Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ODFL | ||
Entity Registrant Name | OLD DOMINION FREIGHT LINE INC/VA | ||
Entity Central Index Key | 878,927 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 81,146,989 | ||
Entity Public Float | $ 9,679,656,484 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 190,282 | $ 127,462 |
Customer receivables, less allowances of $9,913 and $9,465, respectively | 427,569 | 394,169 |
Other receivables | 40,691 | 21,612 |
Prepaid expenses and other current assets | 47,687 | 41,410 |
Total current assets | 706,229 | 584,653 |
Property and equipment: | ||
Revenue equipment | 1,811,233 | 1,591,036 |
Land and structures | 1,796,868 | 1,548,079 |
Other fixed assets | 454,432 | 432,146 |
Leasehold improvements | 10,619 | 8,668 |
Total property and equipment | 4,073,152 | 3,579,929 |
Less: Accumulated depreciation | (1,318,209) | (1,175,470) |
Net property and equipment | 2,754,943 | 2,404,459 |
Goodwill | 19,463 | 19,463 |
Other assets | 64,648 | 59,849 |
Total assets | 3,545,283 | 3,068,424 |
Current liabilities: | ||
Accounts payable | 78,518 | 73,729 |
Compensation and benefits | 198,456 | 152,566 |
Claims and insurance accruals | 53,263 | 49,949 |
Other accrued liabilities | 26,495 | 24,805 |
Current maturities of long-term debt | 0 | 50,000 |
Total current liabilities | 356,732 | 351,049 |
Long-term debt | 45,000 | 45,000 |
Other non-current liabilities | 215,399 | 205,561 |
Deferred income taxes | 247,669 | 189,960 |
Total long-term liabilities | 508,068 | 440,521 |
Total liabilities | 864,800 | 791,570 |
Commitments and contingent liabilities | ||
Shareholders’ equity | ||
Common stock - $0.10 par value, 140,000,000 shares authorized, 81,231,131 and 82,375,945 shares outstanding at December 31, 2018 and 2017, respectively | 8,123 | 8,238 |
Capital in excess of par value | 142,176 | 138,359 |
Retained earnings | 2,530,184 | 2,130,257 |
Total shareholders’ equity | 2,680,483 | 2,276,854 |
Total liabilities and shareholders’ equity | $ 3,545,283 | $ 3,068,424 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Customer receivables, allowances | $ 9,913 | $ 9,465 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 81,231,131 | 82,375,945 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue from operations | $ 4,043,695 | $ 3,358,112 | $ 2,991,517 |
Operating expenses: | |||
Salaries, wages and benefits | 2,075,602 | 1,802,440 | 1,652,055 |
Operating supplies and expenses | 491,030 | 381,798 | 322,997 |
General supplies and expenses | 119,180 | 107,733 | 86,626 |
Operating taxes and licenses | 112,210 | 99,778 | 92,426 |
Insurance and claims | 44,118 | 41,718 | 37,861 |
Communications and utilities | 31,070 | 27,754 | 27,904 |
Depreciation and amortization | 230,357 | 205,763 | 189,867 |
Purchased transportation | 96,017 | 84,747 | 74,051 |
Building and office equipment rents | 6,446 | 7,984 | 7,920 |
Miscellaneous expenses, net | 20,614 | 22,511 | 15,975 |
Total operating expenses | 3,226,644 | 2,782,226 | 2,507,682 |
Operating income | 817,051 | 575,886 | 483,835 |
Non-operating expense (income): | |||
Interest expense | 189 | 2,154 | 4,332 |
Interest income | (3,113) | (740) | (58) |
Other expense (income), net | 4,462 | (1,360) | 1,974 |
Total non-operating expense | 1,538 | 54 | 6,248 |
Income before income taxes | 815,513 | 575,832 | 477,587 |
Provision for income taxes | 209,845 | 112,058 | 181,822 |
Net income | $ 605,668 | $ 463,774 | $ 295,765 |
Earnings per share: | |||
Basic | $ 7.39 | $ 5.63 | $ 3.56 |
Diluted | $ 7.38 | $ 5.63 | $ 3.56 |
Weighted average shares outstanding: | |||
Basic | 81,923,564 | 82,308,417 | 83,112,012 |
Diluted | 82,019,781 | 82,407,068 | 83,153,659 |
Dividends declared per share | $ 0.52 | $ 0.40 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | |
Balance at Dec. 31, 2015 | $ 1,684,637 | $ 8,441 | $ 134,401 | $ 1,541,795 | |
Balance, in shares at Dec. 31, 2015 | 84,412 | ||||
Net income | 295,765 | 295,765 | |||
Share repurchases | (130,316) | $ (206) | (130,110) | ||
Stock Repurchased During Period, Shares | (2,063) | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 7 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 68 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 1,065 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1,072 | ||||
Balance at Dec. 31, 2016 | 1,851,158 | $ 8,242 | 135,466 | 1,707,450 | |
Balance, in shares at Dec. 31, 2016 | 82,417 | ||||
Net income | 463,774 | [1] | 463,774 | ||
Share repurchases | (8,013) | $ (9) | (8,004) | ||
Stock Repurchased During Period, Shares | (92) | ||||
Cash dividends declared | (32,963) | (32,963) | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 5 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 51 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 2,893 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 2,898 | ||||
Balance at Dec. 31, 2017 | 2,276,854 | $ 8,238 | 138,359 | 2,130,257 | |
Balance, in shares at Dec. 31, 2017 | 82,376 | ||||
Net income | 605,668 | 605,668 | |||
Share repurchases | (163,265) | $ (118) | (163,147) | ||
Stock Repurchased During Period, Shares | (1,176) | ||||
Cash dividends declared | (42,594) | (42,594) | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 3 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 31 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 3,817 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 3,820 | ||||
Balance at Dec. 31, 2018 | $ 2,680,483 | $ 8,123 | $ 142,176 | $ 2,530,184 | |
Balance, in shares at Dec. 31, 2018 | 81,231 | ||||
[1] | During the fourth quarter of 2017, we recorded a provisional tax benefit of $104.9 million due to the remeasurement of our deferred taxes to reflect the impact of the Tax Act |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 605,668 | $ 463,774 | $ 295,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 230,357 | 205,763 | 189,867 |
Loss on sale of property and equipment | 477 | 1,274 | 168 |
Deferred income taxes | 57,709 | (82,639) | 34,808 |
Share-based compensation | 4,894 | 3,242 | 1,410 |
Changes in assets and liabilities: | |||
Customer and other receivables, net | (34,666) | (76,353) | (11,176) |
Prepaid expenses and other assets | (12,003) | (12,885) | (21,227) |
Accounts payable | 4,789 | (15,487) | 22,442 |
Compensation, benefits and other accrued liabilities | 47,552 | 25,330 | 4,965 |
Claims and insurance accruals | 8,142 | 1,843 | 6,548 |
Income taxes, net | (17,813) | (4,939) | 21,184 |
Other liabilities | 5,010 | 27,371 | 20,829 |
Net cash provided by operating activities | 900,116 | 536,294 | 565,583 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (588,292) | (382,125) | (417,941) |
Proceeds from sale of property and equipment | 6,983 | 12,240 | 10,541 |
Other investing activities, net | 918 | 2,139 | |
Net cash used in investing activities | (580,391) | (367,746) | (407,400) |
Cash flows from financing activities: | |||
Principal payments under long-term debt agreements | (50,000) | (26,488) | |
Net payments on revolving line of credit | (9,975) | (2,342) | |
Dividends paid | (42,566) | (32,925) | |
Payments for share repurchases | (163,265) | (8,013) | (130,316) |
Other financing activities, net | (1,074) | (344) | (338) |
Net cash used in financing activities | (256,905) | (51,257) | (159,484) |
Increase (decrease) in cash and cash equivalents | 62,820 | 117,291 | (1,301) |
Cash and cash equivalents at beginning of year | 127,462 | 10,171 | 11,472 |
Cash and cash equivalents at end of year | 190,282 | 127,462 | 10,171 |
Income taxes paid | 170,035 | 199,404 | 123,395 |
Interest paid | 4,525 | 5,442 | 6,417 |
Capitalized interest | $ 3,237 | $ 3,309 | $ 2,262 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Business We are a leading, less-than-truckload (“LTL”), union-free motor carrier providing regional, inter-regional and national LTL services through a single integrated organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the United States. Through strategic alliances, we also provide LTL services throughout North America. In addition to our core LTL services, we offer a range of value-added services including container drayage, truckload brokerage and supply chain consulting. We have one operating segment and no single customer exceeds 5% of our revenue. The composition of our revenue is summarized below: Year Ended December 31, (In thousands) 2018 2017 2016 LTL services $ 3,982,658 $ 3,303,611 $ 2,939,572 Other services 61,037 54,501 51,945 Total revenue $ 4,043,695 $ 3,358,112 $ 2,991,517 Basis of Presentation The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain amounts in prior years have been reclassified to conform prior years’ financial statements to the current presentation. Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. Revenue and Expense Recognition We recognize revenue based upon when our transportation and related services have been completed in accordance with the bill of lading (“BOL”) contract, our general tariff provisions and contractual agreements with our customers. Generally, our performance obligations begin when we receive a BOL from a customer and are satisfied when we complete the delivery of a shipment and related services. We recognize revenue for our performance obligations under our customer contracts over time, as our customers receive the benefits of our services in accordance with Accounting Standards Update (“ASU”) 2014-09. With respect to services not completed at the end of a reporting period, we use a percentage of completion method to allocate the appropriate revenue to each separate reporting period. Under this method, we develop a factor for each uncompleted shipment by dividing the actual number of days in transit at the end of a reporting period by that shipment’s standard delivery time schedule. This factor is applied to the total revenue for that shipment and revenue is allocated between reporting periods accordingly. Payment terms vary by customer and are short-term in nature. Expenses are recognized when incurred. Allowances for Uncollectible Accounts and Revenue Adjustments We maintain an allowance for uncollectible accounts for estimated losses resulting from the inability of our customers to make required payments. We estimate this allowance by analyzing the aging of our customer receivables, our historical loss experience and other trends and factors affecting the credit risk of our customers. Write-offs occur when we determine an account to be uncollectible and could differ from our allowance estimate as a result of factors such as changes in the overall economic environment or risks surrounding our customers. