RYDER SYSTEM INC [R] Filings

10-Q 1 r-20210930.htm 10-Q r-20210930

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


☐			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

RYDER SYSTEM, INC.

(Exact name of registrant as specified in its charter)

Florida

59-0739250

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

11690 N.W. 105th Street

Miami,

Florida

33178

(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 class	Trading Symbol(s)	Name of each exchange on which registered
Ryder System, Inc. Common Stock ($0.50 par value)	R	New 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 filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging 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



		Page No.

PART I . FINANCIAL INFORMATION

ITEM 1.	Financial Statements (unaudited)

	Condensed Consolidated Statements of Earnings	1

	Condensed Consolidated Statements of Comprehensive Income	2

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Cash Flows	4

	Condensed Consolidated Statements of Shareholders' Equity	5

	Notes to Condensed Consolidated Financial Statements	7

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	53

ITEM 4.	Controls and Procedures	54

PART II . OTHER INFORMATION

ITEM 1.	Legal Proceedings	55

ITEM 1A.	Risk Factors	55

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55







ITEM 6.	Exhibits	56

SIGNATURE		57

Table of Contents

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,
	2021		2020		2021		2020
	(In thousands, except per share amounts)
Lease & related maintenance and rental revenues	$	1,013,968	$	933,771	$	2,941,084	$	2,730,187
Services revenue	1,320,761		1,120,544		3,762,389		3,174,999
Fuel services revenue	124,320		96,260		359,435		301,977
Total revenues	2,459,049		2,150,575		7,062,908		6,207,163

Cost of lease & related maintenance and rental	725,341		758,351		2,164,222		2,351,993
Cost of services	1,163,606		932,510		3,255,123		2,680,292
Cost of fuel services	116,439		92,930		340,595		291,359
Other operating expenses	32,382		30,009		99,763		93,423
Selling, general and administrative expenses	255,589		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 expense	53,752		62,608		162,613		192,459
Miscellaneous (income) loss, net	(5,952)		(10,552)		(55,198)		(11,830)
Restructuring and other items, net	4,137		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 taxes	183,206		54,765		457,046		(153,646)
Provision for (benefit from) income taxes	44,547		9,680		117,235		(15,897)
Earnings (loss) from continuing operations	138,659		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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
	(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 taxes	5,433		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.

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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, net	1,361,532		1,182,350
Inventories	66,831		61,191
Prepaid expenses and other current assets	208,131		200,694
Total current assets	1,839,230		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
Goodwill	475,267		475,245
Intangible assets, net	38,090		43,216
Sales-type leases and other assets	1,166,101		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 payable	733,400		547,389
Accrued expenses and other current liabilities	1,066,406		989,178
Total current liabilities	3,154,627		2,053,148
Long-term debt	4,632,296		6,093,655
Other non-current liabilities	1,379,688		1,403,861
Deferred income taxes	1,215,850		1,125,733
Total liabilities	10,382,461		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 capital	1,177,067		1,132,954
Retained earnings	2,116,219		1,912,942
Accumulated other comprehensive loss	(806,481)		(817,205)
Total shareholders’ equity	2,513,651		2,255,557
Total liabilities and shareholders’ equity	$	12,896,112	$	12,931,954

See accompanying Notes to Condensed Consolidated Financial Statements.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine months ended September 30,
	2021		2020
	(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 operations	339,811		(137,749)
Depreciation expense	1,349,239		1,552,318

Used vehicle sales, net	(149,788)		17,253
Amortization expense and other non-cash charges, net	12,787		93,513
Non-cash lease expense	70,477		67,949
Non-operating pension costs, net and share-based compensation expense	35,469		28,376
Deferred income tax expense (benefit)	86,199		(29,875)
Collections on sales-type leases	99,305		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 payable	119,144		(14,733)
Accrued expenses and other non-current liabilities	(20,501)		18,552
Net cash provided by operating activities from continuing operations	1,684,891		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 equipment	516,466		390,767
Sales of operating property and equipment	54,606		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 issued	23,650		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 operations	51,337		611,321
Increase (decrease) in cash and cash equivalents from discontinued operations	105		(657)
Increase (decrease) in cash and cash equivalents	51,442		610,664
Cash and cash equivalents at beginning of year	151,294		73,584
Cash and cash equivalents at end of period	$	202,736	$	684,248

See accompanying Notes to Condensed Consolidated Financial Statements.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)


	Three months ended September 30, 2021
	Preferred Stock		Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss
	Amount		Shares	Par								Total
	(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 Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss
	Amount		Shares	Par								Total
	(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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)


	Nine months ended September 30, 2021
	Preferred Stock		Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss
	Amount		Shares	Par								Total
	(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 Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss
	Amount		Shares	Par								Total
	(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.

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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.

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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
	FMS		SCS		DTS		Eliminations		Total
	(In thousands)
United States	$	1,295,617	$	689,180	$	380,357	$	(152,014)	$	2,213,140
Canada	76,361		57,085		—		(7,991)		125,455
Europe	64,362		—		—		—		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
	FMS		SCS		DTS		Eliminations		Total
	(In thousands)
United States	$	1,167,900	$	581,858	$	299,680	$	(127,316)	$	1,922,122
Canada	67,321		56,313		—		(4,421)		119,213
Europe	61,996		—		—		—		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
	FMS		SCS		DTS		Eliminations		Total
	(In thousands)
United States	$	3,756,851	$	1,952,193	$	1,055,575	$	(436,793)	$	6,327,826
Canada	223,623		171,908		—		(20,627)		374,904
Europe	199,592		—		—		—		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
	FMS		SCS		DTS		Eliminations		Total
	(In thousands)
United States	$	3,446,869	$	1,545,715	$	928,512	$	(377,536)	$	5,543,560
Canada	198,566		150,153		—		(12,624)		336,095
Europe	190,196		—		—		—		190,196
Mexico	—		137,312		—		—		137,312
Total revenues	$	3,835,631	$	1,833,180	$	928,512	$	(390,160)	$	6,207,163

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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,
	2021		2020		2021		2020
	(In thousands)
Automotive	$	303,923	$	273,589	$	882,977	$	671,263
Technology and healthcare	103,387		103,976		310,422		279,875
Consumer packaged goods and retail	316,876		250,449		876,362		716,880
Industrial and other	78,171		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,
	2021		2020
	(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, net	115,562		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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

4. RECEIVABLES, NET



	September 30, 2021		December 31, 2020
	(In thousands)
Trade	$	1,198,674	$	1,051,618
Sales-type leases	143,844		132,003
Other, primarily warranty and insurance	45,621		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,
	2021		2020
	(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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(unaudited)

5. REVENUE EARNING EQUIPMENT, NET

Estimated Useful Lives

September 30, 2021

December 31, 2020

Cost

Accumulated
Depreciation

Net

Cost

Accumulated
Depreciation