Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001692063 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Shares | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 83,029,500 | |
Class B Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 94,624,691 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Operating revenues | $ 1,360.8 | $ 1,032.8 | $ 2,589.4 | $ 2,151.9 |
Operating expenses: | ||||
Purchased transportation | 649.6 | 437.1 | 1,208.1 | 916.7 |
Salaries, wages, and benefits | 275.6 | 247.8 | 542.7 | 512.2 |
Fuel and fuel taxes | 70 | 42.1 | 133.8 | 103 |
Depreciation and amortization | 73.2 | 72.3 | 146.3 | 142.1 |
Operating supplies and expenses | 117.2 | 119.1 | 253.3 | 251.1 |
Insurance and related expenses | 17 | 28.3 | 41.4 | 57.5 |
Other general expenses | 32.4 | 22.5 | 61.8 | 52 |
Restructuring—net | 0 | 0.2 | 0 | (1) |
Total operating expenses | 1,235 | 969.4 | 2,387.4 | 2,033.6 |
Income from operations | 125.8 | 63.4 | 202 | 118.3 |
Other expenses (income): | ||||
Interest income | (0.4) | (0.5) | (1.2) | (2.3) |
Interest expense | 3 | 3.3 | 6.4 | 7.1 |
Other income—net | (19.6) | (2.1) | (18.8) | (7.5) |
Total other expenses (income) | (17) | 0.7 | (13.6) | (2.7) |
Income before income taxes | 142.8 | 62.7 | 215.6 | 121 |
Provision for income taxes | 36.3 | 16.2 | 54.3 | 30.7 |
Net income | 106.5 | 46.5 | 161.3 | 90.3 |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) | 0.3 | 0.1 | 0.2 | (0.7) |
Net unrealized gain (loss) on marketable securities—net of tax | 0.2 | 0.5 | (0.4) | 0.2 |
Total other comprehensive income (loss) | 0.5 | 0.6 | (0.2) | (0.5) |
Comprehensive income | $ 107 | $ 47.1 | $ 161.1 | $ 89.8 |
Weighted average common shares outstanding | 177.6 | 177.2 | 177.5 | 177.2 |
Basic earnings per share | $ 0.60 | $ 0.26 | $ 0.91 | $ 0.51 |
Weighted average diluted shares outstanding | 177.9 | 177.5 | 177.8 | 177.4 |
Diluted earnings per share | $ 0.60 | $ 0.26 | $ 0.91 | $ 0.51 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 490.5 | $ 395.5 |
Marketable securities | 49.1 | 47.1 |
Trade accounts receivable—net of allowance of $4.1 million and $3.7 million, respectively | 598.3 | 537.7 |
Other receivables | 29.6 | 20.8 |
Current portion of lease receivables—net of allowance of $0.8 million and $0.8 million, respectively | 101.6 | 96.8 |
Inventories | 22.4 | 44.9 |
Prepaid expenses and other current assets | 106.8 | 77.9 |
Total current assets | 1,398.3 | 1,220.7 |
Property and equipment: | ||
Transportation equipment | 2,896.2 | 2,880.2 |
Land, buildings, and improvements | 203 | 202.3 |
Other property and equipment | 167.7 | 166.8 |
Total property and equipment | 3,266.9 | 3,249.3 |
Less accumulated depreciation | 1,414 | 1,417.4 |
Net property and equipment | 1,852.9 | 1,831.9 |
Lease receivables | 153.5 | 131.3 |
Capitalized software and other noncurrent assets | 234.8 | 204.2 |
Goodwill | 128.3 | 128.1 |
Total noncurrent assets | 2,369.5 | 2,295.5 |
Total Assets | 3,767.8 | 3,516.2 |
Current Liabilities: | ||
Trade accounts payable | 337.2 | 245.7 |
Accrued salaries, wages, and benefits | 106.2 | 110.7 |
Claims accruals—current | 67.7 | 36.4 |
Current maturities of debt and finance lease obligations | 100.7 | 40.4 |
Other current liabilities | 107.7 | 101.4 |
Total current liabilities | 719.5 | 534.6 |
Noncurrent Liabilities: | ||
Long-term debt and finance lease obligations | 207.1 | 266.4 |
Claims accruals—noncurrent | 97.1 | 129.9 |
Deferred income taxes | 469.5 | 450.4 |
Other noncurrent liabilities | 76.2 | 79.4 |
Total noncurrent liabilities | 849.9 | 926.1 |
Total Liabilities | 1,569.4 | 1,460.7 |
Shareholders’ Equity: | ||
Additional paid-in capital | 1,559.1 | 1,552.2 |
Retained earnings | 638.7 | 502.5 |
Accumulated other comprehensive income | 0.6 | 0.8 |
Total Shareholders' Equity | 2,198.4 | 2,055.5 |
Total Liabilities and Shareholders’ Equity | 3,767.8 | 3,516.2 |
Supplemental Income Statement Elements | ||
Trade accounts receivable allowance | 4.1 | 3.7 |
Lease receivables allowance | 0.8 | 0.8 |
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) | 95,697,730 | 95,159,635 |
Common stock, shares outstanding (shares) | 94,622,602 | 94,311,653 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities: | ||
Net income | $ 161.3 | $ 90.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 146.3 | 142.1 |
(Gains) losses on sales of property and equipment—net | (16) | 3.8 |
Proceeds from lease receipts | 35.3 | 35.7 |
Deferred income taxes | 19.3 | 2.8 |
Long-term incentive and share-based compensation expense | 8.2 | 3.4 |
Gains on investment in equity securities | (20.2) | (8.8) |
Noncash restructuring—net | 0 | (0.8) |
Other noncash items | 1.6 | 5.7 |
Changes in operating assets and liabilities: | ||
Receivables | (61.7) | 34.7 |
Other assets | (50.6) | (36.5) |
Payables | 40.7 | 12.1 |
Claims reserves and other receivables—net | (1) | 8.6 |
Other liabilities | (8.2) | 26.7 |
Net cash provided by operating activities | 255 | 319.8 |
Investing Activities: | ||
Purchases of transportation equipment | (153.6) | (83.3) |
Purchases of other property and equipment | (22.5) | (25) |
Proceeds from sale of property and equipment | 76.6 | 29.6 |
Proceeds from sale of off-lease inventory | 9.1 | 9 |
Purchases of lease equipment | (36.5) | (41.7) |
Proceeds from marketable securities | 8.6 | 10.2 |
Purchases of marketable securities | (11.6) | (8.9) |
Investment in equity securities | (5) | 0 |
Net cash used in investing activities | (134.9) | (110.1) |
Financing Activities: | ||
Payments of debt and finance lease obligations | (0.3) | (25.3) |
Dividends paid | (24.8) | (22.2) |
