and nonqualified stock options. We recognize compensation expense over the requisite service periods within each award. See Note 12, Share-Based Compensation , for more information about our plans. Claims Accruals We are self-insured for loss of and damage to our owned and leased revenue equipment. We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular accidents, and cargo damage. Certain insurance arrangements include a level of self-insurance (deductible) coverage applicable to each claim. We have excess policies to limit our exposure to catastrophic claim costs. The amounts of self-insurance change from time to time based on measurement dates, policy expiration dates, and claim type. Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature and severity of the claims and analyses provided by third-party claims administrators, as well as legal, economic, and regulatory factors. The ultimate cost of a claim develops over time as additional information regarding the nature, timing, and extent of damages claimed becomes available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This process involves the use of loss-development factors based on our historical claims experience and includes a contractual premium adjustment factor, if applicable. In doing so, the recorded liability considers future claims growth and provides an allowance for incurred but not reported claims. We do not discount our estimated losses. At December 31, 2020 and 2019, we had an accrual of $144.2 million and $143.5 million, respectively, for estimated claims net of reinsurance receivables. In addition, we are required to pay certain advanced deposits and monthly premiums. At December 31, 2020 and 2019, we had an aggregate prepaid insurance asset of $10.6 million and $8.1 million, respectively, which represented prefunded premiums and deposits. Accounting Standards Recently Adopted We adopted ASU 2019-12, Simplifying the Accounting for Income Taxes, which reduces complexity in accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application among reporting entities, as of January 1, 2021. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures. We adopted ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was effective as of March 12, 2020 through December 31, 2022, when the reference rate replacement activity is expected to be complete. This guidance offers optional expedients and exceptions for applying GAAP to transactions, including contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity affected by reference rate reform, if certain criteria are met. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends ASC 350, as of January 1, 2020 on a prospective basis. This standard aligned the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. The adoption did not have a material impact on our consolidated financial statements or disclosures. We adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which is codified in ASC 326, as of January 1, 2020. The guidance replaced the incurred loss model with a methodology that reflects expected credit losses over the life of the financial assets held at the reporting date based on historical experience, as well as considerations of current conditions and reasonable and supportable forecasts. This new model for estimating our expected credit losses was implemented for our trade accounts receivable (Note 2, Trade Accounts Receivable and Allowance ), available-for-sale debt securities (Note 5, Investments ), and net investment in leases (Note 8, Leases ) and did not result in a material impact to our consolidated financial statements or disclosures upon adoption. |
Trade Accounts Receivable and A
Trade Accounts Receivable and Allowance (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Trade Accounts Receivable and Allowance | TRADE ACCOUNTS RECEIVABLE AND ALLOWANCE The following table shows changes to our allowance for doubtful accounts for the year ended December 31, 2020. Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Year Ended December 31, (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 1.1 Write-offs (1.4) Recoveries 0.3 Balance at end of period $ 0.9 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We implemented ASU 2014-09, Revenue from Contracts with Customers, which is codified as ASC 606 as of January 1, 2018 and replaced ASC 605, Revenue Recognition. We used the modified retrospective approach for adoption, which required us to record the cumulative effect of the transition through retained earnings as of January 1, 2018. Retained earnings increased by $7.3 million upon adoption. The adjustment related only to contracts that were not completed as of January 1, 2018. Disaggregated Revenues The majority of our revenues are related to transportation and have similar characteristics. The following table summarizes our revenues by type of service, and each type of service is further described below. Year Ended December 31, Disaggregated Revenues ( in millions ) 2020 2019 2018 Transportation $ 4,170.0 $ 4,376.6 $ 4,589.7 Logistics Management 149.7 153.8 228.3 Other 233.1 216.6 159.0 Total operating revenues $ 4,552.8 $ 4,747.0 $ 4,977.0 Transportation Transportation revenues are generated from our Truckload and Intermodal segments, as well as from our brokerage business, which is included in the Logistics segment. In the Transportation portfolio, our service obligation to customers is satisfied over time. We do not believe there is a significant impact on the nature, amount, timing, and uncertainty of revenue or cash flows based on the mode of transportation. The economic factors that impact our transportation revenue are generally consistent across these modes given the relatively short-term nature of each contract. For the majority of our transportation business, the “contract with a customer” is identified as an individual order under a negotiated agreement. Some consideration is variable in that a final transaction price is uncertain and is susceptible to factors outside of the Company’s influence, such as the weather or the accumulation of accessorial charges. Pricing information is supplied by the rate schedules that accompany negotiated contracts. Transportation orders are short-term in nature and generally have terms of significantly less than one year. They do not include significant financing components. A small portion of revenues in our transportation business relate to fixed payments in our Truckload segment. These payments are due regardless of volumes, and in these arrangements, the master agreement rather than the individual order may be considered the “contract.” See the Remaining Performance Obligations table below for more information on fixed payments. Prior to the adoption of ASC 606, we recognized revenue from transportation services when we completed our obligation to the customer, upon delivery. In accordance with ASC 606, we now recognize revenue over the period transportation services are provided to the customer, including service performed as of the end of the reporting period for loads currently in transit, in order to recognize the value that is transferred to a customer over the course of the transportation service. We determine revenue in transit using the input method, under which revenue is recognized based on time lapsed from the departure date (start of transportation services) to the arrival date (completion of transportation services). Measurement of revenue in transit requires the application of significant judgment. We calculate the estimated percentage of an order’s transit time that is complete at period end, and we apply that percentage of completion to the order’s estimated revenue. In certain transportation arrangements, an unrelated party contributes a specified service to our customer. For example, we contract with third-party carriers to perform transportation services on behalf of our customers in our brokerage business, and we use third-party rail carriers in our Intermodal segment. In situations that include the contributions of third parties, we act as principal in the arrangement, and, accordingly, we recognize gross revenues from these transactions. Logistics Management Logistics Management revenues relate to our Supply Chain Management and Import/Export Services operating segments, both of which are included in our Logistics reportable segment. Within this portfolio, the key service we provide to the customer is management of freight shipping and/or storage. The “contracts” in our Logistics Management portfolio are the negotiated agreements, which contain both fixed and variable components. The variability of revenues is driven by volumes and transactions, which are known as of an invoice date. See the Remaining Performance Obligations table below for additional information. Supply Chain Management and Import/Export Services contracts typically have terms that extend beyond one year, and they do not include financing components. Prior to the adoption of ASC 606, we recognized revenue under these contracts over time, based on pricing terms within the arrangements. Our recognition model remains the same under the new standard, as we have elected to use the right to invoice practical expedient, which reflects the fact that a customer obtains the benefit associated with logistics services as they are provided (output method). In our Supply Chain Management business, we subcontract third parties to perform a portion of the services. We are responsible for ensuring the services are performed and that they are acceptable to the customer, and, therefore, we are considered to be the principal in these arrangements. Other Other revenues relate to activities that are out of scope for purposes of ASC 606, including our leasing and captive insurance businesses. Quantitative Disclosure The following table provides information related to transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown. Remaining Performance Obligations (in millions) December 31, 2020 Expected to be recognized within one year Transportation $ 15.2 Logistics Management 12.7 Expected to be recognized after one year Transportation 49.1 Logistics Management 17.0 Total $ 94.0 This disclosure does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice (e.g. usage-based pricing terms). The following table provides information related to contract balances associated with our contracts with customers as of the dates shown. Contract Balances ( in millions ) December 31, 2020 December 31, 2019 January 1, 2019 Other current assets - Contract assets $ 21.5 $ 17.6 $ 21.7 Other current liabilities - Contract liabilities 0.7 — — We generally receive payment within 40 days of completion of performance obligations. Contract assets in the table above relate to revenue in transit at the end of the reporting period. Contract liabilities relate to amounts that customers paid in advance of the associated service. For certain of our contracts, we incur upfront costs to fulfill the master agreement, including driver recruiting and equipment relocation, that are capitalized and amortized straight-line over the master contract term, which has been deemed to be the period of benefit. These costs primarily relate to dedicated transportation arrangements. The following table presents the amounts capitalized for contract fulfillment costs as of the dates shown. (in millions) December 31, 2020 December 31, 2019 Capitalized contract fulfillment costs $ 4.1 $ 4.2 Amortization of capitalized contract fulfillment costs was as follows: Year Ended December 31, (in millions) 2020 2019 2018 Amortization of contract fulfillment costs $ 2.6 $ 3.2 $ 2.5 There were no impairment losses on capitalized contract fulfillment costs for the period ended December 31, 2020. Impairment losses on capitalized contract fulfillment costs were immaterial for the periods ended December 31, 2019 and 2018. Practical Expedients We elected to use the following practical expedients that are available under ASC 606: (1) not to adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised service to a customer and when the customer pays for that service will be one year or less; (2) to apply ASC 606 to a portfolio of contracts (or performance obligations) with similar characteristics, as we reasonably expect that the effects on the consolidated financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio; and (3) to recognize revenue in the Logistics Management portfolio in the amount of consideration to which we have a right to invoice, that corresponds directly with the value to the customer of the service completed to date. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE The table below sets forth the Company’s financial assets and liabilities that are measured at fair value on a recurring basis in accordance with ASC 820. December 31, 2020 December 31, 2019 (in millions) Level in Fair Fair Value Fair Value Marketable securities (1) 2 $ 47.1 $ 48.3 (1) Marketable securities are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active and are, therefore, classified as Level 2 in the fair value hierarchy. We measure our marketable securities on a recurring, monthly basis. See Note 5, Investments , for additional information on the fair value of our marketable securities. The fair value of the Company’s debt was $316.9 million and $368.5 million as of December 31, 2020 and 2019, respectively. The carrying value of the Company’s debt was $305.0 million and $360.0 million as of December 31, 2020 and 2019, respectively. The fair value of our debt was calculated using a fixed rate debt portfolio with similar terms and maturities, which is based on the borrowing rates available to us in the applicable year. This valuation used Level 2 inputs. The recorded value of cash, trade accounts receivable, lease receivables, and trade accounts payable approximates fair value. We measure non-financial assets such as goodwill, assets held for sale, and other long-lived assets at fair value when there is an indicator of impairment and only when we recognize an impairment loss. The tables below set forth the Company’s non-financial assets that were measured at fair value on a non-recurring basis during 2020 and 2019. (in millions) Level in Fair Fair Value at December 31, 2020 Assets held for sale Non restructuring (1) 2 $ 1.8 Restructuring (2) 2 1.4 Right-of-use lease assets Non restructuring (3) 3 1.0 Restructuring (2) 3 — (1) Our held for sale revenue equipment is evaluated for impairment using market data upon classification as held for sale or as impairment indicators are present. If the carrying value of the assets held for sale exceeds the fair value, an impairment is recorded. Of the $17.2 million of assets held for sale not related to the FTFM shutdown as of December 31, 2020, $1.8 million are recorded at fair value. Refer to Note 1, Summary of Significant Accounting Policies for further details on impairment charges. (2) We recognized impairment charges and recorded certain assets held for sale and right-of-use lease assets associated with the shutdown of the FTFM service offering at fair value as of December 31, 2020. Transportation equipment was measured using market data, while right-of-use lease assets were measured using discounted cash flow analyses. Of the $1.6 million of assets held for sale related to the FTFM shutdown, $1.4 million were recorded at fair value. The discounted cash flow analyses for right-of-use lease assets used a range of discount rates from 3.6% to 4.0%, with a weighted average rate of 4.0%. (3) During the fourth quarter of 2020, we recognized an impairment on one of our right-of-use lease assets. The discounted cash flow analysis performed used a discount rate of 4.1%. (in millions) Level in Fair Fair Value at December 31, 2019 Assets held for sale Non restructuring (1) 2 $ 8.1 Restructuring (2) 2 18.5 Right-of-use lease assets Non restructuring (3) 3 1.0 Restructuring (2) 3 2.0 WSL acquisition internal-use software and intangible assets (4) 3 — FTFM reporting unit goodwill (5) 3 — (1) Our held for sale revenue equipment is evaluated for impairment using market data upon classification as held for sale or as impairment indicators are present. If the carrying value of the assets held for sale exceeds the fair value, an impairment is recorded. Of the $34.0 million of assets held for sale not related to the FTFM shutdown as of December 31, 2019, $8.1 million were recorded at fair value. Refer to Note 1, Summary of Significant Accounting Policies, for further details on impairment charges. (2) We recognized impairment charges and recorded certain assets held for sale and right-of-use lease assets associated with the shutdown of the FTFM service offering at fair value as of December 31, 2019. Transportation equipment was measured using market data, while right-of-use lease assets were measured using discounted cash flow analyses. Of the $33.4 million of assets held for sale related to the FTFM shutdown, $18.5 million were recorded at fair value. The discounted cash flow analyses for right-of-use lease assets used a range of discount rates from 2.9% to 4.5%, with a weighted average rate of 4.0%. For further details on the impairment charges recorded refer to Note 16, Restructuring . (3) During the fourth quarter of 2019, we recognized an impairment on one of our right-of-use lease assets. The discounted cash flow analysis performed used a discount rate of 4.0%. (4) As part of the shutdown of the FTFM service offering in 2019, we recognized impairment charges and recorded internal-use software and finite lived intangible assets at fair value. The WSL acquisition internal-use software and intangible assets, which were previously valued using the replacement cost method and discounted cash flow analyses, respectively, were written off as part of the shutdown of the FTFM service offering. (5) During the second quarter of 2019, a triggering event occurred within our FTFM reporting unit which resulted in an impairment test being performed and full impairment of its goodwill. Our ownership interests in PSI and MLSI discussed in Note 5, Investments , do not have readily determinable fair values and are accounted for using the measurement alternative in ASC 321-10-35-2. