[Mark one] | |
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NEBRASKA | 47-0648386 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
14507 FRONTIER ROAD POST OFFICE BOX 45308 OMAHA, NEBRASKA | 68145-0308 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, $0.01 Par Value | The NASDAQ Stock Market LLC |
Large accelerated filer | ý | Accelerated filer | o | Non-accelerated filer | o | Smaller reporting company | o | |||
(Do not check if a smaller reporting company) |
PAGE | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
Item 15. | ||
Item 16. |
ITEM 1. | BUSINESS |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Location | Owned or Leased | Description | Segment | |||||||
Omaha, Nebraska | Owned | Corporate headquarters, maintenance, truck sales | Truckload, Werner Logistics, Corporate | |||||||
Omaha, Nebraska | Owned | Disaster recovery, warehouse | Corporate | |||||||
Phoenix, Arizona | Owned | Office, maintenance | Truckload | |||||||
Fontana, California | Owned | Office, maintenance, truck sales | Truckload | |||||||
Denver, Colorado | Owned | Office, maintenance | Truckload | |||||||
Atlanta, Georgia | Owned | Office, maintenance, truck sales | Truckload | |||||||
Indianapolis, Indiana | Leased Owned | Office, maintenance Office | Truckload Truckload | |||||||
Springfield, Ohio | Owned | Office, maintenance, truck sales | Truckload | |||||||
Allentown, Pennsylvania | Leased | Office, maintenance | Truckload | |||||||
Dallas, Texas | Owned | Office, maintenance, truck sales | Truckload | |||||||
Laredo, Texas | Owned | Office, maintenance, transloading, truck sales | Truckload, Werner Logistics | |||||||
Lakeland, Florida | Leased | Office, maintenance | Truckload | |||||||
El Paso, Texas | Owned | Office, maintenance | Truckload | |||||||
Brownstown, Michigan | Owned | Maintenance | Truckload | |||||||
Newbern, Tennessee | Leased | Maintenance | Truckload | |||||||
Chicago, Illinois | Leased | Maintenance | Truckload |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2016 | 2015 | ||||||||||
High | Low | Dividends Declared Per Common Share | High | Low | Dividends Declared Per Common Share | ||||||
Quarter Ended: | |||||||||||
March 31 | $27.95 | $20.91 | $0.06 | $33.42 | $28.08 | $0.05 | |||||
June 30 | 28.80 | 21.35 | 0.06 | 31.70 | 25.78 | 0.05 | |||||
September 30 | 25.49 | 22.16 | 0.06 | 29.34 | 25.08 | 0.06 | |||||
December 31 | 29.05 | 21.45 | 0.06 | 28.29 | 22.45 | 0.06 |
12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | |||||||||||||||||||
Werner Enterprises, Inc. (WERN) | $ | 100 | $ | 97 | $ | 112 | $ | 142 | $ | 107 | $ | 125 | ||||||||||||
Standard & Poor’s 500 | $ | 100 | $ | 116 | $ | 154 | $ | 175 | $ | 177 | $ | 198 | ||||||||||||
Current Peer Group | $ | 100 | $ | 117 | $ | 168 | $ | 188 | $ | 131 | $ | 173 | ||||||||||||
Former Peer Group NASDAQ Trucking Group (SIC Code 42) | $ | 100 | $ | 121 | $ | 177 | $ | 222 | $ | 190 | $ | 236 |
ITEM 6. | SELECTED FINANCIAL DATA |
(In thousands, except per share amounts) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Operating revenues | $ | 2,008,991 | $ | 2,093,529 | $ | 2,139,289 | $ | 2,029,183 | $ | 2,036,386 | |||||||||
Net income | 79,129 | 123,714 | 98,650 | 86,785 | 103,034 | ||||||||||||||
Diluted earnings per share | 1.09 | 1.71 | 1.36 | 1.18 | 1.40 | ||||||||||||||
Cash dividends declared per share | 0.24 | 0.22 | 0.20 | 0.20 | 1.70 | ||||||||||||||
Total assets(1) | 1,793,003 | 1,585,647 | 1,480,462 | 1,354,097 | 1,334,900 | ||||||||||||||
Total debt | 180,000 | 75,000 | 75,000 | 40,000 | 90,000 | ||||||||||||||
Stockholders’ equity | 994,787 | 935,654 | 833,860 | 772,519 | 714,897 | ||||||||||||||
Book value per share (2) | 13.78 | 13.00 | 11.58 | 10.62 | 9.76 | ||||||||||||||
Return on average stockholders’ equity (3) | 8.2 | % | 14.1 | % | 12.4 | % | 11.7 | % | 13.6 | % | |||||||||
Return on average total assets (1) (4) | 4.7 | % | 8.2 | % | 7.0 | % | 6.5 | % | 7.7 | % | |||||||||
Operating ratio (consolidated) (5) | 93.7 | % | 90.4 | % | 92.5 | % | 93.1 | % | 91.6 | % |
(1) | Pursuant to the Company’s early adoption of Accounting Standards Update 2015-17, “Total assets” and “Return on average total assets” for 2015 and 2016 reflect the impact of reclassifying the current deferred tax asset into the non-current deferred tax liability. See also Note 1 in the Notes to Consolidated Financial Statements under Item 8 of Part II of this Form 10-K. |
(2) | Stockholders’ equity divided by common shares outstanding as of the end of the period. Book value per share indicates the dollar value remaining for common shareholders if all assets were liquidated at recorded amounts and all debts were paid at recorded amounts. |
(3) | Net income expressed as a percentage of average stockholders’ equity. Return on equity is a measure of a corporation’s profitability relative to recorded shareholder investment. |
(4) | Net income expressed as a percentage of average total assets. Return on assets is a measure of a corporation’s profitability relative to recorded assets. |
(5) | Operating expenses expressed as a percentage of operating revenues. Operating ratio is a common measure used in the trucking industry to evaluate profitability. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Cautionary Note Regarding Forward-Looking Statements |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Contractual Obligations and Commercial Commitments |
• | Off-Balance Sheet Arrangements |
• | Critical Accounting Policies and Estimates |
• | Inflation |
2016 | 2015 | 2014 | Percentage Change in Dollar Amounts | ||||||||||||||||||||||
(Amounts in thousands) | $ | % | $ | % | $ | % | 2016 to 2015 (%) | 2015 to 2014 (%) | |||||||||||||||||
Operating revenues | $ | 2,008,991 | 100.0 | $ | 2,093,529 | 100.0 | $ | 2,139,289 | 100.0 | (4.0 | ) | (2.1 | ) | ||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Salaries, wages and benefits | 636,112 | 31.7 | 639,908 | 30.6 | 584,006 | 27.3 | (0.6 | ) | 9.6 | ||||||||||||||||
Fuel | 155,042 | 7.7 | 204,583 | 9.8 | 346,058 | 16.2 | (24.2 | ) | (40.9 | ) | |||||||||||||||
Supplies and maintenance | 171,397 | 8.5 | 190,114 | 9.1 | 188,437 | 8.8 | (9.8 | ) | 0.9 | ||||||||||||||||
Taxes and licenses | 85,547 | 4.3 | 89,646 | 4.3 | 85,468 | 4.0 | (4.6 | ) | 4.9 | ||||||||||||||||
Insurance and claims | 83,866 | 4.2 | 80,848 | 3.9 | 80,375 | 3.7 | 3.7 | 0.6 | |||||||||||||||||
Depreciation | 209,728 | 10.4 | 193,209 | 9.2 | 176,984 | 8.3 | 8.5 | 9.2 | |||||||||||||||||
Rent and purchased transportation | 512,296 | 25.5 | 480,624 | 22.9 | 498,782 | 23.3 | 6.6 | (3.6 | ) | ||||||||||||||||
Communications and utilities | 16,106 | 0.8 | 15,121 | 0.7 | 14,220 | 0.7 | 6.5 | 6.3 | |||||||||||||||||
Other | 12,827 | 0.6 | (980 | ) | (0.1 | ) | 4,871 | 0.2 | 1,408.9 | (120.1 | ) | ||||||||||||||
Total operating expenses | 1,882,921 | 93.7 | 1,893,073 | 90.4 | 1,979,201 | 92.5 | (0.5 | ) | (4.4 | ) | |||||||||||||||
Operating income | 126,070 | 6.3 | 200,456 | 9.6 | 160,088 | 7.5 | (37.1 | ) | 25.2 | ||||||||||||||||
Total other expense (income) | (1,390 | ) | — | (705 | ) | — | (1,686 | ) | (0.1 | ) | (97.2 | ) | 58.2 | ||||||||||||
Income before income taxes | 127,460 | 6.3 | 201,161 | 9.6 | 161,774 | 7.6 | (36.6 | ) | 24.3 | ||||||||||||||||
Income taxes | 48,331 | 2.4 | 77,447 | 3.7 | 63,124 | 3.0 | (37.6 | ) | 22.7 | ||||||||||||||||
Net income | $ | 79,129 | 3.9 | $ | 123,714 | 5.9 | $ | 98,650 | 4.6 | (36.0 | ) | 25.4 |
2016 | 2015 | 2014 | |||||||||||||||
Truckload Transportation Services (amounts in thousands) | $ | % | $ | % | $ | % | |||||||||||
Trucking revenues, net of fuel surcharge | $ | 1,356,284 | $ | 1,411,099 | $ | 1,332,879 | |||||||||||
Trucking fuel surcharge revenues | 155,293 | 212,489 | 349,763 | ||||||||||||||
Non-trucking and other operating revenues | 22,404 | 21,286 | 19,495 | ||||||||||||||
Operating revenues | 1,533,981 | 100.0 | 1,644,874 | 100.0 | 1,702,137 | 100.0 | |||||||||||
Operating expenses | 1,426,268 | 93.0 | 1,455,024 | 88.5 | 1,549,145 | 91.0 | |||||||||||
Operating income | 107,713 | 7.0 | 189,850 | 11.5 | 152,992 | 9.0 |
Truckload Transportation Services | 2016 | 2015 | 2014 | ||||||||
Operating ratio, net of fuel surcharge revenues (1) | 92.2 | % | 86.7 | % | 88.7 | % | |||||
Average revenues per tractor per week (2) | $ | 3,591 | $ | 3,732 | $ | 3,655 | |||||
Average trip length in miles (loaded) | 468 | 482 | 473 | ||||||||
Average percentage of empty miles (3) | 12.96 | % | 12.39 | % | 12.06 | % | |||||
Average tractors in service | 7,263 | 7,271 | 7,013 | ||||||||
Total trailers (at year end) | 22,725 | 22,630 | 22,305 | ||||||||
Total tractors (at year end): | |||||||||||
Company | 6,305 | 6,635 | 6,400 | ||||||||
Independent contractor | 795 | 815 | 650 | ||||||||
Total tractors | 7,100 | 7,450 | 7,050 |
(1) | Calculated as if fuel surcharge revenues are excluded from total revenues and instead reported as a reduction of operating expenses, which provides a more consistent basis for comparing results of operations from period to period. |
(2) | Net of fuel surcharge revenues. |
(3) | “Empty” refers to miles without trailer cargo. |
2016 | 2015 | 2014 | ||||||||||||||||||
Werner Logistics (amounts in thousands) | $ | % | $ | % | $ | % | ||||||||||||||
Operating revenues | $ | 417,172 | 100.0 | $ | 393,174 | 100.0 | $ | 390,645 | 100.0 | |||||||||||
Rent and purchased transportation expense | 345,790 | 82.9 | 332,168 | 84.5 | 338,625 | 86.7 | ||||||||||||||
Gross margin | 71,382 | 17.1 | 61,006 | 15.5 | 52,020 | 13.3 | ||||||||||||||
Other operating expenses | 50,648 | 12.1 | 44,108 | 11.2 | 44,485 | 11.4 | ||||||||||||||
Operating income | $ | 20,734 | 5.0 | $ | 16,898 | 4.3 | $ | 7,535 | 1.9 |
Werner Logistics | 2016 | 2015 | 2014 | |||||
Average tractors in service | 73 | 56 | 50 | |||||
Total trailers (at year end) | 1,625 | 1,460 | 1,670 | |||||
Total tractors (at year end) | 74 | 62 | 55 |
(Amounts in millions) | Total | Less than 1 year (2017) | 1-3 years (2018-2019) | 3-5 years (2020-2021) | More than 5 years (After 2021) | Period Unknown | ||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||||||
Unrecognized tax benefits | $ | 6.1 | $ | — | $ | — | $ | — | $ | — | $ | 6.1 | ||||||||||||
Long-term debt, including current maturities | 180.0 | 20.0 | 75.0 | 85.0 | — | — | ||||||||||||||||||
Interest payments on debt | 9.9 | 3.3 | 5.9 | 0.7 | — | — | ||||||||||||||||||
Property and equipment purchase commitments | 83.8 | 83.8 | — | — | — | — | ||||||||||||||||||
Total contractual cash obligations | $ | 279.8 | $ | 107.1 | $ | 80.9 | $ | 85.7 | $ | — | $ | 6.1 | ||||||||||||
Other Commercial Commitments | ||||||||||||||||||||||||
Unused lines of credit | $ | 119.2 | $ | — | $ | — | $ | 119.2 | $ | — | $ | — | ||||||||||||
Stand-by letters of credit | 25.8 | 25.8 | — | — | — | — | ||||||||||||||||||
Total commercial commitments | $ | 145.0 | $ | 25.8 | $ | — | $ | 119.2 | $ | — | $ | — | ||||||||||||
Total obligations | $ | 424.8 | $ | 132.9 | $ | 80.9 | $ | 204.9 | $ | — | $ | 6.1 |
• | Depreciation and impairment of tractors and trailers. We operate a significant number of tractors and trailers in connection with our business and must select estimated useful lives and salvage values for calculating depreciation. Depreciable lives of tractors and trailers range from 80 months to 12 years. Estimates of salvage value at the expected date of trade-in or sale are based on the expected market values of equipment at the time of disposal. We consider our experience with similar assets, conditions in the used revenue equipment market and operational information such as average annual miles. We believe that these methods properly spread the costs over the useful life of the assets. We continually monitor the adequacy of the lives and salvage values used in calculating depreciation expense and adjust these assumptions appropriately when warranted. We review our long-lived assets for impairment whenever events or circumstances indicate the carrying amount of a long-lived asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the long-lived asset is not recoverable and the carrying amount exceeds its fair value. |
• | Estimates of accrued liabilities for insurance and claims for liability and physical damage losses and workers’ compensation. The insurance and claims accruals (current and non-current) are recorded at the estimated ultimate payment amounts and are based upon individual case estimates (including negative development) and estimates of incurred-but-not-reported losses using loss development factors based upon past experience. An actuary reviews our undiscounted self-insurance reserves for bodily injury and property damage claims and workers’ compensation claims at year-end. The actual cost to settle our self-insured claim liabilities can differ from our reserve estimates because of a number of uncertainties, including the inherent difficulty in estimating the severity of a claim and the potential amount to defend and settle a claim. |
• | Accounting for income taxes. Significant management judgment is required to determine (i) the provision for income taxes, (ii) whether deferred income taxes will be realized in full or in part and (iii) the liability for unrecognized tax benefits related to uncertain tax positions. Deferred income tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. When it is more likely that all or some portion of specific deferred income tax assets will not be realized, a valuation allowance must be established for the amount of deferred income tax assets that are determined not to be realizable. We believe that we have adequately provided for our future tax consequences based upon current facts and circumstances and current tax law. However, should our positions be challenged, different outcomes could result and have a significant impact on our results of operations. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Years Ended December 31, | |||||||||||
