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RECENT ACCOUNTING PRONOUNCEMENTS (Tables)
6 Months Ended
Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Adoption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Earnings and Comprehensive Income as follows (in millions, except per share amounts):
 
Three months ended June 30, 2018
 
Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
As Previously
Lessor
Lessee and Other
 
 
As Previously
Lessor
Lessee and Other
 
 
Reported
Adjustments (1)
Adjustments (1)
As Revised
 
Reported
Adjustments (1)
Adjustments (1)
As Revised
Lease & related maintenance and rental revenues
$
858.0

0.3

0.3

858.6

 
$
1,682.3

0.7

0.6

1,683.6

Total revenues
2,089.3

0.3

0.3

2,089.9

 
3,992.8

0.7

0.6

3,994.1

 
 
 
 
 
 
 
 
 
 
Cost of lease & related maintenance and rental
636.4

(3.6
)

632.8

 
1,255.6

(7.2
)

1,248.4

Cost of services (2)
906.0


2.0

908.1

 
1,693.3


3.6

1,696.9

Other operating expenses
30.9


(0.3
)
30.7

 
64.4


(0.8
)
63.7

Selling, general and administrative expenses (2)
212.9

0.8

(1.1
)
212.6

 
421.8

0.1

(1.4
)
420.4

Used vehicle sales, net
6.0

(0.5
)

5.6

 
13.4

(0.4
)

13.0

Interest expense
42.4


0.4

42.8

 
80.2


0.8

80.9

Restructuring and other items, net (2)
3.6

(0.2
)
(0.6
)
2.8

 
19.4


(1.5
)
17.9

Earnings from continuing operations before income taxes
98.3

3.8

(0.2
)
101.9

 
146.4

8.3

(0.1
)
154.6

Provision for income taxes
54.8

1.0


55.7

 
68.9

2.2


71.1

Earnings from continuing operations
43.5

2.8

(0.2
)
46.2

 
77.5

6.1

(0.1
)
83.5

Net earnings
42.3

2.8

(0.2
)
44.9

 
75.8

6.1

(0.1
)
81.8

 
 
 
 
 
 
 
 
 
 
Comprehensive income
4.9

4.3


9.2

 
55.9

7.6


63.4

 
 
 
 
 
 
 
 
 
 
Earnings per common share - Basic
 
 
 
 
 
 
 
 
 
        Continuing operations
$
0.83

0.05


0.88

 
$
1.47

0.12


1.59

        Net earnings
$
0.80

0.05


0.85

 
$
1.44

0.12


1.56

 
 
 
 
 
 
 
 
 
 
Earnings per common share - Diluted
 
 
 
 
 
 
 
 
 
        Continuing operations
$
0.82

0.05


0.87

 
$
1.46

0.12


1.58

        Net earnings
$
0.80

0.05


0.85

 
$
1.43

0.12


1.55

————————————
(1)
We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by reducing "Lease & related maintenance and rental revenues" by approximately $4.4 million and $9.1 million during the three and six months ended June 30, 2018, respectively. We also reduced depreciation expense (included in "Cost of lease & related maintenance and rental") by approximately $4.4 million and $9.1 million during the three and six months ended June 30, 2018, respectively. We concluded these errors were not material to any of our previously issued consolidated financial statements.
(2)
Adjustments primarily reflects the reclassification of our Singapore operations into "Restructuring and other items, net," that were shut down during 2019.
Note: Amounts may not be additive due to rounding.



Adoption of the new lease standard impacted our previously reported Consolidated Condensed Balance Sheet as follows (in millions):
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
As Previously
 
Lessor
 
Lessee
 
 
 
 
 
 
Reported
 
Adjustments (1)
 
Adjustments (1)
 
As Revised
Receivables, net
$
1,219.4

 
22.6

 

 
1,242.1

Prepaid expenses and other current assets
201.6

 
(23.3
)
 

 
178.3

Total current assets
1,568.4

 
(0.7
)
 

 
1,567.7

Revenue earning equipment, net
9,498.0

 
(84.2
)
 
2.2

 
9,416.0

Operating property and equipment, net
843.8

 

 
18.2

 
862.1

Sales-type leases and other assets
606.6

 
156.8

 
204.3

 
967.8

Total assets
13,051.1

 
72.0

 
224.7

 
13,347.8

Short-term debt and current portion of long term-debt
930.0

 

 
7.2

 
937.1

Accrued expenses and other current liabilities
630.5

 
145.1

 
72.2

 
847.7

Total current liabilities
2,292.3

 
145.1

 
79.3

 
2,516.7

Long-term debt
5,693.6

 

 
18.5

 
5,712.1

Other non-current liabilities
849.9

 
421.2

 
131.5

 
1,402.6

Deferred income taxes
1,304.8

 
(124.6
)
 
(0.5
)
 
1,179.7

Total liabilities
10,140.8

 
441.7

 
228.8

 
10,811.2

Retained earnings
2,710.7

 
(369.6
)
 
(3.8
)
 
2,337.3

Accumulated other comprehensive loss
(911.3
)
 
(0.1
)
 
(0.2
)
 
(911.6
)
Total shareholders' equity
2,910.3

 
(369.7
)
 
(4.1
)
 
2,536.6

Total liabilities and shareholders' equity
13,051.1

 
72.0

 
224.7

 
13,347.8


————————————
(1)
We determined that in a prior period certain lessor arrangements of revenue earning equipment historically accounted for as operating leases should have been accounted for as direct financing leases. Additionally, we evaluated our leases for classification and determined that certain lessee arrangements, primarily real estate leases, historically accounted for as operating leases should have been accounted for as capital leases. The prior period error was corrected by increasing "Receivables, net" by approximately $24 million and also increasing sales-type leases and other assets by approximately $65 million and reducing "Revenue earning equipment, net" by $83 million. We concluded these errors were not material to any of our previously issued consolidated financial statements.
Note: Amounts may not be additive due to rounding.


















Adoption of the new lease standard impacted our previously reported Consolidated Condensed Statements of Cash Flows as follows (in millions):
 
Six months ended June 30, 2018
 
As Previously Reported
 
New Lease Standard Adjustments
 
As Revised
Net earnings
$
75.8

 
6.0

 
81.8

Earnings from continuing operations
77.5

 
6.0

 
83.5

Depreciation expense
681.3

 
(5.8
)
 
675.5

Used vehicle sales, net
13.4

 
(0.4
)
 
13.0

Amortization expense and other non-cash charges, net
15.7

 
53.4

 
69.1

Deferred income tax expense
79.9

 
2.2

 
82.1

Collections on sales-type leases and other items

 
43.2

 
43.2

Changes in operating assets and liabilities:
 
 


 
 
Prepaid expenses and other assets
(15.2
)
 
(46.3
)
 
(61.5
)
Accrued expenses and other non-current liabilities
(62.7
)
 
(7.8
)
 
(70.5
)
Net cash provided by operating activities from continuing operations
820.3

 
44.5

 
864.8

Debt repaid
(446.7
)
 
(5.0
)
 
(451.7
)
Net cash provided by financing activities from continuing operations
519.1

 
(5.0
)
 
514.1

Collections on direct finance leases and other items
39.4

 
(39.4
)
 

Net cash used in investing activities from continuing operations
(1,348.9
)
 
(39.4
)
 
(1,388.3
)
 
 
 
 
 
 
Note: Amounts may not be additive due to rounding.