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SEGMENT REPORTING
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Ryder is a global leader in transportation and supply chain management solutions. Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. We report our financial performance based on three business segments: (1) FMS, which provides full service leasing and leasing with flexible maintenance options, commercial rental, and contract or transactional maintenance services of trucks, tractors and trailers to customers principally in the U.S., Canada and the U.K.; (2) SCS, which provides integrated logistics solutions, including distribution, management, dedicated transportation and professional services in North America; and (3) DTS, which provides turnkey transportation solutions in the U.S. that includes dedicated vehicles, drivers and engineering, and administrative support. Dedicated transportation services provided as part of an operationally integrated, multi-service, supply chain solution to SCS customers are primarily reported in the SCS business segment.

Our primary measurement of segment financial performance, defined as segment “Earnings from continuing operations before taxes” (EBT), includes an allocation of Central Support Services (CSS) and excludes non-operating pension costs and certain other items as discussed in Note 16, "Other Items Impacting Comparability." CSS represents those costs incurred to support all business segments, including finance and procurement, corporate services, human resources, information technology, public affairs, legal, marketing and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each segment accountable for their allocated share of CSS costs. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS, SCS and DTS as follows:

Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization;

Human resources — allocated under various methods, including based on estimated utilization and number of personnel supported;

Information technology — principally allocated based upon utilization-related metrics such as number of users or minutes of CPU time. Customer-related project costs and expenses are allocated to the business segment responsible for the project; and

Other — represents legal and other centralized costs and expenses including certain share-based incentive compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported.

Our FMS segment leases revenue earning equipment as well as provides rental vehicles, fuel, maintenance and other ancillary services to the SCS and DTS segments. EBT related to inter-segment equipment and services billed to SCS and DTS customers (equipment contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as “Eliminations”). Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used in providing services to SCS and DTS customers.

Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. We do not record right-of-use assets or liabilities for our intercompany operating leases between FMS and SCS and DTS business segments.
The following table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and earnings from continuing operations before income taxes.
Three months ended June 30,Six months ended June 30,
2020201920202019
(In thousands)
Revenue:
Fleet Management Solutions:
ChoiceLease$766,161  $757,271  $1,558,367  $1,497,329  
SelectCare125,851  136,360  261,997  272,138  
Commercial rental169,171  253,871  374,937  490,019  
Other12,332  22,996  35,758  46,225  
Fuel services revenue117,253  212,371  290,588  420,237  
ChoiceLease liability insurance revenue (1)
7,409  8,041  16,767  16,561  
Fleet Management Solutions1,198,177  1,390,910  2,538,414  2,742,509  
Supply Chain Solutions519,318  649,311  1,147,765  1,284,982  
Dedicated Transportation Solutions293,944  362,244  628,832  711,865  
Eliminations (2)
(116,157) (157,472) (258,423) (314,036) 
Total revenue$1,895,282  $2,244,993  $4,056,588  $4,425,320  
Earnings (Loss) Before Taxes:
Fleet Management Solutions$(103,735) $57,746  $(218,309) $118,657  
Supply Chain Solutions36,916  45,774  67,941  78,091  
Dedicated Transportation Solutions21,233  27,132  33,413  44,544  
Eliminations(7,745) (19,166) (17,814) (36,468) 
(53,331) 111,486  (134,769) 204,824  
Unallocated Central Support Services(10,718) (10,482) (20,104) (23,029) 
Non-operating pension costs (3)
(936) (6,713) (2,157) (13,175) 
Other items impacting comparability, net (4)
(29,792) 8,778  (51,381) 2,600  
Earnings (loss) from continuing operations before income taxes
$(94,777) $103,069  $(208,411) $171,220  
_______________ 
(1)In the first quarter of 2020, we announced our plan to exit the extension of our liability insurance coverage for ChoiceLease customers. The exit of this program is estimated to be completed in the second quarter of 2021. We have reclassed the revenues associated with this program from our ChoiceLease revenues for better comparability of our on-going operations as this is now consistent with management reporting.
(2)Represents the elimination of intercompany revenues in our FMS business segment.
(3)Non-operating pension costs include the amortization of net actuarial loss and prior service costs, interest cost and expected return on plan assets
components of pension and postretirement benefit costs and pension settlement charges if one has occurred.
(4)Refer to Note 16, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.

The following table sets forth the capital expenditures paid for each of our segments.
FMSSCSDTSCSSTotal
(In thousands)
Three months ended June 30, 2020
Capital expenditures paid$256,216  13,868  339  3,547  $273,970  
Three months ended June 30, 2019
Capital expenditures paid$1,161,089  12,738  517  9,706  $1,184,050  
Six months ended June 30, 2020
Capital expenditures paid$679,332  19,874  763  4,961  $704,930  
Six months ended June 30, 2019
Capital expenditures paid$2,167,218  25,494  860  17,189  $2,210,761