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.
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