Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | YRC Worldwide Inc. | |
Entity Central Index Key | 716,006 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,615,981 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 210.7 | $ 171.1 |
Restricted amounts held in escrow | 25.7 | 28.9 |
Accounts receivable, net | 497.8 | 470.5 |
Prepaid expenses and other | 77.2 | 81.2 |
Total current assets | 811.4 | 751.7 |
Property and Equipment: | ||
Cost | 2,837.4 | 2,819.6 |
Less – accumulated depreciation | (1,898.5) | (1,825.4) |
Net property and equipment | 938.9 | 994.2 |
Intangibles, net | 45.1 | 60.3 |
Restricted amounts held in escrow | 46.5 | 60.2 |
Deferred income taxes, net | 21.2 | 21.4 |
Other assets | 101.7 | 97.2 |
Total Assets | 1,964.8 | 1,985 |
Liabilities and Shareholders’ Deficit | ||
Accounts payable | 185.6 | 172.2 |
Wages, vacations and employee benefits | 204.2 | 176.6 |
Deferred income taxes, net | 21.2 | 21.4 |
Other current and accrued liabilities | 187.6 | 202.2 |
Current maturities of long-term debt | 15.5 | 31.1 |
Total current liabilities | 614.1 | 603.5 |
Other Liabilities: | ||
Long-term debt, less current portion | 1,065.3 | 1,078.8 |
Deferred income taxes, net | 3.2 | 1.5 |
Pension and postretirement | 413.1 | 460.3 |
Claims and other liabilities | $ 296.4 | $ 315.2 |
Commitments and contingencies | ||
Shareholders’ Deficit: | ||
Preferred stock, $1 par value per share | $ 0 | $ 0 |
Common stock, $0.01 par value per share | 0.3 | 0.3 |
Capital surplus | 2,310.8 | 2,290.9 |
Accumulated deficit | (2,215.8) | (2,240) |
Accumulated other comprehensive loss | (429.9) | (432.8) |
Treasury stock, at cost (410 shares) | (92.7) | (92.7) |
Total shareholders’ deficit | (427.3) | (474.3) |
Total Liabilities and Shareholders’ Deficit | $ 1,964.8 | $ 1,985 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Common stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 410,000 | 410,000 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenue | $ 1,244.9 | $ 1,322.6 | $ 3,689.7 | $ 3,851.1 |
Operating Expenses: | ||||
Salaries, wages and employee benefits | 725.8 | 745.9 | 2,148.6 | 2,212.3 |
Operating expenses and supplies | 217.1 | 285 | 678.1 | 860.7 |
Purchased transportation | 149.6 | 157.4 | 431 | 449.1 |
Depreciation and amortization | 40.7 | 40.9 | 123.6 | 122.9 |
Other operating expenses | 63.1 | 66.5 | 198.6 | 197.9 |
(Gains) losses on property disposals, net | 0.9 | 0.2 | 1.5 | (6.1) |
Total operating expenses | 1,197.2 | 1,295.9 | 3,581.4 | 3,836.8 |
Operating Income | 47.7 | 26.7 | 108.3 | 14.3 |
Nonoperating Expenses: | ||||
Interest expense | 25.7 | 32.6 | 81.2 | 122.5 |
(Gain) loss on extinguishment of debt | 0 | 0 | (0.6) | 11.2 |
Other, net | (4.5) | (2.7) | (8.1) | (6.7) |
Nonoperating expenses, net | 21.2 | 29.9 | 73.7 | 104.6 |
Income (loss) before income taxes | 26.5 | (3.2) | 34.6 | (90.3) |
Income tax (benefit) expense | 6.7 | (4.4) | 10.4 | (16.4) |
Net income (loss) | 19.8 | 1.2 | 24.2 | (73.9) |
Amortization of beneficial conversion feature on preferred stock | 0 | 0 | 0 | (18.1) |
Net Income (Loss) Attributable to Common Shareholders | 19.8 | 1.2 | 24.2 | (92) |
Other comprehensive income (loss), net of tax | (1.9) | (0.6) | 2.9 | 3.9 |
Comprehensive Income (Loss) Attributable to YRC Worldwide Inc. | $ 17.9 | $ 0.6 | $ 27.1 | $ (70) |
Average Common Shares Outstanding – Basic (in shares) | 32,065 | 30,639 | 31,602 | 27,896 |
Average Common Shares Outstanding – Diluted (in shares) | 32,621 | 31,903 | 32,569 | 27,896 |
Basic and Diluted Loss Per Share | ||||
Earnings (Loss) Per Share – Basic (in dollars per share) | $ 0.62 | $ 0.04 | $ 0.76 | $ (3.30) |
Loss Per Share – Diluted (in dollars per share) | $ 0.61 | $ (0.03) | $ 0.74 | $ (3.30) |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income (loss) | $ 24.2 | $ (73.9) |
Noncash items included in net income (loss): | ||
Depreciation and amortization | 123.6 | 122.9 |
Paid-in-kind interest on Series A Notes and Series B Notes | 0.4 | 13.9 |
Amortization of deferred debt costs | 4.8 | 6.9 |
Amortization of premiums and discounts on debt | 1.7 | 26.5 |
Noncash equity based compensation and employee benefits expense | 18.5 | 20.6 |
Deferred income tax benefit | 0 | (3) |
(Gains) losses on property disposals, net | 1.5 | (6.1) |
(Gain) loss on extinguishment of debt | 0.6 | (11.2) |
Other noncash items, net | (6.8) | (4.7) |
Changes in assets and liabilities, net: | ||
Accounts receivable | (29.4) | (91.5) |
Accounts payable | 10 | 18.4 |
Other operating assets | (7.3) | 0.3 |
Other operating liabilities | (50.3) | (45.4) |
Net cash provided by (used in) operating activities | 91.5 | (26.3) |
Investing Activities: | ||
Acquisition of property and equipment | (71.8) | (47.6) |
Proceeds from disposal of property and equipment | 15.7 | 8.5 |
Restricted escrow receipts | 41.9 | 90.7 |
Restricted escrow deposits | (25) | (33.6) |
Other, net | 0.4 | 5.2 |
Net cash provided by (used in) investing activities | (38.8) | 23.2 |
Financing Activities: | ||
Issuance of long-term debt | 0 | 693 |
Repayments of long-term debt | (13.1) | (888.7) |
Debt issuance costs | 0 | (29) |
Equity issuance costs | 0 | (17.1) |
Equity issuance proceeds | 0 | 250 |
Net cash provided by (used in) financing activities | (13.1) | 8.2 |
Net Increase In Cash and Cash Equivalents | 39.6 | 5.1 |
Cash and Cash Equivalents, Beginning of Period | 171.1 | 176.3 |
Cash and Cash Equivalents, End of Period | 210.7 | 181.4 |
Supplemental Cash Flow Information: | ||
Interest paid | (79.3) | (103.3) |
Income tax refund (payment), net | $ (1.6) | $ 19.3 |
Statement of Consolidated Share
Statement of Consolidated Shareholders' Deficit - 9 months ended Sep. 30, 2015 - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, At Cost [Member] |
Beginning balance at Dec. 31, 2014 | $ 2,290.9 | $ (2,240) | $ (432.8) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | $ 18.5 | 1.4 | |||||
Issuance of equity upon conversion of Series B Notes | 18.5 | ||||||
Net income | 24.2 | ||||||
Reclassification of net pension actuarial losses to net income, net of tax | 12 | ||||||
Foreign currency translation adjustments | (9.1) | ||||||