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Investments | INVESTMENTS Marketable Securities The following table presents the maturities and values of our marketable securities as of the dates shown. December 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 3 to 101 $ 12.6 $ 12.7 $ 16.5 $ 17.0 Asset-backed securities — — — 0.1 0.1 Corporate debt securities 8 to 81 21.4 22.2 15.1 15.4 State and municipal bonds 3 to 63 11.9 12.2 11.6 11.8 Other U.S. and non-U.S. government bonds — — — 4.0 4.0 Total marketable securities $ 45.9 $ 47.1 $ 47.3 $ 48.3 Gross realized gains and losses on our marketable securities were not material for the years ended December 31, 2020, 2019, and 2018. Net unrealized gains on our marketable securities, net of tax, were $0.1 million and $1.1 million for the years ended December 31, 2020 and 2019, respectively, and net unrealized losses on our marketable securities, net of tax, were not material for the year ended December 31, 2018. Additionally, we did not have an allowance for credit losses on our marketable securities as of December 31, 2020 or any other-than-temporary impairments as of December 31, 2019, and our total unrealized gains and losses were not material as of December 31, 2020 and 2019. Ownership Interest in Platform Science, Inc. In 2018, the Company made a strategic decision to invest in PSI and acquired an ownership interest in exchange for granting them a non-exclusive license to our proprietary telematics mobile software that was developed to enhance driver productivity and ensure regulatory compliance. Our ownership interest is being accounted for under ASC 321, Investments - Equity Securities using the measurement alternative and is recorded in other noncurrent assets on the consolidated balance sheets. During the first half of 2020, remeasurement events occurred which required the Company to revalue its interest in PSI. In the year ended December 31, 2020, the Company recognized pre-tax gains of $8.8 million on its investment in PSI, which were recorded within other income on the consolidated statements of comprehensive income. The value of our ownership interest as of December 31, 2020 and 2019 was $12.3 million and $3.5 million, respectively, and our ownership percentage was 12.6% as of December 31, 2020. There have been no events since the remeasurement performed in the first half of 2020 that would indicate that the value of our investment in PSI has changed as of December 31, 2020. Ownership Interest in Mastery Logistics Systems, Inc. On July 2, 2020, Schneider entered into a strategic partnership with MLSI, a transportation technology development company, which included an agreement that allows the Company to purchase a non-controlling interest in MLSI in two tranches. Schneider and MLSI are collaborating to develop a Transportation Management System using MLSI’s SaaS technology which Schneider has also agreed to license. In the year ended December 31, 2020, we paid MLSI $10.0 million, completing both tranches of the agreement, and, in return, received shares of preferred stock of MLSI which represents a 10.1% ownership interest. This investment is being accounted for under ASC 321, Investments - Equity Securities using the measurement alternative and is recorded in other noncurrent assets on the consolidated balance sheet. As of December 31, 2020, no events have occurred that would indicate that the value of our investment in MLSI has changed. Subsequent Event - Investment in TuSimple (Cayman) Limited On January 12, 2021, the Company contributed $5.0 million for a non-controlling interest in TuSimple (Cayman) Limited, a global self-driving technology company. The investment will be accounted for under ASC 321, Investments - Equity Securities . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill represents the excess of the purchase price of our acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by segment during the years ended December 31, 2020 and 2019 . (in millions) Truckload Logistics Other Total Balance at December 31, 2018 $ 138.2 $ 14.2 $ 9.8 $ 162.2 Goodwill impairment charge (34.6) — — (34.6) Foreign currency translation loss — — (0.1) (0.1) Balance at December 31, 2019 103.6 14.2 9.7 127.5 Foreign currency translation gain — — 0.6 0.6 Balance at December 31, 2020 $ 103.6 $ 14.2 $ 10.3 $ 128.1 At December 31, 2020 and 2019, we had accumulated goodwill impairment charges of $42.6 million. Goodwill is tested for impairment at least annually using the discounted cash flow, guideline public company, and guideline merged and acquired company methods to calculate the fair values of our reporting units. Key inputs used in the discounted cash flow approach include growth rates for sales and operating profit, perpetuity growth assumptions, and discount rates. If interest rates rise, the calculated fair values of our reporting units will decrease, which could impact the results of our goodwill impairment tests. During the second quarter of 2019, a triggering event occurred as results from our FTFM reporting unit continued to be less than projected, despite sustained investments and operational changes designed to improve efficiencies. Because of this triggering event, an impairment test was performed for the FTFM reporting unit. As a result of the testing performed, an impairment loss of $34.6 million was recorded for our FTFM reporting unit as the discounted cash flows expected to be generated by this reporting unit were not sufficient to recover its carrying value. This represented all of the goodwill related to the FTFM reporting unit. In the fourth quarter of 2020 and 2019, annual impairment tests were performed on all three of our remaining reporting units with goodwill. No impairments resulted from these tests. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES As of December 31, 2020 and 2019, debt included the following: (in millions) December 31, 2020 December 31, 2019 Unsecured senior notes: principal payable at maturities ranging from 2021 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.64% and 3.42% for 2020 and 2019, respectively $ 305.0 $ 360.0 Current maturities (40.0) (55.0) Debt issuance costs (0.2) (0.4) Long-term debt $ 264.8 $ 304.6 Scheduled principal payments of debt subsequent to December 31, 2020 are as follows: (in millions) December 31, 2020 2021 $ 40.0 2022 60.0 2023 70.0 2024 40.0 2025 95.0 2026 and thereafter — Total $ 305.0 Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment by up to $150.0 million, for a total potential commitment of $400.0 million through August 2023. The agreement also provides a sublimit of $100.0 million to be used for the issuance of letters of credit. We had no outstanding borrowings under this agreement as of December 31, 2020 or 2019. Standby letters of credit under this agreement amounted to $3.9 million and $3.8 million at December 31, 2020 and 2019, respectively, and were primarily related to the requirements of certain of our real estate leases. We also have a Receivables Purchase Agreement (the “2018 Receivables Purchase Agreement”) that allows us to borrow funds against qualifying trade receivables at rates based on one-month LIBOR up to $200.0 million and provides for the issuance of standby letters of credit through September 2021. We had no outstanding borrowings under this facility at December 31, 2020 or 2019. At both December 31, 2020 and 2019, standby letters of credit under this agreement amounted to $70.3 million and were primarily related to the requirements of certain of our insurance obligations. The Company plans to renew the 2018 Receivables Purchase Agreement prior to its expiration date. The credit agreements contain various financial and other covenants, including required minimum consolidated net worth, consolidated net debt, limitations on indebtedness, transactions with affiliates, shareholder debt, and restricted payments. The credit agreements and senior notes contain change of control provisions pursuant to which a change of control is defined to mean the Schneider family no longer owns more than 50% of the combined voting power of our capital shares. A change of control event causes an immediate termination of unused commitments under the credit agreements and requires repayment of all outstanding borrowings plus accrued interest and fees. The senior notes require us to provide notice to the note holders offering prepayment of the outstanding principal along with interest accrued to the date of prepayment. The prepayment date is required to be within 20 to 60 days from the date of notice. At December 31, 2020, the Company was in compliance with all financial covenants. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 and resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million, respectively. Right-of-use lease assets and related lease liabilities were $69.4 million and $74.6 million as of December 31, 2020, respectively, and $75.5 million and $82.6 million as of December 31, 2019, respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Our incremental borrowing rates are used as the discount rates for leases and are determined based on U.S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. As Lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all of these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the years ended December 31, 2020 and 2019. Financial Statement Classification Year Ended December 31, (in millions) 2020 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 29.5 $ 32.5 Short-term lease cost (1) Operating supplies and expenses 3.1 7.6 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.5 3.2 Interest on lease liabilities Interest expense 0.1 0.2 Variable lease cost Operating supplies and expenses 2.2 2.6 Sublease income Operating revenues (4.5) (5.4) Total net lease cost $ 30.9 $ 40.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of December 31, 2020 and 2019, remaining lease terms and discount rates under operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.1 years 4.4 years Finance leases 4.6 years 4.3 years Weighted-average discount rate (1) Operating leases 3.8 % 4.1 % Finance leases 3.2 % 3.3 % (1) Determined based on a portfolio approach. Additional information related to our leases is as follows: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 34.7 $ 35.3 Operating cash flows for finance leases 0.1 0.2 Financing cash flows for finance leases 0.6 6.9 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 23.7 $ 29.4 Finance leases 0.8 1.4 Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheets. Total operating lease right-of-use lease asset impairment losses were $0.8 million and $4.1 million for the years ended December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, $0.3 million and $3.8 million related to the shutdown of our FTFM service offering, respectively. Refer to Note 16, Restructuring, for additional details on the impairment loss related to the FTFM service offering shutdown. At December 31, 2020, future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases 2021 $ 25.8 $ 0.5 2022 17.6 0.5 2023 14.3 0.5 2024 10.4 0.4 2025 7.2 0.1 2026 and thereafter 5.4 0.1 Total 80.7 2.1 Amount representing interest (6.1) (0.1) Present value of lease payments 74.6 2.0 Current maturities (23.6) (0.4) Long-term lease obligations $ 51.0 $ 1.6 For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at December 31, 2020 include $2.3 million related to options to extend lease terms that we are reasonably certain to exercise. As of December 31, 2020, we had one additional lease that has been signed but not yet commenced for $7.0 million. This lease will commence in 2021 and has a lease term of five years. The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of December 31, 2020 and 2019. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. (in millions) December 31, 2020 December 31, 2019 Real property $ 0.7 $ 0.8 Other property 2.7 2.6 Accumulated amortization (1.6) (1.9) Total $ 1.8 $ 1.5 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the years ended December 31, 2020 and 2019. We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Under ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of December 31, 2020 and 2019, the investments in lease receivables were as follows: (in millions) December 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 159.0 $ 135.0 Guaranteed residual lease values 107.6 126.6 Total minimum lease payments to be received 266.6 261.6 Unearned income (38.5) (30.7) Net investment in leases 228.1 230.9 Current maturities of lease receivables 97.6 122.1 Allowance for doubtful accounts (0.8) (0.6) Current portion of lease receivables—net of allowance 96.8 121.5 Lease receivables—noncurrent $ 131.3 $ 109.4 The amounts to be received on lease receivables as of December 31, 2020 were as follows: (in millions) December 31, 2020 2021 $ 119.1 2022 80.8 2023 62.1 2024 4.0 2025 0.6 2026 and thereafter — Total undiscounted lease cash flows 266.6 Amount representing interest (38.5) Present value of lease receivables 228.1 Current lease receivables, net of allowance (96.8) Long-term lease receivable $ 131.3 Prior to entering a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we have the ability to take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. Our net investment in leases with any portion past due as of December 31, 2020 was $41.5 million, which includes both current and future lease payments. Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by the due date. The following table presents an aging analysis of past due lease payments. (in millions) December 31, 2020 1-29 days $ 1.2 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.4 Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of December 31, 2020 and 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both December 31, 2020 and 2019, our net investment in leases on nonaccrual status were not material . The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses in the consolidated statements of comprehensive income, respectively. Year Ended December 31, (in millions) 2020 2019 Revenue $ 206.3 $ 196.0 Cost of goods sold (185.6) (177.1) Operating profit $ 20.7 $ 18.9 Interest income on lease receivable $ 26.5 $ 27.3 |
Finance Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 and resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million, respectively. Right-of-use lease assets and related lease liabilities were $69.4 million and $74.6 million as of December 31, 2020, respectively, and $75.5 million and $82.6 million as of December 31, 2019, respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Our incremental borrowing rates are used as the discount rates for leases and are determined based on U.S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. As Lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all of these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the years ended December 31, 2020 and 2019. Financial Statement Classification Year Ended December 31, (in millions) 2020 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 29.5 $ 32.5 Short-term lease cost (1) Operating supplies and expenses 3.1 7.6 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.5 3.2 Interest on lease liabilities Interest expense 0.1 0.2 Variable lease cost Operating supplies and expenses 2.2 2.6 Sublease income Operating revenues (4.5) (5.4) Total net lease cost $ 30.9 $ 40.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of December 31, 2020 and 2019, remaining lease terms and discount rates under operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.1 years 4.4 years Finance leases 4.6 years 4.3 years Weighted-average discount rate (1) Operating leases 3.8 % 4.1 % Finance leases 3.2 % 3.3 % (1) Determined based on a portfolio approach. Additional information related to our leases is as follows: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 34.7 $ 35.3 Operating cash flows for finance leases 0.1 0.2 Financing cash flows for finance leases 0.6 6.9 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 23.7 $ 29.4 Finance leases 0.8 1.4 Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheets. Total operating lease right-of-use lease asset impairment losses were $0.8 million and $4.1 million for the years ended December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, $0.3 million and $3.8 million related to the shutdown of our FTFM service offering, respectively. Refer to Note 16, Restructuring, for additional details on the impairment loss related to the FTFM service offering shutdown. At December 31, 2020, future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases 2021 $ 25.8 $ 0.5 2022 17.6 0.5 2023 14.3 0.5 2024 10.4 0.4 2025 7.2 0.1 2026 and thereafter 5.4 0.1 Total 80.7 2.1 Amount representing interest (6.1) (0.1) Present value of lease payments 74.6 2.0 Current maturities (23.6) (0.4) Long-term lease obligations $ 51.0 $ 1.6 For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at December 31, 2020 include $2.3 million related to options to extend lease terms that we are reasonably certain to exercise. As of December 31, 2020, we had one additional lease that has been signed but not yet commenced for $7.0 million. This lease will commence in 2021 and has a lease term of five years. The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of December 31, 2020 and 2019. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. (in millions) December 31, 2020 December 31, 2019 Real property $ 0.7 $ 0.8 Other property 2.7 2.6 Accumulated amortization (1.6) (1.9) Total $ 1.8 $ 1.5 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the years ended December 31, 2020 and 2019. We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Under ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of December 31, 2020 and 2019, the investments in lease receivables were as follows: (in millions) December 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 159.0 $ 135.0 Guaranteed residual lease values 107.6 126.6 Total minimum lease payments to be received 266.6 261.6 Unearned income (38.5) (30.7) Net investment in leases 228.1 230.9 Current maturities of lease receivables 97.6 122.1 Allowance for doubtful accounts (0.8) (0.6) Current portion of lease receivables—net of allowance 96.8 121.5 Lease receivables—noncurrent $ 131.3 $ 109.4 The amounts to be received on lease receivables as of December 31, 2020 were as follows: (in millions) December 31, 2020 2021 $ 119.1 2022 80.8 2023 62.1 2024 4.0 2025 0.6 2026 and thereafter — Total undiscounted lease cash flows 266.6 Amount representing interest (38.5) Present value of lease receivables 228.1 Current lease receivables, net of allowance (96.8) Long-term lease receivable $ 131.3 Prior to entering a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we have the ability to take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. Our net investment in leases with any portion past due as of December 31, 2020 was $41.5 million, which includes both current and future lease payments. Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by the due date. The following table presents an aging analysis of past due lease payments. (in millions) December 31, 2020 1-29 days $ 1.2 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.4 Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of December 31, 2020 and 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both December 31, 2020 and 2019, our net investment in leases on nonaccrual status were not material . The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses in the consolidated statements of comprehensive income, respectively. Year Ended December 31, (in millions) 2020 2019 Revenue $ 206.3 $ 196.0 Cost of goods sold (185.6) (177.1) Operating profit $ 20.7 $ 18.9 Interest income on lease receivable $ 26.5 $ 27.3 |