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. We periodically review the underlying assumptions in our estimate of the allowance for uncollectible accounts to ensure that the allowance reflects the most recent trends and factors. We also maintain an allowance for estimated revenue adjustments resulting from future billing corrections, customer allowances, money-back service guarantees and other miscellaneous revenue adjustments. These revenue adjustments are recorded in our revenue from operations. We use historical experience, trends, current information and anticipated changes to future performance to update and evaluate these estimates. Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of customer receivables. We perform initial and ongoing credit evaluations of our customers to minimize credit risk. We generally do not require collateral but may require prepayment of our services under certain circumstances. Credit risk is generally diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographic regions. Cash and Cash Equivalents We consider cash on hand and deposits in banks along with certificates of deposit and short-term marketable securities with original maturities of three months or less as cash and cash equivalents. Property and Equipment Property and equipment are stated at cost. Major additions and improvements are capitalized, while maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. We capitalize the cost of tires mounted on purchased revenue equipment as a part of the total equipment cost. Subsequent replacement tires are expensed at the time those tires are placed in service. We assess the realizable value of our long-lived assets and evaluate such assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the related assets. The following table provides the estimated useful lives by asset type: Structures 7 to 30 years Revenue equipment 4 to 15 years Other equipment 2 to 20 years Leasehold improvements Lesser of economic life or life of lease Depreciation expense, which includes the amortization of capital leases, was $230.4 million, $205.6 million and $189.6 million for 2018, 2017 and 2016, respectively. Goodwill Intangible assets have been acquired in connection with business combinations and represent goodwill. Goodwill is calculated as the excess cost over the fair value of assets acquired and is not subject to amortization. We review goodwill annually for impairment as a single reporting unit, unless circumstances dictate more frequent assessments, in accordance with ASU 2011-08, Testing Goodwill for Impairment. ASU 2011-08 permits an initial assessment, commonly referred to as “step zero”, of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and also provides a basis for determining whether it is necessary to perform the goodwill impairment test required by Accounting Standards Codification (“ASC”) Topic 350. We performed the qualitative assessment of goodwill on our annual measurement date of October 1, 2018 and determined that it was more likely than not that the fair value of our reporting unit would be greater than its carrying amount. Therefore, we determined it was not necessary to perform the quantitative goodwill impairment test. Furthermore, there has been no historical impairment of our goodwill. Claims and Insurance Accruals As of December 31, 2018, we maintained a self-insured retention (“SIR”) of $2.75 million per occurrence for bodily injury and property damage (“BIPD”) claims, plus a one-time, $2.5 million aggregate corridor deductible applicable per policy period to any claim that exceeds $5.0 million and occurs after March 30, 2016, and a deductible of $1.0 million per occurrence for workers’ compensation claims. We also had a SIR of $1.0 million per covered person paid during 2018 for group health claims. Claims and insurance accruals reflect the estimated cost of claims for cargo loss and damage, BIPD, workers’ compensation, group health and group dental. These accruals include amounts for future claims development and claims incurred but not reported, which are primarily based on historical claims development experience. The related cost for cargo loss and damage and BIPD is charged to “Insurance and claims” on our Statements of Operations, while the related costs for workers’ compensation, group health and group dental are charged to “Salaries, wages and benefits” on our Statements of Operations. Our liability for claims and insurance totaled $135.8 million and $127.6 million at December 31, 2018 and 2017, respectively. The long-term portions of those reserves were $82.5 million and $77.7 million for 2018 and 2017, respectively, which were included in “Other non-current liabilities” on our Balance Sheets. Share-Based Compensation We have various share-based compensation plans for our employees and non-employee directors. Our share-based compensation includes awards of phantom stock and restricted stock which are accounted for under ASC Topic 718, Compensation - Stock Compensation Awards of phantom stock are accounted for as a liability under ASC Topic 718 and changes in the fair value of our liability are recognized as compensation cost over the requisite service period for the percentage of requisite service rendered each period. Changes in the fair value of the liability that occur after the requisite service period are recognized as compensation cost during the period in which the changes occur. We remeasure the liability for the outstanding awards at the end of each reporting period and the compensation cost is based on the change in fair market value for each reporting period. Awards of restricted stock are accounted for as equity under ASC Topic 718. Compensation cost for restricted stock awards is measured at the fair market value of our common stock on the grant date. We recognize compensation cost, net of estimated forfeitures, on a straight-line basis over the requisite service period of each award. Advertising The costs of advertising our services are expensed as incurred and are included in “General supplies and expenses” on our Statements of Operations. Advertising costs charged to expense totaled $28.2 million, $27.3 million and $20.5 million for 2018, 2017 and 2016, respectively. Fair Values of Financial Instruments The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt, including current maturities, was $45.0 million and $95.0 million at December 31, 2018 and 2017, respectively. The estimated fair value of our total long-term debt, including current maturities, was $45.6 million and $97.1 million at December 31, 2018 and 2017, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). Stock Repurchase Program Our stock repurchase program, which was previously announced on May 23, 2016 and pursuant to which we could repurchase up to an aggregate of $250.0 million $250.0 million As of December 31, 2018, we had $131.7 million remaining authorized under the 2018 Repurchase Program. Comprehensive Income The Company has no components of other comprehensive income. Accordingly, net income equals comprehensive income for all periods presented in this report. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU supersedes the previous revenue recognition requirements in Accounting Standards Codification Topic 605 – Revenue Recognition. The guidance provides a five-step analysis to determine when and how revenue is recognized and further enhances disclosure requirements. Transition methods under ASU 2014-09 must be through (i) retrospective application to each prior reporting period presented, or (ii) modified retrospective application with a cumulative effect adjustment at the date of initial application. Our revenue is generated from providing transportation and related services to customers in accordance with the bill of lading (“BOL”) contract, our general tariff provisions and contractual agreements. Generally, our performance obligations begin when we receive a BOL from a customer and are satisfied when we complete the delivery of a shipment and related services. We recognize revenue for our performance obligations under our customer contracts over time, as our customers receive the benefits of our services in accordance with ASU 2014-09. With respect to services not completed at the end of a reporting period, we use a percentage of completion method to allocate the appropriate revenue to each separate reporting period. Under this method, we develop a factor for each uncompleted shipment by dividing the actual number of days in transit at the end of a reporting period by that shipment’s standard delivery time schedule. This factor is applied to the total revenue for that shipment and revenue is allocated between reporting periods accordingly. Payment terms vary by customer and are short-term in nature. We adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective application. The adoption of this standard did not have a material impact on how we recognize revenue or to our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for most operating leases. