Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Pension expense from continuing operations

Pension expense from continuing operations was as follows:

	Years ended December 31,
	2017			2016		2015
	(In thousands)
Company-administered plans:
Service cost	$	12,345		12,977		13,820
Interest cost	86,431			94,476		88,013
Expected return on plan assets	(91,062		)	(90,588	)	(98,892	)
Amortization of:
Net actuarial loss	32,987			31,777		30,741
Prior service cost (credit)	579			2,976		(306	)
	41,280			51,618		33,376
Union-administered plans	15,553			9,597		8,328
Net pension expense	$	56,833		61,215		41,704
Company-administered plans:
U.S.	$	43,717		53,319		34,986
Foreign	(2,437		)	(1,701	)	(1,610	)
	41,280			51,618		33,376
Union-administered plans	15,553			9,597		8,328
	$	56,833		61,215		41,704

Summary of weighted-average actuarial assumptions

The following table sets forth the weighted-average actuarial assumptions used in determining funded status:

	U.S. Plans December 31,		Foreign Plans December 31,
	2017	2016	2017	2016
Discount rate	3.70%	4.20%	2.70%	3.90%
Rate of increase in compensation levels	3.00%	3.00%	3.10%	3.10%

The following table sets forth the weighted-average actuarial assumptions used for Ryder’s pension plans in determining annual pension expense:

	U.S. Plans Years ended December 31,			Foreign Plans Years ended December 31,
	2017	2016	2015	2017	2016	2015
Discount rate	4.20%	4.50%	4.15%	3.90%	3.70%	3.70%
Rate of increase in compensation levels	3.00%	3.00%	3.00%	3.10%	3.10%	3.10%
Expected long-term rate of return on plan assets	5.40%	5.85%	5.95%	5.48%	5.44%	5.50%
Gain and loss amortization period (years)	21	23	23	26	27	27

Summary of benefit obligations, assets and funded status

The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:

	December 31,
	2017			2016
	(In thousands)
Change in benefit obligations:
Benefit obligations at January 1	$	2,228,762		2,091,844
Service cost	12,345			12,977
Interest cost	86,431			94,476
Actuarial loss	100,905			189,523
Pension annuity settlement	(66,423		)	—
Benefits paid	(104,054		)	(96,723	)
Foreign currency exchange rate changes	40,936			(63,335	)
Benefit obligations at December 31	2,298,902			2,228,762
Change in plan assets:
Fair value of plan assets at January 1	1,787,075			1,647,286
Actual return on plan assets	244,916			176,066
Employer contribution	41,219			127,991
Benefits paid	(104,054		)	(96,723	)
Pension annuity settlement	(71,299		)	—
Foreign currency exchange rate changes	43,473			(67,545	)
Fair value of plan assets at December 31	1,941,330			1,787,075
Funded status	$	(357,572	)	(441,687	)
Funded percent	84		%	80	%

Amounts recognized in the Consolidated Balance Sheets

The funded status of our pension plans was presented in the Consolidated Balance Sheets as follows:

	December 31,
	2017			2016
	(In thousands)
Noncurrent asset	$	58,708		14,049
Current liability	(3,863		)	(3,796	)
Noncurrent liability	(412,417		)	(451,940	)
Net amount recognized	$	(357,572	)	(441,687	)

Amounts recognized in accumulated other comprehensive loss (pre-tax)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:

	December 31,
	2017		2016
	(In thousands)
Prior service cost	$	11,135	11,714
Net actuarial loss	878,386		961,010
Net amount recognized	$	889,521	972,724

Summary of pension obligations greater than fair value of related plan assets

At December 31, 2017 and 2016, our accumulated benefit obligations, as well as, our pension obligations (accumulated benefit obligations (ABO), and projected benefit obligations (PBO)), greater than the fair value of the related plan assets for our U.S. and foreign plans were as follows:

	U.S. Plans December 31,			Foreign Plans December 31,		Total December 31,
	2017		2016	2017	2016	2017	2016
	(In thousands)
Total accumulated benefit obligations	$	1,781,882	1,748,171	492,864	454,301	2,274,746	2,202,472
Plans with pension obligations in excess of plan assets:
PBO	1,804,260		1,771,968	7,802	7,383	1,812,062	1,779,351
ABO	1,781,882		1,748,171	6,502	5,997	1,788,384	1,754,168
Fair value of plan assets	1,395,790		1,323,751	—	—	1,395,790	1,323,751

Fair value of each major category of pension plan assets and the level of inputs used to measure fair value

The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2017 and 2016:

	Fair Value Measurements at December 31, 2017
Asset Category	Total		Level 1	Level 2	Level 3
	(In thousands)
Equity securities:
U.S. common collective trusts	$	443,405	—	443,405	—
Foreign common collective trusts	458,111		—	458,111	—
Fixed income securities:
Corporate bonds	85,117		—	85,117	—
Common collective trusts	840,104		—	840,104	—
Private equity and hedge funds	114,593		—	—	114,593
Total	$	1,941,330	—	1,826,737	114,593