Sales-type Leases | LEASES We adopted ASU 2016-02, Leases, which is codified in ASC 842, as of January 1, 2019 and resulted in the initial recording of right-of-use lease assets and related lease liabilities of $80.6 million and $85.2 million, respectively. Right-of-use lease assets and related lease liabilities were $69.4 million and $74.6 million as of December 31, 2020, respectively, and $75.5 million and $82.6 million as of December 31, 2019, respectively. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the term. Our incremental borrowing rates are used as the discount rates for leases and are determined based on U.S. Treasury rates plus an applicable margin to arrive at all-in rates. Schneider uses multiple discount rates based on lease terms and other economic factors. The operating lease right-of-use asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. As Lessee We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. A majority of our leases include an option to extend the lease, and a small number of our leases include an option to early terminate the lease, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability. For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less, therefore, an operating lease right-of-use asset and liability will be recognized for all of these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis and no operating lease right-of-use asset or liability will be recorded. We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and the operating lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and the lease liability. At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations. The following table presents our net lease costs for the years ended December 31, 2020 and 2019. Financial Statement Classification Year Ended December 31, (in millions) 2020 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 29.5 $ 32.5 Short-term lease cost (1) Operating supplies and expenses 3.1 7.6 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.5 3.2 Interest on lease liabilities Interest expense 0.1 0.2 Variable lease cost Operating supplies and expenses 2.2 2.6 Sublease income Operating revenues (4.5) (5.4) Total net lease cost $ 30.9 $ 40.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of December 31, 2020 and 2019, remaining lease terms and discount rates under operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.1 years 4.4 years Finance leases 4.6 years 4.3 years Weighted-average discount rate (1) Operating leases 3.8 % 4.1 % Finance leases 3.2 % 3.3 % (1) Determined based on a portfolio approach. Additional information related to our leases is as follows: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 34.7 $ 35.3 Operating cash flows for finance leases 0.1 0.2 Financing cash flows for finance leases 0.6 6.9 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 23.7 $ 29.4 Finance leases 0.8 1.4 Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in capitalized software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheets. Total operating lease right-of-use lease asset impairment losses were $0.8 million and $4.1 million for the years ended December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, $0.3 million and $3.8 million related to the shutdown of our FTFM service offering, respectively. Refer to Note 16, Restructuring, for additional details on the impairment loss related to the FTFM service offering shutdown. At December 31, 2020, future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases 2021 $ 25.8 $ 0.5 2022 17.6 0.5 2023 14.3 0.5 2024 10.4 0.4 2025 7.2 0.1 2026 and thereafter 5.4 0.1 Total 80.7 2.1 Amount representing interest (6.1) (0.1) Present value of lease payments 74.6 2.0 Current maturities (23.6) (0.4) Long-term lease obligations $ 51.0 $ 1.6 For certain of our real estate leases, there are options contained within the lease agreement to extend beyond the initial lease term. The Company recognizes options as right-of-use assets and lease liabilities when deemed reasonably certain to be exercised. Future operating lease payments at December 31, 2020 include $2.3 million related to options to extend lease terms that we are reasonably certain to exercise. As of December 31, 2020, we had one additional lease that has been signed but not yet commenced for $7.0 million. This lease will commence in 2021 and has a lease term of five years. The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of December 31, 2020 and 2019. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. (in millions) December 31, 2020 December 31, 2019 Real property $ 0.7 $ 0.8 Other property 2.7 2.6 Accumulated amortization (1.6) (1.9) Total $ 1.8 $ 1.5 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values. In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the years ended December 31, 2020 and 2019. We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions. Under ASC 842, all leases for which we are the lessor meet the definition of sales-type leases. In addition, as required under ASC 842, all cash flows from lease receipts are classified as operating activities on the consolidated statement of cash flows beginning January 1, 2019. We previously presented all cash flows from lease receipts as investing activities. As of December 31, 2020 and 2019, the investments in lease receivables were as follows: (in millions) December 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 159.0 $ 135.0 Guaranteed residual lease values 107.6 126.6 Total minimum lease payments to be received 266.6 261.6 Unearned income (38.5) (30.7) Net investment in leases 228.1 230.9 Current maturities of lease receivables 97.6 122.1 Allowance for doubtful accounts (0.8) (0.6) Current portion of lease receivables—net of allowance 96.8 121.5 Lease receivables—noncurrent $ 131.3 $ 109.4 The amounts to be received on lease receivables as of December 31, 2020 were as follows: (in millions) December 31, 2020 2021 $ 119.1 2022 80.8 2023 62.1 2024 4.0 2025 0.6 2026 and thereafter — Total undiscounted lease cash flows 266.6 Amount representing interest (38.5) Present value of lease receivables 228.1 Current lease receivables, net of allowance (96.8) Long-term lease receivable $ 131.3 Prior to entering a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we have the ability to take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. Our net investment in leases with any portion past due as of December 31, 2020 was $41.5 million, which includes both current and future lease payments. Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by the due date. The following table presents an aging analysis of past due lease payments. (in millions) December 31, 2020 1-29 days $ 1.2 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.4 Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of December 31, 2020 and 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both December 31, 2020 and 2019, our net investment in leases on nonaccrual status were not material . The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses in the consolidated statements of comprehensive income, respectively. Year Ended December 31, (in millions) 2020 2019 Revenue $ 206.3 $ 196.0 Cost of goods sold (185.6) (177.1) Operating profit $ 20.7 $ 18.9 Interest income on lease receivable $ 26.5 $ 27.3 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On March 27, 2020, President Trump signed into U.S. federal law the CARES Act aimed at providing emergency assistance and health care for individuals, families, and businesses affected by COVID-19 and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions related to refundable payroll tax credits, deferment of the employer portion of social security payments, net operating loss carryback periods, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Company took advantage of the cash deferral prog ram available for payment of federal and state income taxes through the second quarter of 2020 and the cash deferral program available for payment of employer social security taxes through December 31, 2020. The deferred income tax payments were paid to the respective tax authorities in the third quarter of 2020 and we anticipate paying the deferred employer social security taxes in 2021 which were $30.7 million as of December 31, 2020. On August 8, 2020, President Trump signed an executive order, “Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster,” which gives employers the option to defer the employee portion of social security payments for certain individuals. Schneider did not elect to use the deferral option under this executive order. The components of the provision for income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows: (in millions) 2020 2019 2018 Current: Federal $ 60.4 $ 43.0 $ 21.7 State and other 9.1 8.3 11.8 69.5 51.3 33.5 Deferred: Federal (1.4) (1.3) 54.2 State and other 3.1 1.1 6.7 Impact of the Tax Cuts and Jobs Act (1) — — 1.3 1.7 (0.2) 62.2 Total provision for income taxes $ 71.2 $ 51.1 $ 95.7 (1) On December 22, 2017, the Tax Cuts and Jobs Act (the “ Act ” ) was signed into law. The primary impact of the Act for us related to the reduction of the Federal corporate income tax rate from 35% to 21% beginning in 2018. Previously recorded deferred tax assets and liabilities were remeasured to reflect the 21% rate at which these assets and liabilities would be realized in future periods. Foreign operations of the Company are insignificant in relation to our overall operating results. The provision for income taxes for the years ended December 31, 2020, 2019, and 2018 differed from the amounts computed using the federal statutory rate in effect as follows: 2020 2019 2018 (in millions, except percentages) Dollar Impact Rate Dollar Impact Rate Dollar Impact Rate Income tax at federal statutory rate $ 59.4 21.0 % $ 41.6 21.0 % $ 76.6 21.0 % State tax—net of federal effect 9.7 3.4 8.1 4.1 15.4 4.2 Nondeductible meals and entertainment 1.9 0.7 2.1 1.0 2.1 0.6 Impact of the Tax Cuts and Jobs Act — — — — 1.3 0.3 Other—net 0.2 0.1 (0.7) (0.3) 0.3 0.1 Total provision for income taxes $ 71.2 25.2 % $ 51.1 25.8 % $ 95.7 26.2 % The components of the net deferred tax liability included in deferred income taxes in the consolidated balance sheets as of December 31, 2020 and 2019, were as follows: (in millions) 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 0.4 $ 0.4 Compensation and employee benefits 10.2 9.6 Insurance and claims accruals 3.0 2.4 Operating lease liabilities 18.5 20.2 State net operating losses and credit carryforwards 11.5 12.7 Other 5.2 4.8 Total gross deferred tax assets 48.8 50.1 Valuation allowance (2.6) (2.0) Total deferred tax assets—net of valuation allowance 46.2 48.1 Deferred tax liabilities: Property and equipment 462.6 467.9 Prepaid expenses 4.3 4.2 Intangible assets 5.9 3.5 Operating lease right-of-use assets 16.6 18.0 Other 7.2 3.5 Total gross deferred tax liabilities 496.6 497.1 Net deferred tax liability $ 450.4 $ 449.0 Unrecognized Tax Benefits Our unrecognized tax benefits as of December 31, 2020 would reduce the provision for income taxes if subsequently recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. Interest and penalties recorded in income tax expense for the years ended December 31, 2020, 2019, and 2018 were immaterial. Accrued interest and penalties for such unrecognized tax benefits as of December 31, 2020 and 2019 were $2.4 million and $2.1 million, respectively. We expect no significant increases or decreases for unrecognized tax benefits during the twelve months immediately following the December 31, 2020 reporting date. As of December 31, 2020, 2019, and 2018, a reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded as other noncurrent liabilities in the consolidated balance sheets, is as follows: (in millions) 2020 2019 2018 Gross unrecognized tax benefits—beginning of year $ 4.3 $ 3.3 $ 2.8 Gross increases—tax positions related to current year 0.3 0.6 0.8 Gross increases (decreases)—tax positions taken in prior years (0.3) 0.4 — Lapse of statutes — — (0.3) Gross unrecognized tax benefits—end of year $ 4.3 $ 4.3 $ 3.3 Tax Examinations We file a U.S. federal income tax return, as well as income tax returns in a majority of state tax jurisdictions. We also file returns in foreign jurisdictions. The years 2017, 2018, and 2019 are open for examination by the IRS, and various years are open for examination by state and foreign tax authorities. In September 2020, the statute for 2016 expired. State and for eign jurisdictional statutes of limitations generally range from three to four years. Carryforwards As of December 31, 2020, we had $203.8 million of state net operating loss carryforwards which are subject to expiration from 2021 to 2041. Our state credit carryforwards were not material and are subject to expiration from 2021 to 2029. We also had no capital loss carryforwards. The deferred tax assets related to carryforwards at December 31, 2020 were $11.8 million for state net operating loss carryforwards and not material for state credit carryforwards. Carryforwards are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax-planning strategies, and projections of future taxable income. At December 31, 2020, we carried a total valuation allowance o f $2.6 million against state deferred tax assets. |
Common Equity
Common Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Equity | COMMON EQUITY Earnings Per Share Year Ended December 31, (in millions, except per share data) 2020 2019 2018 Numerator: Net income available to common shareholders $ 211.7 $ 147.0 $ 268.9 Denominator: Weighted average common shares outstanding 177.3 177.1 177.0 Dilutive effect of share-based awards and options 0.3 0.2 0.2 Weighted average diluted common shares outstanding 177.6 177.3 177.2 Basic earnings per common share $ 1.19 $ 0.83 $ 1.52 Diluted earnings per common share 1.19 0.83 1.52 The calculation of diluted earnings per share for the years ended December 31, 2020, 2019, and 2018 excluded an immaterial amount of share-based awards and options that had an anti-dilutive effect. Dividends Declared During 2020, 2019, and 2018, the Company declared cash dividends totaling $2.26, $0.24, and $0.24 per share, respectively. Included in the 2020 amount is a special cash dividend of $2.00 per share, totaling $354.7 million. Subsequent Event - Dividends Declared In January 2021, our Board declared a quarterly cash dividend for the first fiscal quarter of 2021 in the amount of $0.07 per share to holders of our Class A and Class B common stock. The dividend is payable to shareholders of record at the close of business on March 12, 2021 and is expected to be paid on April 8, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor defined contribution plans for certain eligible employees. Under these plans, annual contribution levels, as defined in the plan agreements, are based upon years of service. Expense under these plans totaled $10.7 million, $10.1 million, and $12.0 million in 2020, 2019, and 2018, respectively, and is classified in salaries, wages, and benefits in the consolidated statements of comprehensive income. We also have a savings plan, organized pursuant to Section 401(k) of the Internal Revenue Code, to provide employees with additional income upon retirement. Under the terms of the plan, substantially all employees may contribute a percentage of their annual compensation, as defined, to the plan. We make contributions to the plan, up to a maximum amount per employee, based upon a percentage of employee contributions. Our net expense under this plan was $11.3 million, $11.8 million, and $12.1 million in 2020, 2019, and 2018, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION We grant various equity-based awards relating to Class B common stock to employees under our 2017 Omnibus Incentive Plan (“the Plan”). These awards consist of the following: restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“performance shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. Prior to our IPO, we granted restricted shares of Class B common stock. The pre-IPO restricted shares were accounted for as equity awards and paid out in shares. We account for our restricted shares, RSUs, performance shares, PSUs, and non-qualified stock options granted as equity awards in accordance with the applicable accounting standards for these types of share-based payments. These standards require that the cost of the awards be recognized in our consolidated financial statements based on the grant date fair value of those awards. This cost is recognized over the period for which an employee is required to provide service in exchange for the award, subject to the attainment of performance metrics established for performance shares and PSUs. Share-based compensation expense is recorded in salaries, wages, and benefits in our consolidated statements of comprehensive income, along with other compensation expenses to employees. The following table summarizes the components of our employee share-based compensation expense. Year Ended December 31, (in millions) 2020 2019 2018 Restricted Shares and RSUs $ 4.5 $ 3.2 $ 3.1 Pre-IPO Restricted Shares — — 0.9 Performance Shares and PSUs 1.9 (6.0) 5.5 Nonqualified Stock Options 0.9 0.5 1.4 Share-based compensation expense (benefit) $ 7.3 $ (2.3) $ 10.9 Related tax benefit (expense) $ 1.8 $ (0.6) $ 2.8 As of December 31, 2020, we had $13.5 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards that is expected to be recognized over a weighted-average period of 2.4 years. Restricted Shares and RSUs Under the Plan, the majority of the restricted shares and RSUs granted from 2017 to 2020 vest ratably over a period of four years, with the first 25% of the grant vesting approximately one year after the date of grant, subject to continued employment through the vesting date or retirement eligibility. Dividend equivalents equal to dividends paid on our common shares during the vesting period are tracked and accumulated for each restricted share and RSU. The dividend equivalents