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides companies with an additional optional transition method to apply the new standard to leases in effect at the adoption date through a cumulative effect adjustment. We will adopt the new lease standard as of January 1, 2019 using this optional transition method. We plan to elect the package of practical expedients referenced in ASU 2016-02, which permits companies to retain original lease identification and classification without reassessing initial direct costs for existing leases. We also plan to elect the practical expedient that exempts leases with an initial lease term of less than twelve months, as well as the practical expedient that allows companies to select, by class of underlying asset, not to separate lease and non-lease components. Our adoption of this standard is expected to result in the recognition of a right-of-use asset and a lease liability on our Balance Sheet of between $65 million and $70 million, with an immaterial impact, if any, on our Statement of Operations; however, our estimate is subject to change as we finalize our implementation. We are also implementing enhanced internal controls to comply with the reporting and disclosure requirements of the standard. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 2. Long-term Debt Long-term debt consisted of the following: December 31, (In thousands) 2018 2017 Senior notes $ 45,000 $ 95,000 Revolving credit facility — — Total long-term debt 45,000 95,000 Less: Current maturities — (50,000 ) Total maturities due after one year $ 45,000 $ 45,000 We had one unsecured senior note agreement with an amount outstanding of $45.0 million and $95.0 million at December 31, 2018 and 2017, respectively. Our unsecured senior note agreement called for a scheduled principal payment of $50.0 million, which was paid on January 3, 2018. A second scheduled principal payment of $45.0 million is due on January 3, 2021. Interest rates on the January 3, 2018 and January 3, 2021 scheduled principal payments were 4.00% and 4.79%, respectively. The effective average interest rate on our outstanding senior note agreement was 4.79% and 4.37% at December 31, 2018 and 2017, respectively. On December 15, 2015, we entered into an amended and restated credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”) serving as administrative agent for the lenders (the “Credit Agreement”). The Credit Agreement originally provided for a five-year, $250.0 million senior unsecured revolving line of credit and a $100.0 million accordion feature, which if fully exercised and approved, would expand the total borrowing capacity up to an aggregate of $350.0 million. On September 9, 2016, we exercised a portion of the accordion feature and entered into an amendment to the Credit Agreement to increase the aggregate commitments from existing lenders by $50.0 million to an aggregate of $300.0 million. Of the $300.0 million line of credit commitments under the Credit Agreement, as amended, up to $100.0 million may be used for letters of credit. At our option, borrowings under the Credit Agreement bear interest at either: (i) LIBOR plus an applicable margin (based on our ratio of net debt-to-total capitalization) that ranges from 1.0% to 1.50%; or (ii) a Base Rate plus an applicable margin (based on our ratio of net debt-to-total capitalization) that ranges from 0.0% to 0.5%. Letter of credit fees equal to the applicable margin for LIBOR loans are charged quarterly in arrears on the daily average aggregate stated amount of all letters of credit outstanding during the quarter. Commitment fees ranging from 0.125% to 0.2% (based upon the ratio of net debt-to-total capitalization) are charged quarterly in arrears on the aggregate unutilized portion of the Credit Agreement. For each of the years ended December 31, 2018 and 2017, the applicable margin on LIBOR loans and letter of credit fees was 1.0% and commitment fees were 0.125%. There were $61.5 million and $71.4 million of outstanding letters of credit at December 31, 2018 and 2017, respectively. The Credit Agreement includes a provision limiting our ability to make restricted payments, including dividends and payments for share repurchases, unless, among other conditions, no defaults or events of default under the Credit Agreement are ongoing (or would be caused by such restricted payment). Our senior note agreement and Credit Agreement contain customary covenants, including financial covenants that require us to observe a maximum ratio of debt to total capital and a minimum fixed charge coverage ratio. Any future wholly-owned material domestic subsidiaries of the Company would be required to guarantee payment of all of our obligations under these agreements. As of December 31, 2018, our only long-term debt was $45 million, which will mature in 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases Operating [Abstract] | |
Leases | Note 3. Leases We lease certain assets under operating leases, which primarily consist of real estate leases for 32 of our 235 service center locations and automotive leases for our company cars at December 31, 2018. Certain operating leases provide for renewal options, which can vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Balance Sheets. Future minimum annual lease payments for assets under operating leases as of December 31, 2018 are as follows: (In thousands) Total 2019 $ 12,502 2020 12,162 2021 11,398 2022 9,251 2023 6,775 Thereafter 56,621 $ 108,709 Aggregate expense under operating leases was $12.6 million, $14.1 million and $13.8 million for 2018, 2017 and 2016, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis. We did not have any assets under capital leases at each of December 31, 2018 and 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4. Income Taxes The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current: Federal $ 113,491 $ 169,053 $ 126,903 State 38,647 25,644 20,111 152,138 194,697 147,014 Deferred: Federal 49,125 (81,551 ) 29,354 State 8,582 (1,088 ) 5,454 57,707 (82,639 ) 34,808 Total provision for income taxes $ 209,845 $ 112,058 $ 181,822 The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act Year Ended December 31, (In thousands) 2018 2017 2016 Tax provision at statutory rate $ 171,258 $ 201,541 $ 167,156 State income taxes, net of federal benefit 36,396 20,277 16,711 Revaluation of deferred taxes in connection with the Tax Act — (104,864 ) — Other, net 2,191 (4,896 ) (2,045 ) Total provision for income taxes $ 209,845 $ 112,058 $ 181,822 Deferred tax assets and liabilities, which are included in “Other assets” and “Deferred income taxes” on our Balance Sheets, consist of the following: December 31, (In thousands) 2018 2017 Deferred tax assets: Claims and insurance reserves $ 27,433 $ 29,008 Accrued vacation 17,932 17,832 Deferred compensation 31,306 29,220 Other 20,861 15,157 Total deferred tax assets 97,532 91,217 Deferred tax liabilities: Depreciation and amortization (339,311 ) (266,730 ) Unrecognized revenue — (10,007 ) Other (3,151 ) (1,703 ) Total deferred tax liabilities (342,462 ) (278,440 ) Net deferred tax liability $ (244,930 ) $ (187,223 ) We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We remain open to examination by the Internal Revenue Service for tax years 2015 through 2018. We also remain open to examination by various state tax jurisdictions for tax years 2014 through 2018. The Company’s liability for unrecognized tax benefits was immaterial as of December 31, 2018 and 2017. Interest and penalties related to uncertain tax positions, which are immaterial, are recorded in our “Provision for income taxes” on our Statements of Operations. Changes in our liability for unrecognized tax benefits could affect our effective tax rate, if recognized, but we do not expect any material changes within the next twelve months. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions Family Relationships Each of Earl E. Congdon, David S. Congdon and John R. Congdon, Jr. are related to one another and served in various management positions and/or on our Board of Directors during 2018. Our employment agreement with Earl E. Congdon (which expired in accordance with its terms on November 1, 2018) Transactions with Old Dominion Truck Leasing, Inc. Prior to 2018, we utilized the services of Old Dominion Truck Leasing, Inc. (“Leasing”), leased property to Leasing, and collaborated with Leasing for the purchase of certain equipment and fuel. Leasing, which historically had been primarily engaged in the business of leasing tractors, trailers and other vehicles as well as providing contract dedicated fleet services, was acquired by Penske Truck Leasing during the third quarter of 2017 (the “Penske Acquisition”). Prior to the Penske Acquisition, John R. Congdon, Jr. served as Leasing’s Chairman of the Board and CEO, and Earl E. Congdon and David S. Congdon each served on Leasing’s board of directors. Our business relationships with Leasing, as well as the positions held at Leasing by John R. Congdon, Jr., Earl E. Congdon and David S. Congdon, ceased in the third quarter of 2017 in connection with the Penske Acquisition. Prior to the Penske Acquisition, we purchased $110,000 and $254,000 of maintenance and other services from Leasing in 2017 and 2016, respectively. In addition, we received $6,000 and $12,000 from Leasing for the rental of property in 2017 and 2016, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 6. Employee Benefit Plans Defined Contribution Plan Substantially all employees meeting certain service requirements are eligible to participate in our 