(In thousands, except per share amounts) | 2016 | 2015 | 2014 | ||||||||
Operating revenues | $ | 2,008,991 | $ | 2,093,529 | $ | 2,139,289 | |||||
Operating expenses: | |||||||||||
Salaries, wages and benefits | 636,112 | 639,908 | 584,006 | ||||||||
Fuel | 155,042 | 204,583 | 346,058 | ||||||||
Supplies and maintenance | 171,397 | 190,114 | 188,437 | ||||||||
Taxes and licenses | 85,547 | 89,646 | 85,468 | ||||||||
Insurance and claims | 83,866 | 80,848 | 80,375 | ||||||||
Depreciation | 209,728 | 193,209 | 176,984 | ||||||||
Rent and purchased transportation | 512,296 | 480,624 | 498,782 | ||||||||
Communications and utilities | 16,106 | 15,121 | 14,220 | ||||||||
Other | 12,827 | (980 | ) | 4,871 | |||||||
Total operating expenses | 1,882,921 | 1,893,073 | 1,979,201 | ||||||||
Operating income | 126,070 | 200,456 | 160,088 | ||||||||
Other expense (income): | |||||||||||
Interest expense | 2,577 | 1,974 | 881 | ||||||||
Interest income | (4,158 | ) | (2,875 | ) | (2,538 | ) | |||||
Other | 191 | 196 | (29 | ) | |||||||
Total other income | (1,390 | ) | (705 | ) | (1,686 | ) | |||||
Income before income taxes | 127,460 | 201,161 | 161,774 | ||||||||
Income taxes | 48,331 | 77,447 | 63,124 | ||||||||
Net income | $ | 79,129 | $ | 123,714 | $ | 98,650 | |||||
Earnings per share: | |||||||||||
Basic | $ | 1.10 | $ | 1.72 | $ | 1.37 | |||||
Diluted | $ | 1.09 | $ | 1.71 | $ | 1.36 | |||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 72,057 | 71,957 | 72,122 | ||||||||
Diluted | 72,393 | 72,556 | 72,738 |
Years Ended December 31, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Net income | $ | 79,129 | $ | 123,714 | $ | 98,650 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | (4,191 | ) | (3,930 | ) | (3,564 | ) | |||||
Change in fair value of interest rate swap | 337 | 242 | (1,180 | ) | |||||||
Other comprehensive income (loss) | (3,854 | ) | (3,688 | ) | (4,744 | ) | |||||
Comprehensive income | $ | 75,275 | $ | 120,026 | $ | 93,906 |
December 31, | |||||||
(In thousands, except share amounts) | 2016 | 2015 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 16,962 | $ | 31,833 | |||
Accounts receivable, trade, less allowance of $9,183 and $10,298, respectively | 261,372 | 251,023 | |||||
Other receivables | 15,168 | 17,241 | |||||
Inventories and supplies | 12,768 | 16,415 | |||||
Prepaid taxes, licenses and permits | 15,374 | 15,657 | |||||
Income taxes receivable | 21,497 | 20,052 | |||||
Other current assets | 29,987 | 27,281 | |||||
Total current assets | 373,128 | 379,502 | |||||
Property and equipment, at cost: | |||||||
Land | 56,261 | 34,356 | |||||
Buildings and improvements | 148,443 | 134,595 | |||||
Revenue equipment | 1,676,070 | 1,530,617 | |||||
Service equipment and other | 229,217 | 209,032 | |||||
Total property and equipment | 2,109,991 | 1,908,600 | |||||
Less – accumulated depreciation | 747,353 | 754,130 | |||||
Property and equipment, net | 1,362,638 | 1,154,470 | |||||
Other non-current assets | 57,237 | 51,675 | |||||
Total assets | $ | 1,793,003 | $ | 1,585,647 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 66,618 | $ | 70,643 | |||
Current portion of long-term debt | 20,000 | — | |||||
Insurance and claims accruals | 83,404 | 64,106 | |||||
Accrued payroll | 26,189 | 25,233 | |||||
Other current liabilities | 18,650 | 23,720 | |||||
Total current liabilities | 214,861 | 183,702 | |||||
Long-term debt, net of current portion | 160,000 | 75,000 | |||||
Other long-term liabilities | 16,711 | 19,832 | |||||
Insurance and claims accruals, net of current portion | 113,875 | 125,195 | |||||
Deferred income taxes | 292,769 | 246,264 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares | |||||||
issued; 72,166,969 and 71,998,750 shares outstanding, respectively | 805 | 805 | |||||
Paid-in capital | 101,035 | 102,734 | |||||
Retained earnings | 1,084,796 | 1,022,966 | |||||
Accumulated other comprehensive loss | (16,917 | ) | (13,063 | ) | |||
Treasury stock, at cost; 8,366,567 and 8,534,786 shares, respectively | (174,932 | ) | (177,788 | ) | |||
Total stockholders’ equity | 994,787 | 935,654 | |||||
Total liabilities and stockholders’ equity | $ | 1,793,003 | $ | 1,585,647 |
Years Ended December 31, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 79,129 | $ | 123,714 | $ | 98,650 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 209,728 | 193,209 | 176,984 | ||||||||
Deferred income taxes | 44,632 | 38,442 | 5,038 | ||||||||
Gain on disposal of property and equipment | (16,432 | ) | (23,240 | ) | (19,260 | ) | |||||
Non-cash equity compensation | 2,381 | 4,361 | 6,070 | ||||||||
Insurance and claims accruals, net of current portion | (11,320 | ) | 1,750 | (8,455 | ) | ||||||
Other | (3,370 | ) | 9,103 | 1,107 | |||||||
Changes in certain working capital items: | |||||||||||
Accounts receivable, net | (10,349 | ) | 15,704 | (35,080 | ) | ||||||
Other current assets | 4,979 | 9,455 | (25,926 | ) | |||||||
Accounts payable | (5,272 | ) | 7,256 | (1,497 | ) | ||||||
Other current liabilities | 18,291 | (9,362 | ) | 8,934 | |||||||
Net cash provided by operating activities | 312,397 | 370,392 | 206,565 | ||||||||
Cash flows from investing activities: | |||||||||||
Additions to property and equipment | (537,838 | ) | (454,097 | ) | (296,649 | ) | |||||
Proceeds from sales of property and equipment | 108,231 | 102,614 | 84,355 | ||||||||
Decrease in notes receivable | 19,353 | 19,517 | 14,390 | ||||||||
Other | — | (3,580 | ) | (5,583 | ) | ||||||
Net cash used in investing activities | (410,254 | ) | (335,546 | ) | (203,487 | ) | |||||
Cash flows from financing activities: | |||||||||||
Repayments of short-term debt | (20,000 | ) | (10,000 | ) | (10,000 | ) | |||||
Proceeds from issuance of short-term debt | 40,000 | 10,000 | 10,000 | ||||||||
Repayments of long-term debt | (40,000 | ) | — | (40,000 | ) | ||||||
Proceeds from issuance of long-term debt | 125,000 | — | 75,000 | ||||||||
Payment of notes payable | (3,117 | ) | (3,117 | ) | — | ||||||
Dividends on common stock | (17,289 | ) | (15,115 | ) | (14,440 | ) | |||||
Repurchases of common stock | — | (6,438 | ) | (30,587 | ) | ||||||
Tax withholding related to net share settlements of restricted stock awards | (1,832 | ) | (1,724 | ) | (1,977 | ) | |||||
Stock options exercised | 370 | 846 | 7,012 | ||||||||
Excess tax benefits from equity compensation | 238 | 556 | 1,324 | ||||||||
Net cash provided by (used in) financing activities | 83,370 | (24,992 | ) | (3,668 | ) | ||||||
Effect of exchange rate fluctuations on cash | (384 | ) | (625 | ) | (484 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (14,871 | ) | 9,229 | (1,074 | ) | ||||||
Cash and cash equivalents, beginning of period | 31,833 | 22,604 | 23,678 | ||||||||
Cash and cash equivalents, end of period | $ | 16,962 | $ | 31,833 | $ | 22,604 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest paid | $ | 2,470 | $ | 1,978 | $ | 820 | |||||
Income taxes paid | 4,673 | 35,205 | 76,849 | ||||||||
Supplemental schedule of non-cash investing activities: | |||||||||||
Notes receivable issued upon sale of property and equipment | $ | 25,449 | $ | 36,060 | $ | 14,385 | |||||
Issuance of notes payable | — | — | 6,233 | ||||||||
Change in fair value of interest rate swap | 337 | 242 | (1,180 | ) | |||||||
Property and equipment acquired included in accounts payable | 1,874 | 627 | 2,067 | ||||||||
Property and equipment disposed included in other receivables | 155 | 21 | — |
(In thousands, except share and per share amounts) | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||
BALANCE, December 31, 2013 | $ | 805 | $ | 98,534 | $ | 830,842 | $ | (4,631 | ) | $ | (153,031 | ) | $ | 772,519 | |||||||||
Comprehensive income | — | — | 98,650 | (4,744 | ) | — | 93,906 | ||||||||||||||||
Purchases of 1,200,000 shares of common stock | — | — | — | — | (30,587 | ) | (30,587 | ) | |||||||||||||||
Dividends on common stock ($0.20 per share) | — | — | (14,407 | ) | — | — | (14,407 | ) | |||||||||||||||
Equity compensation activity, 524,448 shares, including excess tax benefits | — | (2,801 | ) | — | — | 9,160 | 6,359 | ||||||||||||||||
Non-cash equity compensation expense | — | 6,070 | — | — | — | 6,070 | |||||||||||||||||
BALANCE, December 31, 2014 | 805 | 101,803 | 915,085 | (9,375 | ) | (174,458 | ) | 833,860 | |||||||||||||||
Comprehensive income | — | — | 123,714 | (3,688 | ) | — | 120,026 | ||||||||||||||||
Purchases of 225,000 shares of common stock | — | — | — | — | (6,438 | ) | (6,438 | ) | |||||||||||||||
Dividends on common stock ($0.22 per share) | — | — | (15,833 | ) | — | — | (15,833 | ) | |||||||||||||||
Equity compensation activity, 185,382 shares, including excess tax benefits | — | (3,430 | ) | — | — | 3,108 | (322 | ) | |||||||||||||||
Non-cash equity compensation expense | — | 4,361 | — | — | — | 4,361 | |||||||||||||||||
BALANCE, December 31, 2015 | 805 | 102,734 | 1,022,966 | (13,063 | ) | (177,788 | ) | 935,654 | |||||||||||||||
Comprehensive income | — | — | 79,129 | (3,854 | ) | — | 75,275 | ||||||||||||||||
Dividends on common stock ($0.24 per share) | — | — | (17,299 | ) | — | — | (17,299 | ) | |||||||||||||||
Equity compensation activity, 168,219 shares, including excess tax benefits | — | (4,080 | ) | — | — | 2,856 | (1,224 | ) | |||||||||||||||
Non-cash equity compensation expense | — | 2,381 | — | — | — | 2,381 | |||||||||||||||||
BALANCE, December 31, 2016 | $ | 805 | $ | 101,035 | $ | 1,084,796 | $ | (16,917 | ) | $ | (174,932 | ) | $ | 994,787 |
Lives | Salvage Values | |||
Building and improvements | 30 years | 0% | ||
Tractors | 80 months | 0% | ||
Trailers | 12 years | $1,000 | ||
Service and other equipment | 3-10 years | 0% |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income | $ | 79,129 | $ | 123,714 | $ | 98,650 | |||||
Weighted average common shares outstanding | 72,057 | 71,957 | 72,122 | ||||||||
Dilutive effect of stock-based awards | 336 | 599 | 616 | ||||||||
Shares used in computing diluted earnings per share | 72,393 | 72,556 | 72,738 | ||||||||
Basic earnings per share | $ | 1.10 | $ | 1.72 | $ | 1.37 | |||||
Diluted earnings per share | $ | 1.09 | $ | 1.71 | $ | 1.36 |
2017 | $ | 20,000 | |
2018 | — | ||
2019 | 75,000 | ||
2020 | 85,000 | ||
2021 | — | ||
Total | $ | 180,000 |
December 31, | |||||||
2016 | 2015 | ||||||
Independent contractor notes receivable | $ | 46,831 | $ | 38,450 | |||
Other notes receivable | 5,189 | 7,474 | |||||
52,020 | 45,924 | ||||||
Less current portion | 14,590 | 11,597 | |||||
Notes receivable – non-current | $ | 37,430 | $ | 34,327 |
December 31, | |||||||
2016 | 2015 | ||||||
Student notes receivable | $ | 34,097 | $ | 19,436 | |||
Allowance for doubtful student notes receivable | (15,682 | ) | (8,622 | ) | |||
Total student notes receivable, net of allowance | 18,415 | 10,814 | |||||
Less current portion, net of allowance | 7,350 | 4,747 | |||||
Student notes receivable - non-current portion | $ | 11,065 | $ | 6,067 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 237 | $ | 32,090 | $ | 51,260 | |||||
State | 2,928 | 5,665 | 6,606 | ||||||||
Foreign | 534 | 1,250 | 220 | ||||||||
3,699 | 39,005 | 58,086 | |||||||||
Deferred: | |||||||||||
Federal | 42,895 | 33,912 | 4,503 | ||||||||
State | 1,737 | 4,530 | 535 | ||||||||
44,632 | 38,442 | 5,038 | |||||||||
Total income tax expense | $ | 48,331 | $ | 77,447 | $ | 63,124 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Tax at statutory rate | $ | 44,611 | $ | 70,406 | $ | 56,621 | |||||
State income taxes, net of federal tax benefits | 3,032 | 6,627 | 4,641 | ||||||||
Non-deductible meals and entertainment | 1,549 | 1,687 | 1,497 | ||||||||
Income tax credits | (1,900 | ) | (1,700 | ) | (1,600 | ) | |||||
Other, net | 1,039 | 427 | 1,965 | ||||||||
Total income tax expense | $ | 48,331 | $ | 77,447 | $ | 63,124 |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Insurance and claims accruals | $ | 74,015 | $ | 71,285 | |||
Compensation-related accruals | 10,056 | 10,187 | |||||
Allowance for uncollectible accounts | 6,135 | 6,138 | |||||
Other | 4,168 | 6,291 | |||||
Gross deferred tax assets | 94,374 | 93,901 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | 377,093 | 330,580 | |||||
Prepaid expenses | 7,737 | 7,229 | |||||
Other | 2,313 | 2,356 | |||||
Gross deferred tax liabilities | 387,143 | 340,165 | |||||
Net deferred tax liability | $ | 292,769 | $ | 246,264 |
December 31, | |||||||
2016 | 2015 | ||||||
Unrecognized tax benefits, beginning balance | $ | 7,717 | $ | 8,583 | |||
Gross increases – tax positions in prior period | 236 | 229 | |||||
Gross decreases – tax positions in prior period | (217 | ) | — | ||||
Gross increases – current-period tax positions | 473 | 769 | |||||
Settlements | (2,154 | ) | (1,864 | ) | |||
Unrecognized tax benefits, ending balance | $ | 6,055 | $ | 7,717 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Stock options: | ||||||||||||
Pre-tax compensation expense | $ | (25 | ) | $ | 30 | $ | 116 | |||||
Tax benefit | (9 | ) | 11 | 46 | ||||||||
Stock option expense, net of tax | $ | (16 | ) | $ | 19 | $ | 70 | |||||
Restricted awards: | ||||||||||||
Pre-tax compensation expense | $ | 2,337 | $ | 1,875 | $ | 4,134 | ||||||
Tax benefit | 886 | 722 | 1,622 | |||||||||
Restricted stock expense, net of tax | $ | 1,451 | $ | 1,153 | $ | 2,512 | ||||||
Performance awards: | ||||||||||||
Pre-tax compensation expense | $ | 167 | $ | 2,514 | $ | 1,859 | ||||||
Tax benefit | 63 | 968 | 724 | |||||||||
Performance award expense, net of tax | $ | 104 | $ | 1,546 | $ | 1,135 |
Number of Options (in thousands) | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding at beginning of period | 192 | $ | 18.29 | |||||||||