Ending balance at Sep. 30, 2015 | $ (427.3) | $ 0 | $ 0.3 | $ 2,310.8 | $ (2,215.8) | $ (429.9) | $ (92.7) |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business YRC Worldwide Inc. (also referred to as “YRC Worldwide,” the “Company,” “we,” “us” or “our”) is a holding company that, through wholly owned operating subsidiaries and its interest in a Chinese joint venture, offers its customers a wide range of transportation services. We have one of the largest, most comprehensive less-than-truckload (“LTL”) networks in North America with local, regional, national and international capabilities. Through our team of experienced service professionals, we offer expertise in LTL shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. Our reporting segments include the following: • YRC Freight is the reporting segment that focuses on longer haul business opportunities with national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management. This reporting segment includes our LTL subsidiary YRC Inc. (“YRC Freight”) and Reimer Express (“YRC Reimer”), a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico, Puerto Rico and Guam. • Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. Regional Transportation is comprised of USF Holland Inc. (“Holland”), New Penn Motor Express, Inc. (“New Penn”) and USF Reddaway Inc. (“Reddaway”). These companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, Mexico and Puerto Rico. At September 30, 2015 , approximately 78% of our labor force is subject to collective bargaining agreements, which predominantly expire in March 2019. |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of YRC Worldwide and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. We report on a calendar year basis. The quarters of the Regional Transportation companies (with the exception of New Penn) consist of thirteen weeks that end on a Saturday either before or after the end of March, June and September, whereas all other operating segment quarters end on the natural calendar quarter end. Our investment in our Chinese joint venture, a non-majority owned affiliate, is accounted for on the equity method. We make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and notes. Actual results could differ from those estimates. We have prepared the Consolidated Financial Statements, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, we have made all normal recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods included in these financial statements. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted from these statements pursuant to SEC rules and regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Fair Value of Financial Instruments The following table summarizes the fair value hierarchy of our financial assets and liabilities carried at fair value on a recurring basis as of September 30, 2015 : Fair Value Measurement Hierarchy (in millions) Total Carrying Value Quoted prices in active market (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Restricted amounts held in escrow-current $ 25.7 $ 25.7 $ — $ — Restricted amounts held in escrow-long term 46.5 46.5 — — Total assets at fair value $ 72.2 $ 72.2 $ — $ — Restricted amounts held in escrow are invested in money market accounts and are recorded at fair value based on quoted market prices. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. Equity Method Investment On October 23, 2015, the Company entered into an equity interest sale and purchase agreement to sell its fifty percent interest in its Chinese joint venture, JHJ International Transportation Co., Ltd. (“JHJ”), for a purchase price of $16.3 million , which we expect upon sale, will result in an inconsequential gain in the accompanying statement of consolidated comprehensive income (loss). The investment is recorded in other assets in the accompanying consolidated balance sheet. Reclassifications Out of Accumulated Other Comprehensive Loss For three and nine months ended September 30, 2015 , we reclassified the amortization of our net pension loss totaling $4.0 million and $12.0 million , respectively, net of tax, from accumulated other comprehensive loss to net income. For three and nine months ended September 30, 2014 , we reclassified the amortization of our net pension loss totaling $1.9 million and $5.8 million , respectively, net of tax, from accumulated other comprehensive loss to net loss. This reclassification is a component of net periodic pension cost and is discussed in the “Employee Benefits” footnote. Impact of Recently Issued Accounting Standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Interest - Imputation of Interest , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the accounting treatment for debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by this update. The guidance, which requires retrospective application, is effective for the Company beginning January 1, 2016, but early adoption is allowed. The Company plans to adopt this guidance for the first quarter of 2016. As of September 30, 2015 and December 31, 2014, the Company had $21.7 million and $26.5 million , respectively, of debt issuance costs related to its Term Loan, Second A&R CDA and ABL Facility (each as defined in the Debt and Financing footnote). In accordance with the guidance, the Company would reclassify these costs from other assets to long-term debt in the consolidated balance sheets. In May 2015, the FASB issued new authoritative literature, Revenue from Contracts with Customers, Deferral of the Effective Date , which defers the effective date of the new revenue standard by one year. The new standard is effective for the Company beginning January 1, 2018. Early adoption is permitted for annual periods beginning January 1, 2017. While we do not believe the guidance will have a significant impact on the Company’s consolidated financial statements, we are currently evaluating the guidance, including which transition approach will be applied. |
Debt and Financing
Debt and Financing | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Financing | Debt and Financing Our outstanding debt as of September 30, 2015 and December 31, 2014 consisted of the following: As of September 30, 2015 (in millions) Par Value Discount Book Value Stated Interest Rate Average Effective Interest Rate Term Loan $ 687.8 $ (4.7 ) $ 683.1 8.3 % 8.5 % ABL Facility (a) — — — N/A N/A Secured Second A&R CDA 44.7 — 44.7 3.3-18.3% 7.3 % Unsecured Second A&R CDA 73.2 — 73.2 3.3-18.3% 7.3 % Lease financing obligations 279.8 — 279.8 10.0-18.2% 12.0 % Total debt $ 1,085.5 $ (4.7 ) $ 1,080.8 Current maturities of Term Loan (7.0 ) — (7.0 ) Current maturities of lease financing obligations (8.5 ) — (8.5 ) Long-term debt $ 1,070.0 $ (4.7 ) $ 1,065.3 (a) There were no amounts drawn on the ABL Facility at any time during the nine months ended September 30, 2015. As of December 31, 2014 (in millions) Par Value Discount Book Value Stated Interest Rate Average Effective Interest Rate Term Loan $ 693.0 $ (5.7 ) $ 687.3 8.3 % 8.5 % ABL Facility (a) — — — N/A N/A Series B Notes 17.7 (0.6 ) 17.1 10.0 % 25.6 % Secured Second A&R CDA 47.0 — 47.0 3.3-18.3% 7.3 % Unsecured Second A&R CDA 73.2 — 73.2 3.3-18.3% 7.3 % Lease financing obligations 285.1 — 285.1 10.0-18.2% 12.0 % Other 0.2 — 0.2 Total debt $ 1,116.2 $ (6.3 ) $ 1,109.9 Current maturities of Term Loan (7.0 ) — (7.0 ) Current maturities of Series B Notes (17.7 ) 0.6 (17.1 ) Current maturities of lease financing obligations (6.8 ) — (6.8 ) Current maturities of other (0.2 ) — (0.2 ) Long-term debt $ 1,084.5 $ (5.7 ) $ 1,078.8 (a) There were no amounts drawn on the ABL Facility at any