401(k) employee retirement plan. Employee contributions are limited to a percentage of the employee’s compensation, as defined in the plan. We match a percentage of our employees’ contributions up to certain maximum limits. In addition, we may also provide a discretionary matching contribution as specified in the plan. Our employer contributions, net of forfeitures, for 2018, 2017 and 2016 were $59.8 million, $35.9 million and $28.9 million, respectively. Deferred Compensation Plan We maintain a nonqualified deferred compensation plan for the benefit of certain eligible employees, including those whose contributions to the 401(k) employee retirement plan are limited due to provisions of the Internal Revenue Code. Participating employees may elect to defer receipt of a percentage of their compensation, as defined in the plan, and the deferred amount is credited to each participant’s deferred compensation account. The plan is not funded, and the Company does not make a matching contribution to this plan. Although the plan is not funded, participants are allowed to select investment options for which their deferrals and future earnings are deemed to be invested. Participant accounts are adjusted to reflect participant deferrals and the performance of their deemed investments. The amounts owed to the participants totaled $62.9 million and $61.5 million at December 31, 2018 and 2017, respectively, of which $60.8 million and $59.5 million were included in “Other non-current liabilities” on our Balance Sheets as of December 31, 2018 and 2017, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7. Earnings Per Share Basic earnings per share is computed by dividing net income by the daily weighted average number of shares of our common stock outstanding for the period, excluding unvested restricted stock. Unvested restricted stock is included in common shares outstanding on our Balance Sheets. Diluted earnings per share is computed using the treasury stock method and includes the impact of shares of unvested restricted stock. The following table provides a reconciliation of the number of common shares used in computing basic and diluted earnings per share: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted average shares outstanding - basic 81,923,564 82,308,417 83,112,012 Dilutive effect of share-based awards 96,217 98,651 41,647 Weighted average shares outstanding - diluted 82,019,781 82,407,068 83,153,659 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 8. Share-Based Compensation Stock Incentive Plan On May 19, 2016, our shareholders approved the Old Dominion Freight Line, Inc. 2016 Stock Incentive Plan (the “Stock Incentive Plan”) previously approved by our Board of Directors. The Stock Incentive Plan, under which awards may be granted until May 18, 2026 or the Stock Incentive Plan’s earlier termination, serves as our primary equity incentive plan and provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted awards, performance awards, phantom stock awards and other stock-based awards or dividend equivalent awards to selected employees and non-employee directors. The maximum number of shares of common stock that we may issue or deliver pursuant to awards granted under the Stock Incentive Plan is 2,000,000 shares. Restricted Stock Awards During 2018, 2017 and 2016, we granted restricted stock awards to selected employees and non-employee directors under the Stock Incentive Plan. The employee restricted stock awards vest in three equal annual installments on each anniversary of the grant date, and the non-employee director restricted stock awards vest in full on the first anniversary of the grant date. In both cases, the restricted stock awards are subject to accelerated vesting due to death, total disability, or change in control of the Company. Subject to the foregoing, unvested restricted stock awards are generally forfeited upon termination of employment or service. The restricted stock awards accrue dividends while the award is unvested and only carry rights to receive the accrued dividends once vested. Compensation cost for restricted stock awards is measured at the grant date based on the fair market value per share of our common stock. Compensation cost is recognized on a straight-line basis over the requisite service period of each award and is presented in “Salaries, wages and benefits” for employees and “Miscellaneous expenses, net” for non-employee directors in the accompanying Statements of Operations. The following table summarizes our restricted stock award activity for employees and non-employee directors: Shares Weighted Average Grant Date Fair Value Per Share Unvested At January 1, 2018 97,098 $ 79.58 Granted 46,119 137.78 Vested (43,931 ) 79.86 Forfeited (8,105 ) 100.09 Unvested at December 31, 2018 91,181 $ 107.06 The weighted average grant date fair value per restricted stock award granted during fiscal years 2018, 2017 and 2016 was $137.78, $90.16 and $63.94, respectively. The total fair value of vested restricted stock awards for fiscal year 2018 and 2017 was $6.2 million and $2.7 million respectively. No restricted stock awards vested during fiscal year 2016. At December 31, 2018, the Company had $5.5 million of unrecognized stock-based compensation cost, net of estimated forfeitures, related to unvested restricted stock awards that are expected to be recognized over a weighted average period of 1.6 years. Phantom Stock Plan On October 30, 2012, our Board of Directors approved and we adopted the Old Dominion Freight Line, Inc. 2012 Phantom Stock Plan, as amended on January 29, 2015 (the “2012 Phantom Stock Plan”). Under the 2012 Phantom Stock Plan, 1,000,000 shares of phantom stock may be awarded, each of which represents a contractual right to receive an amount in cash equal to the fair market value of a share of our common stock on the settlement date, which is the earliest of the date of the participant’s (i) termination of employment for any reason other than for cause, (ii) death or (iii) total disability. Each award vests in 20% increments on the anniversary of the grant date provided that the participant (i) has been continuously employed by us since the grant date, (ii) has been continuously employed by us for ten years and (iii) has reached the age of 65. Vesting also occurs on the earliest of (i) a change in control, (ii) death or (iii) total disability. Awards are settled in cash after the required vesting period has been satisfied and upon termination of employment. Unvested shares are forfeited upon termination of employment, although our Board of Directors has authority to modify and/or accelerate the vesting of awards. On May 16, 2005, our Board of Directors approved, and the Company adopted, the Old Dominion Freight Line, Inc. Phantom Stock Plan, as amended January 1, 2009, May 18, 2009, May 17, 2011 and January 29, 2015 (the “2005 Phantom Stock Plan” and, together with the 2012 Phantom Stock Plan, the “Employee Phantom Plans”). The 2005 Phantom Stock Plan expired in May 2012; however, grants under the 2005 Phantom Stock Plan remain outstanding. Each share of phantom stock awarded to eligible employees under the 2005 Phantom Stock Plan represents a contractual right to receive an amount in cash equal to the fair market value of a share of our common stock on the settlement date, which generally is the earlier of the eligible employee’s (i) termination from the Company after reaching 55 years of age, (ii) death or (iii) total disability. Awards are settled in cash after the required vesting period has been satisfied and upon termination of employment. Awards under the 2005 Phantom Stock Plan vest upon the earlier to occur of the following: (i) the date of a change of control in our ownership; (ii) the fifth anniversary of the grant date of the award, provided the participant is employed by us on that date; (iii) the date of the participant’s death while employed by us; (iv) the date of the participant’s total disability; or (v) the date the participant attains the age of 65 while employed by us. Awards that are not vested upon termination of employment are forfeited. If termination occurs prior to attaining the age of 55, all vested and unvested awards are generally forfeited unless the termination results from death or total disability. The 2005 Phantom Stock Plan does, however, provide the Board of Directors with discretionary authority to modify and/or accelerate the vesting of awards. A summary of cash payments for settled shares and compensation costs recognized in “Salaries, wages and benefits” on our Statements of Operations for the Employee Phantom Plans is provided below: Year Ended December 31, (In thousands) 2018 2017 2016 Cash payments for settled shares $ 2,360 $ 3,066 $ 2,442 Compensation expense 5,283 16,910 12,694 Unrecognized compensation cost for all unvested shares under the Employee Phantom Plans as of December 31, 2018 was $10.1 million based on the fair market value of the award on that date. On May 28, 2008, our Board of Directors approved, and the Company adopted, the Old Dominion Freight Line, Inc. Director Phantom Stock Plan, as amended April 1, 2011, February 20, 2014, August 7, 2014 and February 25, 2016 (the “Director Phantom Stock Plan” and together with the Employee Phantom Plans, the “Phantom Plans”). Under the Director Phantom Stock Plan, each eligible non-employee director was granted an annual award of phantom shares. Our Board of Directors approved the initial grant under this plan at its May 2008 meeting and authorized the subsequent annual grants to be made thereafter. For each vested phantom share, participants are entitled to an amount in cash equal to the fair market value of the award on the date that service as a director terminates for any reason. Our