Granted | — | — | ||||||||||
Exercised | (19 | ) | 18.82 | |||||||||
Forfeited | (2 | ) | 22.28 | |||||||||
Expired | — | — | ||||||||||
Outstanding at end of period | 171 | 18.19 | 1.87 | $ | 1,497 | |||||||
Exercisable at end of period | 166 | 18.07 | 1.78 | $ | 1,475 |
2016 | $ | 119 | |
2015 | 655 | ||
2014 | 3,687 |
Number of Restricted Awards (in thousands) | Weighted Average Grant Date Fair Value ($) | |||||
Nonvested at beginning of period | 445 | $ | 24.32 | |||
Granted | 67 | 26.54 | ||||
Vested | (159 | ) | 22.95 | |||
Forfeited | (60 | ) | 22.35 | |||
Nonvested at end of period | 293 | 25.98 |
Number of Performance Awards (in thousands) | Weighted Average Grant Date Fair Value ($) | |||||
Nonvested at beginning of period | 258 | $ | 27.23 | |||
Granted | 110 | 26.53 | ||||
Vested | (60 | ) | 27.11 | |||
Forfeited | (184 | ) | 26.78 | |||
Nonvested at end of period | 124 | 27.33 |
2016 | $ | 183 | |
2015 | 182 | ||
2014 | 188 |
2016 | $ | 2,113 | |
2015 | 2,041 | ||
2014 | 1,812 |
December 31, | |||||||
2016 | 2015 | ||||||
Accumulated benefit obligation | $ | 6,920 | $ | 7,068 | |||
Aggregate market value | 5,821 | 6,216 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues | |||||||||||
Truckload Transportation Services | $ | 1,533,981 | $ | 1,644,874 | $ | 1,702,137 | |||||
Werner Logistics | 417,172 | 393,174 | 390,645 | ||||||||
Other | 57,062 | 54,512 | 46,588 | ||||||||
Corporate | 1,749 | 2,297 | 2,803 | ||||||||
Subtotal | 2,009,964 | 2,094,857 | 2,142,173 | ||||||||
Inter-segment eliminations | (973 | ) | (1,328 | ) | (2,884 | ) | |||||
Total | $ | 2,008,991 | $ | 2,093,529 | $ | 2,139,289 | |||||
Operating Income | |||||||||||
Truckload Transportation Services | $ | 107,713 | $ | 189,850 | $ | 152,992 | |||||
Werner Logistics | 20,734 | 16,898 | 7,535 | ||||||||
Other | (6,177 | ) | (7,513 | ) | (3,991 | ) | |||||
Corporate | 3,800 | 1,221 | 3,552 | ||||||||
Total | $ | 126,070 | $ | 200,456 | $ | 160,088 |
2016 | 2015 | 2014 | |||||||||
Revenues | |||||||||||
United States | $ | 1,760,214 | $ | 1,821,026 | $ | 1,857,624 | |||||
Foreign countries | |||||||||||
Mexico | 183,058 | 191,453 | 187,124 | ||||||||
Other | 65,719 | 81,050 | 94,541 | ||||||||
Total foreign countries | 248,777 | 272,503 | 281,665 | ||||||||
Total | $ | 2,008,991 | $ | 2,093,529 | $ | 2,139,289 | |||||
Long-lived Assets | |||||||||||
United States | $ | 1,341,703 | $ | 1,134,433 | $ | 989,815 | |||||
Foreign countries | |||||||||||
Mexico | 20,614 | 19,879 | 23,734 | ||||||||
Other | 321 | 158 | 233 | ||||||||
Total foreign countries | 20,935 | 20,037 | 23,967 | ||||||||
Total | $ | 1,362,638 | $ | 1,154,470 | $ | 1,013,782 |
(In thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
2016: | |||||||||||||||
Operating revenues | $ | 482,802 | $ | 498,681 | $ | 508,676 | $ | 518,832 | |||||||
Operating income | 32,487 | 29,553 | 29,074 | 34,956 | |||||||||||
Net income | 20,092 | 18,306 | 18,920 | 21,811 | |||||||||||
Basic earnings per share | 0.28 | 0.25 | 0.26 | 0.30 | |||||||||||
Diluted earnings per share | 0.28 | 0.25 | 0.26 | 0.30 |
(In thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
2015: | |||||||||||||||
Operating revenues | $ | 495,654 | $ | 534,644 | $ | 534,448 | $ | 528,783 | |||||||
Operating income | 38,185 | 52,210 | 52,800 | 57,261 | |||||||||||
Net income | 23,142 | 31,848 | 32,076 | 36,648 | |||||||||||
Basic earnings per share | 0.32 | 0.44 | 0.45 | 0.51 | |||||||||||
Diluted earnings per share | 0.32 | 0.44 | 0.44 | 0.51 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) | ||||||
Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | |||||
Plan Category | (a) | (b) | (c) | |||
Equity compensation plans approved by stockholders | 588,410 (1) | $18.19 (2) | 7,539,292 |
(1) | Includes 407,650 shares to be issued upon vesting of outstanding restricted stock awards. |
(2) | The weighted-average exercise price does not take into account the shares to be issued upon vesting of outstanding restricted stock awards, which have no exercise price. |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
(a) | Financial Statements and Schedules. |
Page | ||
Report of Independent Registered Public Accounting Firm | 26 | |
Consolidated Statements of Income | 27 | |
Consolidated Statements of Comprehensive Income | 28 | |
Consolidated Balance Sheets | 29 | |
Consolidated Statements of Cash Flows | 30 | |
Consolidated Statements of Stockholders’ Equity | 31 | |
Notes to Consolidated Financial Statements | 32 |
Page | ||
Schedule II—Valuation and Qualifying Accounts | 50 |
ITEM 16. | FORM 10-K SUMMARY |
WERNER ENTERPRISES, INC. | ||
By: | /s/ Derek J. Leathers | |
Derek J. Leathers President and Chief Executive Officer |
Signature | Position | Date | ||
/s/ Clarence L. Werner | Executive Chairman and Director | February 23, 2017 | ||
Clarence L. Werner | ||||
/s/ Derek J. Leathers | President and Chief Executive Officer | February 23, 2017 | ||
Derek J. Leathers | (Principal Executive Officer) | |||
/s/ Gregory L. Werner | Director | February 23, 2017 | ||
Gregory L. Werner | ||||
/s/ Michael L. Steinbach | Director | February 23, 2017 | ||
Michael L. Steinbach | ||||
/s/ Kenneth M. Bird, Ed.D. | Director | February 23, 2017 | ||
Kenneth M. Bird, Ed.D. | ||||
/s/ Patrick J. Jung | Director | February 23, 2017 | ||
Patrick J. Jung | ||||
/s/ Duane K. Sather | Director | February 23, 2017 | ||
Duane K. Sather | ||||
/s/ Dwaine J. Peetz, Jr., M.D. | Director | February 23, 2017 | ||
Dwaine J. Peetz, Jr., M.D. | ||||
/s/ Gerald H. Timmerman | Director | February 23, 2017 | ||
Gerald H. Timmerman | ||||
/s/ John J. Steele | Executive Vice President, Treasurer | February 23, 2017 | ||
John J. Steele | and Chief Financial Officer (Principal Financial Officer) | |||
/s/ James L. Johnson | Executive Vice President, Chief Accounting Officer | February 23, 2017 | ||
James L. Johnson | and Corporate Secretary (Principal Accounting Officer) | |||
(In thousands) | Balance at Beginning of Period | Charged to Costs and Expenses | Write-offs (Recoveries) of Doubtful Accounts | Balance at End of Period | |||||||||||
Year ended December 31, 2016: | |||||||||||||||
Allowance for doubtful accounts | $ | 10,298 | $ | (245 | ) | $ | 870 | $ | 9,183 | ||||||
Year ended December 31, 2015: | |||||||||||||||
Allowance for doubtful accounts | $ | 10,017 | $ | 692 | $ | 411 | $ | 10,298 | |||||||
Year ended December 31, 2014: | |||||||||||||||
Allowance for doubtful accounts | $ | 9,939 | $ | 206 | $ | 128 | $ | 10,017 |
(In thousands) | Balance at Beginning of Period | Charged to Costs and Expenses | Write-offs (Recoveries) of Doubtful Accounts | Balance at End of Period | |||||||||||
Year ended December 31, 2016: | |||||||||||||||
Allowance for doubtful student notes | $ | 8,622 | $ | 19,019 | $ | 11,959 | $ | 15,682 | |||||||
Year ended December 31, 2015: | |||||||||||||||
Allowance for doubtful student notes | $ | 17,603 | $ | 12,595 | $ | 21,576 | $ | 8,622 | |||||||
Year ended December 31, 2014: | |||||||||||||||
Allowance for doubtful student notes | $ | 14,948 | $ | 15,336 | $ | 12,681 | $ | 17,603 |
Exhibit Number | Description | Incorporated by Reference to: | ||
3(i) | Restated Articles of Incorporation of Werner Enterprises, Inc. | Exhibit 3(i) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 | ||
3(ii) | Revised and Restated By-Laws of Werner Enterprises, Inc. | Exhibit 3.1 to the Company’s Current Report on Form 8-K dated May 10, 2016 | ||
10.1 | Werner Enterprises, Inc. Amended and Restated Equity Plan | Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 | ||
10.2 | Non-Employee Director Compensation | Filed herewith | ||
10.3 | The Executive Nonqualified Excess Plan of Werner Enterprises, Inc., as amended | Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 | ||
10.4 | Named Executive Officer Compensation | Filed herewith | ||
10.5 | Lease Agreement, as amended February 8, 2007, between the Company and Clarence L. Werner, Trustee of the Clarence L. Werner Revocable Trust | Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 | ||
10.6 | License Agreement, dated February 8, 2007 between the Company and Clarence L. Werner, Trustee of the Clarence L. Werner Revocable Trust | Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 | ||
10.7 | Form of Notice of Grant of Nonqualified Stock Option | Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 29, 2007 | ||
10.8 | Form of Restricted Stock Award Agreement | Exhibit 10.1 to the Company’s Current Report on Form 8-K dated December 1, 2009 | ||
10.9 | Form of Performance-Based Restricted Stock Award Agreement | Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 10, 2014 | ||
10.10 | Severance Agreement and Release between the Registrant and Greg Werner | Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 | ||
10.11 | Separation Agreement between the Registrant and James A. Mullen | Filed herewith | ||
11 | Statement Re: Computation of Per Share Earnings | See Note 1 (Common Stock and Earnings Per Share) in the Notes to Consolidated Financial Statements under Item 8 herein | ||
21 | Subsidiaries of the Registrant | Filed herewith | ||
23.1 | Consent of KPMG LLP | Filed herewith | ||
31.1 | Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934 (Section 302 of the Sarbanes-Oxley Act of 2002) | Filed herewith | ||
31.2 | Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934 (Section 302 of the Sarbanes-Oxley Act of 2002) | Filed herewith |
Exhibit Number | Description | Incorporated by Reference to: | ||
32.1 | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002) | Furnished herewith | ||
32.2 | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002) | Furnished herewith | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
Fee or Retainer | Amount | |
Annual Retainer for Board Membership | $15,000 (paid in quarterly installments of $3,750 each) | |
Annual Retainer for the Audit Committee Chair | $10,000 (paid in quarterly installments of $2,500 each) | |
Annual Retainer for the Compensation Committee Chair | $5,000 (paid in quarterly installments of $1,250 each) | |
Board of Directors Meeting Fee | $2,000 (paid for each Board meeting) | |
Board Committee Meeting Fee | $2,000 (paid for each committee meeting not held on the same day as a Board meeting) |
Name | Base Salary | Cash Bonus | ||
Derek J. Leathers President and Chief Executive Officer | $700,000 | $550,000 | ||
H. Marty Nordlund Senior Executive Vice President and Chief Operating Officer | $375,000 | $200,000 | ||
John J. Steele Executive Vice President, Treasurer and Chief Financial Officer | $265,000 | $115,000 | ||
Jim S. Schelble Executive Vice President and Chief Administrative Officer | $310,000 | $140,000 | ||
James L. Johnson Executive Vice President, Chief Accounting Officer and Corporate Secretary | $310,000 | $125,000 | ||
1. | Separation Date. |
2. | Terms of Separation. |
a. | Health/Dental/Vision and Optional Benefits. If you are currently enrolled in Werner’s group health/dental and/or vision benefits, you will have the right to continue coverage, at your own expense, pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). If you are currently enrolled in Werner’s group health plan, you will receive a COBRA notice from the Benefits Department explaining your rights and how to make your election. Should you have any questions, please contact Kendra Kripal at 402-894-3001, ext. 3968. |
b. | 401(k)/ESPP. Your 401(k) Plan and Employee Stock Purchase Plan (“ESPP”) participation eligibility will end on your Separation Date. Vesting is according to the plan design schedule for each respective plan. If you have questions concerning your 401(k) account or your ESPP, contact Becky Norton at 402-895-6640, ext. 2257. |
c. | Restricted Stock Grants: You understand and agree that you will forfeit the right to any Restricted Stock that has not vested as of your Separation Date, in accordance with the terms of the applicable Award Agreement. |
d. | Deferred Compensation Plan. Your eligibility to participate in the Werner’s Deferred Compensation Plan will end on your Separation Date. Payment will be made according to the terms of the Deferred Compensation Plan. If you have questions concerning the Deferred Compensation Plan, contact Christine Troia at 402-895-6640, ext. 3681. |
e. | PTO. You have no accrued PTO. |
• | Company tools and supplies |
• | Photo ID/access card |
• | Parking tag |
• | Office and desk keys |
• | Computer |
b. | Entire Agreement. This Agreement sets forth the entire Agreement and understanding between you and Werner relating to the subject matter described in this Agreement and supersedes all prior agreements, arrangements and understandings, written or oral between the parties, except as specifically referenced in this Agreement. |
d. | Amendments. Any amendment to, modification of, or supplement to this Agreement must be in writing and signed by the parties to this Agreement. |
e. | Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Werner and its successors, and upon you and your heirs, executors, personal representatives, and legal representatives. |
f. | Confidentiality. You agree that you have and will keep the terms and amount of this Agreement completely confidential, except as required by applicable law, and that you have not, nor will you hereafter disclose any information concerning this Agreement to any person other than your present attorneys, accountants, tax advisors, or spouse, and only if those persons agree to abide by the provisions of the paragraph. |