Net cash used in financing activities | (25.1) | (47.5) |
Net increase in cash and cash equivalents | 95 | 162.2 |
Cash and Cash Equivalents: | ||
Beginning of period | 395.5 | 551.6 |
End of period | 490.5 | 713.8 |
Noncash investing and financing activity: | ||
Equipment and inventory purchases in accounts payable | 51.5 | 20.9 |
Dividends declared but not yet paid | 13.9 | 11.8 |
Cash paid during the period for: | ||
Interest | 5.8 | 6.6 |
Income taxes—net of refunds | $ 39.5 | $ 2.6 |
Consolidated Statements Shareho
Consolidated Statements Shareholders' Equity - USD ($) $ in Millions | Total | Class A Common Shares | Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2019 | $ 2,236.4 | $ 0 | $ 1,542.7 | $ 693.6 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 43.8 | 0 | 0 | 43.8 | 0 | ||
Other comprehensive income (loss) | (1.1) | 0 | 0 | 0 | (1.1) | ||
Share-based compensation expense | 1.9 | 0 | 1.9 | 0 | 0 | ||
Dividends declared per share | $ 0.065 | $ 0.065 | |||||
Dividends declared | (11.7) | 0 | 0 | (11.7) | 0 | ||
Share issuances | 0.1 | 0 | 0.1 | 0 | 0 | ||
Shares withheld for employee taxes | (0.9) | 0 | (0.9) | 0 | 0 | ||
Balance at Mar. 31, 2020 | 2,268.5 | 0 | 1,543.8 | 725.7 | (1) | ||
Balance at Dec. 31, 2019 | 2,236.4 | 0 | 1,542.7 | 693.6 | 0.1 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 90.3 | ||||||
Balance at Jun. 30, 2020 | 2,305.8 | 0 | 1,545.4 | 760.8 | (0.4) | ||
Balance at Mar. 31, 2020 | 2,268.5 | 0 | 1,543.8 | 725.7 | (1) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 46.5 | 0 | 0 | 46.5 | 0 | ||
Other comprehensive income (loss) | 0.6 | 0 | 0 | 0 | 0.6 | ||
Share-based compensation expense | 1.1 | 0 | 1.1 | 0 | 0 | ||
Dividends declared per share | 0.065 | 0.065 | |||||
Dividends declared | (11.4) | 0 | 0 | (11.4) | 0 | ||
Share issuances | 0.1 | 0 | 0.1 | 0 | 0 | ||
Exercise of employee stock options | 0.4 | 0 | 0.4 | 0 | 0 | ||
Balance at Jun. 30, 2020 | 2,305.8 | 0 | 1,545.4 | 760.8 | (0.4) | ||
Balance at Dec. 31, 2020 | 2,055.5 | 0 | 1,552.2 | 502.5 | 0.8 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 54.8 | 0 | 0 | 54.8 | 0 | ||
Other comprehensive income (loss) | (0.7) | 0 | 0 | 0 | (0.7) | ||
Share-based compensation expense | 4.5 | 0 | 4.5 | 0 | 0 | ||
Dividends declared per share | 0.07 | 0.07 | |||||
Dividends declared | (12.6) | 0 | 0 | (12.6) | 0 | ||
Share issuances | 0.1 | 0 | 0.1 | 0 | 0 | ||
Exercise of employee stock options | 0.7 | 0 | 0.7 | 0 | 0 | ||
Shares withheld for employee taxes | (2.4) | 0 | (2.4) | 0 | 0 | ||
Balance at Mar. 31, 2021 | 2,099.9 | 0 | 1,555.1 | 544.7 | 0.1 | ||
Balance at Dec. 31, 2020 | 2,055.5 | 0 | 1,552.2 | 502.5 | 0.8 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 161.3 | ||||||
Balance at Jun. 30, 2021 | 2,198.4 | 0 | 1,559.1 | 638.7 | 0.6 | ||
Balance at Mar. 31, 2021 | 2,099.9 | 0 | 1,555.1 | 544.7 | 0.1 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 106.5 | 0 | 0 | 106.5 | 0 | ||
Other comprehensive income (loss) | 0.5 | 0 | 0 | 0 | 0.5 | ||
Share-based compensation expense | 3.3 | 0 | 3.3 | 0 | 0 | ||
Dividends declared per share | $ 0.07 | $ 0.07 | |||||
Dividends declared | (12.5) | 0 | 0 | (12.5) | 0 | ||
Share issuances | 0.7 | 0 | 0.7 | 0 | 0 | ||
Balance at Jun. 30, 2021 | $ 2,198.4 | $ 0 | $ 1,559.1 | $ 638.7 | $ 0.6 |
General
General | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Nature of Operations We are one of the largest providers of surface transportation and logistics solutions in North America. Schneider National, Inc. is a publicly held holding company that, through its 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. Unless otherwise indicated by the context, “we,” “us,” “our,” “ours,” the “Company,” and “Schneider” refer to Schneider National, Inc. and its consolidated subsidiaries. Principles of Consolidation and Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation. In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented. 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. We used the modified retrospective or prospective approach, which was based on the specific amendment implemented, when adopting this standard. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Finance Leases | LEASES As Lessee We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Six Months Ended (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15.3 $ 17.3 Financing cash flows for finance leases 0.3 0.3 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 19.5 $ 21.6 Finance leases 1.2 0.7 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one As of June 30, 2021 and December 31, 2020, investments in lease receivables were as follows: (in millions) June 30, 2021 December 31, 2020 Future minimum payments to be received on leases $ 184.1 $ 159.0 Guaranteed residual lease values 115.9 107.6 Total minimum lease payments to be received 300.0 266.6 Unearned income (44.9) (38.5) Net investment in leases $ 255.1 $ 228.1 Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can 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 June 30, 2021 was $37.4 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 its due date. As of June 30, 2021, our lease payments past due were $2.7 million. 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. Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Revenue $ 53.8 $ 44.7 $ 112.6 $ 99.4 Cost of goods sold (46.7) (40.8) (97.1) (89.7) Operating profit $ 7.1 $ 3.9 $ 15.5 $ 9.7 Interest income on lease receivable $ 7.8 $ 6.7 $ 15.1 $ 13.2 |