shareholders approved the Stock Incentive Plan at our 2016 Annual Meeting of Shareholders; as a result, no phantom shares have been granted under the Phantom Plans since such approval. Director Phantom Stock Plan awards vest upon the earlier to occur of the following: (i) the one-year anniversary of the grant date; (ii) the date of the first annual meeting of shareholders that occurs after the grant date provided the participant is still in service as a director; (iii) the date of a change of control in our ownership provided that the participant is still in service as a director; or (iv) the date of the participant’s death or total disability while still in service as a director. Awards that are not vested upon termination of service as a director are forfeited. A summary of cash payments for settled shares and compensation costs recognized in “Miscellaneous expenses, net” on our Statements of Operations for the Director Phantom Stock Plan is provided below: Year Ended December 31, (In thousands) 2018 2017 2016 Cash payments for settled shares $ 198 $ 474 $ 278 Compensation expense 491 2,588 2,098 A summary of the changes in the number of outstanding phantom stock awards during the year ended December 31, 2018 for the Phantom Plans is provided below. Of these awards, 356,789 and 360,481 phantom shares were vested at December 31, 2018 and 2017, respectively. Employee Phantom Plans Director Phantom Stock Plan Total Balance of shares outstanding at December 31, 2017 491,465 68,162 559,627 Granted — — — Settled (23,419 ) (14,091 ) (37,510 ) Forfeited (1,659 ) — (1,659 ) Balance of shares outstanding at December 31, 2018 466,387 54,071 520,458 The liability for unsettled phantom stock awards under the Phantom Plans consists of the following: December 31, (In thousands) 2018 2017 Employee Phantom Plans $ 50,233 $ 48,148 Director Phantom Stock Plan 7,000 8,436 Total $ 57,233 $ 56,584 While the Stock Incentive Plan currently serves as our primary equity plan, the terms of the Phantom Stock Plans will continue to govern all awards granted under the Phantom Stock Plans until such awards have been settled, forfeited, canceled or have otherwise expired or terminated. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 9. Commitments and Contingencies We are involved in or addressing various legal proceedings and claims, governmental inquiries, notices and investigations that have arisen in the ordinary course of our business and have not been fully adjudicated, some of which may be covered in whole or in part by insurance. Certain of these matters include class-action allegations. We do not believe that the resolution of any of these matters will have a material adverse effect upon our financial position, results of operations or cash flows. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | Note 10. Quarterly Financial Information (Unaudited) A summary of our unaudited quarterly financial information for 2018 and 2017 is provided below. Our tonnage levels and revenue mix are subject to seasonal trends common in the motor carrier industry. Our revenue and operating margins in the first and fourth quarters are typically lower than those during the second and third quarters due to reduced shipments during the winter months. Harsh winter weather or natural disasters, such as hurricanes, tornadoes and floods, can also adversely impact our performance by reducing demand and increasing operating expenses. Quarter (In thousands, except per share data) First Second Third Fourth Total 2018 Revenue $ 925,020 $ 1,033,498 $ 1,058,233 $ 1,026,944 $ 4,043,695 Operating income 149,340 220,481 228,385 218,845 817,051 Net income 109,333 163,434 173,442 159,459 605,668 Earnings per share: Basic 1.33 1.99 2.12 1.96 7.39 Diluted 1.33 1.99 2.12 1.95 7.38 Cash dividends declared per share 0.13 0.13 0.13 0.13 0.52 2017 Revenue $ 754,096 $ 839,912 $ 872,987 $ 891,117 $ 3,358,112 Operating income 108,122 160,432 163,875 143,457 575,886 Net income (1) 65,792 98,418 102,314 197,250 463,774 Earnings per share: Basic 0.80 1.20 1.24 2.40 5.63 Diluted 0.80 1.19 1.24 2.39 5.63 Cash dividends declared per share 0.10 0.10 0.10 0.10 0.40 (1) During the fourth quarter of 2017, we recorded a provisional tax benefit of $104.9 million due to the remeasurement of our deferred taxes to reflect the impact of the Tax Act . |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation And Qualifying Accounts | The Schedule II – Valuation and Qualifying Accounts schedule of Old Dominion Freight Line, Inc. is included below: Schedule II Old Dominion Freight Line, Inc. Valuation and Qualifying Accounts (In thousands) Allowance for Uncollectible Accounts (1) Year Ended December 31, Balance at Beginning of Period Charged to Expense Deductions (2) Balance at End of Period 2016 $ 4,453 $ 1,427 $ 2,797 $ 3,083 2017 $ 3,083 $ 2,555 $ 2,150 $ 3,488 2018 $ 3,488 $ 3,846 $ 3,702 $ 3,632 (1) This table does not include any allowances for revenue adjustments that result from billing corrections, customer allowances, money-back service guarantees and other miscellaneous revenue adjustments that are recorded in our revenue from operations. ( 2) Uncollectible accounts written off, net of recoveries. All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the instructions thereto or are inapplicable and, therefore, have been omitted. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | Business We are a leading, less-than-truckload (“LTL”), union-free motor carrier providing regional, inter-regional and national LTL services through a single integrated organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the United States. Through strategic alliances, we also provide LTL services throughout North America. In addition to our core LTL services, we offer a range of value-added services including container drayage, truckload brokerage and supply chain consulting. We have one operating segment and no single customer exceeds 5% of our revenue. The composition of our revenue is summarized below: Year Ended December 31, (In thousands) 2018 2017 2016 LTL services $ 3,982,658 $ 3,303,611 $ 2,939,572 Other services 61,037 54,501 51,945 Total revenue $ 4,043,695 $ 3,358,112 $ 2,991,517 |
Basis of Presentation | Basis of Presentation The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain amounts in prior years have been reclassified to conform prior years’ financial statements to the current presentation. Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. |
Revenue and Expense Recognition | Revenue and Expense Recognition We recognize revenue based upon when our transportation and related services have been completed in accordance with the bill of lading (“BOL”) contract, our general tariff provisions and contractual agreements with our customers. Generally, our performance obligations begin when we receive a BOL from a customer and are satisfied when we complete the delivery of a shipment and related services. We recognize revenue for our performance obligations under our customer contracts over time, as our customers receive the benefits of our services in accordance with Accounting Standards Update (“ASU”) 2014-09. With respect to services not completed at the end of a reporting period, we use a percentage of completion method to allocate the appropriate revenue to each separate reporting period. Under this method, we develop a factor for each uncompleted shipment by dividing the actual number of days in transit at the end of a reporting period by that shipment’s standard delivery time schedule. This factor is applied to the total revenue for that shipment and revenue is allocated between reporting periods accordingly. Payment terms vary by customer and are short-term in nature. Expenses are recognized when incurred. |
Allowances for Uncollectible Accounts and Revenue Adjustments | Allowances for Uncollectible Accounts and Revenue Adjustments We maintain an allowance for uncollectible accounts for estimated losses resulting from the inability of our customers to make required payments. We estimate this allowance by analyzing the aging of our customer receivables, our historical loss experience and other trends and factors affecting the credit risk of our customers. Write-offs occur when we determine an account to be uncollectible and could differ from our allowance estimate as a result of factors such as changes in the overall economic environment or risks surrounding our customers. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. We periodically review the underlying assumptions in our estimate of the allowance for uncollectible accounts to ensure that the allowance reflects the most recent trends and factors. We also maintain an allowance for estimated revenue adjustments resulting from future billing corrections, customer allowances, money-back service guarantees and other miscellaneous revenue adjustments. These revenue adjustments are recorded in our revenue from operations. We use historical experience, trends, current information and anticipated changes to future performance to update and evaluate these estimates. |