	Fair Value Measurements at December 31, 2016
Asset Category	Total		Level 1	Level 2	Level 3
	(In thousands)
Equity securities:
U.S. common collective trusts	$	429,456	—	429,456	—
Foreign common collective trusts	398,282		—	398,282	—
Fixed income securities:
Corporate bonds	76,086		—	76,086	—
Common collective trusts	780,367		—	780,367	—
Private equity and hedge funds	102,884		—	—	102,884
Total	$	1,787,075	—	1,684,191	102,884

Summary of changes in fair value of the pension plans Level 3 assets

The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for the years ended December 31, 2017 and 2016:

	2017			2016
	(In thousands)
Beginning balance at January 1	$	102,884		100,631
Return on plan assets:
Relating to assets still held at the reporting date	10,795			1,548
Relating to assets sold during the period	(405		)	703
Purchases, sales, settlements and expenses	1,319			2
Ending balance at December 31	$	114,593		102,884

Pension benefits expected to be paid

The following table details pension benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:

	(In thousands)
2018	$	102,131
2019	104,563
2020	109,013
2021	113,370
2022	117,272
2023-2027	626,726

Schedule of multi-employer plan

Among other factors, plans in the red zone are generally less than sixty-five percent funded, plans in the yellow zone are less than eighty percent funded, and plans in the green zone are at least eighty percent funded.

		Pension Protection Act Zone Status			Ryder Contributions							Expiration Date(s) of Collective-Bargaining Agreement(s)
Pension Fund	Employer Identification Number	2017	2016	FIP/RP Status Pending/ Implemented (1)	2017		2016		2015		Surcharge Imposed
					(Dollars in thousands)
Western Conference Teamsters	91-6145047	Green	Green	No	$	3,245	2,613		2,430		No	1/12/18 to 4/1/21
IAM National	51-6031295	Green	Green	No	3,891		4,162		3,801		No	3/31/17 to 11/30/19
Automobile Mechanics Local No. 701	36-6042061	Yellow	Yellow	RP Adopted	2,048		2,201		1,902		Yes	10/31/17 to 5/31/19
Central States Southeast and Southwest Areas	36-6044243	Red	Red	RP Adopted	244		259		254		Yes	5/6/17 to 10/31/17
Other funds					671		501		450
Total contributions					10,099		9,736		8,837
Pension settlement charges (benefit)					5,454		(139	)	(509	)
Union-administered plans					$	15,553	9,597		8,328

_____________ 

(1) The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented.

Other Postretirement Benefits

Defined Benefit Plan Disclosure [Line Items]

Pension expense from continuing operations

Total postretirement benefit income was as follows:

	Years ended December 31,
	2017			2016		2015
	(In thousands)
Service cost	$	191		215		363
Interest cost	833			906		1,097
Amortization of:
Net actuarial gain	(1,796		)	(1,989	)	(1,773	)
Prior service credit	(231		)	(231	)	(1,083	)
Postretirement benefit income	$	(1,003	)	(1,099	)	(1,396	)
U.S.	$	(1,308	)	(1,429	)	(1,887	)
Foreign	305			330		491
	$	(1,003	)	(1,099	)	(1,396	)

Summary of weighted-average actuarial assumptions

Assumptions used in determining accrued postretirement benefit obligations were as follows:

	U.S. Plan December 31,				Foreign Plan December 31,
	2017		2016		2017		2016
Discount rate	3.70	%	4.20	%	3.40	%	3.90	%
Rate of increase in compensation levels	3.00	%	3.00	%	3.00	%	3.00	%
Healthcare cost trend rate assumed for next year	7.25	%	7.50	%	5.00	%	5.00	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.00	%	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		2027		2017		2018

Amounts recognized in the Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets consisted of:

	December 31,
	2017		2016
	(In thousands)
Current liability	$	1,481	1,506
Noncurrent liability	19,760		19,459
Amount recognized	$	21,241	20,965

Amounts recognized in accumulated other comprehensive loss (pre-tax)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:

	December 31,
	2017			2016
	(In thousands)
Prior service credit	$	(154	)	(385	)
Net actuarial gain	(8,371		)	(10,186	)
Net amount recognized	$	(8,525	)	(10,571	)

Pension benefits expected to be paid

The following table details other postretirement benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter:

	(In thousands)
2018	$	1,491
2019	1,463
2020	1,428
2021	1,443
2022	1,442
2023-2027	6,602

Weighted-average discount rates used in determining annual postretirement benefit expense

The following table sets forth the weighted-average discount rates used in determining annual postretirement benefit expense:

	U.S. Plan Years ended December 31,			Foreign Plan Years ended December 31,
	2017	2016	2015	2017	2016	2015
Discount rate	4.20%	4.50%	4.15%	4.00%	4.00%	4.00%

Benefit obligations associated with postretirement benefit plans

The following table sets forth the benefit obligations associated with our postretirement benefit plans:

	December 31,
	2017			2016
	(In thousands)
Benefit obligations at January 1	$	20,965		21,626
Service cost	191			215
Interest cost	833			906
Actuarial loss (gain)	16			(338	)
Benefits paid	(1,182		)	(1,609	)
Foreign currency exchange rate changes	418			165
Benefit obligations at December 31	$	21,241		20,965