Operating Leases | LEASES As Lessee We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Six Months Ended (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15.3 $ 17.3 Financing cash flows for finance leases 0.3 0.3 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 19.5 $ 21.6 Finance leases 1.2 0.7 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one As of June 30, 2021 and December 31, 2020, investments in lease receivables were as follows: (in millions) June 30, 2021 December 31, 2020 Future minimum payments to be received on leases $ 184.1 $ 159.0 Guaranteed residual lease values 115.9 107.6 Total minimum lease payments to be received 300.0 266.6 Unearned income (44.9) (38.5) Net investment in leases $ 255.1 $ 228.1 Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can 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 June 30, 2021 was $37.4 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 its due date. As of June 30, 2021, our lease payments past due were $2.7 million. 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. Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Revenue $ 53.8 $ 44.7 $ 112.6 $ 99.4 Cost of goods sold (46.7) (40.8) (97.1) (89.7) Operating profit $ 7.1 $ 3.9 $ 15.5 $ 9.7 Interest income on lease receivable $ 7.8 $ 6.7 $ 15.1 $ 13.2 |
Sales-type Leases | LEASES As Lessee We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment. Additional information related to our leases is as follows: Six Months Ended (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15.3 $ 17.3 Financing cash flows for finance leases 0.3 0.3 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 19.5 $ 21.6 Finance leases 1.2 0.7 As Lessor We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one As of June 30, 2021 and December 31, 2020, investments in lease receivables were as follows: (in millions) June 30, 2021 December 31, 2020 Future minimum payments to be received on leases $ 184.1 $ 159.0 Guaranteed residual lease values 115.9 107.6 Total minimum lease payments to be received 300.0 266.6 Unearned income (44.9) (38.5) Net investment in leases $ 255.1 $ 228.1 Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can 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 June 30, 2021 was $37.4 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 its due date. As of June 30, 2021, our lease payments past due were $2.7 million. 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. Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Revenue $ 53.8 $ 44.7 $ 112.6 $ 99.4 Cost of goods sold (46.7) (40.8) (97.1) (89.7) Operating profit $ 7.1 $ 3.9 $ 15.5 $ 9.7 Interest income on lease receivable $ 7.8 $ 6.7 $ 15.1 $ 13.2 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE RECOGNITION 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. Three Months Ended Six Months Ended Disaggregated Revenues (in millions) 2021 2020 2021 2020 Transportation $ 1,255.5 $ 951.1 $ 2,374.1 $ 1,979.4 Logistics Management 46.8 29.8 93.3 60.9 Other 58.5 51.9 122.0 111.6 Total operating revenues $ 1,360.8 $ 1,032.8 $ 2,589.4 $ 2,151.9 Quantitative Disclosure The following table provides information related to transactions and expected timing of revenue recognition for 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) June 30, 2021 Expected to be recognized within one year Transportation $ 15.3 Logistics Management 11.1 Expected to be recognized after one year Transportation 43.4 Logistics Management 11.6 Total $ 81.4 This disclosure does not include revenue related to performance obligations that are part of a contract with an original expected duration of one year or less, nor does it 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) June 30, 2021 December 31, 2020 Other current assets - Contract assets $ 32.4 $ 21.5 Other current liabilities - Contract liabilities 0.6 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. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability. 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. The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820. Fair Value (in millions) Level in Fair June 30, 2021 December 31, 2020 Equity investment in TuSimple (1) 1 $ 25.2 $ — Marketable securities (2) 2 49.1 47.1 (1) Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 5, Investments, for additional information. (2) Marketable securities are classified as Level 2 in the fair value hierarchy as they 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. See Note 5, Investments , for additional information. The fair value of the Company’s debt was $321.1 million and $316.9 million as of June 30, 2021 and December 31, 2020, respectively. The carrying value of the Company’s debt was $305.0 million as of June 30, 2021 and December 31, 2020. 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 values of cash, trade accounts receivable, lease receivables, and trade accounts payable approximate fair values. Our ownership interests in PSI and MLSI discussed in Note 5, Investments, |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS 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 our liquidity needs may cause us to sell certain securities in advance of their maturity date. 