time during the twelve months ended December 31, 2014. ABL Facility Availability As of September 30, 2015 , we had cash and cash equivalents of $210.7 million and the borrowing base and maximum availability on our asset based loan facility (the “ABL Facility”) were $445.1 million and $78.6 million , respectively. The maximum availability is calculated in accordance with the terms of the ABL Facility and is derived by reducing the borrowing base by our $366.5 million of outstanding letters of credit as of September 30, 2015. While our ABL Agreement permits us to access maximum availability outside of certain financial covenant restrictions (which restrictions did not limit our availability as of September 30, 2015 ), the maximum amount we expect to access on our ABL Facility at any time is maximum availability less the lower of 10% of the borrowing base ( $44.5 million at September 30, 2015 ) or 10% of the collateral line cap ( $45.0 million at September 30, 2015 ). Thus, of the $78.6 million in maximum availability, we expected to access no more than $34.1 million as of September 30, 2015 (“Managed Accessibility”). As a result, we had cash and cash equivalents and Managed Accessibility of $244.8 million as of September 30, 2015 . As of December 31, 2014 , we had cash and cash equivalents of $171.1 million and the borrowing base and maximum availability on our ABL Facility were $445.5 million and $71.2 million , respectively. The maximum availability is calculated in accordance with the terms of the ABL Facility and is derived by reducing the borrowing base by our $374.3 million of outstanding letters of credit. As of December 31, 2014 , amounts able to be drawn on our ABL Facility (which were limited by certain financial covenant restrictions) were $27.1 million , for a total of cash and cash equivalents and amounts able to be drawn on our ABL Facility of $198.2 million . Credit Facility Covenants The credit agreement (the “Term Loan Agreement”) governing our term loan facility (the “Term Loan”) has certain financial covenants, as amended in September 2014, that, among other things, restricts certain capital expenditures and requires us to maintain a maximum total leverage ratio (defined as Consolidated Total Debt divided by Consolidated Adjusted EBITDA as defined below). Our total maximum leverage ratio covenants are as follows: Four Consecutive Fiscal Quarters Ending Maximum Total Leverage Ratio Four Consecutive Fiscal Quarters Ending Maximum Total Leverage Ratio September 30, 2015 4.50 to 1.00 December 31, 2016 3.50 to 1.00 December 31, 2015 4.25 to 1.00 March 31, 2017 3.25 to 1.00 March 31, 2016 4.00 to 1.00 June 30, 2017 3.25 to 1.00 June 30, 2016 3.75 to 1.00 September 30, 2017 3.25 to 1.00 September 30, 2016 3.75 to 1.00 December 31, 2017 and thereafter 3.00 to 1.00 Consolidated Adjusted EBITDA, defined in our Term Loan Agreement as “Consolidated EBITDA,” is a measure that reflects our earnings before interest, taxes, depreciation, and amortization expense, and is further adjusted for, among other things, letter of credit fees, equity-based compensation expense, net gains or losses on property disposals, restructuring professional fees, nonrecurring consulting fees, expenses associated with certain lump sum payments to our International Brotherhood of Teamsters (“IBT”) employees and the results of permitted dispositions and discontinued operations. Consolidated Total Debt, as defined in our Term Loan Agreement, is the aggregate principal amount of indebtedness outstanding. Our total leverage ratio for the four consecutive fiscal quarters ending September 30, 2015 was 3.15 to 1.00. Additionally, our ABL Facility credit agreement, among other things, restricts certain capital expenditures. We believe that our results of operations will be sufficient to allow us to comply with the covenants in the Term Loan Agreement, fund our operations, increase working capital as necessary to support our planned revenue growth and fund capital expenditures for at least the next twelve months. In order for us to maintain compliance with the maximum total leverage ratio over the tenor of the Term Loan and satisfy our liquidity needs, we must achieve positive operating results which reflect continuing improvement over our recent results. Improvements to our profitability may include ongoing successful implementation and realization of pricing, productivity and efficiency initiatives, as well as increased volume, some of which are outside of our control. Series B Exchange Our 10% Series B Convertible Senior Secured Notes (the “Series B Notes”), which matured on March 31, 2015, were convertible into our Common Stock, at the conversion price per share of approximately $18.5334 and a conversion rate of 53.9567 common shares per $1,000 of the Series B Notes (such conversion price and conversion rate applying also to the Series B Notes make whole premium). On March 25, 2015, we entered into an exchange agreement with certain holders of our Series B Notes to exchange their outstanding principal and accrued interest balances totaling $17.9 million at conversion price of $18.00 per share for an aggregate 994,689 shares of Common Stock. During the nine months ended September 30, 2015 , we recorded $0.6 million of additional expense related to the fair value of the incremental shares provided to those holders who exchanged their outstanding balances. At maturity on March 31, 2015, we repaid the holders of the remaining outstanding Series B Notes approximately $0.3 million of cash. On January 31, 2014, certain holders of our Series B Notes exchanged their outstanding notes as part of an exchange agreement. Outside of these exchange agreements, during the nine months ended September 30, 2014 , $1.2 million of aggregate principal amount of Series B Notes were converted into 75,900 shares of our Common Stock, which includes the make whole premium. Upon conversion, during the nine months ended September 30, 2014 , we recorded $0.4 million of additional interest expense representing the $0.2 million make whole premium and $0.2 million of accelerated amortization of the discount on converted Series B Notes. There were no conversions during the three months ended September 30, 2014 . Fair Value Measurement The carrying amounts and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows: September 30, 2015 December 31, 2014 (in millions) Carrying amount Fair value Carrying amount Fair value Term Loan $ 683.1 $ 673.2 $ 687.3 $ 685.4 Series B Notes — — 17.1 17.7 Lease financing obligations 279.8 284.7 285.1 282.2 Other 117.9 115.4 120.4 119.1 Total debt $ 1,080.8 $ 1,073.3 $ 1,109.9 $ 1,104.4 The fair values of the Term Loan, Series B Notes and the Secured and Unsecured Second Amended and Restated Contribution Deferral Agreement (the “Second A&R CDA”) (included in “Other” above) were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the lease financing obligations is estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement). Leases As of September 30, 2015 , our minimum rental expense under operating leases for the remainder of the year was $17.7 million . As of September 30, 2015 , our operating lease payment obligations through 2025 totaled $232.1 million and is expected to increase as we lease additional revenue equipment. Our capital expenditures for the nine months ended September 30, 2015 and 2014 were $71.8 million and $47.6 million , respectively. These amounts were principally used to fund the purchase of used tractors and trailers, to refurbish engines for our revenue fleet, and capitalized costs for technology infrastructure. Additionally, for the nine months ended September 30, 2015 , we entered into new operating leases for revenue equipment totaling $102.0 million in future lease payments, payable over an average lease term of five years. