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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                      TO                     
Commission File Number: 1-4364

r-20210930_g1.jpg
RYDER SYSTEM, INC.
(Exact name of registrant as specified in its charter)
Florida59-0739250
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
11690 N.W. 105th Street
Miami,Florida33178
(305) 500-3726
(Address of principal executive offices, including zip code)(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ryder System, Inc. Common Stock ($0.50 par value)RNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes         No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes         No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No   
The number of shares of Ryder System, Inc. Common Stock outstanding at September 30, 2021 was 53,693,263.




RYDER SYSTEM, INC.
FORM 10-Q QUARTERLY REPORT
TABLE OF CONTENTS
 

i

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
 
 Three months ended September 30,Nine months ended September 30,
 2021202020212020
 (In thousands, except per share amounts)
Lease & related maintenance and rental revenues$1,013,968 $933,771 $2,941,084 $2,730,187 
Services revenue1,320,761 1,120,544 3,762,389 3,174,999 
Fuel services revenue124,320 96,260 359,435 301,977 
 Total revenues2,459,049 2,150,575 7,062,908 6,207,163 
Cost of lease & related maintenance and rental725,341 758,351 2,164,222 2,351,993 
Cost of services1,163,606 932,510 3,255,123 2,680,292 
Cost of fuel services116,439 92,930 340,595 291,359 
Other operating expenses32,382 30,009 99,763 93,423 
Selling, general and administrative expenses255,589 211,183 766,599 643,866 
Non-operating pension costs, net(148)7,200 (530)9,357 
Used vehicle sales, net(69,303)(12,919)(149,788)17,253 
Interest expense53,752 62,608 162,613 192,459 
Miscellaneous (income) loss, net(5,952)(10,552)(55,198)(11,830)
Restructuring and other items, net4,137 24,490 22,463 92,637 
2,275,843 2,095,810 6,605,862 6,360,809 
Earnings (loss) from continuing operations before income taxes183,206 54,765 457,046 (153,646)
Provision for (benefit from) income taxes44,547 9,680 117,235 (15,897)
Earnings (loss) from continuing operations138,659 45,085 339,811 (137,749)
Loss from discontinued operations, net of tax(605)(9,251)(1,827)(10,129)
 Net earnings (loss)$138,054 $35,834 $337,984 $(147,878)
Earnings (loss) per common share — Basic
Continuing operations$2.64 $0.86 $6.46 $(2.64)
Discontinued operations(0.01)(0.18)(0.03)(0.20)
Net earnings (loss)$2.63 $0.68 $6.43 $(2.83)
Earnings (loss) per common share — Diluted
Continuing operations$2.58 $0.85 $6.33 $(2.64)
Discontinued operations(0.01)(0.17)(0.03)(0.20)
Net earnings (loss)$2.57 $0.68 $6.30 $(2.83)
See accompanying Notes to Condensed Consolidated Financial Statements.
Note: EPS amounts may not be additive due to rounding.


1




RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)

 Three months ended September 30,Nine months ended September 30,
 2021202020212020
 (In thousands)
Net earnings (loss)$138,054 $35,834 $337,984 $(147,878)
Other comprehensive income (loss):
Changes in cumulative translation adjustment and unrealized losses from cash flow hedges(24,232)32,767 (5,741)(43,975)
Amortization of pension and postretirement items
6,974 13,796 20,941 28,946 
Income tax expense related to amortization of pension and postretirement items
(1,541)(3,300)(4,512)(6,405)
Amortization of pension and postretirement items, net of taxes5,433 10,496 16,429 22,541 
Change in net actuarial loss and prior service cost
 (89,627)116 (94,166)
Income tax (expense) benefit related to change in net actuarial loss and prior service cost
 21,286 (80)22,373 
Change in net actuarial loss and prior service cost, net of taxes
 (68,341)36 (71,793)
Other comprehensive income (loss), net of taxes(18,799)(25,078)10,724 (93,227)
Comprehensive income (loss)$119,255 $10,756 $348,708 $(241,105)
See accompanying Notes to Condensed Consolidated Financial Statements.