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. We did not have an allowance for credit losses on our marketable securities as of June 30, 2021 or December 31, 2020. Cost basis is determined using the specific identification method. The following table presents the maturities and values of our marketable securities as of the dates shown. June 30, 2021 December 31, 2020 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 29 to 116 $ 16.9 $ 16.8 $ 12.6 $ 12.7 Corporate debt securities 2 to 75 21.3 21.7 21.4 22.2 State and municipal bonds 4 to 57 10.3 10.6 11.9 12.2 Total marketable securities $ 48.5 $ 49.1 $ 45.9 $ 47.1 Excluded from the amortized cost basis disclosures above is the accrued interest on our investments in marketable securities. As of June 30, 2021 and December 31, 2020, accrued interest receivable associated with our investments in marketable securities was not material and included within other receivables on the consolidated balance sheets. Equity Investments without Readily Determinable Fair Values 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 enable enhanced driver productivity and ensure regulatory compliance. Our ownership interest is being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative. In the three and six months ended June 30, 2020, the Company recognized pre-tax gains of $2.7 million and $8.8 million, respectively, on its investment in PSI within other income on the consolidated statements of comprehensive income. As of December 31, 2020, the value of our ownership interest was $12.3 million, and our non-controlling ownership percentage was 12.6%. No events have occurred in the three and six months ended June 30, 2021 that would indicate that the value of our investment in PSI has changed. Mastery Logistics Systems, Inc. In 2020, the Company entered into a strategic partnership with MLSI, a transportation technology development company. Schneider and MLSI are collaborating to develop a Transportation Management System using MLSI’s SaaS technology which Schneider has also agreed to license. This investment is being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative. The value of our ownership interest as of December 31, 2020 was $10.0 million, and our non-controlling ownership percentage was 10.1%. In the three and six months ended June 30, 2021, no events have occurred that would indicate that the value of our investment in MLSI has changed. Equity Investments with Readily Determinable Fair Values TuSimple Holdings, Inc. On January 12, 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a global self-driving technology company. Upon completion of its initial public offering in April 2021, our investment in TuSimple was converted into Class A common shares and is now being accounted for under ASC 321, Investments - Equity Securities , with subsequent changes in share price recorded in other income on the consolidated statements of comprehensive income. In the three and six months ended June 30, 2021, the Company recognized pre-tax gains of $20.2 million on its investment in TuSimple. See Note 4, Fair Value , for additional information on the fair value of our investment in TuSimple. All of our equity investments are included in other noncurrent assets on the consolidated balance sheets. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure | GOODWILL Goodwill represents the excess of the purchase price of acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by segment during the period ended June 30, 2021. (in millions) Truckload Logistics Other Total Balance at December 31, 2020 $ 103.6 $ 14.2 $ 10.3 $ 128.1 Foreign currency translation gain — — 0.2 0.2 Balance at June 30, 2021 $ 103.6 $ 14.2 $ 10.5 $ 128.3 At June 30, 2021 and December 31, 2020, we had accumulated goodwill impairment charges of $42.6 million. |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES As of June 30, 2021 and December 31, 2020, debt included the following: (in millions) June 30, 2021 December 31, 2020 Unsecured senior notes: principal maturities ranging from 2021 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.61% and 3.64% for 2021 and 2020, respectively $ 305.0 $ 305.0 Current maturities (100.0) (40.0) Debt issuance costs (0.1) (0.2) Long-term debt $ 204.9 $ 264.8 Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment 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 June 30, 2021 or December 31, 2020. Standby letters of credit under this agreement amounted to $3.9 million at June 30, 2021 and December 31, 2020 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 June 30, 2021 or December 31, 2020. At June 30, 2021 and December 31, 2020, 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 25.4% and 25.8% for the three months ended June 30, 2021 and 2020, respectively, and 25.2% and 25.4% for the six months ended June 30, 2021 and 2020, respectively. In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, and best estimates of nontaxable and nondeductible items of income and expense. On March 27, 2020, President Trump signed the CARES Act into U.S. federal law 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 included a provision for the deferment of the employer portion of social security taxes through December 31, 2020, among other things, of which the Company took advantage. We anticipate paying the deferred employer social security taxes in 2021 which were $30.7 million at both June 30, 2021 and December 31, 2020. On December 27, 2020, the Consolidated Appropriations Act 2021 was signed into law which includes certain business tax provisions. The Company does not expect this act to have a material impact on our effective tax rate or income tax expense for the year ended December 31, 2021. |
Common Equity