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits The following table presents the components of our company-sponsored pension costs for the three and nine months ended September 30 : Three Months Nine Months (in millions) 2015 2014 2015 2014 Service cost $ 1.2 $ 1.1 $ 3.6 $ 3.2 Interest cost 14.3 15.2 42.9 45.6 Expected return on plan assets (15.0 ) (13.4 ) (45.0 ) (40.2 ) Amortization of net pension loss 4.0 3.2 12.0 9.6 Total periodic pension cost $ 4.5 $ 6.1 $ 13.5 $ 18.2 We expect to contribute $60.0 million to our company-sponsored pension plans in 2015 of which we have contributed $48.9 million through September 30, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three and nine months ended September 30, 2015 was 25.3% and 30.1% , compared to 137.5% and 18.2% for the three and nine months ended September 30, 2014 . The significant items impacting the 2015 rate include a net state and foreign tax provision, certain permanent items, and a change in the valuation allowance established for the net deferred tax asset balance projected for December 31, 2015 . The significant items impacting the 2014 rate include the settlement of several audits with the Internal Revenue Service, a net state and foreign tax provision, certain permanent items, an intraperiod tax allocation required by ASC 740, Income Taxes , and a change in the valuation allowance established for the net deferred tax asset balance projected for December 31, 2014. We recognize valuation allowances on deferred tax assets if, based on the weight of the evidence, we determine it is more likely than not such assets will not be realized. Changes in valuation allowances are included in our tax provision in the period of change. In determining whether a valuation allowance is warranted, we evaluate factors such as prior years’ earnings history, expected future earnings, loss carry-back and carry-forward periods, reversals of existing deferred tax liabilities and tax planning strategies that potentially enhance the likelihood of the realization of a deferred tax asset. At September 30, 2015 and December 31, 2014 , substantially all of our net deferred tax assets were subject to a valuation allowance. Concurrent with the financing transactions of January 31, 2014, the Company experienced a change of ownership as described in Section 382 of the Internal Revenue Code. The impact of the 2014 ownership change on the Company’s ability to utilize its Net Operating Loss carryforwards and other tax attributes is not material as most of the carryforwards to which this ownership change applies already have been significantly limited by previous ownership changes occurring in 2011 and 2013. |
Shareholders' Deficit
Shareholders' Deficit | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Deficit | Shareholders’ Deficit The following reflects the activity in the shares of our common stock for the nine months ended September 30, 2015 : (shares in thousands) 2015 Beginning balance 30,667 Issuance of equity awards 464 Issuance of common stock upon conversion or exchange of Series B Notes 995 Ending balance 32,126 |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Performance Based Awards On March 9, 2015, the Company granted performance stock unit awards (“2015 Performance Awards”) to employees. The awards provide a target number of shares that vest equally over three years , with the first vesting occurring on February 23, 2016. In addition to meeting service conditions, the number of performance stock units to be received depends on the attainment of defined Company-wide performance goals for 2015 based on adjusted return on invested capital over a one year performance period. The number of performance stock units ultimately earned will range between zero to 200% of the target award. A summary of performance based unvested stock unit activity at target is as follows: (stock units in thousands) Target Number of Units Weighted Average Fair Value Unvested performance stock unit awards, at December 31, 2014 — — 2015 Performance Awards granted 217 $ 18.10 2015 Performance Awards forfeited (3 ) 18.23 Unvested performance stock unit awards, at September 30, 2015 (a) 214 $ 18.10 (a) For the 2015 Performance Awards, participants in the aggregate can earn up to a maximum of 428 thousand performance stock units. The Company expenses the grant date fair value of the awards which are probable of being earned in the performance period over the respective service period. Compensation cost on performance based awards was $1.7 million and $2.8 million for the three and nine months ended September 30, 2015 . As of September 30, 2015 , at target performance, $2.5 million of unrecognized compensation cost related to performance based awards is expected to be recognized over a weighted-average period of 1.6 years. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share We calculate basic earnings (loss) per share by dividing our net earnings (loss) by our weighted-average shares outstanding at the end of the period. The calculation for diluted earnings per share adjusts the weighted average shares outstanding for our dilutive unvested shares and stock units using the treasury stock method and for our convertible notes using the if-converted method. Our calculations for basic and dilutive earnings (loss) per share for the three and nine months ended September 30 , 2015 and 2014 are as follows: Three Months Nine Months (dollars in millions, except per share data, shares and stock units in thousands) 2015 2014 2015 2014 Basic net income (loss) available to common shareholders $ 19.8 $ 1.2 $ 24.2 $ (92.0 ) Effect of dilutive securities: Series B Notes (a) — (2.0 ) — — Dilutive net income (loss) available to common shareholders $ 19.8 $ (0.8 ) $ 24.2 $ (92.0 ) Basic weighted average shares outstanding 32,065 30,639 31,602 27,896 Effect of dilutive securities: Unvested shares and stock units 556 282 646 — Series B Notes — 982 321 — Dilutive weighted