are forfeitable and are distributed to participants in cash consistent with the date the awards vest. Restricted Shares and RSUs Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 240,016 $ 19.00 Granted 229,272 26.82 Vested (74,828) 19.00 Forfeited (24,983) 21.26 Unvested at December 31, 2018 369,477 23.70 Granted 259,812 22.76 Vested (96,630) 23.30 Forfeited (47,851) 23.05 Unvested at December 31, 2019 484,808 23.34 Granted 259,992 22.04 Vested (141,556) 22.56 Forfeited (13,657) 23.00 Unvested at December 31, 2020 589,587 $ 22.96 Prior to our IPO, we granted restricted shares of Class B common stock. Shares included in the pre-IPO restricted share grants vested ratably over a period of three years, with the final tranche vesting in January of 2019. Cash dividends were not paid on the unvested pre-IPO restricted shares, nor did they accumulate during the vesting period. Pre-IPO Restricted Shares Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 152,199 $ 19.00 Granted — — Vested (101,643) 19.00 Forfeited (6,225) 19.00 Unvested at December 31, 2018 44,331 19.00 Granted — — Vested (44,331) 19.00 Forfeited — — Unvested at December 31, 2019 — $ — Performance Shares and PSUs Performance shares and PSUs include a performance period of three years with vesting based on attainment of threshold performance of earnings and return on capital targets. These awards cliff-vest after a performance period of three years, subject to continued employment through the vesting date or retirement eligibility, and payout ranges from 0%-200% for PSUs and from 0%-100% for performance shares. Dividend equivalents equal to dividends paid on our common shares during the vesting period are tracked and accumulated for each award. The dividend equivalents are forfeitable and are distributed to participants in cash consistent with the date the awards vest. Performance Shares and PSUs Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 391,541 $ 19.00 Granted 303,228 26.78 Vested — — Forfeited (56,390) 19.65 Unvested at December 31, 2018 638,379 22.64 Granted 449,771 22.49 Vested — — Forfeited (568,429) 21.18 Unvested at December 31, 2019 519,721 24.11 Granted 350,525 22.04 Vested (44,802) 26.80 Forfeited (170,422) 26.68 Unvested at December 31, 2020 655,022 $ 22.15 Nonqualified Stock Options The options granted under the Plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and vest ratably over a period of four years, with the first 25% of the grant becoming exercisable approximately one year after the date of grant. The options expire ten years from the date of grant. Nonqualified Stock Options Outstanding Number of Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2017 229,620 $ 19.00 9.3 $ 2,195 Granted 173,024 26.74 Exercised (2) (8,410) 19.00 67 Forfeited (25,230) 19.00 Outstanding at December 31, 2018 369,004 22.63 8.7 — Granted 303,044 22.12 Exercised (2) — — — Forfeited (134,800) 22.87 Outstanding at December 31, 2019 537,248 22.28 8.3 641 Granted 233,636 22.04 Exercised (2) (84,984) 19.00 440 Forfeited — — Outstanding at December 31, 2020 (3) 685,900 $ 20.60 7.1 $ 735 Exercisable as of: December 31, 2018 48,995 $ 19.00 8.3 $ — December 31, 2019 130,563 21.38 7.5 255 December 31, 2020 179,893 21.18 5.8 244 (1) The aggregate intrinsic value was computed using the closing share price on December 31, 2020 of $20.70, December 31, 2019 of $21.82, and December 31, 2018 of $18.67, as applicable. (2) Cash received upon exercise of stock options was $1.6 million in 2020, $0 in 2019, and $0.2 million in 2018. (3) In November 2020, the exercise price of all outstanding options was adjusted downward by $2.00 to equitably adjust for the special dividend paid by the Company on November 19, 2020. Unvested Nonqualified Stock Options Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 229,620 $ 6.37 Granted 173,024 8.96 Vested (57,405) 6.37 Forfeited (25,230) 6.37 Unvested at December 31, 2018 320,009 7.77 Granted 303,044 7.08 Vested (92,251) 7.59 Forfeited (124,117) 7.63 Unvested at December 31, 2019 406,685 7.34 Granted 233,636 6.34 Vested (134,314) 7.30 Forfeited — — Unvested at December 31, 2020 506,007 $ 6.89 We estimated the grant date fair value of option awards using the Black-Scholes option pricing model. The Black-Scholes option valuation model uses assumptions over the expected term of the options. We used volatility analysis of comparable companies to determine the expected volatility of the stock. We used market data to estimate option exercise and employee termination within the valuation model. The expected term of options granted was based on the average of the contractual term and the weighted average of the vesting term, and it represents the average period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Assumptions used in calculating the Black-Scholes value of options granted during 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 2019 2018 Weighted-average Black-Scholes value $ 6.34 $ 7.08 $ 8.96 Black-Scholes assumptions: Expected term 6.25 years 6.25 years 6.25 years Expected volatility 31.0 % 32.0 % 32.2 % Expected dividend yield 1.2 1.0 0.9 Risk-free interest rate 1.6 2.5 2.8 Director Share Awards and Deferred Stock Units Equity awards are granted to each director annually on the date of our annual shareholder meeting, prospectively for the year of service following the annual shareholder meeting and will vest on the earlier of (1) the one-year anniversary of the grant date or (2) the following year’s shareholder meeting, subject to continued service. Any director who joins our Board mid-year will receive a pro-rata portion of equity-based compensation for service during the balance of the director’s service year, which will vest on the date of the next annual meeting. We account for the annual director share awards as equity based in accordance with applicable accounting standards for these types of share-based payments. Expense related to our director equity based awards was $1.3 million in 2020 and immaterial in 2019 and 2018. We also grant equity retainer awards, or shares in lieu of cash, on a quarterly basis to our non-employee directors. These awards consist of fully vested shares of our Class B common stock or deferred stock units (“DSUs”) that are granted in arrears on the first business day following a quarter close. The number of shares or DSUs granted each quarter is determined by dividing the quarterly retainer amount by the fair market value of the shares of common stock as of the grant date. We account for the quarterly director share awards and DSUs as liability based in accordance with the applicable accounting standards for these types of share-based payments and remeasure the DSUs at the end of each reporting period through settlement. Expense related to our director liability based awards was $0.9 million in 2020 and immaterial in 2019 and 2018. |
Other Long-Term Incentive Compe
Other Long-Term Incentive Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |
Other Long-Term Incentive Compensation | OTHER LONG-TERM INCENTIVE COMPENSATION We maintain legacy long-term cash incentive compensation plans. The total expense (benefit) recognized for plans that include executives was $1.6 million in 2020, $(2.0) million in 2019, and $11.2 million in 2018. Under the 2011 Omnibus Long-term Incentive Plan (the “LTIP”), performance-based Long-Term Cash Awards (“Cash Plan Awards”) and service-based Stock Appreciation Rights (“SARs”) were granted annually to eligible employees, including our executive officers, from 2013-2016 and 2011-2012, respectively. Payout of our Cash Plan Awards is contingent on attainment of two pre-established performance metrics measured over a period of five years: compounded net income growth (determined on the basis of GAAP with adjustments for significant, nonrecurring items approved by the Compensation Committee of the Board) and return on capital (“ROC”). Grants are expressed as fixed dollar amounts, but actual amounts earned may range from 0% to 250% of target based on performance. The awards are fully vested and will be paid 90 days after completion of the performance period of five years or on a subsequent deferral date elected by the executive pursuant to our 2005 Supplemental Savings Plan, subject to compliance with certain restrictive covenants. The liability for the Cash Plan Awards was $2.9 million and $6.3 million at December 31, 2020 and 2019, respectively. SARs awards became 100% vested after their vesting period of three years. Vested SARs were to be paid on March 1 of the fifth year following the year of such grant, however, all participants elected to be paid out on a subsequent deferral date (or within 90 days following a termination of employment or change in control, if earlier, subject to Internal Revenue Code Section 409A). SARs will continue to appreciate (or depreciate) with changes in book value of outstanding common shares of company stock until paid, subject to the discretion of the Compensation Committee. As of December 31, 2020, approximately 1.0 million SARs units were outstanding. The liability for the SARs awards was $5.3 million and $4.8 million at December 31, 2020 and 2019, respectively. The 2005 Schneider National, Inc. Long-Term Incentive Plan (the “2005 LTIP”) was adopted and approved by our Board with an effective date of January 1, 2005. The 2005 LTIP includes awards of cash-settled retention credits granted to eligible employees, including certain of our named executive officers. The retention credits are mandatorily deferred time-based cash credits which are fully vested and will be paid out in March following the second anniversary of the date of the employee’s termination of employment, provided the employee has not violated the terms of their restrictive covenant agreements. The liability for the retention credits was $8.8 million and $8.6 million at December 31, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting our business we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements. We record liabilities for claims against the Company based on our best estimate of expected losses. The primary claims arising for the Company through its trucking, intermodal, and logistics operations consist of accident-related claims for personal injury, collision, and comprehensive compensation, in addition to workers’ compensation, property damage, cargo, and wage and benefit claims. We maintain excess liability insurance with licensed insurance carriers for liabilities in excess of amounts we self-insure which serves to largely offset the Company’s liability associated with these claims, with the exception of wage and benefit claims for which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although we expect that our claims accruals will continue to vary based on future developments, assuming that we are able to continue to obtain and maintain excess liability insurance coverage for such claims, we do not anticipate that such accruals will, in any period, materially impact our results of operations. At December 31, 2020, our firm commitments to purchase transportation equipment totaled $161.9 million. A representative of the former owners of WSL has filed a lawsuit in the Delaware Court of Chancery which primarily alleges that we have not fulfilled certain obligations under the purchase and sa le agreement relating to the post-closing operations of the business, and as a result, the former owners claim they are entitled to damages including an additional payment of $40.0 million under an earn-out arrangement which was a component of the purchase price in the transaction. The Delaware Court of Chancery conducted a remote trial in January 2021. We believe that we have strong defenses to this claim. A judgment by the Court against us in this matter could have a material adverse effect on our results of operations. In the year ended December 31, 2020, the Company recorded $12.8 million of expense and paid $13.7 million as a result of an adverse tax ruling in a dispute with the IRS over the applicability of excise taxes on certain tractors refurbished during tax years 2011 through 2013 and no longer in service. The charge includes interest and is included within operating supplies and expenses on the consolidated statements of comprehensive income for the year ended December 31, 2020. In December 2020, the Company filed an appeal which is currently pending with the 7 th Circuit Court of Appeals. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides. As of December 31, 2018, our operating segments within the Truckload reportable segment were VTL, FTFM, and Bulk. On July 29, 2019 the Board approved a structured shutdown of our FTFM service offering, which was included within our FTFM operating segment. As the shutdown of the FTFM service offering is complete, there are only two remaining operating segments within the Truckload reportable segment, VTL and Bulk, that are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in ASC 280. VTL delivers truckload quantities over irregular routes using dry van trailers. Bulk transports key inputs to manufacturing processes, such as specialty chemicals, using specialty trailers. The Intermodal reportable segment provides rail intermodal and drayage services to our customers. Company owned containers, chassis, and dray tractors are used to provide these transportation services. The Logistics reportable segment consists of three operating segments – Brokerage, Supply Chain Management, and Import/Export Services – that are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. In the Logistics segment, we provide additional sources of truck capacity, manage transportation-systems analysis requirements for individual customers, and provide trans-loading and warehousing services. We generate other revenues from our leasing and captive insurance businesses which are operated by wholly owned subsidiaries. We also have operations in Asia that meet the definition of an operating segment. None of these operations meet the quantitative reporting thresholds. As a result, these operations are grouped in “Other” in the tables below. Also included in “Other” are revenues and expenses that are incidental to our activities and not attributable to any of the reportable segments. The CODM reviews revenue for each segment without the inclusion of fuel surcharge revenue. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at a segment level reflects the measure presented to the CODM for each segment. Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable by segment. All transactions between reportable segments are eliminated in consolidation. The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $62.6 million, $87.1 million, and $82.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Revenues by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 1,851.0 $ 2,076.8 $ 2,265.1 Intermodal 974.7 1,007.8 955.9 Logistics 1,129.3 934.8 1,023.9 Other 359.0 371.3 323.2 Fuel surcharge 318.3 466.0 522.8 Inter-segment eliminations (79.5) (109.7) (113.9) Operating revenues $ 4,552.8 $ 4,747.0 $ 4,977.0 Income (Loss) from Operations by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 187.8 $ 59.0 $ 237.1 Intermodal 75.0 107.7 130.4 Logistics 43.1 37.3 47.3 Other (19.2) 3.8 (39.0) Income from operations $ 286.7 $ 207.8 $ 375.8 Depreciation and Amortization by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 210.7 $ 212.3 $ 211.0 Intermodal 46.3 44.6 39.8 Logistics 0.1 0.5 0.4 Other 33.4 35.5 40.1 Depreciation and amortization expense $ 290.5 $ 292.9 $ 291.3 Substantially all of our revenues and assets were generated or located within the U.S. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING On July 29, 2019, the Company’s Board approved a structured shutdown of its FTFM service offering within its Truckload reportable segment which was substantially complete as of August 31, 2019. The restructuring activity was recorded within our Truckload reportable segment. Pre-tax losses of our FTFM service offering were $34.4 million and $29.2 million for the years ended December 31, 2019 and 2018, respectively. The activity associated with the shutdown is presented separately on the consolidated statements of comprehensive income within restructuring—net and is summarized below on a cumulative basis since July 29, 2019. Restructuring activity for the year ended December 31, 2020 was not material and no costs were incurred for the year ended December 31, 2018. (in millions) Cumulative Impairment charges and losses on asset disposals—net $ 47.2 Receivable write-downs—net 3.0 Other costs 14.5 Total restructuring—net $ 64.7 As of December 31, 2020 and 2019, FTFM restructuring liabilities were classified as current liabilities on the consolidated balance sheets as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring—net 13.7 Cash payments (8.6) Balance at December 31, 2019 5.1 Restructuring—net 0.8 Cash payments (1.5) Balance at December 31, 2020 $ 4.4 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (in millions) Allowance for Doubtful Accounts and Revenue Adjustments for the Year Ended Balance at Beginning of Year Charged to Expense / Against Revenue Write-offs-Net of Recoveries Balance at December 31, 2018 $ 5.2 $ 3.7 $ (2.1) $ 6.8 December 31, 2019 6.8 (1.1) (2.3) 3.4 December 31, 2020 3.4 1.4 (1.1) 3.7 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of OperationsWe are one of the largest providers of surface transportation and logistics solutions in North America that, together with our wholly owned subsidiaries, provides safe, reliable, and innovative truckload, intermodal, and logistics services to a diverse group of customers throughout the continental United States, Canada, and Mexico. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation |
COVID-19 | COVID-19 In response to COVID-19 being declared a pandemic in March 2020, the Company has taken steps to mitigate the potential risks it poses. We have taken additional measures to keep our associates safe and minimize unnecessary risk of exposure to COVID-19 including taking precautions for our associates and owner-operators, implementing work from home policies, and imposing travel limitations on employees where appropriate as we continue to provide an essential service. Management makes estimates and assumptions that affect reported amounts and disclosures included in its financial statements and accompanying notes and assesses certain accounting matters that require consideration of forecasted financial information. Uncertainty remains regarding the ongoi ng impact of COVID-19 on our financial condition and future results of operations, as well as on the significant estimates and assumptions used in reporting certain assets and liabilities such as the Company’s goodwill, long-lived and held for sale asset valuations, current expected credit losses, and healthcare reserves. |