Common Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Common Equity | COMMON EQUITY Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2021 and 2020. Three Months Ended Six Months Ended (in millions, except per share data) 2021 2020 2021 2020 Numerator: Net income available to common shareholders $ 106.5 $ 46.5 $ 161.3 $ 90.3 Denominator: Weighted average common shares outstanding 177.6 177.2 177.5 177.2 Dilutive effect of share-based awards and options outstanding 0.3 0.2 0.3 0.2 Weighted average diluted common shares outstanding (1) 177.9 177.5 177.8 177.4 Basic earnings per common share $ 0.60 $ 0.26 $ 0.91 $ 0.51 Diluted earnings per common share 0.60 0.26 0.91 0.51 (1) Weighted average diluted common shares outstanding may not sum due to rounding. The calculation of diluted earnings per share for the three and six months ended June 30, 2021 and 2020 excluded an immaterial number of share-based awards and options that had an anti-dilutive effect. Subsequent Event - Dividends Declared In July of 2021, the Board of Directors declared a quarterly cash dividend for the third 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 September 10, 2021 and will be paid on October 8, 2021. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | SHARE-BASED COMPENSATIONWe 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 restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“performance shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. Performance shares and PSUs granted prior to 2021 are earned based on attainment of threshold performance of earnings and return on capital targets. Beginning with grants in 2021, in addition to achievement of earnings and return on capital targets, a multiplier will be applied to performance share and PSU achievement based on relative total shareholder return (“rTSR”) against peers over the performance period.Share-based compensation expense was $2.9 million and $0.8 million for the three months ended June 30, 2021 and 2020, respectively, and $7.1 million and $2.5 million for the six months ended June 30, 2021 and 2020, respectively. We recognize share-based compensation expense over the awards’ vesting period. As of June 30, 2021, we had $25.2 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted average period of 2.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 liability 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 June 30, 2021, our firm commitments to purchase transportation equipment totaled $415.2 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 sale agreement related 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 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. In December 2020, the Company filed an appeal which is currently pending with the U.S. Court of Appeals for the Seventh Circuit. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
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. 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 the 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. Substantially all of our revenues and assets were generated or located within the U.S. 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 $12.1 million and $22.5 million for the three months ended June 30, 2021 and 2020, respectively, and $30.2 million and $47.2 million for the six months ended June 30, 2021 and 2020, respectively. Revenues by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 475.2 $ 451.1 $ 926.9 $ 920.5 Intermodal 274.0 219.0 529.8 457.0 Logistics 430.7 230.9 786.6 470.5 Other 88.5 89.8 186.9 189.2 Fuel surcharge 110.2 68.7 200.4 171.7 Inter-segment eliminations (17.8) (26.7) (41.2) (57.0) Operating revenues $ 1,360.8 $ 1,032.8 $ 2,589.4 $ 2,151.9 Income from Operations by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 73.6 $ 40.5 $ 111.9 $ 77.1 Intermodal 34.9 11.0 54.9 27.3 Logistics 17.0 8.2 32.9 12.4 Other 0.3 3.7 2.3 1.5 Income from operations $ 125.8 $ 63.4 $ 202.0 $ 118.3 Depreciation and Amortization by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 52.4 $ 52.5 $ 105.0 $ 103.5 Intermodal 11.6 11.7 23.1 22.5 Logistics 0.1 — 0.1 — Other 9.1 8.1 18.1 16.1 Depreciation and amortization $ 73.2 $ 72.3 $ 146.3 $ 142.1 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations We are one of the largest providers of surface transportation and logistics solutions in North America. Schneider National, Inc. is a publicly held holding company that, through its 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. Unless otherwise indicated by the context, “we,” “us,” “our,” “ours,” the “Company,” and “Schneider” refer to Schneider National, Inc. and its consolidated subsidiaries. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation. In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented. |
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. We used the modified retrospective or prospective approach, which was based on the specific amendment implemented, when adopting this standard. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Information | Additional information related to our leases is as follows: Six Months Ended (in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 15.3 $ 17.3 Financing cash flows for finance leases 0.3 0.3 Right-of-use assets obtained in exchange for new lease liabilities Operating leases $ 19.5 $ 21.6 Finance leases 1.2 0.7 |
Schedule of Investment In Lease Receivables | As of June 30, 2021 and December 31, 2020, investments in lease receivables were as follows: (in millions) June 30, 2021 December 31, 2020 Future minimum payments to be received on leases $ 184.1 $ 159.0 Guaranteed residual lease values 115.9 107.6 Total minimum lease payments to be received 300.0 266.6 Unearned income (44.9) (38.5) Net investment in leases $ 255.1 $ 228.1 |