average shares outstanding 32,621 31,903 32,569 27,896 Basic earnings (loss) per share (b) $ 0.62 $ 0.04 $ 0.76 $ (3.30 ) Diluted earnings (loss) per share (b) $ 0.61 $ (0.03 ) $ 0.74 $ (3.30 ) (a) The Series B Notes were recorded at a discount that accelerated upon conversion and contained a make-whole interest premium that would have required us to pay interest as if the security were held to maturity upon conversion and, as such, would have resulted in incremental expense under the if-converted method. (b) Earnings (loss) per share is based on unrounded figures and not the rounded figures presented. Given our net loss position for the nine months ended September 30, 2014, there were no dilutive securities for this period. Our anti-dilutive securities at September 30 , 2015 and 2014 are as follows: (shares, options and stock units in thousands) 2015 2014 Anti-dilutive unvested shares, options, and stock units 264 358 Anti-dilutive Series B Notes — 981 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We report financial and descriptive information about our reporting segments on a basis consistent with that used internally for evaluating segment performance and allocating resources to segments. We evaluate segment performance primarily on external revenue and operating income (loss). We have the following reporting segments, which are strategic business units that offer complementary transportation services to our customers: • YRC Freight is the reporting segment for our transportation service providers focused on business opportunities in national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management. This unit includes our LTL subsidiaries YRC Freight and YRC Reimer, a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico, Puerto Rico and Guam. • Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. The Regional Transportation companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, Mexico and Puerto Rico. We charge management fees and other corporate service fees to our reporting segments based on the benefits received or an overhead allocation basis. Corporate and other operating losses represent residual operating expenses of the holding company. Corporate identifiable assets primarily consist of cash, cash equivalents, an investment in an equity method affiliate and deferred debt issuance costs. Intersegment revenue primarily relates to transportation services between our segments. The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated As of September 30, 2015 Identifiable assets $ 1,452.2 $ 748.6 $ (236.0 ) $ 1,964.8 As of December 31, 2014 Identifiable assets $ 1,462.1 $ 685.7 $ (162.8 ) $ 1,985.0 Three Months Ended September 30, 2015 External revenue $ 789.2 $ 455.7 $ — $ 1,244.9 Operating income (loss) $ 16.7 $ 33.6 $ (2.6 ) $ 47.7 Nine Months Ended September 30, 2015 External revenue $ 2,322.0 $ 1,367.7 $ — $ 3,689.7 Operating income (loss) $ 39.4 $ 75.9 $ (7.0 ) $ 108.3 Three Months Ended September 30, 2014 External revenue $ 843.0 $ 479.6 $ — $ 1,322.6 Operating income (loss) $ 8.8 $ 24.4 $ (6.5 ) $ 26.7 Nine Months Ended September 30, 2014 External revenue $ 2,441.9 $ 1,409.2 $ — $ 3,851.1 Operating income (loss) $ (24.0 ) $ 55.5 $ (17.2 ) $ 14.3 |
Commitments, Contingencies and
Commitments, Contingencies and Uncertainties | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Uncertainties | Commitments, Contingencies and Uncertainties Bryant Holdings Securities Litigation On February 7, 2011, a putative class action was filed by Bryant Holdings LLC in the U.S. District Court for the District of Kansas on behalf of purchasers of our common stock between April 24, 2008 and November 2, 2009, inclusive (the “Class Period”), seeking damages under the federal securities laws for statements and/or omissions allegedly made by us and the individual defendants during the Class Period which plaintiffs claimed to be false and misleading. The individual defendants are former officers of our Company. No current officers or directors are named in the lawsuit. The parties participated in voluntary mediation between March 11, 2013 and April 15, 2013. The mediation resulted in the execution of a mutually acceptable settlement agreement by the parties. Plaintiffs’ fourth motion to approve settlement was denied by the district court in October 2015, and the Company is considering all options going forward. Substantially all of the payments contemplated by the settlement would be covered by our liability insurance. The self-insured retention on this matter has been accrued. On March 4, 2015, the district court set the case for trial on the individual claims beginning June 6, 2016. Other Legal Matters We are involved in other litigation or proceedings that arise in ordinary business activities. When possible, we insure against these risks to the extent we deem prudent, but no assurance can be given that the nature or amount of such insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Many of these insurance policies contain self-insured retentions in amounts we deem prudent. Based on our current assessment of information available as of the date of these financial statements, we believe that our financial statements include adequate provisions for estimated costs and losses that may be incurred within the litigation and proceedings to which we are a party. |
Principles of Consolidation (Ta
Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table summarizes the fair value hierarchy of our financial assets and liabilities carried at fair value on a recurring basis as of September 30, 2015 : Fair Value Measurement Hierarchy (in millions) Total Carrying Value Quoted prices in active market (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Restricted amounts held in escrow-current $ 25.7 $ 25.7 $ — $ — Restricted amounts held in escrow-long term 46.5 46.5 — — Total assets at fair value $ 72.2 $ 72.2 $ — $ — |
Debt and Financing (Tables)
Debt and Financing (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Our outstanding debt as of September 30, 2015 and December 31, 2014 consisted of the following: As of September 30, 2015 (in millions) Par Value Discount Book Value Stated Interest Rate Average Effective Interest Rate Term Loan $ 687.8 $ (4.7 ) $ 683.1 8.3 % 8.5 % ABL Facility (a) — — — N/A N/A Secured Second A&R CDA 44.7 — 44.7 3.3-18.3% 7.3 % Unsecured Second A&R CDA 73.2 — 73.2 3.3-18.3% 7.3 % Lease financing obligations 279.8 — 279.8 10.0-18.2% 12.0 % Total debt $ 1,085.5 $ (4.7 ) $ 1,080.8 Current maturities of Term Loan (7.0 ) — (7.0 ) Current maturities of lease financing obligations (8.5 ) — (8.5 ) Long-term debt $ 1,070.0 $ (4.7 ) $ 1,065.3 (a) There were no amounts drawn on the ABL Facility at any time during the nine months ended September 30, 2015. As of December 31, 2014 (in millions) Par Value Discount Book Value Stated Interest Rate Average Effective Interest Rate Term Loan $ 693.0 $ (5.7 ) $ 687.3 8.3 % 8.5 % ABL Facility (a) — — — N/A N/A Series B Notes 17.7 (0.6 ) 17.1 10.0 % 25.6 % Secured Second A&R CDA 47.0 — 47.0 3.3-18.3% 7.3 % Unsecured Second A&R CDA 73.2 — 73.2 3.3-18.3% 7.3 % Lease financing obligations 285.1 — 285.1 10.0-18.2% 12.0 % Other 0.2 — 0.2 Total debt $ 1,116.2 $ (6.3 ) $ 1,109.9 Current maturities of Term Loan (7.0 ) — (7.0 ) Current maturities of Series B Notes (17.7 ) 0.6 (17.1 ) Current maturities of lease financing obligations (6.8 ) — (6.8 ) Current maturities of other (0.2 ) — (0.2 ) Long-term debt $ 1,084.5 $ (5.7 ) $ 1,078.8 (a) There were no amounts drawn on the ABL Facility at any time during the twelve months ended December 31, 2014. |