Use of Estimates | Use of Estimates We make estimates and assumptions that affect assets, liabilities, the disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash in excess of current operating requirements is invested in short-term, highly liquid investments. We consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Receivables and Allowance | Receivables and Allowance Our trade accounts receivable is recorded net of an allowance for doubtful accounts and revenue adjustments. The allowance is based on an aging analysis using historical experience, as well as any current and forecasted trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed at least quarterly, and reserves for receivables not expected to be collected are established. In circumstances where we are aware of a customer’s inability to meet its financial obligations, a specific reserve is recorded to reduce the net receivable to the amount we reasonably expect to collect. Bad debt expense is included in other general expenses in the consolidated statements of comprehensive income. |
Inventory | Inventory |
Investments in Marketable Securities | Investments in Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or to our liquidity needs may cause us to sell certain securities in advance of their maturity date. With the adoption of ASU 2016-13, as discussed further within Accounting Standards Recently Adopted below, the guidance on reporting credit losses for available-for-sale debt securities was amended. Under this new guidance, credit losses are to be recorded through an allowance for credit losses rather than as a direct write-down to the security. As a result, any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. Cost basis is determined using the specific identification method. |
Fair Value | Fair Value Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability, which is referred to as the exit price. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows: Level 1 —Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date. Level 2 —Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 3 —Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method based on the estimated useful lives and residual values. Generally, the estimated useful lives are as follows: 2020 Tractors 3 - 8 years Trailing equipment 6 - 20 years Other transportation equipment 4 - 5 years Buildings and improvements 5 - 25 years Other property 3 - 10 years Salvage values, when applicable, generally don’t exceed 30% or 25% of the original cost for tractors and trailing equipment, respectively, and reflect any agreements with tractor suppliers for residual or trade-in values for certain new equipment. Long-lived assets require an impairment review when events or circumstances indicate that the carrying amount may not be recoverable. We base our evaluation of other long-lived assets on the presence of impairment indicators such as the future economic benefit of the assets, any historical or future profitability measurements, and other external market conditions or factors. The carrying amount of tangible long-lived assets held and used is considered not recoverable if the carrying amount exceeds the undiscounted sum of cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable, the impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Gains and losses on the sale or other disposition of equipment are based on the difference between the proceeds received less costs to sell and the net book value of the assets disposed. Gains and losses are recognized at the time of the sale or disposition and are classified in operating supplies and expenses in the consolidated statements of comprehensive income. |
Assets Held for Sale | Assets Held for Sale Assets held for sale consist of revenue equipment and are included in prepaid expenses and other current assets in the consolidated balance sheets. Reclassification to assets held for sale occurs when the required criteria, as defined by ASC 360, Property, Plant and Equipment , are satisfied. |
Goodwill | Goodwill Goodwill is tested for impairment annually in October, or more frequently if impairment indicators exist. The carrying amount of a reporting unit’s goodwill is considered not recoverable, and an impairment loss is recorded if the carrying amount of the reporting unit exceeds the reporting unit’s fair value, as determined based on the combination of an income approach and a market approach. See Note 6, Goodwill |
Revenue Recognition | Revenue Recognition We recognize revenue during the delivery period based on relative transit time in each reporting period, in accordance with ASC 606, with expenses recognized as incurred. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. See Note 3, Revenue Recognition , for more information on ASC 606. When we use third-party carriers, we generally record revenues on the gross basis at amounts charged to our customers because we are the primary obligor, we are a principal in the transaction, we invoice our customers and retain all credit risks, and we maintain discretion over pricing. Additionally, we are responsible for selection of third-party transportation providers to the extent used to satisfy customer freight requirements. We record revenues net of pass-through taxes in our consolidated statements of comprehensive income. For the years ended December 31, 2020, 2019, and 2018, no customer accounted for more than 10% of our consolidated revenues. |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We record valuation allowances for deferred tax assets to the extent we believe these assets are not more likely than not to be realized through the reversal of existing taxable temporary differences, projected future taxable income, or tax-planning strategies. We record a liability for unrecognized tax benefits when the benefits of tax positions taken on a tax return are not more likely than not to be sustained upon audit. Interest and penalties related to uncertain tax positions are classified as income tax expense in the consolidated statements of comprehensive income. |
Earnings Per Share | Earnings Per Share We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if holders of unvested restricted and performance share units or options exercised or converted their holdings into common stock. Awards that would have an anti-dilutive impact are excluded from the calculation. |
Share-based Compensation | Share-based Compensation We have share-based compensation plans covering certain employees, including officers and directors. We account for share-based compensation using the fair value recognition provisions of current accounting standards for share-based payments. We grant restricted stock units, restricted shares, performance-based restricted stock units, performance-based restricted shares, and nonqualified stock options. We recognize compensation expense over the requisite service periods within each award. See Note 12, Share-Based Compensation , for more information about our plans. |
Claim Accruals | Claims Accruals We are self-insured for loss of and damage to our owned and leased revenue equipment. We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular accidents, and cargo damage. Certain insurance arrangements include a level of self-insurance (deductible) coverage applicable to each claim. We have excess policies to limit our exposure to catastrophic claim costs. The amounts of self-insurance change from time to time based on measurement dates, policy expiration dates, and claim type. Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature and severity of the claims and analyses provided by third-party claims administrators, as well as legal, economic, and regulatory factors. The ultimate cost of a claim develops over time as additional information regarding the nature, timing, and extent of damages claimed becomes available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This process involves the use of loss-development factors based on our |
Accounting Standards Recently Adopted | Accounting Standards Recently Adopted We adopted ASU 2019-12, Simplifying the Accounting for Income Taxes, which reduces complexity in accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application among reporting entities, as of January 1, 2021. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures. We adopted ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was effective as of March 12, 2020 through December 31, 2022, when the reference rate replacement activity is expected to be complete. This guidance offers optional expedients and exceptions for applying GAAP to transactions, including contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity affected by reference rate reform, if certain criteria are met. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends ASC 350, as of January 1, 2020 on a prospective basis. This standard aligned the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. The adoption did not have a material impact on our consolidated financial statements or disclosures. We adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which is codified in ASC 326, as of January 1, 2020. The guidance replaced the incurred loss model with a methodology that reflects expected credit losses over the life of the financial assets held at the reporting date based on historical experience, as well as considerations of current conditions and reasonable and supportable forecasts. This new model for estimating our expected credit losses was implemented for our trade accounts receivable (Note 2, Trade Accounts Receivable and Allowance ), available-for-sale debt securities (Note 5, Investments ), and net investment in leases (Note 8, Leases ) and did not result in a material impact to our consolidated financial statements or disclosures upon adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Inventory Balances | The following table shows the components of our inventory balances as of the dates shown. (in millions) December 31, 2020 December 31, 2019 Tractors and trailing equipment for sale or lease $ 33.3 $ 59.3 Replacement parts 10.7 11.3 Tires and other 0.9 1.3 Total $ 44.9 $ 71.9 |
Estimated Useful Lives | Generally, the estimated useful lives are as follows: 2020 Tractors 3 - 8 years Trailing equipment 6 - 20 years Other transportation equipment 4 - 5 years Buildings and improvements 5 - 25 years Other property 3 - 10 years |
Assets Held for Sale | For the years ended December 31, 2020, 2019, and 2018, total impairment losses were $4.7 million, $42.4 million, and $0.3 million, respectively. Impairment losses for the year ended December 31, 2019 included a $28.1 million impairment related to the shutdown of our FTFM service offering and an $11.5 million impairment related to a bulk sale of tractors. Impairment losses related to the shutdown of our FTFM service offering were not material for the year ended December 31, 2020. As of December 31, 2020 and 2019, assets held for sale by segment were as follows: (in millions) 2020 2019 Truckload (1) $ 16.9 $ 63.5 Intermodal 1.9 3.9 Total $ 18.8 $ 67.4 |
Trade Accounts Receivable and_2
Trade Accounts Receivable and Allowance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Trade Accounts Receivable Allowance for Doubtful Accounts Rollforward | The following table shows changes to our allowance for doubtful accounts for the year ended December 31, 2020. Excluded from the amounts below is the portion of the allowance recorded for revenue adjustments, as that portion is not credit-related nor due to a customer’s inability to meet its financial obligations. Year Ended December 31, (in millions) 2020 Balance at beginning of period $ 0.9 Charges to expense 1.1 Write-offs (1.4) Recoveries 0.3 Balance at end of period $ 0.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenues | The following table summarizes our revenues by type of service, and each type of service is further described below. Year Ended December 31, Disaggregated Revenues ( in millions ) 2020 2019 2018 Transportation $ 4,170.0 $ 4,376.6 $ 4,589.7 Logistics Management 149.7 153.8 228.3 Other 233.1 216.6 159.0 Total operating revenues $ 4,552.8 $ 4,747.0 $ 4,977.0 |
Remaining Performance Obligations | The following table provides information related to transactions and expected timing of revenue recognition related to performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown. Remaining Performance Obligations (in millions) December 31, 2020 Expected to be recognized within one year Transportation $ 15.2 Logistics Management 12.7 Expected to be recognized after one year Transportation 49.1 Logistics Management 17.0 Total $ 94.0 |
Contract Balances | The following table provides information related to contract balances associated with our contracts with customers as of the dates shown. Contract Balances ( in millions ) December 31, 2020 December 31, 2019 January 1, 2019 Other current assets - Contract assets $ 21.5 $ 17.6 $ 21.7 Other current liabilities - Contract liabilities 0.7 — — |
Capitalized Contract Cost | The following table presents the amounts capitalized for contract fulfillment costs as of the dates shown. (in millions) December 31, 2020 December 31, 2019 Capitalized contract fulfillment costs $ 4.1 $ 4.2 |
Amortization of Contract Fulfillment Costs | Amortization of capitalized contract fulfillment costs was as follows: Year Ended December 31, (in millions) 2020 2019 2018 Amortization of contract fulfillment costs $ 2.6 $ 3.2 $ 2.5 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The table below sets forth the Company’s financial assets and liabilities that are measured at fair value on a recurring basis in accordance with ASC 820. December 31, 2020 December 31, 2019 (in millions) Level in Fair Fair Value Fair Value Marketable securities (1) 2 $ 47.1 $ 48.3 (1) Marketable securities are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active and are, therefore, classified as Level 2 in the fair value hierarchy. We measure our marketable securities on a recurring, monthly basis. See Note 5, Investments , for additional information on the fair value of our marketable securities. |
Fair Value Measurements, Nonrecurring | We measure non-financial assets such as goodwill, assets held for sale, and other long-lived assets at fair value when there is an indicator of impairment and only when we recognize an impairment loss. The tables below set forth the Company’s non-financial assets that were measured at fair value on a non-recurring basis during 2020 and 2019. (in millions) Level in Fair Fair Value at December 31, 2020 Assets held for sale Non restructuring (1) 2 $ 1.8 Restructuring (2) 2 1.4 Right-of-use lease assets Non restructuring (3) 3 1.0 Restructuring (2) 3 — (1) Our held for sale revenue equipment is evaluated for impairment using market data upon classification as held for sale or as impairment indicators are present. If the carrying value of the assets held for sale exceeds the fair value, an impairment is recorded. Of the $17.2 million of assets held for sale not related to the FTFM shutdown as of December 31, 2020, $1.8 million are recorded at fair value. Refer to Note 1, Summary of Significant Accounting Policies for further details on impairment charges. (2) We recognized impairment charges and recorded certain assets held for sale and right-of-use lease assets associated with the shutdown of the FTFM service offering at fair value as of December 31, 2020. Transportation equipment was measured using market data, while right-of-use lease assets were measured using discounted cash flow analyses. Of the $1.6 million of assets held for sale related to the FTFM shutdown, $1.4 million were recorded at fair value. The discounted cash flow analyses for right-of-use lease assets used a range of discount rates from 3.6% to 4.0%, with a weighted average rate of 4.0%. (3) During the fourth quarter of 2020, we recognized an impairment on one of our right-of-use lease assets. The discounted cash flow analysis performed used a discount rate of 4.1%. (in millions) Level in Fair Fair Value at December 31, 2019 Assets held for sale Non restructuring (1) 2 $ 8.1 Restructuring (2) 2 18.5 Right-of-use lease assets Non restructuring (3) 3 1.0 Restructuring (2) 3 2.0 WSL acquisition internal-use software and intangible assets (4) 3 — FTFM reporting unit goodwill (5) 3 — (1) Our held for sale revenue equipment is evaluated for impairment using market data upon classification as held for sale or as impairment indicators are present. If the carrying value of the assets held for sale exceeds the fair value, an impairment is recorded. Of the $34.0 million of assets held for sale not related to the FTFM shutdown as of December 31, 2019, $8.1 million were recorded at fair value. Refer to Note 1, Summary of Significant Accounting Policies, for further details on impairment charges. (2) We recognized impairment charges and recorded certain assets held for sale and right-of-use lease assets associated with the shutdown of the FTFM service offering at fair value as of December 31, 2019. Transportation equipment was measured using market data, while right-of-use lease assets were measured using discounted cash flow analyses. Of the $33.4 million of assets held for sale related to the FTFM shutdown, $18.5 million were recorded at fair value. The discounted cash flow analyses for right-of-use lease assets used a range of discount rates from 2.9% to 4.5%, with a weighted average rate of 4.0%. For further details on the impairment charges recorded refer to Note 16, Restructuring . (3) During the fourth quarter of 2019, we recognized an impairment on one of our right-of-use lease assets. The discounted cash flow analysis performed used a discount rate of 4.0%. (4) As part of the shutdown of the FTFM service offering in 2019, we recognized impairment charges and recorded internal-use software and finite lived intangible assets at fair value. The WSL acquisition internal-use software and intangible assets, which were previously valued using the replacement cost method and discounted cash flow analyses, respectively, were written off as part of the shutdown of the FTFM service offering. (5) During the second quarter of 2019, a triggering event occurred within our FTFM reporting unit which resulted in an impairment test being performed and full impairment of its goodwill. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of Marketable Securities | The following table presents the maturities and values of our marketable securities as of the dates shown. December 31, 2020 December 31, 2019 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 3 to 101 $ 12.6 $ 12.7 $ 16.5 $ 17.0 Asset-backed securities — — — 0.1 0.1 Corporate debt securities 8 to 81 21.4 22.2 15.1 15.4 State and municipal bonds 3 to 63 11.9 12.2 11.6 11.8 Other U.S. and non-U.S. government bonds — — — 4.0 4.0 Total marketable securities $ 45.9 $ 47.1 $ 47.3 $ 48.3 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table shows changes to our goodwill balances by segment during the years ended December 31, 2020 and 2019 . (in millions) Truckload Logistics Other Total Balance at December 31, 2018 $ 138.2 $ 14.2 $ 9.8 $ 162.2 Goodwill impairment charge (34.6) — — (34.6) Foreign currency translation loss — — (0.1) (0.1) Balance at December 31, 2019 103.6 14.2 9.7 127.5 Foreign currency translation gain — — 0.6 0.6 Balance at December 31, 2020 $ 103.6 $ 14.2 $ 10.3 $ 128.1 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of December 31, 2020 and 2019, debt included the following: (in millions) December 31, 2020 December 31, 2019 Unsecured senior notes: principal payable at maturities ranging from 2021 through 2025; interest payable in semiannual installments through the same timeframe; weighted-average interest rate of 3.64% and 3.42% for 2020 and 2019, respectively $ 305.0 $ 360.0 Current maturities (40.0) (55.0) Debt issuance costs (0.2) (0.4) Long-term debt $ 264.8 $ 304.6 |