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. Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Revenue $ 53.8 $ 44.7 $ 112.6 $ 99.4 Cost of goods sold (46.7) (40.8) (97.1) (89.7) Operating profit $ 7.1 $ 3.9 $ 15.5 $ 9.7 Interest income on lease receivable $ 7.8 $ 6.7 $ 15.1 $ 13.2 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes our revenues by type of service. Three Months Ended Six Months Ended Disaggregated Revenues (in millions) 2021 2020 2021 2020 Transportation $ 1,255.5 $ 951.1 $ 2,374.1 $ 1,979.4 Logistics Management 46.8 29.8 93.3 60.9 Other 58.5 51.9 122.0 111.6 Total operating revenues $ 1,360.8 $ 1,032.8 $ 2,589.4 $ 2,151.9 |
Remaining Performance Obligations | The following table provides information related to transactions and expected timing of revenue recognition for 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) June 30, 2021 Expected to be recognized within one year Transportation $ 15.3 Logistics Management 11.1 Expected to be recognized after one year Transportation 43.4 Logistics Management 11.6 Total $ 81.4 |
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) June 30, 2021 December 31, 2020 Other current assets - Contract assets $ 32.4 $ 21.5 Other current liabilities - Contract liabilities 0.6 0.7 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets Measured on Recurring Basis | The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820. Fair Value (in millions) Level in Fair June 30, 2021 December 31, 2020 Equity investment in TuSimple (1) 1 $ 25.2 $ — Marketable securities (2) 2 49.1 47.1 (1) Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 5, Investments, for additional information. (2) Marketable securities are classified as Level 2 in the fair value hierarchy as they 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. See Note 5, Investments , for additional information. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the maturities and values of our marketable securities as of the dates shown. June 30, 2021 December 31, 2020 (in millions, except maturities in months) Maturities Amortized Cost Fair Value Amortized Cost Fair Value U.S. treasury and government agencies 29 to 116 $ 16.9 $ 16.8 $ 12.6 $ 12.7 Corporate debt securities 2 to 75 21.3 21.7 21.4 22.2 State and municipal bonds 4 to 57 10.3 10.6 11.9 12.2 Total marketable securities $ 48.5 $ 49.1 $ 45.9 $ 47.1 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 period ended June 30, 2021. (in millions) Truckload Logistics Other Total Balance at December 31, 2020 $ 103.6 $ 14.2 $ 10.3 $ 128.1 Foreign currency translation gain — — 0.2 0.2 Balance at June 30, 2021 $ 103.6 $ 14.2 $ 10.5 $ 128.3 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | As of June 30, 2021 and December 31, 2020, debt included the following: (in millions) June 30, 2021 December 31, 2020 Unsecured senior notes: principal maturities ranging from 2021 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.61% and 3.64% for 2021 and 2020, respectively $ 305.0 $ 305.0 Current maturities (100.0) (40.0) Debt issuance costs (0.1) (0.2) Long-term debt $ 204.9 $ 264.8 |
Common Equity (Tables)
Common Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2021 and 2020. Three Months Ended Six Months Ended (in millions, except per share data) 2021 2020 2021 2020 Numerator: Net income available to common shareholders $ 106.5 $ 46.5 $ 161.3 $ 90.3 Denominator: Weighted average common shares outstanding 177.6 177.2 177.5 177.2 Dilutive effect of share-based awards and options outstanding 0.3 0.2 0.3 0.2 Weighted average diluted common shares outstanding (1) 177.9 177.5 177.8 177.4 Basic earnings per common share $ 0.60 $ 0.26 $ 0.91 $ 0.51 Diluted earnings per common share 0.60 0.26 0.91 0.51 (1) Weighted average diluted common shares outstanding may not sum due to rounding. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 $12.1 million and $22.5 million for the three months ended June 30, 2021 and 2020, respectively, and $30.2 million and $47.2 million for the six months ended June 30, 2021 and 2020, respectively. Revenues by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 475.2 $ 451.1 $ 926.9 $ 920.5 Intermodal 274.0 219.0 529.8 457.0 Logistics 430.7 230.9 786.6 470.5 Other 88.5 89.8 186.9 189.2 Fuel surcharge 110.2 68.7 200.4 171.7 Inter-segment eliminations (17.8) (26.7) (41.2) (57.0) Operating revenues $ 1,360.8 $ 1,032.8 $ 2,589.4 $ 2,151.9 Income from Operations by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 73.6 $ 40.5 $ 111.9 $ 77.1 Intermodal 34.9 11.0 54.9 27.3 Logistics 17.0 8.2 32.9 12.4 Other 0.3 3.7 2.3 1.5 Income from operations $ 125.8 $ 63.4 $ 202.0 $ 118.3 Depreciation and Amortization by Segment Three Months Ended Six Months Ended (in millions) 2021 2020 2021 2020 Truckload $ 52.4 $ 52.5 $ 105.0 $ 103.5 Intermodal 11.6 11.7 23.1 22.5 Logistics 0.1 — 0.1 — Other 9.1 8.1 18.1 16.1 Depreciation and amortization $ 73.2 $ 72.3 $ 146.3 $ 142.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Lease payments | $ 300 | $ 266.6 |
Past due | ||
Leases | ||
Lease payments | 2.7 | |
Past Due | ||
Leases | ||
Net investment in leases | $ 37.4 | |
Minimum | ||
Leases | ||
Terms of sales-type lease | 1 year | |
Maximum | ||
Leases | ||
Terms of sales-type lease | 3 years |
Leases - Schedule of Lease Info
Leases - Schedule of Lease Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 15.3 | $ 17.3 |
Financing cash flows for finance leases | 0.3 | 0.3 |
Right-of-use assets obtained in exchange for new operating lease liability | 19.5 | 21.6 |
Right-of-use assets obtained in exchange for new finance lease liability | $ 1.2 | $ 0.7 |
Leases - Summary of Investment
Leases - Summary of Investment in Lease Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Future minimum payments to be received on leases | $ 184.1 | $ 159 |
Guaranteed residual lease values | 115.9 | 107.6 |
Total minimum lease payments to be received | 300 | 266.6 |