Schedule of Maximum Total Leverage Ratio for Remaining Test Periods [Table Text Block] | Our total maximum leverage ratio covenants are as follows: Four Consecutive Fiscal Quarters Ending Maximum Total Leverage Ratio Four Consecutive Fiscal Quarters Ending Maximum Total Leverage Ratio September 30, 2015 4.50 to 1.00 December 31, 2016 3.50 to 1.00 December 31, 2015 4.25 to 1.00 March 31, 2017 3.25 to 1.00 March 31, 2016 4.00 to 1.00 June 30, 2017 3.25 to 1.00 June 30, 2016 3.75 to 1.00 September 30, 2017 3.25 to 1.00 September 30, 2016 3.75 to 1.00 December 31, 2017 and thereafter 3.00 to 1.00 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying amounts and estimated fair values of our long-term debt, including current maturities and other financial instruments, are summarized as follows: September 30, 2015 December 31, 2014 (in millions) Carrying amount Fair value Carrying amount Fair value Term Loan $ 683.1 $ 673.2 $ 687.3 $ 685.4 Series B Notes — — 17.1 17.7 Lease financing obligations 279.8 284.7 285.1 282.2 Other 117.9 115.4 120.4 119.1 Total debt $ 1,080.8 $ 1,073.3 $ 1,109.9 $ 1,104.4 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Costs of Retirement Plans [Table Text Block] | The following table presents the components of our company-sponsored pension costs for the three and nine months ended September 30 : Three Months Nine Months (in millions) 2015 2014 2015 2014 Service cost $ 1.2 $ 1.1 $ 3.6 $ 3.2 Interest cost 14.3 15.2 42.9 45.6 Expected return on plan assets (15.0 ) (13.4 ) (45.0 ) (40.2 ) Amortization of net pension loss 4.0 3.2 12.0 9.6 Total periodic pension cost $ 4.5 $ 6.1 $ 13.5 $ 18.2 |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | The following reflects the activity in the shares of our common stock for the nine months ended September 30, 2015 : (shares in thousands) 2015 Beginning balance 30,667 Issuance of equity awards 464 Issuance of common stock upon conversion or exchange of Series B Notes 995 Ending balance 32,126 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of performance based unvested stock unit activity at target is as follows: (stock units in thousands) Target Number of Units Weighted Average Fair Value Unvested performance stock unit awards, at December 31, 2014 — — 2015 Performance Awards granted 217 $ 18.10 2015 Performance Awards forfeited (3 ) 18.23 Unvested performance stock unit awards, at September 30, 2015 (a) 214 $ 18.10 (a) For the 2015 Performance Awards, participants in the aggregate can earn up to a maximum of 428 thousand performance stock units. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Our calculations for basic and dilutive earnings (loss) per share for the three and nine months ended September 30 , 2015 and 2014 are as follows: Three Months Nine Months (dollars in millions, except per share data, shares and stock units in thousands) 2015 2014 2015 2014 Basic net income (loss) available to common shareholders $ 19.8 $ 1.2 $ 24.2 $ (92.0 ) Effect of dilutive securities: Series B Notes (a) — (2.0 ) — — Dilutive net income (loss) available to common shareholders $ 19.8 $ (0.8 ) $ 24.2 $ (92.0 ) Basic weighted average shares outstanding 32,065 30,639 31,602 27,896 Effect of dilutive securities: Unvested shares and stock units 556 282 646 — Series B Notes — 982 321 — Dilutive weighted average shares outstanding 32,621 31,903 32,569 27,896 Basic earnings (loss) per share (b) $ 0.62 $ 0.04 $ 0.76 $ (3.30 ) Diluted earnings (loss) per share (b) $ 0.61 $ (0.03 ) $ 0.74 $ (3.30 ) (a) The Series B Notes were recorded at a discount that accelerated upon conversion and contained a make-whole interest premium that would have required us to pay interest as if the security were held to maturity upon conversion and, as such, would have resulted in incremental expense under the if-converted method. (b) Earnings (loss) per share is based on unrounded figures and not the rounded figures presented. |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Our anti-dilutive securities at September 30 , 2015 and 2014 are as follows: (shares, options and stock units in thousands) 2015 2014 Anti-dilutive unvested shares, options, and stock units 264 358 Anti-dilutive Series B Notes — 981 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes our operations by business segment: (in millions) YRC Freight Regional Transportation Corporate/ Eliminations Consolidated As of September 30, 2015 Identifiable assets $ 1,452.2 $ 748.6 $ (236.0 ) $ 1,964.8 As of December 31, 2014 Identifiable assets $ 1,462.1 $ 685.7 $ (162.8 ) $ 1,985.0 Three Months Ended September 30, 2015 External revenue $ 789.2 $ 455.7 $ — $ 1,244.9 Operating income (loss) $ 16.7 $ 33.6 $ (2.6 ) $ 47.7 Nine Months Ended September 30, 2015 External revenue $ 2,322.0 $ 1,367.7 $ — $ 3,689.7 Operating income (loss) $ 39.4 $ 75.9 $ (7.0 ) $ 108.3 Three Months Ended September 30, 2014 External revenue $ 843.0 $ 479.6 $ — $ 1,322.6 Operating income (loss) $ 8.8 $ 24.4 $ (6.5 ) $ 26.7 Nine Months Ended September 30, 2014 External revenue $ 2,441.9 $ 1,409.2 $ — $ 3,851.1 Operating income (loss) $ (24.0 ) $ 55.5 $ (17.2 ) $ 14.3 |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Workforce Subject to Collective Bargaining Arrangements [Member] | Labor Force Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of workforce subject to collective bargaining agreements | 78.00% |
Principles of Consolidation (Fa
Principles of Consolidation (Fair Value Measurement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Reclassification of Investment | $ 16.3 | ||
Debt Issuance Cost | $ 21.7 | $ 26.5 | |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active market (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted amounts held in escrow-current | 25.7 | 25.7 | |
Restricted amounts held in escrow-long term | 46.5 | 46.5 | |
Total assets at fair value | 72.2 | 72.2 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted amounts held in escrow-current | 0 | 0 | |
Restricted amounts held in escrow-long term | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted amounts held in escrow-current | 0 | 0 | |
Restricted amounts held in escrow-long term | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted amounts held in escrow-current | 25.7 | 25.7 | |