g. | Indemnification. You agree that you will indemnify and hold Werner harmless from and against any and all losses, liabilities, costs, damages or expenses incurred by Werner or any Company Releasee (including, without limitation, reasonable attorneys’ fees) arising out of or resulting from any breach of Sections 8 or 12 of this Agreement by you. You further agree that if you challenge this Agreement, file any claims against Werner arising from or relating to your employment with, or termination from, Werner, excluding any claim challenging the validity of your waiver of rights under the Age Discrimination in Employment Act, or otherwise fail to abide by the terms of this Agreement, you will return all moneys and benefits received by you from Werner pursuant to this Agreement. In the event that you challenge the validity of your waiver of rights under the Age Discrimination in Employment Act, you agree that Werner may recover money and benefits paid under this Agreement if your challenge and subsequent Age Discrimination in Employment Act claim are successful and you obtains a monetary award. |
h. | Protected Concerted Activity. Nothing in this Agreement prohibits you from engaging in any activity that is protected by the National Labor Relations Act. |
JURISDICTION OF | |||
SUBSIDIARY | ORGANIZATION | ||
1. | Gra-Gar, LLC | Delaware | |
2. | Drivers Management, LLC | Delaware | |
3. | Werner Management, Inc. | Nebraska | |
4. | Fleet Truck Sales, Inc., dba Werner Fleet Sales | Nebraska | |
5. | Werner Global Logistics, Inc. | Nebraska | |
6. | Werner Transportation, Inc. | Nebraska | |
7. | Werner de Mexico, S. de R.L. de C.V. | Mexico | |
8. | Werner Enterprises Canada Corporation | Canada | |
9. | Werner Leasing de Mexico, S. de R.L. de C.V. | Mexico | |
10. | Werner Global Logistics U.S., LLC | Nebraska | |
11. | Werner Global Logistics (Barbados), SRL | Barbados | |
12. | Werner Global Logistics (Shanghai) Co. Ltd. | China | |
13. | Werner Global Logistics-Hong Kong Limited | Hong Kong | |
14. | WECC, Inc. | Nebraska | |
15. | Werner Global Logistics Mexico, S. de R.L. de C.V. | Mexico | |
16. | Werner Global Logistics Australia Pty. Ltd | Australia | |
17. | CG&G, Inc. | Nebraska | |
18. | CG&G II, Inc. | Nebraska | |
19. | American Institute of Trucking, Inc. | Arizona | |
20. | Career Path Training Corp. | Florida |
/s/ KPMG LLP | ||||
Omaha, Nebraska | ||||
February 23, 2017 |
1. | I have reviewed this annual report on Form 10-K of Werner Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 23, 2017 |
/s/ Derek J. Leathers |
Derek J. Leathers |
President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Werner Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 23, 2017 |
/s/ John J. Steele |
John J. Steele |
Executive Vice President, Treasurer and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 23, 2017 | /s/ Derek J. Leathers | |
Derek J. Leathers | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 23, 2017 | /s/ John J. Steele | |
John J. Steele | ||
Executive Vice President, Treasurer and Chief Financial Officer |
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
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 17, 2017 |
Jun. 30, 2016 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WERNER ENTERPRISES INC | ||
Entity Central Index Key | 0000793074 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 72,192,743 | ||
Entity Public Float | $ 1,079 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | wern |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating revenues | $ 2,008,991 | $ 2,093,529 | $ 2,139,289 |
Operating expenses: | |||
Salaries, wages and benefits | 636,112 | 639,908 | 584,006 |
Fuel | 155,042 | 204,583 | 346,058 |
Supplies and maintenance | 171,397 | 190,114 | 188,437 |
Taxes and licenses | 85,547 | 89,646 | 85,468 |
Insurance and claims | 83,866 | 80,848 | 80,375 |
Depreciation | 209,728 | 193,209 | 176,984 |
Rent and purchased transportation | 512,296 | 480,624 | 498,782 |
Communications and utilities | 16,106 | 15,121 | 14,220 |
Other | 12,827 | (980) | 4,871 |
Total operating expenses | 1,882,921 | 1,893,073 | 1,979,201 |
Operating income | 126,070 | 200,456 | 160,088 |
Other expense (income): | |||
Interest expense | 2,577 | 1,974 | 881 |
Interest income | (4,158) | (2,875) | (2,538) |
Other | 191 | 196 | (29) |
Total other income | (1,390) | (705) | (1,686) |
Income before income taxes | 127,460 | 201,161 | 161,774 |
Income taxes | 48,331 | 77,447 | 63,124 |
Net income | $ 79,129 | $ 123,714 | $ 98,650 |
Earnings per share: | |||
Basic | $ 1.10 | $ 1.72 | $ 1.37 |
Diluted | $ 1.09 | $ 1.71 | $ 1.36 |
Weighted-average common shares outstanding: | |||
Basic | 72,057 | 71,957 | 72,122 |
Diluted | 72,393 | 72,556 | 72,738 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net income | $ 79,129 | $ 123,714 | $ 98,650 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (4,191) | (3,930) | (3,564) |
Change in fair value of interest rate swap | 337 | 242 | (1,180) |
Other comprehensive income (loss) | (3,854) | (3,688) | (4,744) |
Comprehensive income | $ 75,275 | $ 120,026 | $ 93,906 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Allowance for doubtful trade accounts receivable | $ 9,183 | $ 10,298 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 80,533,536 | 80,533,536 |
Common stock, shares outstanding | 72,166,969 | 71,998,750 |
Treasury stock, shares | 8,366,567 | 8,534,786 |
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock |
Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
---|---|---|---|---|---|---|
BALANCE at Dec. 31, 2013 | $ 772,519 | $ 805 | $ 98,534 | $ 830,842 | $ (4,631) | $ (153,031) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 93,906 | 0 | 0 | 98,650 | (4,744) | 0 |
Purchases of common stock | (30,587) | 0 | 0 | 0 | 0 | (30,587) |
Dividends on common stock | (14,407) | 0 | 0 | (14,407) | 0 | 0 |
Equity compensation activity, including excess tax benefits | 6,359 | 0 | (2,801) | 0 | 0 | 9,160 |
Non-cash equity compensation expense | 6,070 | 0 | 6,070 | 0 | 0 | 0 |
BALANCE at Dec. 31, 2014 | 833,860 | 805 | 101,803 | 915,085 | (9,375) | (174,458) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 120,026 | 0 | 0 | 123,714 | (3,688) | 0 |
Purchases of common stock | (6,438) | 0 | 0 | 0 | 0 | (6,438) |
Dividends on common stock | (15,833) | 0 | 0 | (15,833) | 0 | 0 |
Equity compensation activity, including excess tax benefits | (322) | 0 | (3,430) | 0 | 0 | 3,108 |
Non-cash equity compensation expense | 4,361 | 0 | 4,361 | 0 | 0 | 0 |
BALANCE at Dec. 31, 2015 | 935,654 | 805 | 102,734 | 1,022,966 | (13,063) | (177,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 75,275 | 0 | 0 | 79,129 | (3,854) | 0 |
Dividends on common stock | (17,299) | 0 | 0 | (17,299) | 0 | 0 |
Equity compensation activity, including excess tax benefits | (1,224) | 0 | (4,080) | 0 | 0 | 2,856 |
Non-cash equity compensation expense | 2,381 | 0 | 2,381 | 0 | 0 | 0 |
BALANCE at Dec. 31, 2016 | $ 994,787 | $ 805 | $ 101,035 | $ 1,084,796 | $ (16,917) | $ (174,932) |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 0.240 | $ 0.220 | $ 0.200 |
Purchase of common stock, shares | 0 | 225,000 | 1,200,000 |
Equity compensation activity, shares | 168,219 | 185,382 | 524,448 |
Summary of Significant Accounting Policies |
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Werner Enterprises, Inc. (the “Company”) is a truckload transportation and logistics company operating under the jurisdiction of the U.S. Department of Transportation, similar governmental transportation agencies in the foreign countries in which we operate and various U.S. state regulatory authorities. For the years ended December 31, 2016, 2015 and 2014, our ten largest customers comprised 43%, 45% and 41%, respectively, of our revenues. No single customer generated more than 10% of the Company’s total revenues in 2016, 2015, and 2014. Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Werner Enterprises, Inc. and our majority-owned subsidiaries. All significant intercompany accounts and transactions relating to these majority-owned entities have been eliminated. Use of Management Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the (i) reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (ii) reported amounts of revenues and expenses during the reporting period. The most significant estimates that affect our financial statements include the useful lives and salvage values of property and equipment, accrued liabilities for insurance and claims, estimates for income taxes and the allowance for doubtful accounts. Actual results could differ from those estimates. Cash and Cash Equivalents: We consider all highly liquid investments, purchased with a maturity of three months or less, to be cash equivalents. Accounts at banks with an aggregate excess of the amount of checks issued over cash balances are included in current liabilities in the Consolidated Balance Sheets, and changes in such accounts are reported as a financing activity in the Consolidated Statements of Cash Flows. Trade Accounts Receivable: We record trade accounts receivable at the invoiced amounts, net of an allowance for doubtful accounts. The allowance for doubtful accounts is our estimate of the amount of probable credit losses and revenue adjustments in our existing accounts receivable. We review the financial condition of customers for granting credit and determine the allowance based on analysis of individual customers’ financial condition, historical write-off experience and national economic conditions. We evaluate the adequacy of our allowance for doubtful accounts quarterly. Past due balances over 90 days and exceeding a specified amount are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. Inventories and Supplies: Inventories and supplies are stated at the lower of average cost or market and consist primarily of revenue equipment parts, tires, fuel and supplies. Tires placed on new revenue equipment are capitalized as a part of the equipment cost. Replacement tires are expensed when placed in service. Property, Equipment, and Depreciation: Additions and improvements to property and equipment are capitalized at cost, while maintenance and repair expenditures are charged to operations as incurred. Gains and losses on the sale or exchange of equipment are recorded in other operating expenses. Depreciation is calculated based on the cost of the asset, reduced by the asset’s estimated salvage value, using the straight-line method. Accelerated depreciation methods are used for income tax purposes. The lives and salvage values assigned to certain assets for financial reporting purposes are different than for income tax purposes. For financial reporting purposes, assets are generally depreciated using the following estimated useful lives and salvage values:
During fourth quarter 2016, due to the weak used truck market, we reduced the estimated life of certain trucks to more rapidly depreciate the trucks to their residual values. The effect of this change in accounting estimate was to increase 2016 depreciation expense and decrease operating income by $4.1 million and decrease net income by $2.6 million, or approximately $0.04 per diluted share. We expect depreciation expense for these trucks to continue at a similar higher level in first quarter 2017 and then gradually decline as these trucks are sold in the first few quarters of 2017. Long-Lived Assets: We review our long-lived assets for impairment whenever events or circumstances indicate the carrying amount of a long-lived asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the long-lived asset is not recoverable and the carrying amount exceeds its fair value. For long-lived assets classified as held and used, the carrying amount is not recoverable when the carrying value of the long-lived asset exceeds the sum of the future net cash flows. We do not separately identify assets by operating segment because tractors and trailers are routinely transferred from one operating fleet to another. As a result, none of our long-lived assets have identifiable cash flows from use that are largely independent of the cash flows of other assets and liabilities. Thus, the asset group used to assess impairment would include all of our assets. Insurance and Claims Accruals: Insurance and claims accruals (both current and non-current) reflect the estimated cost (including estimated loss development and loss adjustment expenses) for (i) cargo loss and damage, (ii) bodily injury and property damage, (iii) group health and (iv) workers’ compensation claims not covered by insurance. The costs for cargo, bodily injury and property damage insurance and claims are included in insurance and claims expense in the Consolidated Statements of Income; the costs of group health and workers’ compensation claims are included in salaries, wages and benefits expense. The insurance and claims accruals are recorded at the estimated ultimate payment amounts. Such insurance and claims accruals are based upon individual case estimates (including negative development) and estimates of incurred-but-not-reported losses using loss development factors based upon past experience. Actual costs related to insurance and claims have not differed materially from estimated accrued amounts for all years presented. An actuary reviews our undiscounted self-insurance reserves for bodily injury and property damage claims and workers’ compensation claims at year-end. For the years ended December 31, 2016, 2015, and 2014 our self-insured retention (“SIR”) and deductible amount for liability claims is $2.0 million plus administrative expenses, for each occurrence involving bodily injury or property damage. We are also responsible for varying annual aggregate amounts of liability for claims in excess of the SIR/deductible. Liability claims in excess of these aggregates are covered under premium-based policies (issued by insurance companies) to coverage levels that our management considers adequate. We are also