Unearned income | (44.9) | (38.5) |
Net investment in leases | $ 255.1 | $ 228.1 |
Leases - Schedule of Sales-type
Leases - Schedule of Sales-type Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Revenue | $ 53.8 | $ 44.7 | $ 112.6 | $ 99.4 |
Cost of goods sold | (46.7) | (40.8) | (97.1) | (89.7) |
Operating profit | 7.1 | 3.9 | 15.5 | 9.7 |
Interest income on lease receivable | $ 7.8 | $ 6.7 | $ 15.1 | $ 13.2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue | ||||
Operating revenues | $ 1,360.8 | $ 1,032.8 | $ 2,589.4 | $ 2,151.9 |
Transportation | ||||
Disaggregation of Revenue | ||||
Operating revenues | 1,255.5 | 951.1 | 2,374.1 | 1,979.4 |
Logistics Management | ||||
Disaggregation of Revenue | ||||
Operating revenues | 46.8 | 29.8 | 93.3 | 60.9 |
Other | ||||
Disaggregation of Revenue | ||||
Operating revenues | $ 58.5 | $ 51.9 | $ 122 | $ 111.6 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | $ 81.4 |
Expected to be recognized within one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 15.3 |
Expected to be recognized within one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 11.1 |
Expected to be recognized after one year | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | 43.4 |
Expected to be recognized after one year | Logistics Management | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining Performance Obligation | $ 11.6 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 32.4 | $ 21.5 |
Contract liabilities | $ 0.6 | $ 0.7 |
Revenue Recognition- Additional
Revenue Recognition- Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Timing of payment after completion of performance obligations | 40 days |
Fair Value - Recurring Fair Val
Fair Value - Recurring Fair Value Measurements (Details) - Recurring fair value measurements - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Level 1 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of equity investment in TuSimple | $ 25.2 | $ 0 |
Level 2 inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair value of marketable securities | $ 49.1 | $ 47.1 |
Fair Value - Debt Portfolio (De
Fair Value - Debt Portfolio (Details) - Unsecured Senior Notes - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Total principal outstanding | $ 305 | $ 305 |
Level 2 inputs | ||
Debt Instrument | ||
Fair value of debt | $ 321.1 | $ 316.9 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Available for Sale Debt Securities | ||
Credit loss allowance | $ 0 | $ 0 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Available for Sale Debt Securities | ||
Amortized cost | $ 48.5 | $ 45.9 |
US treasury and government agencies | ||
Available for Sale Debt Securities | ||
Amortized cost | 16.9 | 12.6 |
Corporate debt securities | ||
Available for Sale Debt Securities | ||
Amortized cost | 21.3 | 21.4 |
State and municipal bonds | ||
Available for Sale Debt Securities | ||
Amortized cost | 10.3 | 11.9 |
Current asset | ||
Available for Sale Debt Securities | ||
Fair value | 49.1 | 47.1 |
Current asset | US treasury and government agencies | ||
Available for Sale Debt Securities | ||
Fair value | 16.8 | 12.7 |
Current asset | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Fair value | 21.7 | 22.2 |
Current asset | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Fair value | $ 10.6 | $ 12.2 |
Minimum | US treasury and government agencies | ||
Available for Sale Debt Securities | ||
Maturity date | Nov. 30, 2023 | |
Minimum | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Maturity date | Aug. 15, 2021 | |
Minimum | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Oct. 22, 2021 | |
Maximum | US treasury and government agencies | ||
Available for Sale Debt Securities | ||
Maturity date | Feb. 15, 2031 | |
Maximum | Corporate debt securities | ||
Available for Sale Debt Securities | ||
Maturity date | Sep. 19, 2027 | |
Maximum | State and municipal bonds | ||
Available for Sale Debt Securities | ||
Maturity date | Mar. 1, 2026 |
Investments - Investment in Pla
Investments - Investment in Platform Science, Inc. (Details) - Platform Science, Inc. - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Investments | |||||
Gain on interest in investment | $ 0 | $ 2.7 | $ 0 | $ 8.8 | |
Value of ownership interest in investment | $ 12.3 | ||||
Ownership interest in investment | 12.60% |
Investments - Investment in Mas
Investments - Investment in Mastery Logistics (Details) - Mastery Logistics - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Other Investments | |||
Value of ownership interest in investment | $ 10 | ||
Ownership interest in investment | 10.10% | ||
Gain on interest in investment | $ 0 | $ 0 |
Investments - Investment in TuS
Investments - Investment in TuSimple Holdings, Inc. (Details) - TuSimple Holdings, Inc. - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jan. 12, 2021 | |
Other Investments | |||
Investment in equity security | $ 5 | ||
Gain on interest in investment | $ 20.2 | $ 20.2 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill | |
Beginning balance | $ 128.1 |
Goodwill, Foreign Currency Translation Gain | 0.2 |
Ending balance | 128.3 |
Truckload | |
Goodwill | |
Beginning balance | 103.6 |
Goodwill, Foreign Currency Translation Gain | 0 |
Ending balance | 103.6 |
Logistics | |
Goodwill | |
Beginning balance | 14.2 |
Goodwill, Foreign Currency Translation Gain | 0 |
Ending balance | 14.2 |
Other | |
Goodwill | |
Beginning balance | 10.3 |
Goodwill, Foreign Currency Translation Gain | 0.2 |
Ending balance | $ 10.5 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment charge | $ 42.6 | $ 42.6 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Debt (Details) - Unsecured Senior Notes - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument | ||