Schedule of Debt Maturities | Scheduled principal payments of debt subsequent to December 31, 2020 are as follows: (in millions) December 31, 2020 2021 $ 40.0 2022 60.0 2023 70.0 2024 40.0 2025 95.0 2026 and thereafter — Total $ 305.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Net Lease Costs and Other Lease Information | The following table presents our net lease costs for the years ended December 31, 2020 and 2019. Financial Statement Classification Year Ended December 31, (in millions) 2020 2019 Operating lease cost Operating lease cost Operating supplies and expenses $ 29.5 $ 32.5 Short-term lease cost (1) Operating supplies and expenses 3.1 7.6 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 0.5 3.2 Interest on lease liabilities Interest expense 0.1 0.2 Variable lease cost Operating supplies and expenses 2.2 2.6 Sublease income Operating revenues (4.5) (5.4) Total net lease cost $ 30.9 $ 40.7 (1) Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less. As of December 31, 2020 and 2019, remaining lease terms and discount rates under operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.1 years 4.4 years Finance leases 4.6 years 4.3 years Weighted-average discount rate (1) Operating leases 3.8 % 4.1 % Finance leases 3.2 % 3.3 % (1) Determined based on a portfolio approach. Additional information related to our leases is as follows: Year Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 34.7 $ 35.3 Operating cash flows for finance leases 0.1 0.2 Financing cash flows for finance leases 0.6 6.9 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 23.7 $ 29.4 Finance leases 0.8 1.4 |
Schedule of Future Minimum Lease Payments for Operating Leases | At December 31, 2020, future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases 2021 $ 25.8 $ 0.5 2022 17.6 0.5 2023 14.3 0.5 2024 10.4 0.4 2025 7.2 0.1 2026 and thereafter 5.4 0.1 Total 80.7 2.1 Amount representing interest (6.1) (0.1) Present value of lease payments 74.6 2.0 Current maturities (23.6) (0.4) Long-term lease obligations $ 51.0 $ 1.6 |
Schedule of Future Minimum Lease Payments for Finance Leases | At December 31, 2020, future lease payments under operating and finance leases were as follows: (in millions) Operating Leases Finance Leases 2021 $ 25.8 $ 0.5 2022 17.6 0.5 2023 14.3 0.5 2024 10.4 0.4 2025 7.2 0.1 2026 and thereafter 5.4 0.1 Total 80.7 2.1 Amount representing interest (6.1) (0.1) Present value of lease payments 74.6 2.0 Current maturities (23.6) (0.4) Long-term lease obligations $ 51.0 $ 1.6 |
Schedule of Finance Leased Right-of-Use Assets | The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of December 31, 2020 and 2019. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term. (in millions) December 31, 2020 December 31, 2019 Real property $ 0.7 $ 0.8 Other property 2.7 2.6 Accumulated amortization (1.6) (1.9) Total $ 1.8 $ 1.5 |
Schedule of Investment in Lease Receivables | As of December 31, 2020 and 2019, the investments in lease receivables were as follows: (in millions) December 31, 2020 December 31, 2019 Future minimum payments to be received on leases $ 159.0 $ 135.0 Guaranteed residual lease values 107.6 126.6 Total minimum lease payments to be received 266.6 261.6 Unearned income (38.5) (30.7) Net investment in leases 228.1 230.9 Current maturities of lease receivables 97.6 122.1 Allowance for doubtful accounts (0.8) (0.6) Current portion of lease receivables—net of allowance 96.8 121.5 Lease receivables—noncurrent $ 131.3 $ 109.4 |
Schedule of Principal Amounts to be Received on Lease Receivables | The amounts to be received on lease receivables as of December 31, 2020 were as follows: (in millions) December 31, 2020 2021 $ 119.1 2022 80.8 2023 62.1 2024 4.0 2025 0.6 2026 and thereafter — Total undiscounted lease cash flows 266.6 Amount representing interest (38.5) Present value of lease receivables 228.1 Current lease receivables, net of allowance (96.8) Long-term lease receivable $ 131.3 |
Schedule of Lease Payments Past Due | Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by the due date. The following table presents an aging analysis of past due lease payments. (in millions) December 31, 2020 1-29 days $ 1.2 30-59 days 0.5 60-89 days 0.3 90 days or greater 0.4 Total past due $ 2.4 |
Schedule of Sales-type Lease Income | The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses in the consolidated statements of comprehensive income, respectively. Year Ended December 31, (in millions) 2020 2019 Revenue $ 206.3 $ 196.0 Cost of goods sold (185.6) (177.1) Operating profit $ 20.7 $ 18.9 Interest income on lease receivable $ 26.5 $ 27.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision for Income Taxes | The components of the provision for income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows: (in millions) 2020 2019 2018 Current: Federal $ 60.4 $ 43.0 $ 21.7 State and other 9.1 8.3 11.8 69.5 51.3 33.5 Deferred: Federal (1.4) (1.3) 54.2 State and other 3.1 1.1 6.7 Impact of the Tax Cuts and Jobs Act (1) — — 1.3 1.7 (0.2) 62.2 Total provision for income taxes $ 71.2 $ 51.1 $ 95.7 (1) On December 22, 2017, the Tax Cuts and Jobs Act (the “ Act ” ) was signed into law. The primary impact of the Act for us related to the reduction of the Federal corporate income tax rate from 35% to 21% beginning in 2018. Previously recorded deferred tax assets and liabilities were remeasured to reflect the 21% rate at which these assets and liabilities would be realized in future periods. |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes for the years ended December 31, 2020, 2019, and 2018 differed from the amounts computed using the federal statutory rate in effect as follows: 2020 2019 2018 (in millions, except percentages) Dollar Impact Rate Dollar Impact Rate Dollar Impact Rate Income tax at federal statutory rate $ 59.4 21.0 % $ 41.6 21.0 % $ 76.6 21.0 % State tax—net of federal effect 9.7 3.4 8.1 4.1 15.4 4.2 Nondeductible meals and entertainment 1.9 0.7 2.1 1.0 2.1 0.6 Impact of the Tax Cuts and Jobs Act — — — — 1.3 0.3 Other—net 0.2 0.1 (0.7) (0.3) 0.3 0.1 Total provision for income taxes $ 71.2 25.2 % $ 51.1 25.8 % $ 95.7 26.2 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax liability included in deferred income taxes in the consolidated balance sheets as of December 31, 2020 and 2019, were as follows: (in millions) 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 0.4 $ 0.4 Compensation and employee benefits 10.2 9.6 Insurance and claims accruals 3.0 2.4 Operating lease liabilities 18.5 20.2 State net operating losses and credit carryforwards 11.5 12.7 Other 5.2 4.8 Total gross deferred tax assets 48.8 50.1 Valuation allowance (2.6) (2.0) Total deferred tax assets—net of valuation allowance 46.2 48.1 Deferred tax liabilities: Property and equipment 462.6 467.9 Prepaid expenses 4.3 4.2 Intangible assets 5.9 3.5 Operating lease right-of-use assets 16.6 18.0 Other 7.2 3.5 Total gross deferred tax liabilities 496.6 497.1 Net deferred tax liability $ 450.4 $ 449.0 |
Schedule of Unrecognized Tax Benefits | As of December 31, 2020, 2019, and 2018, a reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded as other noncurrent liabilities in the consolidated balance sheets, is as follows: (in millions) 2020 2019 2018 Gross unrecognized tax benefits—beginning of year $ 4.3 $ 3.3 $ 2.8 Gross increases—tax positions related to current year 0.3 0.6 0.8 Gross increases (decreases)—tax positions taken in prior years (0.3) 0.4 — Lapse of statutes — — (0.3) Gross unrecognized tax benefits—end of year $ 4.3 $ 4.3 $ 3.3 |
Common Equity (Tables)
Common Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Year Ended December 31, (in millions, except per share data) 2020 2019 2018 Numerator: Net income available to common shareholders $ 211.7 $ 147.0 $ 268.9 Denominator: Weighted average common shares outstanding 177.3 177.1 177.0 Dilutive effect of share-based awards and options 0.3 0.2 0.2 Weighted average diluted common shares outstanding 177.6 177.3 177.2 Basic earnings per common share $ 1.19 $ 0.83 $ 1.52 Diluted earnings per common share 1.19 0.83 1.52 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of components of share-based compensation program expense | The following table summarizes the components of our employee share-based compensation expense. Year Ended December 31, (in millions) 2020 2019 2018 Restricted Shares and RSUs $ 4.5 $ 3.2 $ 3.1 Pre-IPO Restricted Shares — — 0.9 Performance Shares and PSUs 1.9 (6.0) 5.5 Nonqualified Stock Options 0.9 0.5 1.4 Share-based compensation expense (benefit) $ 7.3 $ (2.3) $ 10.9 Related tax benefit (expense) $ 1.8 $ (0.6) $ 2.8 |
Schedule of restricted shares and RSU's activity | Under the Plan, the majority of the restricted shares and RSUs granted from 2017 to 2020 vest ratably over a period of four years, with the first 25% of the grant vesting approximately one year after the date of grant, subject to continued employment through the vesting date or retirement eligibility. Dividend equivalents equal to dividends paid on our common shares during the vesting period are tracked and accumulated for each restricted share and RSU. The dividend equivalents are forfeitable and are distributed to participants in cash consistent with the date the awards vest. Restricted Shares and RSUs Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 240,016 $ 19.00 Granted 229,272 26.82 Vested (74,828) 19.00 Forfeited (24,983) 21.26 Unvested at December 31, 2018 369,477 23.70 Granted 259,812 22.76 Vested (96,630) 23.30 Forfeited (47,851) 23.05 Unvested at December 31, 2019 484,808 23.34 Granted 259,992 22.04 Vested (141,556) 22.56 Forfeited (13,657) 23.00 Unvested at December 31, 2020 589,587 $ 22.96 |
Schedule of pre-IPO restricted shares | Prior to our IPO, we granted restricted shares of Class B common stock. Shares included in the pre-IPO restricted share grants vested ratably over a period of three years, with the final tranche vesting in January of 2019. Cash dividends were not paid on the unvested pre-IPO restricted shares, nor did they accumulate during the vesting period. Pre-IPO Restricted Shares Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 152,199 $ 19.00 Granted — — Vested (101,643) 19.00 Forfeited (6,225) 19.00 Unvested at December 31, 2018 44,331 19.00 Granted — — Vested (44,331) 19.00 Forfeited — — Unvested at December 31, 2019 — $ — |
Schedule of performance shares and PSU's activity | Performance shares and PSUs include a performance period of three years with vesting based on attainment of threshold performance of earnings and return on capital targets. These awards cliff-vest after a performance period of three years, subject to continued employment through the vesting date or retirement eligibility, and payout ranges from 0%-200% for PSUs and from 0%-100% for performance shares. Dividend equivalents equal to dividends paid on our common shares during the vesting period are tracked and accumulated for each award. The dividend equivalents are forfeitable and are distributed to participants in cash consistent with the date the awards vest. Performance Shares and PSUs Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 391,541 $ 19.00 Granted 303,228 26.78 Vested — — Forfeited (56,390) 19.65 Unvested at December 31, 2018 638,379 22.64 Granted 449,771 22.49 Vested — — Forfeited (568,429) 21.18 Unvested at December 31, 2019 519,721 24.11 Granted 350,525 22.04 Vested (44,802) 26.80 Forfeited (170,422) 26.68 Unvested at December 31, 2020 655,022 $ 22.15 |
Schedule of nonqualified stock options activity | The options granted under the Plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and vest ratably over a period of four years, with the first 25% of the grant becoming exercisable approximately one year after the date of grant. The options expire ten years from the date of grant. Nonqualified Stock Options Outstanding Number of Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2017 229,620 $ 19.00 9.3 $ 2,195 Granted 173,024 26.74 Exercised (2) (8,410) 19.00 67 Forfeited (25,230) 19.00 Outstanding at December 31, 2018 369,004 22.63 8.7 — Granted 303,044 22.12 Exercised (2) — — — Forfeited (134,800) 22.87 Outstanding at December 31, 2019 537,248 22.28 8.3 641 Granted 233,636 22.04 Exercised (2) (84,984) 19.00 440 Forfeited — — Outstanding at December 31, 2020 (3) 685,900 $ 20.60 7.1 $ 735 Exercisable as of: December 31, 2018 48,995 $ 19.00 8.3 $ — December 31, 2019 130,563 21.38 7.5 255 December 31, 2020 179,893 21.18 5.8 244 (1) The aggregate intrinsic value was computed using the closing share price on December 31, 2020 of $20.70, December 31, 2019 of $21.82, and December 31, 2018 of $18.67, as applicable. (2) Cash received upon exercise of stock options was $1.6 million in 2020, $0 in 2019, and $0.2 million in 2018. (3) In November 2020, the exercise price of all outstanding options was adjusted downward by $2.00 to equitably adjust for the special dividend paid by the Company on November 19, 2020. Unvested Nonqualified Stock Options Number of Awards Weighted Average Grant Date Fair Value Unvested at December 31, 2017 229,620 $ 6.37 Granted 173,024 8.96 Vested (57,405) 6.37 Forfeited (25,230) 6.37 Unvested at December 31, 2018 320,009 7.77 Granted 303,044 7.08 Vested (92,251) 7.59 Forfeited (124,117) 7.63 Unvested at December 31, 2019 406,685 7.34 Granted 233,636 6.34 Vested (134,314) 7.30 Forfeited — — Unvested at December 31, 2020 506,007 $ 6.89 |
Schedule of assumptions used in calculating value of stock options | Assumptions used in calculating the Black-Scholes value of options granted during 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 2019 2018 Weighted-average Black-Scholes value $ 6.34 $ 7.08 $ 8.96 Black-Scholes assumptions: Expected term 6.25 years 6.25 years 6.25 years Expected volatility 31.0 % 32.0 % 32.2 % Expected dividend yield 1.2 1.0 0.9 Risk-free interest rate 1.6 2.5 2.8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $62.6 million, $87.1 million, and $82.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. Revenues by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 1,851.0 $ 2,076.8 $ 2,265.1 Intermodal 974.7 1,007.8 955.9 Logistics 1,129.3 934.8 1,023.9 Other 359.0 371.3 323.2 Fuel surcharge 318.3 466.0 522.8 Inter-segment eliminations (79.5) (109.7) (113.9) Operating revenues $ 4,552.8 $ 4,747.0 $ 4,977.0 Income (Loss) from Operations by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 187.8 $ 59.0 $ 237.1 Intermodal 75.0 107.7 130.4 Logistics 43.1 37.3 47.3 Other (19.2) 3.8 (39.0) Income from operations $ 286.7 $ 207.8 $ 375.8 Depreciation and Amortization by Segment Year Ended December 31, (in millions) 2020 2019 2018 Truckload $ 210.7 $ 212.3 $ 211.0 Intermodal 46.3 44.6 39.8 Logistics 0.1 0.5 0.4 Other 33.4 35.5 40.1 Depreciation and amortization expense $ 290.5 $ 292.9 $ 291.3 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Activity | The activity associated with the shutdown is presented separately on the consolidated statements of comprehensive income within restructuring—net and is summarized below on a cumulative basis since July 29, 2019. Restructuring activity for the year ended December 31, 2020 was not material and no costs were incurred for the year ended December 31, 2018. (in millions) Cumulative Impairment charges and losses on asset disposals—net $ 47.2 Receivable write-downs—net 3.0 Other costs 14.5 Total restructuring—net $ 64.7 |
Schedule of Restructuring Reserve | As of December 31, 2020 and 2019, FTFM restructuring liabilities were classified as current liabilities on the consolidated balance sheets as follows: (in millions) Restructuring Liabilities Balance at December 31, 2018 $ — Restructuring—net 13.7 Cash payments (8.6) Balance at December 31, 2019 5.1 Restructuring—net 0.8 Cash payments (1.5) Balance at December 31, 2020 $ 4.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Inventory Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory | ||
Inventory | $ 44.9 | $ 71.9 |
Tractors and trailing equipment for sale or lease | ||
Inventory | ||
Inventory | 33.3 | 59.3 |
Replacement parts | ||
Inventory | ||
Inventory | 10.7 | 11.3 |
Tires and other | ||
Inventory | ||
Inventory | $ 0.9 | $ 1.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Tractors | Minimum | |
Property, Plant and Equipment | |
Useful life | 3 years |
Tractors | Maximum | |
Property, Plant and Equipment | |
Useful life | 8 years |
Salvage value percentage | 30.00% |
Trailing equipment | Minimum | |
Property, Plant and Equipment | |
Useful life | 6 years |
Trailing equipment | Maximum | |
Property, Plant and Equipment | |
Useful life | 20 years |
Salvage value percentage | 25.00% |
Other transportation equipment | Minimum | |
Property, Plant and Equipment | |
Useful life | 4 years |
Other transportation equipment | Maximum | |
Property, Plant and Equipment | |
Useful life | 5 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment | |
Useful life | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment | |
Useful life | 25 years |
Other property | Minimum | |
Property, Plant and Equipment | |
Useful life | 3 years |
Other property | Maximum | |
Property, Plant and Equipment | |
Useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Assets Held for Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long Lived Assets Held-for-sale | |||
