XML 124 R38.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Recent Accounting Pronouncements (Tables)
 12 Months Ended
Dec. 31, 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 Statements of Earnings and Comprehensive Income results as follows (in millions, except per share amounts):
 
Year ended December 31, 2018
 
Year ended December 31, 2017
 
As Previously Reported
Lessor Adjustments (1)
Lessee and
Other Adjustments (1)
As Revised
 
As Previously Reported
Lessor Adjustments (1)
Lessee and
Other Adjustments (1)
As Revised
 
 
Lease & related maintenance and rental revenues (1)
$
3,508.1

$
3.5

$
1.3

$
3,512.9

 
$
3,237.7

$
(17.0
)
$
—

$
3,220.7

Total revenues
8,409.2

3.5

1.3

8,413.9

 
7,297.1

(17.0
)
—

7,280.1

 
 
 
 
 
 
 
 
 
 
Cost of lease & related maintenance and rental (1)
2,566.3

(10.9
)
—

2,555.4

 
2,355.0

(1.8
)
—

2,353.2

Cost of services (2)
3,655.8

—

7.6

3,663.3

 
2,970.8

—

6.6

2,977.4

Other operating expenses
125.3

—

(1.4
)
124.0

 
115.5

—

(0.5
)
115.0

Selling, general and administrative expenses (2)
854.8

(2.5
)
(2.9
)
849.4

 
871.2

2.1

(2.4
)
870.9

Used vehicle sales, net
21.7

0.6

—

22.3

 
17.2

(0.3
)
—

17.0

Interest expense
178.6

—

1.9

180.5

 
140.4

—

1.5

141.9

Restructuring and other items, net (2)
25.1

—

(3.3
)
21.9

 
21.4

—

(4.1
)
17.3

Earnings (loss) from continuing operations before income taxes
373.9

16.3

(0.7
)
389.5

 
314.5

(17.0
)
(1.1
)
296.4

Provision for (benefit from) income taxes
98.3

4.3

—

102.5

 
(477.7
)
54.1

—

(423.7
)
Earnings (loss) from continuing operations
275.6

12.0

(0.7
)
286.9

 
792.3

(71.1
)
(1.1
)
720.1

Net earnings (loss)
$
273.3

$
12.0

$
(0.7
)
$
284.6

 
$
791.8

$
(71.1
)
$
(1.1
)
$
719.6

 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
170.0

$
14.3

$
—

$
184.4

 
$
918.4

$
(75.5
)
—

$
842.8

 
 
 
 
 
 
 
 
 
 
Earnings (loss) per common share - Basic
 
 
 
 
 
 
 
 
 
 Continuing operations
$
5.24

$
0.22

$
—

$
5.46

 
$
15.00

$
(1.36
)
$
—

$
13.64

        Net earnings (loss)
$
5.20

$
0.22

$
—

$
5.41

 
$
15.00

$
(1.36
)
$
—

$
13.63

 
 
 
 
 
 
 
 
 
 
Earnings (loss) per common share - Diluted
 
 
 
 
 
 
 
 
 
 Continuing operations
$
5.21

$
0.22

$
—

$
5.43

 
$
14.90

$
(1.36
)
$
—

$
13.54

        Net earnings (loss)
$
5.17

$
0.22

$
—

$
5.38

 
$
14.89

$
(1.36
)
$
—

$
13.53

————————————
(1)
We determined that 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 $19 million and $15 million during the years ended December 31, 2018 and 2017, respectively. We also reduced depreciation expense (included in "Cost of lease & related maintenance and rental") by approximately $17 million and $14 million during the years ended December 31, 2018 and 2017, respectively. We concluded these errors were not material to any of our previously issued consolidated financial statements.
(2)
Adjustments primarily reflect the reclassification of our Singapore operations that were shut down during 2019 into "Restructuring and other items, net,".

Note: Amounts may not be additive due to rounding.
Adoption of the new lease standard impacted our previously reported Consolidated Balance Sheet as follows (in millions):
 
 
December 31, 2018
 
 
As Previously
 
Lessor
 
Lessee
 
 
 
 
Reported
 
Adjustment (1)
 
Adjustment (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 Statements of Cash Flows as follows (in millions):
 
Year ended December 31, 2018
 
Year ended December 31, 2017
 
As Previously Reported
New Lease Standard Adjustments
As Revised
 
As Previously Reported
New Lease Standard Adjustments
As Revised
Net earnings (loss)
$
273.3

$
11.3

$
284.6

 
$
791.8

$
(72.2
)
$
719.6

Earnings (loss) from continuing operations
275.6

11.3

286.9

 
792.3

(72.2
)
720.1

Depreciation expense
1,395.0

(6.4
)
1,388.6

 
1,255.2

2.5

1,257.7

Used vehicle sales, net
21.7

0.6

22.3

 
17.2

(0.3
)
17.0

Amortization expense and other non-cash charges, net
31.2

36.8

67.9

 
8.3

32.7

41.0

Non-cash lease expense
—

81.1

81.1

 
—

67.8

67.8

Deferred income tax expense
104.6

4.3

108.9

 
(500.3
)
54.1

(446.2
)
Collections on sales-type leases and other items
—

82.8

82.8

 
—

81.0

81.0

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Receivables
(189.3
)
(3.8
)
(193.1
)
 
(173.8
)
(5.0
)
(178.9
)
Prepaid expenses and other assets
(65.8
)
(18.9
)
(84.7
)
 
(38.9
)
(56.9
)
(95.8
)
Accrued expenses and other non-current liabilities
3.1

(104.8
)
(101.8
)
 
78.4

(23.6
)
54.8

Net cash provided by operating activities from continuing operations
1,635.1

82.9

1,718.0

 
1,548.0

80.1

1,628.1

Collections on direct finance leases and other items
75.0

(75.0
)
—

 
73.2

(73.2
)
—

Net cash used in investing activities from continuing operations
(2,746.5
)
(75.0
)
(2,821.5
)
 
(1,365.5
)
(73.2
)
(1,438.7
)
Debt repaid
(797.8
)
(7.9
)
(805.7
)
 
(962.6
)
(6.9
)
(969.5
)
Net cash provided by (used in) financing activities from continuing operations
1,093.4

(7.9
)
1,085.5

 
(155.1
)
(6.9
)
(162.1
)
Note: Amounts may not be additive due to rounding.