Frequency of payments | semiannual | |
Weighted-average interest rate | 3.61% | 3.64% |
Total principal outstanding | $ 305 | $ 305 |
Current maturities | (100) | (40) |
Debt issuance costs | (0.1) | (0.2) |
Long-term debt | $ 204.9 | $ 264.8 |
Minimum | ||
Debt Instrument | ||
Maturity year | 2021 | |
Maximum | ||
Debt Instrument | ||
Maturity year | 2025 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Credit Facility | ||
Debt Instrument | ||
Current borrowing capacity | $ 250 | |
Potential increase amount | 150 | |
Maximum borrowing capacity | $ 400 | |
Expiration date | Aug. 6, 2023 | |
Outstanding borrowings | $ 0 | $ 0 |
Credit Facility | Standby Letters of Credit | ||
Debt Instrument | ||
Maximum borrowing capacity | 100 | |
Standby letters of credit | 3.9 | 3.9 |
Receivables Purchase Agreement | ||
Debt Instrument | ||
Maximum borrowing capacity | $ 200 | |
Expiration date | Sep. 3, 2021 | |
Outstanding borrowings | $ 0 | 0 |
Receivables Purchase Agreement | Standby Letters of Credit | ||
Debt Instrument | ||
Standby letters of credit | $ 70.3 | $ 70.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 25.40% | 25.80% | 25.20% | 25.40% | |
Deferred employer social security taxes from CARES act | $ 30.7 | $ 30.7 | $ 30.7 |
Common Equity - Calculation of
Common Equity - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic earnings per common share | ||||||
Net income available to common shareholders | $ 106.5 | $ 54.8 | $ 46.5 | $ 43.8 | $ 161.3 | $ 90.3 |
Weighted average common shares outstanding | 177.6 | 177.2 | 177.5 | 177.2 | ||
Diluted earnings per common share | ||||||
Dilutive effect of share-based awards and options outstanding | 0.3 | 0.2 | 0.3 | 0.2 | ||
Weighted average diluted shares outstanding | 177.9 | 177.5 | 177.8 | 177.4 | ||
Basic earnings per share | $ 0.60 | $ 0.26 | $ 0.91 | $ 0.51 | ||
Diluted earnings per share | $ 0.60 | $ 0.26 | $ 0.91 | $ 0.51 |
Common Equity - Additional Info
Common Equity - Additional Information (Details) - $ / shares | Jul. 26, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 |
Class A Common Shares | |||||
Class of Stock | |||||
Dividends declared per share | $ 0.07 | $ 0.07 | $ 0.065 | $ 0.065 | |
Class A Common Shares | Subsequent Event | Quarterly Dividend Declared | |||||
Class of Stock | |||||
Dividends declared per share | $ 0.07 | ||||
Class B Common Stock | |||||
Class of Stock | |||||
Dividends declared per share | $ 0.07 | $ 0.07 | $ 0.065 | $ 0.065 | |
Class B Common Stock | Subsequent Event | Quarterly Dividend Declared | |||||
Class of Stock | |||||
Dividends declared per share | $ 0.07 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - 2017 Omnibus Incentive Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation expense | $ 2.9 | $ 0.8 | $ 7.1 | $ 2.5 |
Pre-tax unrecognized compensation cost | $ 25.2 | $ 25.2 | ||
Unrecognized compensation cost, period for recognition | 2 years 4 months 24 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | |
Other Commitments | ||
Commitments to purchase transportation equipment | $ 415.2 | |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | |
Segment Reporting Information | ||||
Number of reportable segments | Segment | 3 | |||
Operating revenues | $ 1,360.8 | $ 1,032.8 | $ 2,589.4 | $ 2,151.9 |
Other | ||||
Segment Reporting Information | ||||
Operating revenues | 88.5 | 89.8 | 186.9 | 189.2 |
Other | Other Insurance | ||||
Segment Reporting Information | ||||
Operating revenues | $ 12.1 | $ 22.5 | $ 30.2 | $ 47.2 |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Operating revenues | $ 1,360.8 | $ 1,032.8 | $ 2,589.4 | $ 2,151.9 |
Intersegment Eliminations | ||||
Segment Reporting Information | ||||
Operating revenues | (17.8) | (26.7) | (41.2) | (57) |
Truckload | ||||
Segment Reporting Information | ||||
Revenues (excluding fuel charge by segment) | 475.2 | 451.1 | 926.9 | 920.5 |
Intermodal | ||||
Segment Reporting Information | ||||
Revenues (excluding fuel charge by segment) | 274 | 219 | 529.8 | 457 |
Logistics | ||||
Segment Reporting Information | ||||
Revenues (excluding fuel charge by segment) | 430.7 | 230.9 | 786.6 | 470.5 |
Other | ||||
Segment Reporting Information | ||||
Operating revenues | 88.5 | 89.8 | 186.9 | 189.2 |
Fuel Surcharge | ||||
Segment Reporting Information | ||||
Operating revenues | $ 110.2 | $ 68.7 | $ 200.4 | $ 171.7 |
Segment Reporting - Income From
Segment Reporting - Income From Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Income from operations | $ 125.8 | $ 63.4 | $ 202 | $ 118.3 |
Truckload | ||||
Segment Reporting Information | ||||
Income from operations | 73.6 | 40.5 | 111.9 | 77.1 |
Intermodal | ||||
Segment Reporting Information | ||||
Income from operations | 34.9 | 11 | 54.9 | 27.3 |
Logistics | ||||
Segment Reporting Information | ||||
Income from operations | 17 | 8.2 | 32.9 | 12.4 |
Other | ||||
Segment Reporting Information | ||||
Income from operations | $ 0.3 | $ 3.7 | $ 2.3 | $ 1.5 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Depreciation and amortization | $ 73.2 | $ 72.3 | $ 146.3 | $ 142.1 |
Truckload | ||||
Segment Reporting Information | ||||
Depreciation and amortization | 52.4 | 52.5 | 105 | 103.5 |
Intermodal | ||||
Segment Reporting Information | ||||
Depreciation and amortization | 11.6 | 11.7 | 23.1 | 22.5 |
Logistics | ||||
Segment Reporting Information | ||||
Depreciation and amortization | 0.1 | 0 | 0.1 | 0 |
Other | ||||
Segment Reporting Information | ||||
Depreciation and amortization | $ 9.1 | $ 8.1 | $ 18.1 | $ 16.1 |