responsible for administrative expenses for each occurrence involving bodily injury or property damage. Our SIR for workers’ compensation claims is $1.0 million per claim, with premium-based insurance coverage for claims exceeding this amount. We also maintain a $27.3 million bond for the State of Nebraska and a $6.9 million bond for our workers’ compensation insurance carrier. Under these insurance arrangements, we maintained $25.8 million in letters of credit as of December 31, 2016. Revenue Recognition: The Consolidated Statements of Income reflect recognition of operating revenues (including fuel surcharge revenues) and related direct costs when the shipment is delivered. For shipments where a third-party capacity provider (including independent contractors under contract with us) is utilized to provide some or all of the service and we (i) are the primary obligor in regard to the shipment delivery, (ii) establish customer pricing separately from carrier rate negotiations, (iii) generally have discretion in carrier selection and/or (iv) have credit risk on the shipment, we record both revenues for the dollar value of services we bill to the customer and rent and purchased transportation expense for transportation costs we pay to the third-party provider upon the shipment’s delivery. In the absence of the conditions listed above, we record revenues net of those expenses related to third-party providers. Derivative Financial Instrument: We manage our interest rate risk through an interest rate swap. The derivative financial instrument is recognized in the Consolidated Balance Sheets at fair value. The effect on earnings from recognizing the fair value of this derivative financial instrument depends on its intended use, its hedge designation, and its effectiveness in offsetting changes in the fair value of the exposure it is hedging. Changes in the fair value of the instrument designated to reduce or eliminate adverse fluctuations in the fair values of recognized assets and liabilities and unrecognized firm commitments are reported currently in earnings along with changes in the fair values of the hedged items. Changes in the effective portion of the fair value of the instrument used to reduce or eliminate adverse fluctuations in cash flows of anticipated or forecasted transactions is reported in equity as a component of accumulated other comprehensive income (loss), net of income tax effects. Amounts in accumulated other comprehensive income (loss) are reclassified to earnings when the related hedged items affect earnings or the anticipated transactions are no longer probable. Amounts reported in earnings are classified consistent with the item being hedged. Foreign Currency Translation: Local currencies are generally considered the functional currencies outside the United States. Assets and liabilities are translated at year-end exchange rates for operations in local currency environments. Foreign revenues and expense items denominated in the functional currency are translated at the average rates of exchange prevailing during the year. Foreign currency translation adjustments reflect the changes in foreign currency exchange rates applicable to the net assets of the foreign operations. Foreign currency translation adjustments are recorded in accumulated other comprehensive loss within stockholders’ equity in the Consolidated Balance Sheets and as a separate component of comprehensive income in the Consolidated Statements of Comprehensive Income. Income Taxes: We use the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In accounting for uncertain tax positions, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize interest and penalties directly related to income tax matters in income tax expense. Common Stock and Earnings Per Share: Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. There are no differences in the numerators of our computations of basic and diluted earnings per share for any periods presented. The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).
There were no options to purchase shares of common stock that were outstanding during the periods indicated above that were excluded from the computation of diluted earnings per share because the option purchase price was greater than the average market price of the common shares during the period. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. Equity Compensation: We have an equity compensation plan that provides for grants of non-qualified stock options, restricted stock, restricted stock units and stock appreciation rights to our associates and directors. We apply the fair value method of accounting for equity compensation awards. Issuances of stock upon an exercise of stock options or vesting of restricted stock are made from treasury stock; shares reacquired to satisfy tax withholding obligations upon vesting of restricted stock are recorded as treasury stock. Grants of stock options, restricted stock, and performance awards vest in increments, and we recognize compensation expense over the requisite service period of each award. We accrue compensation expense for performance awards for the estimated number of shares expected to be issued using the most current information available at the date of the financial statements. If the performance objectives are not met, no compensation expense will be recognized, and any previously recognized compensation expense will be reversed. Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are not included in net income, but rather are recorded directly in stockholders’ equity. For the years ended December 31, 2016, 2015 and 2014, comprehensive income consists of net income, foreign currency translation adjustments and change in fair value of interest rate swap. New Accounting Pronouncements Adopted: In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” which requires presentation of deferred tax assets and liabilities as non-current in the balance sheet, which simplified the current guidance. Effective January 1, 2016, we early-adopted the guidance and retrospectively adjusted the December 31, 2015 presentation by reclassifying $28.0 million of current deferred tax assets into the non-current liability “Deferred income taxes.” In April 2015, the FASB issued ASU No. 2015-3, “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be recorded as a direct reduction of the debt liability on the balance sheet rather than as an asset. The provisions of this update became effective for us as of January 1, 2016, and, upon adoption, had no material effect on our consolidated financial position, results of operations or cash flows. Accounting Standards Updates Not Yet Effective: On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The FASB has also issued ASU No. 2016-08, 2016-10, 2016-11, and 2016-12 in 2016, with additional guidance related to revenue recognition matters. In July 2015, the FASB voted to approve a one-year deferral of the effective date of the new revenue recognition standard and to permit early adoption but no earlier than the original effective date (annual periods beginning after December 15, 2016); such decisions were documented in the FASB’s ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” As a result of the deferral, the new standard (as well as ASU No. 2016-08, 2016-10, 2016-11 and 2016-12) will become effective for us beginning January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures and have not yet selected a transition method. While we cannot yet determine the quantitative impact on our consolidated financial statements, we currently expect the new standard to affect the timing of revenue recognition. Today we recognize revenue and related direct costs when the shipment is delivered. The new standard will require us to recognize revenue over time. In July 2015, the FASB issued ASU No. 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which requires inventory to be recorded at the lower of cost and net realizable value (instead of lower of cost or market). The provisions of this update are effective as of January 1, 2017, and are not expected to have a material effect on our consolidated financial position, results of operations or cash flows, as nearly all of our inventory is recorded at cost. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the effect that ASU No. 2016-02 will have on our consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of this update are effective for fiscal years beginning after December 15, 2016 and are not expected to have a material effect on our consolidated financial position, results of operations, or cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The provisions of this update are effective for fiscal years beginning after December 15, 2017. We are evaluating the effect that ASU No. 2016-15 will have on our consolidated cash flows. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows - (Topic 230) Restricted Cash (a Consensus of the FASB Emerging Issues Task Force),” which requires an entity to include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The provisions of this update are effective for fiscal years beginning after December 15, 2017. We are evaluating the effect ASU No. 2016-18 will have on our consolidated cash flows and related disclosures. Other ASUs not identified above and which are not effective until after December 31, 2016 are not expected to have a material effect on our consolidated financial position, results of operations or cash flows. |
Credit Facilities |
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Line of Credit Facility [Abstract] | |||||||||||||||||||||||||||||||||
Credit Facilities | CREDIT FACILITIES As of December 31, 2016, we had unsecured committed credit facilities with three banks as well as a term commitment with one of these banks. We had with Wells Fargo Bank, N.A., a $100.0 million credit facility which will expire on July 12, 2020, and a $75.0 million term commitment with principal due and payable on September 15, 2019. We had an unsecured line of credit of $75.0 million with U.S. Bank, N.A., which will expire on July 13, 2020. We also had a $75.0 million credit facility with BMO Harris Bank, N.A., which will expire on March 5, 2020. Borrowings under these credit facilities and term note bear variable interest based on the London Interbank Offered Rate (“LIBOR”). As of December 31, 2016 and 2015, our outstanding debt totaled $180.0 million and $75.0 million, respectively. We had $75.0 million outstanding under the term commitment at a variable rate of 1.30% as of December 31, 2016, which is effectively fixed at 2.5% with an interest rate swap agreement, and we had an additional $105.0 million outstanding under the credit facilities at a weighted average interest rate of 1.30%. Subsequent to the end of the year, in January 2017, we repaid $20.0 million of debt, which we classified as current in the Consolidated Balance Sheets. The $325.0 million of borrowing capacity under our credit facilities at December 31, 2016, is further reduced by $25.8 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and/or (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At December 31, 2016, we were in compliance with these covenants. At December 31, 2016, the aggregate future maturities of long-term debt by year are as follows (in thousands):
The carrying amounts of our long-term debt approximate fair value due to the duration of the notes and the variable interest rates. |
Notes Receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable | NOTES RECEIVABLE We provide financing to some individuals who want to become independent contractors by purchasing a tractor from us and leasing their services to us. We maintain a primary security interest in the tractor until the independent contractor pays the note balance in full. Independent contractor notes receivable are included in other current assets and other non-current assets in the Consolidated Balance Sheets. At December 31, notes receivable consisted of the following (in thousands):
We also provide financing to some individuals who attended our driver training schools. The student notes receivable are included in other receivables and other non-current assets in the Consolidated Balance Sheets. At December 31, student notes receivable consisted of the following (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES Income tax expense consisted of the following (in thousands):
The effective income tax rate differs from the federal corporate tax rate of 35% in 2016, 2015 and 2014 as follows (in thousands):
At December 31, deferred tax assets and liabilities consisted of the following (in thousands):
Deferred tax assets are more likely than not to be realized as a result of historical profitability, future taxable income, and reversal of deferred tax liabilities. We recognized a $1.1 million decrease in the net liability for unrecognized tax benefits for the year ended December 31, 2016 and a $0.6 million decrease for the year ended December 31, 2015. We accrued interest expense of $0.2 million during 2016 and $0.2 million during 2015, excluding from both years the reversal of accrued interest related to the adjustment of uncertain tax positions. If recognized, $3.9 million of unrecognized tax benefits as of December 31, 2016 and $5.0 million as of December 31, 2015 would impact our effective tax rate. Interest of $1.1 million as of December 31, 2016 and $1.4 million as of December 31, 2015 has been reflected as a component of the total liability. We expect no other significant increases or decreases for uncertain tax positions during the next twelve months. The reconciliations of beginning and ending gross balances of unrecognized tax benefits for 2016 and 2015 are shown below (in thousands).