Restricted amounts held in escrow-long term | 46.5 | 46.5 | |
Total assets at fair value | $ 72.2 | $ 72.2 | |
JHJ International Transportation Co., Ltd. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Principles of Consolidation (Re
Principles of Consolidation (Reclassification Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassifications out of Accumulated Comprehensive loss [Line Items] | ||||
Reclassification of net pension actuarial losses to net income, net of tax | $ 4 | $ 1.9 | $ 12 | $ 5.8 |
Debt and Financing (Details)
Debt and Financing (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)shares | Jun. 30, 2015 | Dec. 31, 2014USD ($) | Mar. 25, 2015$ / sharesshares | Dec. 31, 2013USD ($) | ||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 1,085,500,000 | $ 1,116,200,000 | ||||||
Premium/(Discount), Debt | (4,700,000) | (6,300,000) | ||||||
Book Value | 1,080,800,000 | 1,109,900,000 | ||||||
Book Value, Current Maturities | (15,500,000) | (31,100,000) | ||||||
Par Value, Excluding Current Maturities | 1,070,000,000 | 1,084,500,000 | ||||||
Debt Instrument, Unamortized Discount (Premium), Net, Noncurrent Maturities | 4,700,000 | 5,700,000 | ||||||
Book Value, Excluding Current Maturities | 1,065,300,000 | 1,078,800,000 | ||||||
Cash and cash equivalents | $ 181,400,000 | 210,700,000 | $ 181,400,000 | 171,100,000 | $ 176,300,000 | |||
Series B Notes outstanding principal and interest | 17,900,000 | |||||||
Series B Notes conversion price per share | $ / shares | $ 18 | |||||||
Common stock shares converted for Series B Notes | shares | 994,689 | |||||||
Expense Related to Fair Value of Incremental Shares Converted | $ 600,000 | |||||||
Cash Repayment to Series B Notes holders | 300,000 | |||||||
Amortization of premiums and discounts on debt | $ 1,700,000 | 26,500,000 | ||||||
Operating leases, future minimum payments, remainder of fiscal year | 17,700,000 | |||||||
Operating leases, future minimum payments due | 232,100,000 | |||||||
Acquisition of property and equipment | (71,800,000) | (47,600,000) | ||||||
Carrying Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 1,080,800,000 | 1,109,900,000 | ||||||
Fair Value [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 1,073,300,000 | 1,104,400,000 | ||||||
2014 Term Loan [Domain] [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 687,800,000 | |||||||
Premium/(Discount), Debt | (4,700,000) | |||||||
Book Value | 683,100,000 | |||||||
Debt Instrument, Gross, Current Maturities | (7,000,000) | (7,000,000) | ||||||
Premium/(Discount), Current Maturities | 0 | 0 | ||||||
Book Value, Current Maturities | $ (7,000,000) | (7,000,000) | ||||||
Stated Interest Rate | 8.25% | |||||||
Average Effective Interest Rate | 8.50% | |||||||
2014 Term Loan [Domain] [Domain] | Carrying Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | $ 683,100,000 | 687,300,000 | ||||||
2014 Term Loan [Domain] [Domain] | Fair Value [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 673,200,000 | 685,400,000 | ||||||
Restructured Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 693,000,000 | |||||||
Premium/(Discount), Debt | (5,700,000) | |||||||
Book Value | $ 687,300,000 | |||||||
Stated Interest Rate | 8.25% | |||||||
Average Effective Interest Rate | 8.50% | |||||||
Line of Credit [Member] | 2014 ABL Facility Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | [1] | 0 | ||||||
Premium/(Discount), Debt | [1] | 0 | ||||||
Book Value | [1] | 0 | ||||||
Borrowing base | 445,100,000 | $ 445,500,000 | ||||||
Line of credit facility, total cash and availability | $ 78,600,000 | 71,200,000 | ||||||
Line of Credit [Member] | ABL facility - Term A [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | [2] | 0 | ||||||
Premium/(Discount), Debt | [2] | 0 | ||||||
Book Value | [2] | 0 | ||||||
Pension Contribution Deferral Obligation [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated Interest Rate, Minimum | ||||||||
Stated Interest Rate, Maximum | ||||||||
Letter of Credit [Member] | 2014 ABL Facility Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding, amount | $ 366,500,000 | 374,300,000 | ||||||
10 percent of Borrowing Base | 44,500,000 | |||||||
10 percent of line cap | 45,000,000 | |||||||
Unused borrowing capacity, amount | 27,100,000 | |||||||
Senior Notes [Member] | Carrying Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 0 | 17,100,000 | ||||||
Senior Notes [Member] | Fair Value [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | $ 0 | 17,700,000 | ||||||
Senior Notes [Member] | Senior B Notes [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 17,700,000 | |||||||
Premium/(Discount), Debt | (600,000) | |||||||
Book Value | $ 17,100,000 | |||||||
Stated Interest Rate | 10.00% | |||||||
Average Effective Interest Rate | 25.60% | |||||||
Senior Notes [Member] | Senior B Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt conversion price, future period | $ / shares | $ 18.5334 | |||||||
Number of shares converted per thousand, future period | shares | 53.9567 | |||||||
Conversion ratio | 0.0539567 | |||||||
Debt conversion, amount | $ 0 | $ 1,200,000 | ||||||
Conversion of stock, shares converted | shares | 75,900 | |||||||
Interest Expense, Debt | $ 400,000 | |||||||
Make whole premium | 200,000 | |||||||
Amortization of premiums and discounts on debt | $ 200,000 | |||||||
Senior Notes [Member] | Series B Note [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Gross, Current Maturities | $ (17,700,000) | |||||||
Premium/(Discount), Current Maturities | 600,000 | |||||||
Book Value, Current Maturities | (17,100,000) | |||||||
Secured Second A&R CDA [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 44,700,000 | 47,000,000 | ||||||
Premium/(Discount), Debt | 0 | 0 | ||||||
Book Value | $ 44,700,000 | $ 47,000,000 | ||||||
Stated Interest Rate, Minimum | 3.25% | 3.30% | ||||||
Stated Interest Rate, Maximum | 18.30% | 18.30% | ||||||
Average Effective Interest Rate | 7.30% | 7.30% | ||||||
Unsecured Second A&R CD [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 73,200,000 | $ 73,200,000 | ||||||
Premium/(Discount), Debt | 0 | 0 | ||||||
Book Value | $ 73,200,000 | $ 73,200,000 | ||||||
Stated Interest Rate, Minimum | 3.30% | |||||||
Stated Interest Rate, Maximum | 18.30% | |||||||
Average Effective Interest Rate | 7.30% | 7.30% | ||||||
Lease Financing Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 279,800,000 | $ 285,100,000 | ||||||
Premium/(Discount), Debt | 0 | 0 | ||||||
Book Value | 279,800,000 | 285,100,000 | ||||||
Debt Instrument, Gross, Current Maturities | (8,500,000) | (6,800,000) | ||||||
Premium/(Discount), Current Maturities | 0 | 0 | ||||||
Book Value, Current Maturities | $ (8,500,000) | $ (6,800,000) | ||||||
Stated Interest Rate, Minimum | 10.00% | 10.00% | ||||||
Stated Interest Rate, Maximum | 18.20% | 18.20% | ||||||