Credit Risk | Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of customer receivables. We perform initial and ongoing credit evaluations of our customers to minimize credit risk. We generally do not require collateral but may require prepayment of our services under certain circumstances. Credit risk is generally diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographic regions. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider cash on hand and deposits in banks along with certificates of deposit and short-term marketable securities with original maturities of three months or less as cash and cash equivalents. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Major additions and improvements are capitalized, while maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. We capitalize the cost of tires mounted on purchased revenue equipment as a part of the total equipment cost. Subsequent replacement tires are expensed at the time those tires are placed in service. We assess the realizable value of our long-lived assets and evaluate such assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the related assets. The following table provides the estimated useful lives by asset type: Structures 7 to 30 years Revenue equipment 4 to 15 years Other equipment 2 to 20 years Leasehold improvements Lesser of economic life or life of lease Depreciation expense, which includes the amortization of capital leases, was $230.4 million, $205.6 million and $189.6 million for 2018, 2017 and 2016, respectively. |
Goodwill | Goodwill Intangible assets have been acquired in connection with business combinations and represent goodwill. Goodwill is calculated as the excess cost over the fair value of assets acquired and is not subject to amortization. We review goodwill annually for impairment as a single reporting unit, unless circumstances dictate more frequent assessments, in accordance with ASU 2011-08, Testing Goodwill for Impairment. ASU 2011-08 permits an initial assessment, commonly referred to as “step zero”, of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and also provides a basis for determining whether it is necessary to perform the goodwill impairment test required by Accounting Standards Codification (“ASC”) Topic 350. We performed the qualitative assessment of goodwill on our annual measurement date of October 1, 2018 and determined that it was more likely than not that the fair value of our reporting unit would be greater than its carrying amount. Therefore, we determined it was not necessary to perform the quantitative goodwill impairment test. Furthermore, there has been no historical impairment of our goodwill. |
Claims and Insurance Accruals | Claims and Insurance Accruals As of December 31, 2018, we maintained a self-insured retention (“SIR”) of $2.75 million per occurrence for bodily injury and property damage (“BIPD”) claims, plus a one-time, $2.5 million aggregate corridor deductible applicable per policy period to any claim that exceeds $5.0 million and occurs after March 30, 2016, and a deductible of $1.0 million per occurrence for workers’ compensation claims. We also had a SIR of $1.0 million per covered person paid during 2018 for group health claims. Claims and insurance accruals reflect the estimated cost of claims for cargo loss and damage, BIPD, workers’ compensation, group health and group dental. These accruals include amounts for future claims development and claims incurred but not reported, which are primarily based on historical claims development experience. The related cost for cargo loss and damage and BIPD is charged to “Insurance and claims” on our Statements of Operations, while the related costs for workers’ compensation, group health and group dental are charged to “Salaries, wages and benefits” on our Statements of Operations. Our liability for claims and insurance totaled $135.8 million and $127.6 million at December 31, 2018 and 2017, respectively. The long-term portions of those reserves were $82.5 million and $77.7 million for 2018 and 2017, respectively, which were included in “Other non-current liabilities” on our Balance Sheets. |
Share-Based Compensation | Share-Based Compensation We have various share-based compensation plans for our employees and non-employee directors. Our share-based compensation includes awards of phantom stock and restricted stock which are accounted for under ASC Topic 718, Compensation - Stock Compensation Awards of phantom stock are accounted for as a liability under ASC Topic 718 and changes in the fair value of our liability are recognized as compensation cost over the requisite service period for the percentage of requisite service rendered each period. Changes in the fair value of the liability that occur after the requisite service period are recognized as compensation cost during the period in which the changes occur. We remeasure the liability for the outstanding awards at the end of each reporting period and the compensation cost is based on the change in fair market value for each reporting period. Awards of restricted stock are accounted for as equity under ASC Topic 718. Compensation cost for restricted stock awards is measured at the fair market value of our common stock on the grant date. We recognize compensation cost, net of estimated forfeitures, on a straight-line basis over the requisite service period of each award. |
Advertising | Advertising The costs of advertising our services are expensed as incurred and are included in “General supplies and expenses” on our Statements of Operations. Advertising costs charged to expense totaled $28.2 million, $27.3 million and $20.5 million for 2018, 2017 and 2016, respectively. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt, including current maturities, was $45.0 million and $95.0 million at December 31, 2018 and 2017, respectively. The estimated fair value of our total long-term debt, including current maturities, was $45.6 million and $97.1 million at December 31, 2018 and 2017, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). |
Stock Repurchase Program | Stock Repurchase Program Our stock repurchase program, which was previously announced on May 23, 2016 and pursuant to which we could repurchase up to an aggregate of $250.0 million $250.0 million As of December 31, 2018, we had $131.7 million remaining authorized under the 2018 Repurchase Program. Comprehensive Income The Company has no components of other comprehensive income. Accordingly, net income equals comprehensive income for all periods presented in this report. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU supersedes the previous revenue recognition requirements in Accounting Standards Codification Topic 605 – Revenue Recognition. The guidance provides a five-step analysis to determine when and how revenue is recognized and further enhances disclosure requirements. Transition methods under ASU 2014-09 must be through (i) retrospective application to each prior reporting period presented, or (ii) modified retrospective application with a cumulative effect adjustment at the date of initial application. Our revenue is generated from providing transportation and related services to customers in accordance with the bill of lading (“BOL”) contract, our general tariff provisions and contractual agreements. Generally, our performance obligations begin when we receive a BOL from a customer and are satisfied when we complete the delivery of a shipment and related services. We recognize revenue for our performance obligations under our customer contracts over time, as our customers receive the benefits of our services in accordance with ASU 2014-09. With respect to services not completed at the end of a reporting period, we use a percentage of completion method to allocate the appropriate revenue to each separate reporting period. Under this method, we develop a factor for each uncompleted shipment by dividing the actual number of days in transit at the end of a reporting period by that shipment’s standard delivery time schedule. This factor is applied to the total revenue for that shipment and revenue is allocated between reporting periods accordingly. Payment terms vary by customer and are short-term in nature. We adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective application. The adoption of this standard did not have a material impact on how we recognize revenue or to our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability on its balance sheet for most operating leases. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, including interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides companies with an additional optional transition method to apply the new standard to leases in effect at the adoption date through a cumulative effect adjustment. We will adopt the new lease standard as of January 1, 2019 using this optional transition method. We plan to elect the package of practical expedients referenced in ASU 2016-02, which permits companies to retain original lease identification and classification without reassessing initial direct costs for existing leases. We also plan to elect the practical expedient that exempts leases with an initial lease term of less than twelve months, as well as the practical expedient that allows companies to select, by class of underlying asset, not to separate lease and non-lease components. Our adoption of this standard is expected to result in the recognition of a right-of-use asset and a lease liability on our Balance Sheet of between $65 million and $70 million, with an immaterial impact, if any, on our Statement of Operations; however, our estimate is subject to change as we finalize our implementation. We are also implementing enhanced internal controls to comply with the reporting and disclosure requirements of the standard. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregated Revenue | We have one operating segment and no single customer exceeds 5% of our revenue. The composition of our revenue is summarized below: Year Ended December 31, (In thousands) 2018 2017 2016 LTL services $ 3,982,658 $ 3,303,611 $ 2,939,572 Other services 61,037 54,501 51,945 Total revenue $ 4,043,695 $ 3,358,112 $ 2,991,517 |