2

RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
 
September 30,
2021
December 31,
2020
 (In thousands, except
share amounts)
Assets:
Current assets:
Cash and cash equivalents$202,736 $151,294 
Receivables, net1,361,532 1,182,350 
Inventories66,831 61,191 
Prepaid expenses and other current assets208,131 200,694 
Total current assets1,839,230 1,595,529 
Revenue earning equipment, net
8,435,031 8,777,015 
Operating property and equipment, net of accumulated depreciation of $1,259,758 and $1,212,164
942,393 927,058 
Goodwill475,267 475,245 
Intangible assets, net
38,090 43,216 
Sales-type leases and other assets1,166,101 1,113,891 
Total assets$12,896,112 $12,931,954 
Liabilities and shareholders’ equity:
Current liabilities:
Short-term debt and current portion of long-term debt$1,354,821 $516,581 
Accounts payable733,400 547,389 
Accrued expenses and other current liabilities1,066,406 989,178 
Total current liabilities3,154,627 2,053,148 
Long-term debt4,632,296 6,093,655 
Other non-current liabilities1,379,688 1,403,861 
Deferred income taxes1,215,850 1,125,733 
Total liabilities10,382,461 10,676,397 
Commitments and contingencies (Note 16)
Shareholders’ equity:
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, September 30, 2021 and December 31, 2020
  
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, September 30, 2021 — 53,693,263 and December 31, 2020 — 53,732,033
26,846 26,866 
Additional paid-in capital1,177,067 1,132,954 
Retained earnings2,116,219 1,912,942 
Accumulated other comprehensive loss(806,481)(817,205)
Total shareholders’ equity2,513,651 2,255,557 
Total liabilities and shareholders’ equity$12,896,112 $12,931,954 
See accompanying Notes to Condensed Consolidated Financial Statements.
3

RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Nine months ended September 30,
20212020
(In thousands)
Cash flows from operating activities from continuing operations:
Net earnings (loss)$337,984 $(147,878)
Less: Loss from discontinued operations, net of tax(1,827)(10,129)
Earnings (loss) from continuing operations339,811 (137,749)
Depreciation expense1,349,239 1,552,318 
Used vehicle sales, net(149,788)17,253 
Amortization expense and other non-cash charges, net12,787 93,513 
Non-cash lease expense70,477 67,949 
Non-operating pension costs, net and share-based compensation expense35,469 28,376 
Deferred income tax expense (benefit)86,199 (29,875)
Collections on sales-type leases99,305 85,662 
Changes in operating assets and liabilities:
Receivables(160,454)6,646 
Inventories(5,650)20,499 
Prepaid expenses and other assets(91,147)(11,822)
Accounts payable119,144 (14,733)
Accrued expenses and other non-current liabilities(20,501)18,552 
Net cash provided by operating activities from continuing operations1,684,891 1,696,589 
Cash flows from investing activities from continuing operations:
Purchases of property and revenue earning equipment(1,427,684)(879,400)
Sales of revenue earning equipment516,466 390,767 
Sales of operating property and equipment54,606 9,918 
Other (4,298)(5,704)
Net cash used in investing activities from continuing operations(860,910)(484,419)
Cash flows from financing activities from continuing operations:
Net repayments of commercial paper and other(97,048)(499,642)
Debt proceeds 2,084,343 
Debt repayments(543,345)(2,081,434)
Dividends on common stock(91,296)(89,672)
Common stock issued23,650 3,962 
Common stock repurchased(56,652)(11,924)
Other(3,363)(9,348)
Net cash provided by (used in) financing activities from continuing operations(768,054)(603,715)
Effect of exchange rate changes on cash and cash equivalents(4,590)2,866 
Increase (decrease) in cash and cash equivalents from continuing operations51,337 611,321 
Increase (decrease) in cash and cash equivalents from discontinued operations105 (657)
Increase (decrease) in cash and cash equivalents51,442 610,664 
Cash and cash equivalents at beginning of year151,294 73,584 
Cash and cash equivalents at end of period$202,736 $684,248 
See accompanying Notes to Condensed Consolidated Financial Statements.
4

RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited)

Three months ended September 30, 2021
 Preferred
Stock
Common StockAdditional
Paid-In Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
 
 AmountSharesParTotal
 (In thousands, except share amounts)
Balance as of July 1, 2021$ 53,773,599 $26,886 $1,163,267 $2,015,743 $(787,682)$2,418,214 
Comprehensive income (loss)    138,054 (18,799)119,255 
Common stock dividends declared —$0.58 per share
    (31,947) (31,947)
Common stock issued under employee stock award and stock purchase plans and other 16,957 9 3,089   3,098 
Common stock repurchases (97,293)(49)(1,994)(5,631) (7,674)
Share-based compensation   12,705  — 12,705 
Balance as of September 30, 2021$ 53,693,263 $26,846 $1,177,067 $2,116,219 $(806,481)$2,513,651 
Three months ended September 30, 2020
 Preferred
Stock
Common StockAdditional
Paid-In Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
 
 AmountSharesParTotal
 (In thousands, except share amounts)
Balance as of July 1, 2020$ 53,818,841 $26,909 $1,113,883 $1,922,940 $(904,640)$2,159,092 
Comprehensive income (loss)— — — — 35,834 (25,078)10,756 
Common stock dividends declared —$0.56 per share
— — — — (30,401)— (30,401)
Common stock issued under employee stock award and stock purchase plans and other— 70,282 35 2,687 — — 2,722 
Share-based compensation— — — 8,389 — — 8,389 
Balance as of September 30, 2020$ 53,889,123 $26,944 $1,124,959 $1,928,373 $(929,718)$2,150,558 
See accompanying Notes to Condensed Consolidated Financial Statements.