Impairment on assets held for sale | $ 4.3 | $ 14.3 | $ 0.3 |
Assets held for sale | 18.8 | 67.4 | |
Truckload | |||
Long Lived Assets Held-for-sale | |||
Assets held for sale | 16.9 | 63.5 | |
Intermodal | |||
Long Lived Assets Held-for-sale | |||
Assets held for sale | 1.9 | 3.9 | |
FTFM service offering shutdown | |||
Long Lived Assets Held-for-sale | |||
Impairment on assets held for sale | 28.1 | ||
Assets held for sale | 1.6 | 33.4 | |
Bulk sale of tractors | |||
Long Lived Assets Held-for-sale | |||
Impairment on assets held for sale | 11.5 | ||
Non FTFM Shutdown and FTFM Shutdown | |||
Long Lived Assets Held-for-sale | |||
Impairment on assets held for sale | $ 4.7 | $ 42.4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Claims Accruals (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Accrued insurance | $ 144.2 | $ 143.5 |
Prepaid insurance | $ 10.6 | $ 8.1 |
Trade Accounts Receivable and_3
Trade Accounts Receivable and Allowance - Trade Accounts Receivable Allowance for Doubtful Accounts Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss | |
Balance at beginning of period | $ 0.9 |
Charges to expense | 1.1 |
Write-offs | (1.4) |
Recoveries | 0.3 |
Balance at end of period | $ 0.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Timing of payment after completion of performance obligations | 40 days |
Impairment of contract fulfillment costs | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregated of Revenues | |||
Operating revenues | $ 4,552.8 | $ 4,747 | $ 4,977 |
Transportation | |||
Disaggregated of Revenues | |||
Operating revenues | 4,170 | 4,376.6 | 4,589.7 |
Logistics Management | |||
Disaggregated of Revenues | |||
Operating revenues | 149.7 | 153.8 | 228.3 |
Other | |||
Disaggregated of Revenues | |||
Operating revenues | $ 233.1 | $ 216.6 | $ 159 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2020USD ($) |
Remaining Performance Obligation | |
Remaining performance obligations | $ 94 |
Expected to be recognized within one year | Transportation | |
Remaining Performance Obligation | |
Remaining performance obligations | 15.2 |
Expected to be recognized within one year | Logistics Management | |
Remaining Performance Obligation | |
Remaining performance obligations | 12.7 |
Expected to be recognized after one year | Transportation | |
Remaining Performance Obligation | |
Remaining performance obligations | 49.1 |
Expected to be recognized after one year | Logistics Management | |
Remaining Performance Obligation | |
Remaining performance obligations | $ 17 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 21.5 | $ 17.6 | $ 21.7 |
Contract liabilities | $ 0.7 | $ 0 | $ 0 |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Contract Cost (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Capitalized contract fulfillment costs | $ 4.1 | $ 4.2 |
Revenue Recognition - Amortizat
Revenue Recognition - Amortization of Contract Fulfillment Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Amortization of contract fulfillment costs | $ 2.6 | $ 3.2 | $ 2.5 |
Revenue Recognition - Initial A
Revenue Recognition - Initial Application Period Cumulative Effect Adjustment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition | |||
Retained earnings | $ 502.5 | $ 693.6 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Revenue, Initial Application Period Cumulative Effect Transition | |||
Retained earnings | $ 7.3 |
Fair Value - Recurring Fair Val
Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Recurring fair value measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||
Marketable securities | $ 47.1 | $ 48.3 |
Fair Value - Other Financial In
Fair Value - Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Total principal outstanding | $ 305 | $ 360 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||
Fair value of debt | $ 316.9 | $ 368.5 |
Fair Value - Nonrecurring Fair
Fair Value - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Non FTFM shutdown assets held for sale | $ 17.2 | $ 34 | ||
Assets held for sale | $ 18.8 | $ 67.4 | ||
Right-of-use lease asset weighted average discount rate | 3.80% | 4.10% | ||
Nonrecurring fair value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Right-of-use lease asset weighted average discount rate | 4.10% | 4.00% | ||
Nonrecurring fair value measurement | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Fair value of assets held for sale | $ 1.8 | $ 8.1 | ||
Nonrecurring fair value measurement | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Fair value of right-of-use lease assets | 1 | 1 | ||
FTFM service offering shutdown | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Assets held for sale | $ 1.6 | $ 33.4 | ||
FTFM service offering shutdown | Nonrecurring fair value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Right-of-use lease asset weighted average discount rate | 4.00% | 4.00% | ||
FTFM service offering shutdown | Nonrecurring fair value measurement | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Right-of-use lease asset discount rate | 3.60% | 2.90% | ||
FTFM service offering shutdown | Nonrecurring fair value measurement | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Right-of-use lease asset discount rate | 4.00% | 4.50% | ||
FTFM service offering shutdown | Nonrecurring fair value measurement | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Fair value of assets held for sale | $ 1.4 | $ 18.5 | ||
FTFM service offering shutdown | Nonrecurring fair value measurement | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||||
Fair value of right-of-use lease assets | $ 0 | $ 2 | ||
Fair value of WSL acquisition internal-use software and intangible assets | $ 0 | |||
Fair value of FTFM reporting unit goodwill | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net unrealized gains on marketable securities—net of tax | $ 0.1 | $ 1.1 | $ 0 |
Credit loss allowance | $ 0 | ||
Other-than-temporary impairment loss | $ 0 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available for Sale Debt Securities | ||
Amortized cost | $ 45.9 | $ 47.3 |
U.S. treasury and government agencies | ||
Available for Sale Debt Securities | ||
Amortized cost | $ 12.6 | 16.5 |
U.S. treasury and government agencies | Minimum | ||
Available for Sale Debt Securities | ||
Maturity date | Mar. 31, 2021 | |
U.S. treasury and government agencies | Maximum | ||
Available for Sale Debt Securities | ||
Maturity date | May 25, 2029 | |
Asset-backed securities | ||
Available for Sale Debt Securities | ||
Amortized cost | $ 0 | 0.1 |
Corporate debt securities | ||
Available for Sale Debt Securities | ||
Amortized cost | $ 21.4 | 15.1 |
Corporate debt securities | Minimum | ||
Available for Sale Debt Securities | ||
Maturity date | Aug. 15, 2021 | |
Corporate debt securities | Maximum | ||
Available for Sale Debt Securities | ||
Maturity date | Sep. 19, 2027 | |
State and municipal bonds | ||
Available for Sale Debt Securities | ||
Amortized cost | $ 11.9 | 11.6 |
State and municipal bonds | Minimum | ||
Available for Sale Debt Securities | ||
Maturity date | Mar. 22, 2021 | |
State and municipal bonds | Maximum | ||
Available for Sale Debt Securities | ||
Maturity date | Mar. 1, 2026 | |
Other U.S. and non-U.S. government bonds | ||
Available for Sale Debt Securities | ||
Amortized cost | $ 0 | 4 |
Current Asset | ||
Available for Sale Debt Securities | ||
Fair value | 47.1 | 48.3 |
Current Asset | U.S. treasury and government agencies | ||
Available for Sale Debt Securities | ||
Fair value | 12.7 | 17 |
Current Asset | Asset-backed securities | ||
Available for Sale Debt Securities | ||
Fair value | 0 | 0.1 |
Current Asset | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Fair value | 22.2 | 15.4 |
Current Asset | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Fair value | 12.2 | 11.8 |
Current Asset | Other U.S. and non-U.S. government bonds | ||
Available for Sale Debt Securities | ||
Fair value | $ 0 | $ 4 |
Investments - Investment in Pla
Investments - Investment in Platform Science, Inc. (Details) - Platform Science, Inc. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Investments | ||
Gain on interest in investment | $ 8.8 | |
Value of ownership interest in investment | $ 12.3 | $ 3.5 |
Ownership interest in investment | 12.60% |
Investments - Investment in Mas
Investments - Investment in Mastery Logistics Inc. (Details) - Mastery Logistics Inc. $ in Millions | Dec. 31, 2020USD ($) |
Other Investments | |
Value of ownership interest in investment | $ 10 |
Ownership interest in investment | 10.10% |
Investments - Investment in TuS
Investments - Investment in TuSimple Limited (Details) $ in Millions | Jan. 12, 2021USD ($) |
TuSimple Limited | Subsequent Event | |
Other Investments | |
Investment in equity security | $ 5 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Goodwill, beginning balance | $ 127.5 | $ 162.2 | |
Goodwill impairment | 0 | (34.6) | $ (2) |
Foreign currency translation (loss) gain | 0.6 | (0.1) | |
Goodwill, ending balance | 128.1 | 127.5 | 162.2 |
Truckload | |||
Goodwill | |||
Goodwill, beginning balance | 103.6 | 138.2 | |
Goodwill impairment | (34.6) | ||
Foreign currency translation (loss) gain | 0 | 0 | |
Goodwill, ending balance | 103.6 | 103.6 | 138.2 |
Logistics | |||
Goodwill | |||
Goodwill, beginning balance | 14.2 | 14.2 | |
Goodwill impairment | 0 | ||
Foreign currency translation (loss) gain | 0 | 0 | |
Goodwill, ending balance | 14.2 | 14.2 | 14.2 |
Other | |||
Goodwill | |||
Goodwill, beginning balance | 9.7 | 9.8 | |
Goodwill impairment | 0 | ||
Foreign currency translation (loss) gain | 0.6 | (0.1) | |
Goodwill, ending balance | $ 10.3 | $ 9.7 | $ 9.8 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)reportingUnit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill | |||
Accumulated goodwill impairment charge | $ 42.6 | $ 42.6 | |
Number of reporting units | reportingUnit | 3 | ||
Goodwill impairment charge | $ 0 | 34.6 | $ 2 |
Truckload | |||
Goodwill | |||
Goodwill impairment charge | $ 34.6 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | ||
Total principal outstanding | $ 305 | $ 360 |
Unsecured Senior Notes | ||
Debt Instrument | ||
Frequency of payments | semiannual | semiannual |
Weighted-average interest rate | 3.64% | 3.42% |
Total principal outstanding | $ 305 | $ 360 |
Current maturities | (40) | (55) |
Debt issuance costs | (0.2) | (0.4) |
Long-term debt | $ 264.8 | $ 304.6 |
Unsecured Senior Notes | Minimum | ||
Debt Instrument | ||
Maturity year | 2021 | |
Unsecured Senior Notes | Maximum | ||
Debt Instrument | ||
Maturity year | 2025 | 2025 |
Debt and Credit Facilities - Sc
Debt and Credit Facilities - Schedule of Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Total | $ 305 | $ 360 |
Unsecured Senior Notes | ||
Debt Instrument | ||
2021 | 40 | |
2022 | 60 | |
2023 | 70 | |
2024 | 40 | |
2025 | 95 | |
2026 and thereafter | 0 | |
Total | $ 305 | $ 360 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unsecured Senior Notes | ||
Debt Instrument | ||
Change of control threshold | 50.00% | |
Credit Facility | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 250 | |
Potential increase amount | 150 | |
Potential maximum borrowing capacity | $ 400 | |
Expiration date | Aug. 6, 2023 | |
Outstanding borrowings | $ 0 | $ 0 |
Change of control threshold | 50.00% | |
Credit Facility | Standby Letters of Credit | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 100 | |
Standby letters of credit | 3.9 | 3.8 |
Receivables Purchase Agreement | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 200 | |
Expiration date | Sep. 3, 2021 | |
Outstanding borrowings | $ 0 | 0 |
Change of control threshold | 50.00% | |
Receivables Purchase Agreement | Standby Letters of Credit | ||
Debt Instrument | ||
Standby letters of credit | $ 70.3 | $ 70.3 |
Minimum | Unsecured Senior Notes | ||
Debt Instrument | ||
Debt prepayment terms | 20 days | |
Maximum | Unsecured Senior Notes | ||
Debt Instrument | ||
Debt prepayment terms | 60 days |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leased Assets | |||
Operating lease right-of-use asset | $ 69.4 | $ 75.5 | |
Operating lease right-of-use asset impairment loss | 0.8 | 4.1 | |
Operating lease payments related to options to extend that are reasonably certain to exercise | 2.3 | ||
Leases not yet commenced | $ 7 | ||
Lease terms of leases not yet commenced | 5 years | ||
Net investment in leases | $ 228.1 | 230.9 | |
Other current and noncurrent liabilities | |||
Leased Assets | |||
Operating lease liability | 74.6 | 82.6 | |
With any portion past due | |||
Leased Assets | |||
Net investment in leases | $ 41.5 | ||
Minimum | |||
Leased Assets | |||
Terms of sales-type leases | 1 year | ||
Maximum | |||
Leased Assets | |||
Terms of sales-type leases | 5 years | ||
FTFM service offering shutdown | |||
Leased Assets | |||
Operating lease right-of-use asset impairment loss | $ 0.3 | $ 3.8 | |
Accounting Standards Update 2016-02 | |||
Leased Assets | |||
Operating lease right-of-use asset | $ 80.6 | ||
Accounting Standards Update 2016-02 | Other current and noncurrent liabilities | |||
Leased Assets | |||
Operating lease liability | $ 85.2 |
Leases - Schedule of Net Lease
Leases - Schedule of Net Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease costs | ||
Operating lease cost | $ 29.5 | $ 32.5 |
Short-term lease cost | 3.1 | 7.6 |
Amortization of right-of-use assets | 0.5 | 3.2 |
Interest on lease liabilities | 0.1 | 0.2 |
Variable lease cost | 2.2 | 2.6 |
Sublease income | (4.5) | (5.4) |
Total net lease cost | $ 30.9 | $ 40.7 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2020Rate | Dec. 31, 2019Rate |
Weighted-average remaining lease term | ||
Operating leases - remaining lease terms | 4 years 1 month 6 days | 4 years 4 months 24 days |
Finance leases - remaining lease terms | 4 years 7 months 6 days | 4 years 3 months 18 days |
Weighted-average discount rate | ||
Right-of-use lease asset weighted average discount rate | 3.80% | 4.10% |
Finance leases - weighted average discount rate | 3.20% | 3.30% |
Leases - Schedule of Other Leas
Leases - Schedule of Other Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 34.7 | $ 35.3 |
Operating cash flows for finance leases | 0.1 | 0.2 |
Financing cash flows for finance leases | 0.6 | 6.9 |
Right-of-use assets obtained in exchange for new operating lease liability | 23.7 | 29.4 |
Right-of-use assets obtained in exchange for new finance lease liability | $ 0.8 | $ 1.4 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leased Assets | ||
2021 | $ 25.8 | |
2022 | 17.6 | |
2023 | 14.3 | |
2024 | 10.4 | |
2025 | 7.2 | |
2026 and thereafter | 5.4 | |
Total | 80.7 | |
Amount representing interest | (6.1) | |
Other current liabilities | ||
Leased Assets | ||
Current maturities | (23.6) | |
Other noncurrent liabilities | ||
Leased Assets | ||
Long-term lease obligations | 51 | |
Other current and noncurrent liabilities | ||
Leased Assets | ||
Present value of lease payments | $ 74.6 | $ 82.6 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments for Finance Leases (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finance Leases | |
2021 | $ 0.5 |
2022 | 0.5 |
2023 | 0.5 |
2024 | 0.4 |
2025 | 0.1 |
2026 and thereafter | 0.1 |
Total | 2.1 |
Amount representing interest | (0.1) |
Present value of lease payments | 2 |
Current maturities | (0.4) |
Long-term lease obligations | $ 1.6 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Leased Right-of-Use Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leased Assets | ||
Accumulated amortization | $ (1.6) | $ (1.9) |
Finance lease right-of-use asset, net | 1.8 | 1.5 |
Real property | ||
Finance Leased Assets | ||
Finance lease right-of-use asset, gross | 0.7 | 0.8 |
Other property | ||
Finance Leased Assets | ||
Finance lease right-of-use asset, gross | $ 2.7 | $ 2.6 |
Leases - Schedule of Investment
Leases - Schedule of Investment in Lease Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Future minimum payments to be received on leases | $ 159 | $ 135 |
Guaranteed residual lease values | 107.6 | 126.6 |
Total minimum lease payments to be received | 266.6 | 261.6 |
Unearned income | (38.5) | (30.7) |
Net investment in leases | 228.1 | 230.9 |
Current maturities of lease receivables | 97.6 | 122.1 |
Allowance for doubtful accounts | (0.8) | (0.6) |
Current portion of lease receivables—net of allowance | 96.8 | 121.5 |
Lease receivables—noncurrent | $ 131.3 | $ 109.4 |
Leases - Schedule of Principal
Leases - Schedule of Principal Amounts to be Received on Lease Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 119.1 | |
2022 | 80.8 | |
2023 | 62.1 | |
2024 | 4 | |
2025 | 0.6 | |
2026 and thereafter | 0 | |
Total minimum lease payments to be received | 266.6 | $ 261.6 |
Unearned income | (38.5) | (30.7) |
Net investment in leases | 228.1 | 230.9 |
Current lease receivables, net of allowance | (96.8) | (121.5) |
Lease receivables—noncurrent | $ 131.3 | $ 109.4 |
Leases - Schedule of Lease Paym
Leases - Schedule of Lease Payments Past Due (Details) $ in Millions | Dec. 31, 2020USD ($) |
Sales-type Lease, Net Investment in Lease, Past Due | |
Lease payments past due | $ 2.4 |
1 to 29 days | |
Sales-type Lease, Net Investment in Lease, Past Due | |
Lease payments past due | 1.2 |
30 to 59 days | |
Sales-type Lease, Net Investment in Lease, Past Due | |
Lease payments past due | 0.5 |
60 to 89 days | |
Sales-type Lease, Net Investment in Lease, Past Due | |
Lease payments past due | 0.3 |
90 days or greater | |
Sales-type Lease, Net Investment in Lease, Past Due | |
Lease payments past due | $ 0.4 |
Leases - Schedule of Sales-type
Leases - Schedule of Sales-type Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Revenue | $ 206.3 | $ 196 |
Cost of goods sold | (185.6) | (177.1) |
Operating profit | 20.7 | 18.9 |
Interest income on lease receivable | $ 26.5 | $ 27.3 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Deferred employer social security taxes from CARES act | $ 30.7 | |
Accrued interest and penalties on unrecognized tax benefits | 2.4 | $ 2.1 |
Carryforwards | ||
State net operating loss carryforwards | 203.8 | |
Deferred tax assets for state net operating loss carryforwards | 11.8 | |
Valuation allowance | $ 2.6 | $ 2 |
Tax year 2017 | ||
Income Tax Contingency | ||
Open tax year for examination by IRS | 2017 | |
Tax year 2018 | ||
Income Tax Contingency | ||
Open tax year for examination by IRS | 2018 | |
Tax Year 2019 | ||
Income Tax Contingency | ||
Open tax year for examination by IRS | 2019 | |
Minimum | ||
Carryforwards | ||
State net operating loss carryforward - expiration date | Jan. 1, 2021 | |
State credit carryforwards - expiration date | Jan. 1, 2021 | |