We file U.S. federal income tax returns, as well as income tax returns in various states and several foreign jurisdictions. The years 2013 through 2015 are open for examination by the U.S. Internal Revenue Service (“IRS”), and various years are open for examination by state and foreign tax authorities. In fourth quarter 2016, the IRS completed its audit of our amended 2011 federal income tax return with no additional taxes or penalties due. State and foreign jurisdictional statutes of limitations generally range from three to four years. |
Derivative Financial Instrument |
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Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | DERIVATIVE FINANCIAL INSTRUMENT In the normal course of business we are subject to risk from adverse fluctuations in foreign exchange and interest rates and commodity prices. We manage our risks for interest rate changes through use of an interest rate swap. At December 31, 2016, we had one interest rate swap outstanding, which matures in September 2019, with a notional value of $75.0 million and a pre-tax fair value loss of $1.0 million. The counterparty to this contract is a major financial institution. We are exposed to credit loss in the event of non-performance by the counterparty. We do not use derivative instruments for trading or speculative purposes and have no derivative financial instruments to reduce our exposure to fuel price fluctuations. Our objective in managing exposure to interest rate risk is to limit the impact on earnings and cash flow. The extent to which we use such instruments is dependent on our access to these contracts in the financial markets and our success using other methods. Our outstanding derivative financial instrument is recognized as an other long-term liability in the Consolidated Balance Sheets at fair value. The interest rate swap is accounted for as a cash flow hedging instrument. At inception, we formally designated and documented the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which effectiveness of the hedge will be assessed. We formally assess, both at inception and at each reporting period thereafter, whether the derivative financial instrument is effective in offsetting changes in cash flows of the related underlying exposure. All changes in fair value of outstanding derivatives in cash flow hedges, except any ineffective portion, are recorded in other comprehensive income until earnings are impacted by the hedged transaction. Classification of the gain or loss in the Consolidated Statements of Income upon release from comprehensive income is the same as that of the underlying exposure. Any ineffective portion of the change in fair value of the instruments is recognized immediately in earnings. We will discontinue the use of hedge accounting prospectively when (i) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item; (ii) the derivative instrument expires, is sold, terminated, or exercised; or (iii) designating the derivative instrument as a hedge is no longer appropriate. Should we discontinue hedge accounting because it is no longer probable that an anticipated transaction will occur in the originally expected period, or within an additional two-month period thereafter, changes to fair value accumulated in other comprehensive income are recognized immediately in earnings. FASB ASC 815-10 requires companies to recognize the derivative instrument as an asset or a liability at fair value in the statement of financial position. Fair value of the derivative instrument is required to be measured under the FASB’s Fair Value Measurements and Disclosures guidance, which establishes a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The fair value of our interest rate swap is based on Level 2 inputs. |
Equity Compensation and Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Compensation and Employee Benefit Plans | EQUITY COMPENSATION AND EMPLOYEE BENEFIT PLANS Equity Plan The Werner Enterprises, Inc. Amended and Restated Equity Plan (the “Equity Plan”), approved by the Company’s shareholders, provides for grants to employees and non-employee directors of the Company in the form of nonqualified stock options, restricted stock and units (“restricted awards”), performance awards and stock appreciation rights. The Board of Directors or the Compensation Committee of our Board of Directors determines the terms of each award, including the type, recipients, number of shares subject to and vesting conditions of each award. No awards of stock appreciation rights have been issued under the Equity Plan to date. The maximum number of shares of common stock that may be awarded under the Equity Plan is 20,000,000 shares. The maximum aggregate number of shares that may be awarded to any one person in any one calendar year under the Equity Plan is 500,000. As of December 31, 2016, there were 7,539,292 shares available for granting additional awards. Equity compensation expense is included in salaries, wages and benefits within the Consolidated Statements of Income. As of December 31, 2016, the total unrecognized compensation cost related to non-vested equity compensation awards was approximately $5.8 million and is expected to be recognized over a weighted average period of 2.3 years. The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands):
We do not have a formal policy for issuing shares upon an exercise of stock options or vesting of restricted and performance awards. Such shares are generally issued from treasury stock. From time to time, we repurchase shares of our common stock, the timing and amount of which depends on market and other factors. Historically, the shares acquired from such repurchases have provided us with sufficient quantities of stock to issue for equity compensation. Based on current treasury stock levels, we do not expect to repurchase additional shares specifically for equity compensation during 2017. Stock Options Stock options are granted at prices equal to the market value of the common stock on the date the option award is granted. Option awards currently outstanding become exercisable in installments from 24 to 72 months after the date of grant. The options are exercisable over a period not to exceed ten years and one day from the date of grant. The following table summarizes stock option activity for the year ended December 31, 2016:
We did not grant any stock options during the years ended December 31, 2016, 2015 and 2014. The fair value of stock option grants is estimated using a Black-Scholes valuation model. The total intrinsic value of stock options exercised was as follows (in thousands):
Restricted Awards Restricted stock entitles the holder to shares of common stock when the award vests. Restricted stock units entitle the holder to a combination of cash or stock equal to the value of common stock when the unit vests. The value of these shares may fluctuate according to market conditions and other factors. Restricted awards currently outstanding vest over periods ranging from 12 to 84 months from the grant date of the award. The restricted awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes restricted award activity for the year ended December 31, 2016:
We estimate the fair value of restricted awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. Cash settled restricted stock units are recorded as a liability within the Consolidated Balance Sheets and are adjusted to fair value each reporting period. The total fair value of previously granted restricted awards vested during the years ended December 31, 2016, 2015, and 2014 was $4.3 million, $4.5 million, and $5.8 million, respectively. We withheld shares based on the closing stock price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. Total cash remitted for the employees’ tax obligations to the relevant taxing authorities is reflected as a financing activity within the Consolidated Statements of Cash Flows, and the shares withheld to satisfy the minimum tax withholding obligations were recorded as treasury stock. Performance Awards Performance awards entitle the recipient to shares of common stock upon attainment of performance objectives as pre-established by the Compensation Committee. If the performance objectives are achieved, performance awards currently outstanding vest, subject to continued employment, over periods ranging from 12 to 60 months from the grant date of the award. The performance awards do not confer any voting or dividend rights to recipients until such shares vest and do not have any post-vesting sales restrictions. The following table summarizes performance award activity for the year ended December 31, 2016:
The 2016 performance awards are earned based upon the level of attainment by the Company of specified performance objectives related to earnings per share for the fiscal year. In February 2017, the Compensation Committee determined the 2016 fiscal year results fell below the threshold level; thus, no shares of common stock were earned, and the shares not earned are included in the forfeited shares in the activity table above. In February 2016, the Compensation Committee determined the 2015 fiscal year performance objectives were achieved at a level above the target level, and the additional shares earned above the target are included in the granted shares in the activity table above. We estimate the fair value of performance awards based upon the market price of the underlying common stock on the date of grant, reduced by the present value of estimated future dividends because the awards are not entitled to receive dividends prior to vesting. Our estimate of future dividends is based on the most recent quarterly dividend rate at the time of grant, adjusted for any known future changes in the dividend rate. The vesting date fair value of the performance awards vested during the years ended December 31, 2016 and December 31, 2015 was $1.6 million and $1.1 million, respectively. We withheld shares based on the closing stock price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. Total cash remitted for employees’ tax obligations to the relevant taxing authorities is reflected as a financing activity within the Consolidated Statements of Cash Flows, and the shares withheld to satisfy the minimum tax withholding obligations are recorded as treasury stock. Employee Stock Purchase Plan Employee associates that meet certain eligibility requirements may participate in our Employee Stock Purchase Plan (the “Purchase Plan”). Eligible participants designate the amount of regular payroll deductions and/or a single annual payment (each subject to a yearly maximum amount) that is used to purchase shares of our common stock on the over-the-counter market. The maximum annual contribution amount is currently $20,000. These purchases are subject to the terms of the Purchase Plan. We contribute an amount equal to 15% of each participant’s contributions under the Purchase Plan. Interest accrues on Purchase Plan contributions at a rate of 5.25% until the purchase is made. We pay the broker’s commissions and administrative charges related to purchases of common stock under the Purchase Plan. Our contributions for the Purchase Plan were as follows (in thousands):
401(k) Retirement Savings Plan We have an Employees’ 401(k) Retirement Savings Plan (the “401(k) Plan”). Associates are eligible to participate in the 401(k) Plan if they have been continuously employed with us or one of our subsidiaries for six months or more. We match a portion of each associate’s 401(k) Plan elective deferrals. Salaries, wages and benefits expense in the accompanying Consolidated Statements of Income includes our 401(k) Plan contributions and administrative expenses, which were as follows (in thousands):
Nonqualified Deferred Compensation Plan The Executive Nonqualified Excess Plan (the “Excess Plan”) is our nonqualified deferred compensation plan for the benefit of eligible key managerial associates whose 401(k) Plan contributions are limited because of IRS regulations affecting highly compensated associates. Under the terms of the Excess Plan, participants may elect to defer compensation on a pre-tax basis within annual dollar limits we establish. At December 31, 2016, there were 48 participants in the Excess Plan. Although our current intention is not to do so, we may also make matching credits and/or profit sharing credits to participants’ accounts as we so determine each year. Each participant is fully vested in all deferred compensation and earnings; however, these amounts are subject to general creditor claims until distributed to the participant. Under current federal tax law, we are not allowed a current income tax deduction for the compensation deferred by participants, but we are allowed a tax deduction when a distribution payment is made to a participant from the Excess Plan. The accumulated benefit obligation is included in other long-term liabilities in the Consolidated Balance Sheets. We purchased life insurance policies to fund the future liability. The aggregate market value of the life insurance policies is included in other non-current assets in the Consolidated Balance Sheets. The accumulated benefit obligation and aggregate market value of the life insurance policies were as follows (in thousands):
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Commitments and Contingencies |
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Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We have committed to property and equipment purchases of approximately $83.8 million at December 31, 2016. We are involved in certain claims and pending litigation arising in the ordinary course of business. The majority of these claims relate to bodily injury, property damage, cargo and workers’ compensation incurred in the transportation of freight, as well as certain class action litigation related to personnel and employments matters. We accrue for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the knowledge of the facts, management believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse effect on our consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict and our view of these matters may change in the future as the litigation and related events unfold. We are involved in class action litigation in the U.S. District Court for the District of Nebraska, in which the plaintiffs allege that we owe drivers for unpaid wages under the Fair Labor Standards Act (FLSA) and the Nebraska Wage Payment and Collection Act and that we failed to pay minimum wage per hour for drivers in our student driver training program, related to short break time and sleeper berth time. The period covered by this class action suit dates back to 2008 through March 2014. In August 2015, the court denied our motion for summary judgment and granted the plaintiff’s motion for summary judgment, ruling in plaintiff’s favor on both theories of liability (short breaks and sleeper berth time). During second quarter 2016, the court issued two rulings, the first of which dismissed plaintiff’s claims under the Nebraska Wage Payment and Collection Act (but not the FLSA) and the second of which granted our motion to strike plaintiff’s untimely damages calculations. As a result, we reduced our accrual in second quarter 2016, and we had a $1.2 million estimated liability at December 31, 2016 related to the short break matter. In February 2017, the court revised the decision from August 2015 and denied summary judgment to the plaintiffs on the sleeper berth issue. In doing so, the court also ruled that the Company had not willfully violated the law on the sleeper berth claim and dismissed the liquidated damages portion of the case, related to the sleeper berth claim. Based on the knowledge of the facts related to the sleeper berth matter, management does not currently believe a loss is probable, thus we have not accrued for the sleeper berth matter. We are currently unable to determine the possible loss or range of loss. We intend to vigorously defend the merits of these claims and to appeal any adverse verdict in this case. We are also involved in certain class action litigation in which the plaintiffs allege claims for failure to provide meal and rest breaks, unpaid wages, unauthorized deduction and other items. Based on the knowledge of the facts, management does not currently believe the outcome of the litigation is likely to have a material adverse effect on our financial position or results of operations. However, the final disposition of these matters and the impact of such final disposition cannot be determined at this time. |
Related Party Transactions |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company leases land from a trust in which the Company’s principal stockholder is the sole trustee. The annual rent payments under this lease are $1.00 per year. The Company is responsible for all real estate taxes and maintenance costs related to the property, which were $50,000 in 2016 and are recorded as expenses in the Consolidated Statements of Income. The Company has made leasehold improvements to the land totaling approximately $6.6 million for facilities used for business meetings and customer promotion. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION We have two reportable segments – Truckload Transportation Services (“Truckload”) and Werner Logistics (formerly Value Added Services). The Truckload segment consists of two operating units, One-Way Truckload and Specialized Services, that are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers; (ii) the expedited (“Expedited”) fleet provides time-sensitive truckload services utilizing driver teams; and (iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States. Specialized Services (primarily Dedicated) provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, including services for products requiring specialized trailers such as flatbed or temperature-controlled trailers. Revenues for the Truckload segment include a small amount of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider. The Werner Logistics segment generates the majority of our non-trucking revenues through four operating units that provide non-trucking services to our customers. These four Werner Logistics operating units are as follows: (i) truck brokerage (“Brokerage”) uses contracted carriers to complete customer shipments; (ii) freight management (“Freight Management”) offers a full range of single-source logistics management services and solutions; (iii) the intermodal (“Intermodal”) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; and (iv) Werner Global Logistics international (“WGL”) provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes. We generate other revenues from our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. None of these operations meets the quantitative reporting thresholds. As a result, these operations are grouped in “Other” in the tables below. “Corporate” includes revenues and expenses that are incidental to our activities and are not attributable to any of our operating segments, including gains and losses on sales of assets not attributable to our operating segments. We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Inter-segment eliminations in the table below represent transactions between reporting segments that are eliminated in consolidation. The following table summarizes our segment information (in thousands):
Information about the geographic areas in which we conduct business is summarized below (in thousands) as of and for the years ended December 31, 2016, 2015 and 2014. Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
We generate substantially all of our revenues within the United States or from North American shipments with origins or destinations in the United States. No customer generated more than 10% of our total revenues for 2016, 2015 and 2014. |
Quarterly Results of Operations |