5

RYDER SYSTEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited)
Nine months ended September 30, 2021
 Preferred
Stock
Common StockAdditional
Paid-In Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
 
 AmountSharesParTotal
 (In thousands, except share amounts)
Balance as of January 1, 2021$ 53,732,033 $26,866 $1,132,954 $1,912,942 $(817,205)$2,255,557 
Comprehensive income (loss)    337,984 10,724 348,708 
Common stock dividends declared —$1.70 per share
    (93,611) (93,611)
Common stock issued under employee stock award and stock purchase plans and other 696,524 348 23,302   23,650 
Common stock repurchases (735,294)(368)(15,188)(41,096) (56,652)
Share-based compensation   35,999   35,999 
Balance as of September 30, 2021$ 53,693,263 $26,846 $1,177,067 $2,116,219 $(806,481)$2,513,651 
Nine months ended September 30, 2020
 Preferred
Stock
Common StockAdditional
Paid-In Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
 
 AmountSharesParTotal
 (In thousands, except share amounts)
Balance as of January 1, 2020$ 53,278,316 $26,639 $1,108,649 $2,177,513 $(836,491)$2,476,310 
Adoption of new accounting standard— — — — (5,077)— (5,077)
Comprehensive income (loss)— — — — (147,878)(93,227)(241,105)
Common stock dividends declared —$1.68 per share
— — — — (90,627)— (90,627)
Common stock issued under employee stock award and stock purchase plans and other— 913,905 457 3,505 — — 3,962 
Common stock repurchases— (303,098)(152)(6,214)(5,558)— (11,924)
Share-based compensation— — — 19,019 — — 19,019 
Balance as of September 30, 2020$ 53,889,123 $26,944 $1,124,959 $1,928,373 $(929,718)$2,150,558 

See accompanying Notes to Condensed Consolidated Financial Statements.

6

RYDER SYSTEM, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1. GENERAL

Interim Financial Statements

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Ryder System, Inc. (Ryder) and all entities in which Ryder has a controlling voting interest (subsidiaries) and variable interest entities (VIE) required to be consolidated in accordance with generally accepted accounting principles in the United States (GAAP). The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the accounting policies described in our 2020 Annual Report on Form 10-K and should be read in conjunction with the Consolidated Financial Statements and notes thereto. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair statement have been included and the disclosures herein are adequate. The operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. We adjusted our presentation of the revolving credit facility proceeds and repayments in the Condensed Consolidated Statements of Cash Flows for 2020 from a net basis to reflect a gross basis.

We report our financial performance based on three business segments: (1) Fleet Management Solutions (FMS), which provides full service leasing and leasing with flexible maintenance options, commercial rental and maintenance services of trucks, tractors and trailers to customers principally in the United States (U.S.), Canada and the United Kingdom (U.K.); (2) Supply Chain Solutions (SCS), which provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, last mile and professional services in North America; and (3) Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the U.S. that includes dedicated vehicles, drivers, management, 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.

The COVID-19 effects negatively impacted several areas of our businesses, particularly in the first half of 2020. While we are experiencing positive momentum in our businesses, any additional negative effects of the pandemic may have a further impact on our business and financial results, as well as on significant judgments and estimates, including those related to goodwill and other asset impairments, residual values and other depreciation assumptions, deferred income taxes and annual effective tax rates, variable revenue considerations, the valuation of our pension plans, and allowance for credit losses.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Reference Rate Reform

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848). This update provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another rate expected to be discontinued at the end of 2021 because of reference rate reform. The update is effective for all transactions between March 12, 2020 through December 31, 2022. We continuously evaluate the impact on our consolidated financial position, results of operations, and cash flows.

Leases

In July 2021, the FASB issued ASU No. 2021-05, Lessor - Certain Leases with Variable Lease Payments (Topic 842). This update requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as sales-type or direct financing leases. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Entities are permitted to apply this amendment using the retrospective or prospective approach. We do not expect the adoption of this guidance to have a material impact on our consolidated financial position, results of operations, and cash flows.






7

RYDER SYSTEM, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(unaudited)
3. REVENUE
Disaggregation of Revenue

The following tables disaggregate our revenue recognized by primary geographical market by our reportable business segments and by industry for SCS. Refer to Note 18, "Segment Reporting," for the disaggregation of our revenue by major products/service lines.