Estimated Useful Lives of Property and Equipment | Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the related assets. The following table provides the estimated useful lives by asset type: Structures 7 to 30 years Revenue equipment 4 to 15 years Other equipment 2 to 20 years Leasehold improvements Lesser of economic life or life of lease |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt consisted of the following: December 31, (In thousands) 2018 2017 Senior notes $ 45,000 $ 95,000 Revolving credit facility — — Total long-term debt 45,000 95,000 Less: Current maturities — (50,000 ) Total maturities due after one year $ 45,000 $ 45,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases Operating [Abstract] | |
Future Minimum Annual Lease Payments | Future minimum annual lease payments for assets under operating leases as of December 31, 2018 are as follows: (In thousands) Total 2019 $ 12,502 2020 12,162 2021 11,398 2022 9,251 2023 6,775 Thereafter 56,621 $ 108,709 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision for Income Taxes | The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current: Federal $ 113,491 $ 169,053 $ 126,903 State 38,647 25,644 20,111 152,138 194,697 147,014 Deferred: Federal 49,125 (81,551 ) 29,354 State 8,582 (1,088 ) 5,454 57,707 (82,639 ) 34,808 Total provision for income taxes $ 209,845 $ 112,058 $ 181,822 |
Schedule of Effective Income Tax Reconciliation of the U.S. Statutory Federal Income Tax Rates | The following is a reconciliation of income tax expense calculated using the U.S. statutory federal income tax rate with our income tax expense for 2018, 2017 and 2016: Year Ended December 31, (In thousands) 2018 2017 2016 Tax provision at statutory rate $ 171,258 $ 201,541 $ 167,156 State income taxes, net of federal benefit 36,396 20,277 16,711 Revaluation of deferred taxes in connection with the Tax Act — (104,864 ) — Other, net 2,191 (4,896 ) (2,045 ) Total provision for income taxes $ 209,845 $ 112,058 $ 181,822 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities, which are included in “Other assets” and “Deferred income taxes” on our Balance Sheets, consist of the following: December 31, (In thousands) 2018 2017 Deferred tax assets: Claims and insurance reserves $ 27,433 $ 29,008 Accrued vacation 17,932 17,832 Deferred compensation 31,306 29,220 Other 20,861 15,157 Total deferred tax assets 97,532 91,217 Deferred tax liabilities: Depreciation and amortization (339,311 ) (266,730 ) Unrecognized revenue — (10,007 ) Other (3,151 ) (1,703 ) Total deferred tax liabilities (342,462 ) (278,440 ) Net deferred tax liability $ (244,930 ) $ (187,223 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides a reconciliation of the number of common shares used in computing basic and diluted earnings per share: Year Ended December 31, (In thousands) 2018 2017 2016 Weighted average shares outstanding - basic 81,923,564 82,308,417 83,112,012 Dilutive effect of share-based awards 96,217 98,651 41,647 Weighted average shares outstanding - diluted 82,019,781 82,407,068 83,153,659 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Award Activity for Employees and Non-Employee Directors | The following table summarizes our restricted stock award activity for employees and non-employee directors: Shares Weighted Average Grant Date Fair Value Per Share Unvested At January 1, 2018 97,098 $ 79.58 Granted 46,119 137.78 Vested (43,931 ) 79.86 Forfeited (8,105 ) 100.09 Unvested at December 31, 2018 91,181 $ 107.06 |
Schedule of Cash Payments and Compensation Costs | A summary of cash payments for settled shares and compensation costs recognized in “Salaries, wages and benefits” on our Statements of Operations for the Employee Phantom Plans is provided below: Year Ended December 31, (In thousands) 2018 2017 2016 Cash payments for settled shares $ 2,360 $ 3,066 $ 2,442 Compensation expense 5,283 16,910 12,694 Year Ended December 31, (In thousands) 2018 2017 2016 Cash payments for settled shares $ 198 $ 474 $ 278 Compensation expense 491 2,588 2,098 |
Summary of the Changes in the Number of Outstanding Phantom Stock Shares | A summary of the changes in the number of outstanding phantom stock awards during the year ended December 31, 2018 for the Phantom Plans is provided below. Of these awards, 356,789 and 360,481 phantom shares were vested at December 31, 2018 and 2017, respectively. Employee Phantom Plans Director Phantom Stock Plan Total Balance of shares outstanding at December 31, 2017 491,465 68,162 559,627 Granted — — — Settled (23,419 ) (14,091 ) (37,510 ) Forfeited (1,659 ) — (1,659 ) Balance of shares outstanding at December 31, 2018 466,387 54,071 520,458 |
Schedule of Phantom Stock Plans | The liability for unsettled phantom stock awards under the Phantom Plans consists of the following: December 31, (In thousands) 2018 2017 Employee Phantom Plans $ 50,233 $ 48,148 Director Phantom Stock Plan 7,000 8,436 Total $ 57,233 $ 56,584 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | A summary of our unaudited quarterly financial information for 2018 and 2017 is provided below. Quarter (In thousands, except per share data) First Second Third Fourth Total 2018 Revenue $ 925,020 $ 1,033,498 $ 1,058,233 $ 1,026,944 $ 4,043,695 Operating income 149,340 220,481 228,385 218,845 817,051 Net income 109,333 163,434 173,442 159,459 605,668 Earnings per share: Basic 1.33 1.99 2.12 1.96 7.39 Diluted 1.33 1.99 2.12 1.95 7.38 Cash dividends declared per share 0.13 0.13 0.13 0.13 0.52 2017 Revenue $ 754,096 $ 839,912 $ 872,987 $ 891,117 $ 3,358,112 Operating income 108,122 160,432 163,875 143,457 575,886 Net income (1) 65,792 98,418 102,314 197,250 463,774 Earnings per share: Basic 0.80 1.20 1.24 2.40 5.63 Diluted 0.80 1.19 1.24 2.39 5.63 Cash dividends declared per share 0.10 0.10 0.10 0.10 0.40 (1) During the fourth quarter of 2017, we recorded a provisional tax benefit of $104.9 million due to the remeasurement of our deferred taxes to reflect the impact of the Tax Act . |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)SegmentCustomer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of customer exceeding 5% of revenue | Customer | 0 | ||
Depreciation expenses including capital leases | $ 230,400,000 | $ 205,600,000 | $ 189,600,000 |
Self-insurance reserve | 135,800,000 | 127,600,000 | |
Long-term portions of self insurance reserve | 82,500,000 | 77,700,000 | |
Allocated share-based compensation expense | 10,700,000 | 22,700,000 | 16,200,000 |
Employee service share-based compensation, tax benefit from compensation expense | (3,200,000) | (9,000,000) | (6,300,000) |
Advertising expense | 28,200,000 | 27,300,000 | $ 20,500,000 |
Debt and capital lease obligations | 45,000,000 | 95,000,000 | |
Long-term debt, fair value | 45,600,000 | $ 97,100,000 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Recognition of operating lease liability | 65,000,000 | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Recognition of operating lease liability | 70,000,000 | ||
2016 Share Repurchase Program [Member] | |||
Significant Accounting Policies [Line Items] | |||
Stock repurchase program, authorized amount | 250,000,000 | ||
2018 Share Repurchase Program [Member] | |||
Significant Accounting Policies [Line Items] | |||
Stock repurchase program, authorized amount | 250,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | 131,700,000 | ||
Bodily Injury and Property Damage [Member] | |||
Significant Accounting Policies [Line Items] | |||
Insurance maximum, per occurrence | 2,750,000 | ||
Corridor deductible | 2,500,000 | ||
Insurance layer to meet corridor deductible | 5,000,000 | ||
Workers Compensation Claims [Member] | |||
Significant Accounting Policies [Line Items] | |||
Insurance maximum, per occurrence | 1,000,000 | ||
Group Health Claims [Member] | |||
Significant Accounting Policies [Line Items] | |||
Insurance maximum, per occurrence | $ 1,000,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from operations | $ 1,026,944 | $ 1,058,233 | $ 1,033,498 | $ 925,020 | $ 891,117 | $ 872,987 | $ 839,912 | $ 754,096 | $ 4,043,695 | $ 3,358,112 | $ 2,991,517 |
LTL Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from operations | 3,982,658 | 3,303,611 | 2,939,572 | ||||||||
Other Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from operations | $ 61,037 | $ 54,501 | $ 51,945 |
Significant Accounting Polici_6
Significant Accounting Policies (Estimated Useful Lives Of Property And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset | Lesser of economic life or life of lease |
Minimum [Member] | Structures [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 7 years |
Minimum [Member] | Revenue Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 4 years |
Minimum [Member] | Other Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 2 years |
Maximum [Member] | Structures [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 30 years |
Maximum [Member] | Revenue Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 15 years |
Maximum [Member] | Other Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of asset, years | 20 years |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Senior notes | $ 45,000 | $ 95,000 |
Revolving credit facility | 0 | 0 |
Total long-term debt | 45,000 | 95,000 |
Less: Current maturities | 0 | (50,000) |
Total maturities due after one year | $ 45,000 | $ 45,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Senior notes | $ 45,000,000 | $ 95,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | 0.125% |
Letter Of Credit Fee In Percentage | 1.00% | 1.00% |
Letters of Credit Outstanding, Amount | $ 61,500,000 | $ 71,400,000 |
Long-term Line of Credit | 0 | $ 0 |
Long-term debt | $ 45,000,000 | |
Long-term debt, maturity | 2,021 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 0.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 0.50% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 1.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Spread added to Rate | 1.50% | |