Average Effective Interest Rate | 12.00% | 12.00% | ||||||
Lease Financing Obligations [Member] | Carrying Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | $ 279,800,000 | $ 285,100,000 | ||||||
Lease Financing Obligations [Member] | Fair Value [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 284,700,000 | 282,200,000 | ||||||
Other Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 200,000 | |||||||
Premium/(Discount), Debt | 0 | |||||||
Book Value | 200,000 | |||||||
Debt Instrument, Gross, Current Maturities | (200,000) | |||||||
Premium/(Discount), Current Maturities | 0 | |||||||
Book Value, Current Maturities | (200,000) | |||||||
Other Debt Obligations [Member] | Carrying Amount [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | 117,900,000 | 120,400,000 | ||||||
Other Debt Obligations [Member] | Fair Value [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Fair Value | $ 115,400,000 | 119,100,000 | ||||||
Credit Agreement Amendment, September 2014 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum Total Leverage Ratio, September 30, 2015 | 4.50 | |||||||
Maximum Total Leverage Ratio, December 31, 2015 | 4.25 | |||||||
Maximum Total Leverage Ratio, March 31, 2016 | 4 | |||||||
Maximum Total Leverage Ratio, June 30, 2016 | 3.75 | |||||||
Maximum Total Leverage Ratio, September 30, 2016 | 3.75 | |||||||
Maximum Total Leverage Ratio, December 31, 2016 | 3.50 | |||||||
Maximum Total Leverage Ratio, March 31, 2017 | 3.25 | |||||||
Maximum Total Leverage Ratio, June 30, 2017 | 3.25 | |||||||
Maximum Total Leverage Ratio, September 30, 2017 | 3.25 | |||||||
Maximum Total Leverage Ratio, December 31, 2017 and thereafter | 3 | |||||||
Debt Instrument, Total Leverage Ratio | 3.15 | |||||||
2014 ABL Facility Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount able to be drawn | $ 34,100,000 | |||||||
2014 ABL Facility Credit Agreement [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, total cash and availability | 244,800,000 | $ 198,200,000 | ||||||
Revenue Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Operating lease commitment | $ 102,000,000 | |||||||
Operating lease term | 5 years | |||||||
[1] | There were no amounts drawn on the ABL Facility at any time during the nine months ended September 30, 2015. | |||||||
[2] | There were no amounts drawn on the ABL Facility at any time during the twelve months ended December 31, 2014. |
Employee Benefits (Details)
Employee Benefits (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.2 | $ 1.1 | $ 3.6 | $ 3.2 |
Interest cost | 14.3 | 15.2 | 42.9 | 45.6 |
Expected return on plan assets | (15) | (13.4) | (45) | (40.2) |
Amortization of net pension loss | 4 | 3.2 | 12 | 9.6 |
Total periodic pension cost | 4.5 | $ 6.1 | 13.5 | $ 18.2 |
Expected future benefit payments, remainder of the year | $ 60 | 60 | ||
Contributions by employer | $ 48.9 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective Tax Rate | 25.30% | 137.50% | 30.10% | 18.20% |
Shareholders' Deficit (Details)
Shareholders' Deficit (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2015shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance | 30,667 |
Issuance of equity awards | 464 |
Issuance of common stock upon conversion or exchange of Series B Notes | 995 |
Ending balance | 32,126 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - Performance Based Stock And Share Unit $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Stock compensation performance period | 1 year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Unvested performance stock unit awards, at December 31, 2014 (Target Number of Units) | 0 | [1] | ||
Unvested performance stock unit awards, at December 31, 2014 (Weighted Average Fair Value) | $ / shares | $ 0 | |||
2015 Performance Awards granted (Target Number of Units) | 217 | [1] | ||
2015 Performance Awards granted (Weighted Average Fair Value) | $ / shares | $ 18.10 | |||
2015 Performance Awards forfeited (Target Number of Units) | (3) | [1] | ||
2015 Performance Awards forfeited (Weighted Average Fair Value) | $ / shares | $ 18.23 | |||
Unvested performance stock unit awards, at March 31, 2015 (Target Number of Units) | 214 | [1] | 214 | [1] |
Unvested performance stock unit awards, at March 31, 2015 (Weighted Average Fair Value) | $ / shares | $ 18.10 | $ 18.10 | ||
Maximum Potential Shares Earned | 428 | |||
Compensation cost, share based awards | $ | $ 1.7 | $ 2.8 | ||
Nonvested awards, compensation cost not yet recognized | $ | $ 2.5 | $ 2.5 | ||
Nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 7 months 24 days | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance stock compensation units earned range | 0.00% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance stock compensation units earned range | 200.00% | |||
[1] | (a) For the 2015 Performance Awards, participants in the aggregate can earn up to a maximum of 428 thousand performance stock units. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic net income (loss) available to common shareholders | $ 19.8 | $ 1.2 | $ 24.2 | $ (92) |
Dilutive Securities, Effect on Basic Earnings Per Share | 0 | (2) | 0 | 0 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 19.8 | $ (0.8) | $ 24.2 | $ (92) |
Basic weighted average shares outstanding (in shares) | 32,065,000 | 30,639,000 | 31,602,000 | 27,896,000 |
Dilutive weighted average shares outstanding (in shares) | 32,621,000 | 31,903,000 | 32,569,000 | 27,896,000 |
Earnings (Loss) Per Share – Basic (in dollars per share) | $ 0.62 | $ 0.04 | $ 0.76 | $ (3.30) |
Loss Per Share – Diluted (in dollars per share) | $ 0.61 | $ (0.03) | $ 0.74 | $ (3.30) |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities (in shares) | 556,000 | 282,000 | 646,000 | 0 |
Anti-dilutive options and shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 264 | 358 | ||
Anti-dilutive Series B Convertible Note Conversion Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 982,000 | 321,000 | 0 |
Anti-dilutive securities excluded from computation of earnings per share | 0 | 981 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Identifiable assets | $ 1,964.8 | $ 1,964.8 | $ 1,985 | ||
External revenue | 1,244.9 | $ 1,322.6 | 3,689.7 | $ 3,851.1 | |
Operating income (loss) | 47.7 | 26.7 | 108.3 | 14.3 | |
YRC Freight [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 1,452.2 | 1,452.2 | 1,462.1 | ||
External revenue | 789.2 | 843 | 2,322 | 2,441.9 | |
Operating income (loss) | 16.7 | 8.8 | 39.4 | (24) | |
Regional Transportation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 748.6 | 748.6 | 685.7 | ||
External revenue | 455.7 | 479.6 | 1,367.7 | 1,409.2 | |
Operating income (loss) | 33.6 | 24.4 | 75.9 | 55.5 | |
Corporate / Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | (236) | (236) | $ (162.8) | ||
External revenue | 0 | 0 | 0 | 0 | |
Operating income (loss) | $ (2.6) | $ (6.5) | $ (7) | $ (17.2) |