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Quarterly Results of Operations | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
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Schedule II - Valuation and Qualifying Accounts |
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Schedule II - Valuation and Qualifying Accounts | SCHEDULE II WERNER ENTERPRISES, INC. VALUATION AND QUALIFYING ACCOUNTS
See report of independent registered public accounting firm. |
Summary of Significant Accounting Policies (Policies) |
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Nature of Business | Nature of Business: Werner Enterprises, Inc. (the “Company”) is a truckload transportation and logistics company operating under the jurisdiction of the U.S. Department of Transportation, similar governmental transportation agencies in the foreign countries in which we operate and various U.S. state regulatory authorities. For the years ended December 31, 2016, 2015 and 2014, our ten largest customers comprised 43%, 45% and 41%, respectively, of our revenues. No single customer generated more than 10% of the Company’s total revenues in 2016, 2015, and 2014. |
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Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements include the accounts of Werner Enterprises, Inc. and our majority-owned subsidiaries. All significant intercompany accounts and transactions relating to these majority-owned entities have been eliminated. |
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Use of Management Estimates | Use of Management Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the (i) reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (ii) reported amounts of revenues and expenses during the reporting period. The most significant estimates that affect our financial statements include the useful lives and salvage values of property and equipment, accrued liabilities for insurance and claims, estimates for income taxes and the allowance for doubtful accounts. Actual results could differ from those estimates. |
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Cash And Cash Equivalents | Cash and Cash Equivalents: We consider all highly liquid investments, purchased with a maturity of three months or less, to be cash equivalents. Accounts at banks with an aggregate excess of the amount of checks issued over cash balances are included in current liabilities in the Consolidated Balance Sheets, and changes in such accounts are reported as a financing activity in the Consolidated Statements of Cash Flows. |
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Trade Accounts Receivable | Trade Accounts Receivable: We record trade accounts receivable at the invoiced amounts, net of an allowance for doubtful accounts. The allowance for doubtful accounts is our estimate of the amount of probable credit losses and revenue adjustments in our existing accounts receivable. We review the financial condition of customers for granting credit and determine the allowance based on analysis of individual customers’ financial condition, historical write-off experience and national economic conditions. We evaluate the adequacy of our allowance for doubtful accounts quarterly. Past due balances over 90 days and exceeding a specified amount are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. |
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Inventories and Supplies | Inventories and Supplies: Inventories and supplies are stated at the lower of average cost or market and consist primarily of revenue equipment parts, tires, fuel and supplies. Tires placed on new revenue equipment are capitalized as a part of the equipment cost. Replacement tires are expensed when placed in service. |
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Property, Equipment, and Depreciation | Property, Equipment, and Depreciation: Additions and improvements to property and equipment are capitalized at cost, while maintenance and repair expenditures are charged to operations as incurred. Gains and losses on the sale or exchange of equipment are recorded in other operating expenses. Depreciation is calculated based on the cost of the asset, reduced by the asset’s estimated salvage value, using the straight-line method. Accelerated depreciation methods are used for income tax purposes. The lives and salvage values assigned to certain assets for financial reporting purposes are different than for income tax purposes. For financial reporting purposes, assets are generally depreciated using the following estimated useful lives and salvage values:
During fourth quarter 2016, due to the weak used truck market, we reduced the estimated life of certain trucks to more rapidly depreciate the trucks to their residual values. The effect of this change in accounting estimate was to increase 2016 depreciation expense and decrease operating income by $4.1 million and decrease net income by $2.6 million, or approximately $0.04 per diluted share. We expect depreciation expense for these trucks to continue at a similar higher level in first quarter 2017 and then gradually decline as these trucks are sold in the first few quarters of 2017. |
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Long-Lived Assets | Long-Lived Assets: We review our long-lived assets for impairment whenever events or circumstances indicate the carrying amount of a long-lived asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the long-lived asset is not recoverable and the carrying amount exceeds its fair value. For long-lived assets classified as held and used, the carrying amount is not recoverable when the carrying value of the long-lived asset exceeds the sum of the future net cash flows. We do not separately identify assets by operating segment because tractors and trailers are routinely transferred from one operating fleet to another. As a result, none of our long-lived assets have identifiable cash flows from use that are largely independent of the cash flows of other assets and liabilities. Thus, the asset group used to assess impairment would include all of our assets. |
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Insurance And Claims Accruals | Insurance and Claims Accruals: Insurance and claims accruals (both current and non-current) reflect the estimated cost (including estimated loss development and loss adjustment expenses) for (i) cargo loss and damage, (ii) bodily injury and property damage, (iii) group health and (iv) workers’ compensation claims not covered by insurance. The costs for cargo, bodily injury and property damage insurance and claims are included in insurance and claims expense in the Consolidated Statements of Income; the costs of group health and workers’ compensation claims are included in salaries, wages and benefits expense. The insurance and claims accruals are recorded at the estimated ultimate payment amounts. Such insurance and claims accruals are based upon individual case estimates (including negative development) and estimates of incurred-but-not-reported losses using loss development factors based upon past experience. Actual costs related to insurance and claims have not differed materially from estimated accrued amounts for all years presented. An actuary reviews our undiscounted self-insurance reserves for bodily injury and property damage claims and workers’ compensation claims at year-end. For the years ended December 31, 2016, 2015, and 2014 our self-insured retention (“SIR”) and deductible amount for liability claims is $2.0 million plus administrative expenses, for each occurrence involving bodily injury or property damage. We are also responsible for varying annual aggregate amounts of liability for claims in excess of the SIR/deductible. Liability claims in excess of these aggregates are covered under premium-based policies (issued by insurance companies) to coverage levels that our management considers adequate. We are also responsible for administrative expenses for each occurrence involving bodily injury or property damage. Our SIR for workers’ compensation claims is $1.0 million per claim, with premium-based insurance coverage for claims exceeding this amount. We also maintain a $27.3 million bond for the State of Nebraska and a $6.9 million bond for our workers’ compensation insurance carrier. Under these insurance arrangements, we maintained $25.8 million in letters of credit as of December 31, 2016. |
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Revenue Recognition | Revenue Recognition: The Consolidated Statements of Income reflect recognition of operating revenues (including fuel surcharge revenues) and related direct costs when the shipment is delivered. For shipments where a third-party capacity provider (including independent contractors under contract with us) is utilized to provide some or all of the service and we (i) are the primary obligor in regard to the shipment delivery, (ii) establish customer pricing separately from carrier rate negotiations, (iii) generally have discretion in carrier selection and/or (iv) have credit risk on the shipment, we record both revenues for the dollar value of services we bill to the customer and rent and purchased transportation expense for transportation costs we pay to the third-party provider upon the shipment’s delivery. In the absence of the conditions listed above, we record revenues net of those expenses related to third-party providers. |
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Derivative Financial Instrument | Derivative Financial Instrument: We manage our interest rate risk through an interest rate swap. The derivative financial instrument is recognized in the Consolidated Balance Sheets at fair value. The effect on earnings from recognizing the fair value of this derivative financial instrument depends on its intended use, its hedge designation, and its effectiveness in offsetting changes in the fair value of the exposure it is hedging. Changes in the fair value of the instrument designated to reduce or eliminate adverse fluctuations in the fair values of recognized assets and liabilities and unrecognized firm commitments are reported currently in earnings along with changes in the fair values of the hedged items. Changes in the effective portion of the fair value of the instrument used to reduce or eliminate adverse fluctuations in cash flows of anticipated or forecasted transactions is reported in equity as a component of accumulated other comprehensive income (loss), net of income tax effects. Amounts in accumulated other comprehensive income (loss) are reclassified to earnings when the related hedged items affect earnings or the anticipated transactions are no longer probable. Amounts reported in earnings are classified consistent with the item being hedged. |
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Foreign Currency Translation | Foreign Currency Translation: Local currencies are generally considered the functional currencies outside the United States. Assets and liabilities are translated at year-end exchange rates for operations in local currency environments. Foreign revenues and expense items denominated in the functional currency are translated at the average rates of exchange prevailing during the year. Foreign currency translation adjustments reflect the changes in foreign currency exchange rates applicable to the net assets of the foreign operations. Foreign currency translation adjustments are recorded in accumulated other comprehensive loss within stockholders’ equity in the Consolidated Balance Sheets and as a separate component of comprehensive income in the Consolidated Statements of Comprehensive Income. |
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Income Taxes | Income Taxes: We use the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In accounting for uncertain tax positions, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize interest and penalties directly related to income tax matters in income tax expense. |
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Common Stock And Earnings Per Share | Common Stock and Earnings Per Share: Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. There are no differences in the numerators of our computations of basic and diluted earnings per share for any periods presented. The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).
There were no options to purchase shares of common stock that were outstanding during the periods indicated above that were excluded from the computation of diluted earnings per share because the option purchase price was greater than the average market price of the common shares during the period. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. |
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Equity Compensation | Equity Compensation: We have an equity compensation plan that provides for grants of non-qualified stock options, restricted stock, restricted stock units and stock appreciation rights to our associates and directors. We apply the fair value method of accounting for equity compensation awards. Issuances of stock upon an exercise of stock options or vesting of restricted stock are made from treasury stock; shares reacquired to satisfy tax withholding obligations upon vesting of restricted stock are recorded as treasury stock. Grants of stock options, restricted stock, and performance awards vest in increments, and we recognize compensation expense over the requisite service period of each award. We accrue compensation expense for performance awards for the estimated number of shares expected to be issued using the most current information available at the date of the financial statements. If the performance objectives are not met, no compensation expense will be recognized, and any previously recognized compensation expense will be reversed. |
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Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are not included in net income, but rather are recorded directly in stockholders’ equity. For the years ended December 31, 2016, 2015 and 2014, comprehensive income consists of net income, foreign currency translation adjustments and change in fair value of interest rate swap. |
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New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted: In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” which requires presentation of deferred tax assets and liabilities as non-current in the balance sheet, which simplified the current guidance. Effective January 1, 2016, we early-adopted the guidance and retrospectively adjusted the December 31, 2015 presentation by reclassifying $28.0 million of current deferred tax assets into the non-current liability “Deferred income taxes.” In April 2015, the FASB issued ASU No. 2015-3, “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be recorded as a direct reduction of the debt liability on the balance sheet rather than as an asset. The provisions of this update became effective for us as of January 1, 2016, and, upon adoption, had no material effect on our consolidated financial position, results of operations or cash flows. |
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Accounting Standards Updates Not Yet Effective | Accounting Standards Updates Not Yet Effective: On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The FASB has also issued ASU No. 2016-08, 2016-10, 2016-11, and 2016-12 in 2016, with additional guidance related to revenue recognition matters. In July 2015, the FASB voted to approve a one-year deferral of the effective date of the new revenue recognition standard and to permit early adoption but no earlier than the original effective date (annual periods beginning after December 15, 2016); such decisions were documented in the FASB’s ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” As a result of the deferral, the new standard (as well as ASU No. 2016-08, 2016-10, 2016-11 and 2016-12) will become effective for us beginning January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures and have not yet selected a transition method. While we cannot yet determine the quantitative impact on our consolidated financial statements, we currently expect the new standard to affect the timing of revenue recognition. Today we recognize revenue and related direct costs when the shipment is delivered. The new standard will require us to recognize revenue over time. In July 2015, the FASB issued ASU No. 2015-11, “Inventory: Simplifying the Measurement of Inventory,” which requires inventory to be recorded at the lower of cost and net realizable value (instead of lower of cost or market). The provisions of this update are effective as of January 1, 2017, and are not expected to have a material effect on our consolidated financial position, results of operations or cash flows, as nearly all of our inventory is recorded at cost. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The provisions of this update are effective for fiscal years beginning after December 15, 2018. We are evaluating the effect that ASU No. 2016-02 will have on our consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of this update are effective for fiscal years beginning after December 15, 2016 and are not expected to have a material effect on our consolidated financial position, results of operations, or cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The provisions of this update are effective for fiscal years beginning after December 15, 2017. We are evaluating the effect that ASU No. 2016-15 will have on our consolidated cash flows. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows - (Topic 230) Restricted Cash (a Consensus of the FASB Emerging Issues Task Force),” which requires an entity to include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The provisions of this update are effective for fiscal years beginning after December 15, 2017. We are evaluating the effect ASU No. 2016-18 will have on our consolidated cash flows and related disclosures. Other ASUs not identified above and which are not effective until after December 31, 2016 are not expected to have a material effect on our consolidated financial position, results of operations or cash flows. |
Summary of Significant Accounting Polices (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Useful Life | For financial reporting purposes, assets are generally depreciated using the following estimated useful lives and salvage values:
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Schedule Of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).
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Credit Facilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | At December 31, 2016, the aggregate future maturities of long-term debt by year are as follows (in thousands):
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Notes Receivable (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Receivable | At December 31, notes receivable consisted of the following (in thousands):
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Student Loan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Receivable | At December 31, student notes receivable consisted of the following (in thousands):
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Income Taxes (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Expense | Income tax expense consisted of the following (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differs from the federal corporate tax rate of 35% in 2016, 2015 and 2014 as follows (in thousands):
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Schedule of Deferred Tax Assets and Liabilities | At December 31, deferred tax assets and liabilities consisted of the following (in thousands):
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Reconciliation of Unrecognized Tax Benefits | The reconciliations of beginning and ending gross balances of unrecognized tax benefits for 2016 and 2015 are shown below (in thousands).