Primary Geographical Markets
Three months ended September 30, 2021
FMSSCSDTSEliminationsTotal
(In thousands)
United States$1,295,617 $689,180 $380,357 $(152,014)$2,213,140 
Canada76,361 57,085  (7,991)125,455 
Europe64,362    64,362 
Mexico 56,092   56,092 
Total revenues$1,436,340 $802,357 $380,357 $(160,005)$2,459,049 

Three months ended September 30, 2020
FMSSCSDTSEliminationsTotal
(In thousands)
United States$1,167,900 $581,858 $299,680 $(127,316)$1,922,122 
Canada67,321 56,313  (4,421)119,213 
Europe61,996    61,996 
Mexico 47,244   47,244 
Total revenues$1,297,217 $685,415 $299,680 $(131,737)$2,150,575 
Nine months ended September 30, 2021
FMSSCSDTSEliminationsTotal
(In thousands)
United States$3,756,851 $1,952,193 $1,055,575 $(436,793)$6,327,826 
Canada223,623 171,908  (20,627)374,904 
Europe199,592    199,592 
Mexico 160,586   160,586 
Total revenues$4,180,066 $2,284,687 $1,055,575 $(457,420)$7,062,908 
Nine months ended September 30, 2020
FMSSCSDTSEliminationsTotal
(In thousands)
United States$3,446,869 $1,545,715 $928,512 $(377,536)$5,543,560 
Canada198,566 150,153  (12,624)336,095 
Europe190,196    190,196 
Mexico 137,312   137,312 
Total revenues$3,835,631 $1,833,180 $928,512 $(390,160)$6,207,163 

8

RYDER SYSTEM, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(unaudited)
Industry

Our SCS business segment included revenue from the below industries:
Three months ended September 30,Nine months ended September 30,
2021202020212020
(In thousands)
Automotive$303,923 $273,589 $882,977 $671,263 
Technology and healthcare103,387 103,976 310,422 279,875 
Consumer packaged goods and retail316,876 250,449 876,362 716,880 
Industrial and other78,171 57,401 214,926 165,162 
Total SCS revenues$802,357 $685,415 $2,284,687 $1,833,180 

Lease & Related Maintenance and Rental Revenues
The non-lease revenue from maintenance services related to our FMS business is recognized in "Lease & related maintenance and rental revenues" in the Condensed Consolidated Statements of Earnings. For the three months ended September 30, 2021 and 2020, we recognized $255 million and $241 million, respectively. For the nine months ended September 30, 2021 and 2020, we recognized $765 million and $719 million, respectively.
Deferred Revenue
The following table includes the changes in deferred revenue due to the collection and deferral of cash or the satisfaction of our performance obligation under the contract:
Nine months ended September 30,
20212020
(In thousands)
Balance as of beginning of period$629,739 $603,687 
Recognized as revenue during period from beginning balance(147,944)(141,677)
Consideration deferred during period, net115,562 161,460 
Foreign currency translation adjustment and other(418)(703)
Balance as of end of period$596,939 $622,767 

Contracted Not Recognized Revenue

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (contracted not recognized revenue). Contracted not recognized revenue primarily includes deferred revenue and amounts for full service ChoiceLease maintenance revenue that will be recognized as revenue in future periods as we provide maintenance services to our customers. Contracted not recognized revenue excludes (1) variable consideration as it is not included in the transaction price consideration allocated at contract inception, (2) revenues from our lease component of our ChoiceLease product and commercial rental product, (3) revenues from contracts with an original duration of one year or less, including SelectCare contracts, and (4) revenue from SCS, DTS and other contracts where there are remaining performance obligations when we have the right to invoice but the revenue to be recognized in the future corresponds directly with the value delivered to the customer. Contracted not recognized revenue was $2.4 billion as of September 30, 2021.


9

RYDER SYSTEM, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(unaudited)
4. RECEIVABLES, NET
September 30, 2021December 31, 2020
(In thousands)
Trade$1,198,674 $1,051,618 
Sales-type leases143,844 132,003 
Other, primarily warranty and insurance45,621 41,753 
1,388,139 1,225,374 
Allowance for credit losses and other(26,607)(43,024)
Total
$1,361,532 $1,182,350 


The following table provides a reconciliation of our allowance for credit losses and other:
Nine months ended September 30,
20212020
(In thousands)
Balance as of beginning of period$43,024 $22,761 
Changes to provisions for credit losses(5,097)35,000 
Impact of adoption of new accounting standard, write-offs, and other (1)
(11,320)(12,368)
Balance as of end of period$26,607 $45,393 
 ————————————
(1)Includes the cumulative-effect adjustment for the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), during the nine months ended September 30, 2020.


10

RYDER SYSTEM, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(unaudited)
5. REVENUE EARNING EQUIPMENT, NET
 Estimated Useful LivesSeptember 30, 2021December 31, 2020
 CostAccumulated
Depreciation
Net
CostAccumulated
Depreciation