Maximum | ||
Carryforwards | ||
State net operating loss carryforward - expiration date | Dec. 31, 2041 | |
State credit carryforwards - expiration date | Dec. 31, 2029 |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 60.4 | $ 43 | $ 21.7 |
State and other | 9.1 | 8.3 | 11.8 |
Current income tax provision | 69.5 | 51.3 | 33.5 |
Deferred: | |||
Federal | (1.4) | (1.3) | 54.2 |
State and other | 3.1 | 1.1 | 6.7 |
Impact of the Tax Cuts and Jobs Act | 0 | 0 | 1.3 |
Deferred income tax provision for (benefit from) | 1.7 | (0.2) | 62.2 |
Total provision for income taxes | $ 71.2 | $ 51.1 | $ 95.7 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax at federal statutory rate | $ 59.4 | $ 41.6 | $ 76.6 |
Corporate income tax rate | 21.00% | 21.00% | 21.00% |
State tax—net of federal effect | $ 9.7 | $ 8.1 | $ 15.4 |
State tax—net of federal effect, rate | 3.40% | 4.10% | 4.20% |
Nondeductible meals and entertainment | $ 1.9 | $ 2.1 | $ 2.1 |
Nondeductible meals and entertainment, rate | 0.70% | 1.00% | 0.60% |
Impact of the Tax Cuts and Jobs Act | $ 0 | $ 0 | $ 1.3 |
Impact of the Tax Cuts and Jobs Act, rate | 0 | 0 | 0.003 |
Other—net | $ 0.2 | $ (0.7) | $ 0.3 |
Other—net, rate | 0.10% | (0.30%) | 0.10% |
Total provision for income taxes | $ 71.2 | $ 51.1 | $ 95.7 |
Total provision for income taxes, rate | 25.20% | 25.80% | 26.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 0.4 | $ 0.4 |
Compensation and employee benefits | 10.2 | 9.6 |
Insurance and claims accruals | 3 | 2.4 |
Operating lease liabilities | 18.5 | 20.2 |
State net operating losses and credit carryforwards | 11.5 | 12.7 |
Other | 5.2 | 4.8 |
Total gross deferred tax assets | 48.8 | 50.1 |
Valuation allowance | (2.6) | (2) |
Total deferred tax assets—net of valuation allowance | 46.2 | 48.1 |
Deferred tax liabilities: | ||
Property and equipment | 462.6 | 467.9 |
Prepaid expenses | 4.3 | 4.2 |
Intangible assets | 5.9 | 3.5 |
Operating lease right-of-use assets | 16.6 | 18 |
Other | 7.2 | 3.5 |
Total gross deferred tax liabilities | 496.6 | 497.1 |
Net deferred tax liability | $ 450.4 | $ 449 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross unrecognized Tax Benefit Roll Forward | |||
Gross unrecognized tax benefits—beginning of year | $ 4.3 | $ 3.3 | $ 2.8 |
Gross increases—tax positions related to current year | 0.3 | 0.6 | 0.8 |
Gross increases—tax positions taken in prior years | 0.4 | ||
Gross (decreases)—tax positions taken in prior years | (0.3) | 0 | |
Lapse of statutes | 0 | 0 | (0.3) |
Gross unrecognized tax benefits—end of year | $ 4.3 | $ 4.3 | $ 3.3 |
Common Equity - Calculation of
Common Equity - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per common share | |||
Net income available to common shareholders | $ 211.7 | $ 147 | $ 268.9 |
Weighted average common shares outstanding | 177.3 | 177.1 | 177 |
Dilutive effect of share-based awards and options outstanding | 0.3 | 0.2 | 0.2 |
Diluted earnings per common share | |||
Weighted average diluted common shares outstanding | 177.6 | 177.3 | 177.2 |
Basic earnings per common share | $ 1.19 | $ 0.83 | $ 1.52 |
Diluted earnings per common share | $ 1.19 | $ 0.83 | $ 1.52 |
Common Equity - Additional Info
Common Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 28, 2021 | Nov. 19, 2020 | Oct. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock | ||||||
Dividends declared per share | $ 2.26 | $ 0.24 | $ 0.24 | |||
Special Dividend | ||||||
Class of Stock | ||||||
Special dividend cash payment | $ 354.7 | |||||
Class A Common Shares | ||||||
Class of Stock | ||||||
Dividends declared per share | 2.26 | 0.24 | 0.24 | |||
Class A Common Shares | Special Dividend | ||||||
Class of Stock | ||||||
Dividends declared per share | $ 2 | |||||
Class B Common Stock | ||||||
Class of Stock | ||||||
Dividends declared per share | $ 2.26 | $ 0.24 | $ 0.24 | |||
Class B Common Stock | Special Dividend | ||||||
Class of Stock | ||||||
Dividends declared per share | $ 2 | |||||
Subsequent Event | ||||||
Class of Stock | ||||||
Dividend payment date | Apr. 8, 2021 | |||||
Record date | Mar. 12, 2021 | |||||
Subsequent Event | Class A Common Shares | ||||||
Class of Stock | ||||||
Dividends declared per share | $ 0.07 | |||||
Subsequent Event | Class B Common Stock | ||||||
Class of Stock | ||||||
Dividends declared per share | $ 0.07 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Plan | |||
Employee Benefit Plan Disclosure | |||
Employee benefit plan expense | $ 10.7 | $ 10.1 | $ 12 |
401K Plan | |||
Employee Benefit Plan Disclosure | |||
Employee benefit plan expense | $ 11.3 | $ 11.8 | $ 12.1 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized compensation cost related to outstanding share-based compensation awards | $ 13.5 | ||
Unrecognized compensation cost related to outstanding share-based compensation awards, recognition period | 2 years 4 months 24 days | ||
Share-based compensation expense (benefit) | $ 7.3 | $ (2.3) | $ 10.9 |
Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 4.5 | 3.2 | 3.1 |
Pre-IPO Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 0 | 0 | 0.9 |
Performance Shares and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 1.9 | (6) | 5.5 |
Non-Qualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 0.9 | $ 0.5 | $ 1.4 |
Equity based awards | Nonemployee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 1.3 | ||
Liability based awards | Nonemployee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | $ 0.9 |
Share-based Compensation - Comp
Share-based Compensation - Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | $ 7.3 | $ (2.3) | $ 10.9 |
Related tax benefit (expense) | 1.8 | (0.6) | 2.8 |
Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 4.5 | 3.2 | 3.1 |
Pre-IPO Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 0 | 0 | 0.9 |
Performance Shares and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | 1.9 | (6) | 5.5 |
Non-Qualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense (benefit) | $ 0.9 | $ 0.5 | $ 1.4 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Shares and RSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 4 years | ||
Number of Awards | |||
Unvested, beginning balance (in shares) | 484,808 | 369,477 | 240,016 |
Granted (in shares) | 259,992 | 259,812 | 229,272 |
Vested (in shares) | (141,556) | (96,630) | (74,828) |
Forfeited (in shares) | (13,657) | (47,851) | (24,983) |
Unvested, ending balance (in shares) | 589,587 | 484,808 | 369,477 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (usd per share) | $ 23.34 | $ 23.70 | $ 19 |
Granted (usd per share) | 22.04 | 22.76 | 26.82 |
Vested (usd per share) | 22.56 | 23.30 | 19 |
Forfeited (usd per share) | 23 | 23.05 | 21.26 |
Unvested, ending balance (usd per share) | $ 22.96 | $ 23.34 | $ 23.70 |
Pre-IPO Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Number of Awards | |||
Unvested, beginning balance (in shares) | 0 | 44,331 | 152,199 |
Granted (in shares) | 0 | 0 | |
Vested (in shares) | (44,331) | (101,643) | |
Forfeited (in shares) | 0 | (6,225) | |
Unvested, ending balance (in shares) | 0 | 44,331 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (usd per share) | $ 0 | $ 19 | $ 19 |
Granted (usd per share) | 0 | 0 | |
Vested (usd per share) | 19 | 19 | |
Forfeited (usd per share) | 0 | 19 | |
Unvested, ending balance (usd per share) | $ 0 | $ 19 | |
First period | Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 1 year | ||
Vesting percentage | 25.00% | ||
Second period | Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Third period | Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Fourth period | Restricted Shares and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% |
Share-based Compensation - Perf
Share-based Compensation - Performance Shares and PSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance Shares and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Performance period | 3 years | ||
Vesting period | 3 years | ||
Number of Awards | |||
Unvested, beginning balance (in shares) | 519,721 | 638,379 | 391,541 |
Granted (in shares) | 350,525 | 449,771 | 303,228 |
Vested (in shares) | (44,802) | 0 | 0 |
Forfeited (in shares) | (170,422) | (568,429) | (56,390) |
Unvested, ending balance (in shares) | 655,022 | 519,721 | 638,379 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (usd per share) | $ 24.11 | $ 22.64 | $ 19 |
Granted (usd per share) | 22.04 | 22.49 | 26.78 |
Vested (usd per share) | 26.80 | 0 | 0 |
Forfeited (usd per share) | 26.68 | 21.18 | 19.65 |
Unvested, ending balance (usd per share) | $ 22.15 | $ 24.11 | $ 22.64 |
Minimum | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout range | 0.00% | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout range | 0.00% | ||
Maximum | PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout range | 200.00% | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Payout range | 100.00% |
Share-based Compensation - Nonq
Share-based Compensation - Nonqualified Stock Options (Details) - Non-Qualified Stock Options - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
Number of Awards, Outstanding | ||||
Outstanding, beginning balance (in shares) | 537,248 | 369,004 | 229,620 | |
Granted (in shares) | 233,636 | 303,044 | 173,024 | |
Exercised (in shares) | (84,984) | 0 | (8,410) | |
Forfeited (in shares) | 0 | (134,800) | (25,230) | |
Outstanding, ending balance (in shares) | 685,900 | 537,248 | 369,004 | 229,620 |
Weighted Average Exercise Price, Outstanding | ||||
Weighted average exercise price, beginning balance | $ 22.28 | $ 22.63 | $ 19 | |
Weighted average exercise price, granted | 22.04 | 22.12 | 26.74 | |
Weighted average exercise price, exercised | 19 | 0 | 19 | |
Weighted average exercise price, forfeited | 0 | 22.87 | 19 | |
Weighted average exercise price, ending balance | $ 20.60 | $ 22.28 | $ 22.63 | $ 19 |
Additional Option Disclosures | ||||
Weighted Average Remaining Contractual Term (in years) | 7 years 1 month 6 days | 8 years 3 months 18 days | 8 years 8 months 12 days | 9 years 3 months 18 days |
Aggregate intrinsic value, exercised | $ 440,000 | $ 0 | $ 67,000 | |
Aggregate intrinsic value, outstanding | $ 735,000 | $ 641,000 | $ 0 | $ 2,195,000 |
Aggregate intrinsic value share price | $ 20.70 | $ 21.82 | $ 18.67 | |
Number of awards exercisable (in shares) | 179,893 | 130,563 | 48,995 | |
Weighted average exercise price of exercisable awards (in dollars per share) | $ 21.18 | $ 21.38 | $ 19 | |
Weighted average remaining contractual term of exercisable awards (in years) | 5 years 9 months 18 days | 7 years 6 months | 8 years 3 months 18 days | |
Aggregate intrinsic value of exercisable awards | $ 244,000 | $ 255,000 | $ 0 | |
Proceeds from stock options exercised | $ 1,600,000 | $ 0 | $ 200,000 | |
Number of Awards, Unvested | ||||
Unvested, beginning balance (in shares) | 406,685 | 320,009 | 229,620 | |
Granted (in shares) | 233,636 | 303,044 | 173,024 | |
Vested (in shares) | (134,314) | (92,251) | (57,405) | |
Forfeited (in shares) | 0 | (124,117) | (25,230) | |
Unvested, ending balance (in shares) | 506,007 | 406,685 | 320,009 | 229,620 |
Weighted Average Exercise Price, Unvested | ||||
Weighted average grant date fair value, beginning balance | $ 7.34 | $ 7.77 | $ 6.37 | |
Weighted average grant date fair value, granted | 6.34 | 7.08 | 8.96 | |
Weighted average grant date fair value, vested | 7.30 | 7.59 | 6.37 | |
Weighted average grant date fair value, forfeited | 0 | 7.63 | 6.37 | |
Weighted average grant date fair value, ending balance | $ 6.89 | $ 7.34 | $ 7.77 | $ 6.37 |
First period | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 1 year | |||
Vesting percentage | 25.00% | |||
Second period | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 25.00% | |||
Third period | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 25.00% | |||
Fourth period | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 25.00% |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Assumptions (Details) - Non-Qualified Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average Black-Scholes value (usd per share) | $ 6.34 | $ 7.08 | $ 8.96 |
Black-Scholes assumptions: | |||
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Expected volatility | 31.00% | 32.00% | 32.20% |
Expected dividend yield | 1.20% | 1.00% | 0.90% |
Risk-free interest rate | 1.60% | 2.50% | 2.80% |
Other Long-Term Incentive Com_2
Other Long-Term Incentive Compensation (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)performance_metricshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Legacy Long-term Cash Incentive Compensation Plans | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Legacy long-term cash incentive compensation expense (benefit) | $ 1.6 | $ (2) | $ 11.2 |
2011 Omnibus Long-term Incentive Plan | Stock Appreciation Rights (SARs) | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Incentive plan, payment period subsequent to vesting period | 90 days | ||
Incentive plan, award vesting rights, percentage | 100.00% | ||
Incentive plan, vesting period | 3 years | ||
Awards outstanding (in shares) | shares | 1 | ||
Incentive plan, liability on SARs | $ 5.3 | 4.8 | |
Cash Awards | 2011 Omnibus Long-term Incentive Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Incentive plan, number of performance metrics | performance_metric | 2 | ||
Incentive plan, performance period | 5 years | ||
Incentive plan, payment period subsequent to vesting period | 90 days | ||
Incentive plan, liability related to awards | $ 2.9 | 6.3 | |
Cash Awards | 2011 Omnibus Long-term Incentive Plan | Minimum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Incentive plan, percentage payout | 0.00% | ||
Cash Awards | 2011 Omnibus Long-term Incentive Plan | Maximum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Incentive plan, percentage payout | 250.00% | ||
Cash Awards | 2005 Schneider National, Inc. Long-Term Incentive Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Incentive plan, liability related to awards | $ 8.8 | $ 8.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments | |
Commitments to purchase transportation equipment | $ 161.9 |
Loss Contingencies | |
Litigation settlement expense | 12.8 |
Litigation settlement payments | 13.7 |
Maximum | WSL | |
Loss Contingencies | |
Loss contingency estimate | 40 |
Minimum | WSL | |
Loss Contingencies | |
Loss contingency estimate | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information | |||
Number of reportable segments | Segment | 3 | ||
Operating revenues | $ | $ 4,552.8 | $ 4,747 | $ 4,977 |
Other | |||
Segment Reporting Information | |||
Operating revenues | $ | 359 | 371.3 | 323.2 |
Other | Other Insurance | |||
Segment Reporting Information | |||
Operating revenues | $ | $ 62.6 | $ 87.1 | $ 82.7 |
Truckload | |||
Segment Reporting Information | |||
Number of operating segments | Segment | 2 | ||
Logistics | |||
Segment Reporting Information | |||
Number of operating segments | Segment | 3 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Operating revenues | $ 4,552.8 | $ 4,747 | $ 4,977 |
Reportable segments | Truckload | |||
Segment Reporting Information | |||
Operating revenues | 1,851 | 2,076.8 | 2,265.1 |
Reportable segments | Intermodal | |||
Segment Reporting Information | |||
Operating revenues | 974.7 | 1,007.8 | 955.9 |
Reportable segments | Logistics | |||
Segment Reporting Information | |||
Operating revenues | 1,129.3 | 934.8 | 1,023.9 |
Other | |||
Segment Reporting Information | |||
Operating revenues | 359 | 371.3 | 323.2 |
Fuel surcharge | |||
Segment Reporting Information | |||
Operating revenues | 318.3 | 466 | 522.8 |
Inter-segment Eliminations | |||
Segment Reporting Information | |||
Operating revenues | $ (79.5) | $ (109.7) | $ (113.9) |
Segment Reporting - Income (Los
Segment Reporting - Income (Loss) from Operations by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Income from operations | $ 286.7 | $ 207.8 | $ 375.8 |
Reportable segments | Truckload | |||
Segment Reporting Information | |||
Income from operations | 187.8 | 59 | 237.1 |
Reportable segments | Intermodal | |||
Segment Reporting Information | |||
Income from operations | 75 | 107.7 | 130.4 |
Reportable segments | Logistics | |||
Segment Reporting Information | |||
Income from operations | 43.1 | 37.3 | 47.3 |
Other | |||
Segment Reporting Information | |||
Income from operations | $ (19.2) | $ 3.8 | $ (39) |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Depreciation and amortization | $ 290.5 | $ 292.9 | $ 291.3 |
Reportable segments | Truckload | |||
Segment Reporting Information | |||
Depreciation and amortization | 210.7 | 212.3 | 211 |
Reportable segments | Intermodal | |||
Segment Reporting Information | |||
Depreciation and amortization | 46.3 | 44.6 | 39.8 |
Reportable segments | Logistics | |||
Segment Reporting Information | |||
Depreciation and amortization | 0.1 | 0.5 | 0.4 |
Other | |||
Segment Reporting Information | |||
Depreciation and amortization | $ 33.4 | $ 35.5 | $ 40.1 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Jul. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Activity | ||||
Restructuring, initiation date | Jul. 29, 2019 | |||
Restructuring, completion date | Aug. 31, 2019 | |||
FTFM pre-tax losses | $ 34.4 | $ 29.2 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activity (Details) - USD ($) $ in Millions | 12 Months Ended | 17 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Restructuring Activity | ||||
Restructuring—net | $ 1 | $ 63.7 | $ 0 | |
Truckload | ||||
Restructuring Activity | ||||
Restructuring—net | $ 64.7 | |||
Truckload | Impairment charges and losses on asset disposals—net | ||||
Restructuring Activity | ||||
Restructuring—net | 47.2 | |||
Truckload | Receivable write-downs—net | ||||
Restructuring Activity | ||||
Restructuring—net | 3 | |||
Truckload | Other costs | ||||
Restructuring Activity | ||||
Restructuring—net | $ 0.8 | $ 13.7 | $ 14.5 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | 17 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Restructuring Activity | ||||
Restructuring—net | $ 1 | $ 63.7 | $ 0 | |
Truckload | ||||
Restructuring Activity | ||||
Restructuring—net | $ 64.7 | |||
Truckload | Other costs | ||||
Restructuring Activity | ||||
Restructuring—net | 0.8 | 13.7 | 14.5 | |
Cash payments | (1.5) | (8.6) | ||
Restructuring reserve | $ 4.4 | $ 5.1 | $ 0 | $ 4.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts and revenue adjustments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Year | $ 3.4 | $ 6.8 | $ 5.2 |
Charged to Expense / Against Revenue | 1.4 | (1.1) | 3.7 |
Write-offs-Net of Recoveries | (1.1) | (2.3) | (2.1) |
Balance at End of Year | $ 3.7 | $ 3.4 | $ 6.8 |