2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Original borrowing capacity | $ 250,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 350,000,000 | |
Line Of Credit Facility Accordion | 100,000,000 | |
Accordion Feature Exercised | 50,000,000 | |
Line of Credit Facility, Current Borrowing Capacity | 300,000,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 100,000,000 | |
Tranche A [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, periodic payment | $ 50,000,000 | |
Fixed interest rate | 4.00% | |
Tranche B [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, periodic payment | $ 45,000,000 | |
Fixed interest rate | 4.79% | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Effective average interest rate | 4.79% | 4.37% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)RealEstateLocation | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Leases Operating [Abstract] | |||
Number of real estate leases | RealEstate | 32 | ||
Number of service center locations | Location | 235 | ||
Aggregate expense under operating leases | $ | $ 12.6 | $ 14.1 | $ 13.8 |
Leases (Future Minimum Annual L
Leases (Future Minimum Annual Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2,019 | $ 12,502 |
2,020 | 12,162 |
2,021 | 11,398 |
2,022 | 9,251 |
2,023 | 6,775 |
Thereafter | 56,621 |
Total minimum operating lease payments | $ 108,709 |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||||
Federal | $ 113,491 | $ 169,053 | $ 126,903 | |
State | 38,647 | 25,644 | 20,111 | |
Total current income tax expense (benefit) | 152,138 | 194,697 | 147,014 | |
Deferred: | ||||
Federal | 49,125 | (81,551) | 29,354 | |
State | 8,582 | (1,088) | 5,454 | |
Total deferred income tax expense (benefit) | 57,707 | (82,639) | 34,808 | |
Total provision for income taxes | $ 104,900 | $ 209,845 | $ 112,058 | $ 181,822 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | ||
Federal statutory income tax rate, percent | 21.00% | 35.00% |
Tax Cuts and Jobs Act, Change in tax rate, Provisional income tax expense (benefit) | $ 104.9 | |
Minimum [Member] | State and Local Jurisdiction [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examinations year under examination | 2,014 | |
Minimum [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examinations year under examination | 2,015 | |
Maximum [Member] | State and Local Jurisdiction [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examinations year under examination | 2,018 | |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examinations year under examination | 2,018 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Reconciliation of the U.S. Statutory Federal Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Tax provision at statutory rate | $ 171,258 | $ 201,541 | $ 167,156 | |
State income taxes, net of federal benefit | 36,396 | 20,277 | 16,711 | |
Revaluation of deferred taxes in connection with the Tax Act | (104,864) | |||
Other, net | 2,191 | (4,896) | (2,045) | |
Total provision for income taxes | $ 104,900 | $ 209,845 | $ 112,058 | $ 181,822 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Claims and insurance reserves | $ 27,433 | $ 29,008 |
Accrued vacation | 17,932 | 17,832 |
Deferred compensation | 31,306 | 29,220 |
Other | 20,861 | 15,157 |
Total deferred tax assets | 97,532 | 91,217 |
Depreciation and amortization | (339,311) | (266,730) |
Unrecognized revenue | (10,007) | |
Other | (3,151) | (1,703) |
Total deferred tax liabilities | (342,462) | (278,440) |
Net deferred tax liability | $ (244,930) | $ (187,223) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Old Dominion Truck Leasing Inc [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Rental service charge | $ 6,000 | $ 12,000 |
Purchase of maintenance and other services | $ 110,000 | $ 254,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Company contributions | $ 59.8 | $ 35.9 | $ 28.9 |
Deferred compensation plan amounts owed, non current | 60.8 | 59.5 | |
Deferred compensation plan amounts owed | $ 62.9 | $ 61.5 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number Of Shares Outstanding [Abstract] | |||
Weighted average shares outstanding - basic | 81,923,564 | 82,308,417 | 83,112,012 |
Dilutive effect of share-based awards | 96,217 | 98,651 | 41,647 |
Weighted average shares outstanding - diluted | 82,019,781 | 82,407,068 | 83,153,659 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | Oct. 30, 2012shares | Dec. 31, 2018USD ($)Installment$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of annual installments | Installment | 3 | |||
Weighted Average Grant Date Fair Value Per, Granted | $ / shares | $ 137.78 | $ 90.16 | $ 63.94 | |
Weighted average grant date fair value per, vested | $ | $ 6,200,000 | $ 2,700,000 | $ 0 | |
Unrecognized stock-based compensation cost | $ | $ 5,500,000 | |||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 7 months 6 days | |||
Phantom shares vested | 43,931 | |||
Phantom Share Units (PSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |||
Share-based compensation arrangement vesting increment percentage | 20.00% | |||
Share based compensation arrangement, employment period for eligibility of employees participation | 10 years | |||
Employee Phantom Stock Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ | $ 10,100,000 | |||
Phantom Stock Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Phantom shares vested | 356,789 | 360,481 | ||
Stock Incentive Plan 2016 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Stock Award Activity for Employees and Non-Employee Directors (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted | |||
Forfeited | (1,659) | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance | 97,098 | ||
Granted | 46,119 | ||
Vested | (43,931) | ||
Forfeited | (8,105) | ||
Ending Balance | 91,181 | 97,098 | |
Weighted Average Grant Date Fair Value Per Share, Beginning Balance | $ 79.58 | ||
Weighted Average Grant Date Fair Value Per, Granted | 137.78 | $ 90.16 | $ 63.94 |
Weighted Average Grant Date Fair Value Per , Vested | 79.86 | ||
Weighted Average Grant Date Fair Value Per Share, Forfeited | 100.09 | ||
Weighted Average Grant Date Fair Value Per Share, Ending Balance | $ 107.06 | $ 79.58 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Cash Payments and Compensation Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 10,700 | $ 22,700 | $ 16,200 |
Employee Phantom Stock Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash payments for settled shares | 2,360 | 3,066 | 2,442 |
Compensation expense | 5,283 | 16,910 | 12,694 |
Director Phantom Stock Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash payments for settled shares | 198 | 474 | 278 |
Compensation expense | $ 491 | $ 2,588 | $ 2,098 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of the Changes in the Number of Outstanding Phantom Stock Shares (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Balance of shares outstanding at December 31, 2017 | 559,627 |
Granted | |
Settled | (37,510) |
Forfeited | (1,659) |
Balance of shares outstanding at December 31, 2018 | 520,458 |
Employee Phantom Stock Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Balance of shares outstanding at December 31, 2017 | 491,465 |
Granted | |
Settled | (23,419) |
Forfeited | (1,659) |
Balance of shares outstanding at December 31, 2018 | 466,387 |
Director Phantom Stock Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Balance of shares outstanding at December 31, 2017 | 68,162 |
Granted | |
Settled | (14,091) |
Forfeited | |
Balance of shares outstanding at December 31, 2018 | 54,071 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Phantom Stock Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Phantom Stock Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total liability for share awards | $ 50,233 | $ 48,148 |
Director Phantom Stock Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total liability for share awards | 7,000 | 8,436 |
Phantom Share Units (PSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total liability for share awards | $ 57,233 | $ 56,584 |
Quarterly Financial Informati_3
Quarterly Financial Information (Summary of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Revenue | $ 1,026,944 | $ 1,058,233 | $ 1,033,498 | $ 925,020 | $ 891,117 | $ 872,987 | $ 839,912 | $ 754,096 | $ 4,043,695 | $ 3,358,112 | $ 2,991,517 | |||||
Operating income | 218,845 | 228,385 | 220,481 | 149,340 | 143,457 | 163,875 | 160,432 | 108,122 | 817,051 | 575,886 | 483,835 | |||||
Net income | $ 159,459 | $ 173,442 | $ 163,434 | $ 109,333 | $ 197,250 | [1] | $ 102,314 | [1] | $ 98,418 | [1] | $ 65,792 | [1] | $ 605,668 | $ 463,774 | [1] | $ 295,765 |
Earnings per share: | ||||||||||||||||
Earnings Per Share, Basic | $ 1.96 | $ 2.12 | $ 1.99 | $ 1.33 | $ 2.40 | $ 1.24 | $ 1.20 | $ 0.80 | $ 7.39 | $ 5.63 | $ 3.56 | |||||
Earnings Per Share, Diluted | 1.95 | 2.12 | 1.99 | 1.33 | 2.39 | 1.24 | 1.19 | 0.80 | 7.38 | 5.63 | $ 3.56 | |||||
Dividends declared per share | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.52 | $ 0.40 | ||||||
[1] | During the fourth quarter of 2017, we recorded a provisional tax benefit of $104.9 million due to the remeasurement of our deferred taxes to reflect the impact of the Tax Act |
Quarterly Financial Informati_4
Quarterly Financial Information (Summary of Quarterly Financial Information) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | ||||
Provision for income taxes | $ 104,900 | $ 209,845 | $ 112,058 | $ 181,822 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |||
Balance at Beginning of Period | $ 3,488 | $ 3,083 | $ 4,453 |
Charged to Costs and Expenses | 3,846 | 2,555 | 1,427 |
Deductions | 3,702 | 2,150 | 2,797 |
Balance at End of Period | $ 3,632 | $ 3,488 | $ 3,083 |