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Equity Compensation and Employee Benefit Plans (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Compensation Expense and Related Income Tax Benefit Recognized | The following table summarizes the equity compensation expense and related income tax benefit recognized in the Consolidated Statements of Income (in thousands):
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Schedule of Equity Compensation Stock Options Activity | The following table summarizes stock option activity for the year ended December 31, 2016:
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Intrinsic Value of Stock Options Exercised | The total intrinsic value of stock options exercised was as follows (in thousands):
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Schedule of Equity Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes restricted award activity for the year ended December 31, 2016:
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Schedule of Equity Compensation Performance Award Activity | The following table summarizes performance award activity for the year ended December 31, 2016:
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Contributions for Employee Stock Purchase Plan | Our contributions for the Purchase Plan were as follows (in thousands):
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Contributions and Administrative Expenses Under 401(k) Retirement Savings Plan | Salaries, wages and benefits expense in the accompanying Consolidated Statements of Income includes our 401(k) Plan contributions and administrative expenses, which were as follows (in thousands):
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Deferred Compensation Assets and Liabilities | The accumulated benefit obligation and aggregate market value of the life insurance policies were as follows (in thousands):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Segment Financial Information | The following table summarizes our segment information (in thousands):
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Schedule Of Revenue And Long-Lived Assets, By Geographical Areas | Information about the geographic areas in which we conduct business is summarized below (in thousands) as of and for the years ended December 31, 2016, 2015 and 2014. Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
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Quarterly Results of Operations (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Results of Operations |
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Schedule II - Valuation and Qualifying Accounts (Tables) |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts |
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Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Percentage of customer revenue | 43.00% | 45.00% | 41.00% |
Accounts receivable recorded investment past due days | 90 | ||
Self insurance retention liability | $ 2.0 | $ 2.0 | $ 2.0 |
Self insurance retention Workers' compensation | 1.0 | ||
Letters of credit outstanding, amount | 25.8 | ||
Reclassification of Deferred Tax Asset [Member] | |||
Prior period reclassification adjustment | 28.0 | ||
State of Nebraska [Member] | |||
Workers' compensation insurance bonds | 27.3 | ||
Workers' Compensation Insurance Carrier [Member] | |||
Workers' compensation insurance bonds | $ 6.9 |
Summary of Significant Accounting Policies (Schedule of Estimated Useful Life) (Details) - USD ($) |
12 Months Ended | |
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Dec. 31, 2016 |
Dec. 31, 2015 |
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Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years | |
Salvage value percentage | 0.00% | |
Tractors [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 80 months | |
Salvage value percentage | 0.00% | |
Trailers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | |
Salvage value | $ 1,000 | |
Service and Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Salvage value percentage | 0.00% | |
Minimum | Service and Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | 3 |
Maximum | Service and Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years |
Summary of Significant Accounting Policies (Schedule Of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||||||||||
Net Income | $ 21,811 | $ 18,920 | $ 18,306 | $ 20,092 | $ 36,648 | $ 32,076 | $ 31,848 | $ 23,142 | $ 79,129 | $ 123,714 | $ 98,650 |
Weighted average common shares outstanding | 72,057 | 71,957 | 72,122 | ||||||||
Dilutive effect of stock-based awards | 336 | 599 | 616 | ||||||||
Shares used in computing diluted earnings per share | 72,393 | 72,556 | 72,738 | ||||||||
Basic earnings per share | $ 0.30 | $ 0.26 | $ 0.25 | $ 0.28 | $ 0.51 | $ 0.45 | $ 0.44 | $ 0.32 | $ 1.10 | $ 1.72 | $ 1.37 |
Diluted earnings per share | $ 0.30 | $ 0.26 | $ 0.25 | $ 0.28 | $ 0.51 | $ 0.44 | $ 0.44 | $ 0.32 | $ 1.09 | $ 1.71 | $ 1.36 |
Number of antidilutive options that were excluded from computation of earnings per share | 0 | 0 | 0 |
Summary of Significant Accounting Policies (Schedule of Effects of Change in Accounting Estimate) (Details) - Change in accounting method accounted for as change in estimate [Member] $ / shares in Units, $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
$ / shares
| |
Change in Accounting Estimate [Line Items] | |
Change in Accounting Estimate, Description | During fourth quarter 2016, due to the weak used truck market, we reduced the estimated life of certain trucks to more rapidly depreciate the trucks to their residual values. |
Depreciation | $ 4.1 |
Net income | $ (2.6) |
Diluted earnings per share | $ / shares | $ (0.04) |
Credit Facilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Line of Credit Facility [Line Items] | ||
2017 | $ 20,000 | |
2018 | 0 | |
2019 | 75,000 | |
2020 | 85,000 | |
2021 | 0 | |
Total | $ 180,000 | $ 75,000 |
Notes Receivable (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 52,020 | $ 45,924 |
Less current portion | 14,590 | 11,597 |
Notes receivable - non-current | 37,430 | 34,327 |
Independent Contractors | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 46,831 | 38,450 |
Other Debtors [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 5,189 | $ 7,474 |
Student Notes Receivable (Details) - Student Loan [Member] - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Student notes receivable | $ 34,097 | $ 19,436 |
Allowance for doubtful student notes receivable | (15,682) | (8,622) |
Total student notes receivable, net of allowance | 18,415 | 10,814 |
Less current portion, net of allowance | 7,350 | 4,747 |
Student notes receivable - non-current portion | $ 11,065 | $ 6,067 |
Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Examination [Line Items] | |||
Federal corporate tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) in net liability for unrecognized tax benefits | $ (1.0) | $ (0.6) | |
Accrued interest expense | 0.2 | 0.2 | |
Unrecognized tax benefits that would impact our effective tax rate | 3.9 | 5.0 | |
Interest included in total liability | 1.1 | $ 1.4 | |
Significant increases or decreases for uncertain tax positions | $ 0.0 | ||
State and Foreign Tax Authorities | Minimum | |||
Income Tax Examination [Line Items] | |||
Period of statute of limitations (years) | 3 years | ||
State and Foreign Tax Authorities | Maximum | |||
Income Tax Examination [Line Items] | |||
Period of statute of limitations (years) | 4 years |
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Federal current | $ 237 | $ 32,090 | $ 51,260 |
State current | 2,928 | 5,665 | 6,606 |
Foreign current | 534 | 1,250 | 220 |
Current income tax expense (benefit), total | 3,699 | 39,005 | 58,086 |
Federal deferred | 42,895 | 33,912 | 4,503 |
State deferred | 1,737 | 4,530 | 535 |
Deferred income tax expense (benefit), total | 44,632 | 38,442 | 5,038 |
Total income tax expense | $ 48,331 | $ 77,447 | $ 63,124 |
Income Taxes (Schedule of Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 44,611 | $ 70,406 | $ 56,621 |
State income taxes, net of federal tax benefits | 3,032 | 6,627 | 4,641 |
Non-deductible meals and entertainment | 1,549 | 1,687 | 1,497 |
Income tax credits | (1,900) | (1,700) | (1,600) |
Other, net | 1,039 | 427 | 1,965 |
Total income tax expense | $ 48,331 | $ 77,447 | $ 63,124 |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Insurance and claims accruals | $ 74,015 | $ 71,285 |
Compensation - related liabilities | 10,056 | 10,187 |
Allowance for uncollectible accounts | 6,135 | 6,138 |
Other | 4,168 | 6,291 |
Gross deferred tax assets | 94,374 | 93,901 |
Property and equipment | 377,093 | 330,580 |
Prepaid expenses | 7,737 | 7,229 |
Other | 2,313 | 2,356 |
Gross deferred tax liabilities | 387,143 | 340,165 |
Net deferred tax liability | $ 292,769 | $ 246,264 |
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, beginning balance | $ 7,717 | $ 8,583 |
Gross increases - tax positions in prior period | 236 | 229 |
Gross decreases - tax position in prior period | (217) | 0 |
Gross increases - current-period tax positions | 473 | 769 |
Settlements | (2,154) | (1,864) |
Unrecognized tax benefits, ending balance | $ 6,055 | $ 7,717 |
Derivative Financial Instruments (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Cash Flow Hedge Interest Rate Swap Details [Abstract] | |
Notional value of interest rate swap | $ 75.0 |
Fair value of interest rate swap | $ 1.0 |
Equity Compensation and Employee Benefit Plans (Equity Compensation Expense and Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Stock Options | |||
Equity Compensation [Abstract] | |||
Pre-tax compensation expense | $ (25) | $ 30 | $ 116 |
Tax benefit | (9) | 11 | 46 |
Stock expense, net of tax | (16) | 19 | 70 |
Restricted Stock | |||
Equity Compensation [Abstract] | |||
Pre-tax compensation expense | 2,337 | 1,875 | 4,134 |
Tax benefit | 886 | 722 | 1,622 |
Stock expense, net of tax | 1,451 | 1,153 | 2,512 |
Performance Shares | |||
Equity Compensation [Abstract] | |||
Pre-tax compensation expense | 167 | 2,514 | 1,859 |
Tax benefit | 63 | 968 | 724 |
Stock expense, net of tax | $ 104 | $ 1,546 | $ 1,135 |
Equity Compensation and Employee Benefit Plans (Intrinsic Value of Stock Options Exercised) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity Compensation [Abstract] | |||
Intrinsic value of stock options exercised | $ 119 | $ 655 | $ 3,687 |
Equity Compensation and Employee Benefit Plans (Schedule of Equity Compensation Restricted Stock Activity) (Details) - Restricted Stock shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2016
$ / shares
shares
| |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 445 |
Number of shares granted | shares | 67 |
Number of shares vested | shares | (159) |
Number of shares forfeited | shares | (60) |
Number of shares nonvested at end of period | shares | 293 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 24.32 |
Weighted average grant date fair value shares granted | $ / shares | 26.54 |
Weighted average grant date fair value shares vested | $ / shares | 22.95 |
Weighted average grant date fair value shares forfeited | $ / shares | 22.35 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 25.98 |
Equity Compensation and Employee Benefit Plans (Schedule of Equity Compensation Performance Shares Activity) (Details) - Performance Shares shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2016
$ / shares
shares
| |
Equity Compensation [Abstract] | |
Number of shares nonvested at beginning of period | shares | 258 |
Number of shares granted | shares | 110 |
Number of shares vested | shares | (60) |
Number of shares forfeited | shares | (184) |
Number of shares nonvested at end of period | shares | 124 |
Weighted average grant date fair value nonvested at beginning of period | $ / shares | $ 27.23 |
Weighted average grant date fair value shares granted | $ / shares | 26.53 |
Weighted average grant date fair value shares vested | $ / shares | 27.11 |
Weighted average grant date fair value shares forfeited | $ / shares | 26.78 |
Weighted average grant date fair value nonvested at end of period | $ / shares | $ 27.33 |
Equity Compensation and Employee Benefit Plans (Contributions for Employee Stock Purchase Plan) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Contributions for Employee Stock Purchase Plan | $ 183 | $ 182 | $ 188 |
Equity Compensation and Employee Benefit Plans (Contributions and Administrative Expenses Under 401(k) Retirement Savings Plan) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | |||
401(k) Plan contributions and administrative expenses | $ 2,113 | $ 2,041 | $ 1,812 |
Equity Compensation and Employee Benefit Plans (Accumulated Benefit Obligation and Aggregate Market Value of Life Insurance Policies) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 6,920 | $ 7,068 |
Aggregate market value | $ 5,821 | $ 6,216 |
Commitments and Contingencies (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Commitment for property and equipment purchases | $ 83.8 |
Estimated litigation liability | $ 1.2 |
Related Party Transactions (Details) - Principal Stockholder [Member] |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Related Party Transaction [Line Items] | |
Lease annual rent payments | $ 1.00 |
Leasehold improvements to land total | 6,600,000 |
Related party expense | $ 50,000 |
Segment Information (Narratives) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
Segments
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 518,832 | $ 508,676 | $ 498,681 | $ 482,802 | $ 528,783 | $ 534,448 | $ 534,644 | $ 495,654 | $ 2,008,991 | $ 2,093,529 | $ 2,139,289 |
Operating income | $ 34,956 | $ 29,074 | $ 29,553 | $ 32,487 | $ 57,261 | $ 52,800 | $ 52,210 | $ 38,185 | 126,070 | 200,456 | 160,088 |
Truckload Transportation Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,533,981 | 1,644,874 | 1,702,137 | ||||||||
Operating income | 107,713 | 189,850 | 152,992 | ||||||||
Werner Logistics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 417,172 | 393,174 | 390,645 | ||||||||
Operating income | 20,734 | 16,898 | 7,535 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 57,062 | 54,512 | 46,588 | ||||||||
Operating income | (6,177) | (7,513) | (3,991) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,749 | 2,297 | 2,803 | ||||||||
Operating income | 3,800 | 1,221 | 3,552 | ||||||||
Subtotal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,009,964 | 2,094,857 | 2,142,173 | ||||||||
Inter-segment eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ (973) | $ (1,328) | $ (2,884) |
Segment Information (Schedule Of Revenue And Long-Lived Assets, By Geographical Areas) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 518,832 | $ 508,676 | $ 498,681 | $ 482,802 | $ 528,783 | $ 534,448 | $ 534,644 | $ 495,654 | $ 2,008,991 | $ 2,093,529 | $ 2,139,289 |
Long-lived assets | 1,362,638 | 1,154,470 | 1,362,638 | 1,154,470 | 1,013,782 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,760,214 | 1,821,026 | 1,857,624 | ||||||||
Long-lived assets | 1,341,703 | 1,134,433 | 1,341,703 | 1,134,433 | 989,815 | ||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 183,058 | 191,453 | 187,124 | ||||||||
Long-lived assets | 20,614 | 19,879 | 20,614 | 19,879 | 23,734 | ||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 65,719 | 81,050 | 94,541 | ||||||||
Long-lived assets | 321 | 158 | 321 | 158 | 233 | ||||||
Total Foreign Countries [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 248,777 | 272,503 | 281,665 | ||||||||
Long-lived assets | $ 20,935 | $ 20,037 | $ 20,935 | $ 20,037 | $ 23,967 |
Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 518,832 | $ 508,676 | $ 498,681 | $ 482,802 | $ 528,783 | $ 534,448 | $ 534,644 | $ 495,654 | $ 2,008,991 | $ 2,093,529 | $ 2,139,289 |
Operating income | 34,956 | 29,074 | 29,553 | 32,487 | 57,261 | 52,800 | 52,210 | 38,185 | 126,070 | 200,456 | 160,088 |
Net Income | $ 21,811 | $ 18,920 | $ 18,306 | $ 20,092 | $ 36,648 | $ 32,076 | $ 31,848 | $ 23,142 | $ 79,129 | $ 123,714 | $ 98,650 |
Basic earnings per share | $ 0.30 | $ 0.26 | $ 0.25 | $ 0.28 | $ 0.51 | $ 0.45 | $ 0.44 | $ 0.32 | $ 1.10 | $ 1.72 | $ 1.37 |
Diluted earnings per share | $ 0.30 | $ 0.26 | $ 0.25 | $ 0.28 | $ 0.51 | $ 0.44 | $ 0.44 | $ 0.32 | $ 1.09 | $ 1.71 | $ 1.36 |
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 10,298 | $ 10,017 | $ 9,939 |
Charged to cost and expenses | (245) | 692 | 206 |
Write-offs (recoveries) of doubtful accounts | 870 | 411 | 128 |
Balance at end of period | 9,183 | 10,298 | 10,017 |
Student Loan [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 8,622 | 17,603 | 14,948 |
Charged to cost and expenses | 19,019 | 12,595 | 15,336 |
Write-offs (recoveries) of doubtful accounts | 11,959 | 21,576 | 12,681 |
Balance at end of period | $ 15,682 | $ 8,622 | $ 17,603 |