10 unchanged sentences
In the truckload sector, we focus on transporting consumer nondurable products that generally ship more consistently throughout the year.
−Removed: In the logistics sector, besides managing transportation requirements for individual customers, we provide additional sources of truck capacity, alternative modes of transportation, a global delivery network and systems analysis to optimize transportation needs.
+Added: In the logistics sector, besides managing transportation requirements for individual customers, we provide additional sources of truck capacity, alternative modes of transportation, a North American delivery network and systems analysis to optimize transportation needs.
Our success depends on our ability to efficiently and effectively manage our resources in the delivery of truckload transportation and logistics services to our customers.
1 unchanged sentence
Our ability to adapt to changes in customer transportation requirements is essential to efficiently deploy resources and make capital investments in tractors and trailers (with respect to our TTS segment) or obtain qualified third-party capacity at a reasonable price (with respect to our Werner Logistics segment).
−Removed: Although our business volume is not highly concentrated, we may also be affected by our customers’ financial failures or loss of customer business.
+Added: We may also be affected by our customers’ financial failures or loss of customer business.
Revenues for our TTS segment operating units (Dedicated and One-Way Truckload) are typically generated on a per-mile basis and also include revenues such as stop charges, loading and unloading charges, equipment detention charges and equipment repositioning charges.
16 unchanged sentences
The most significant variable expenses that impact the TTS segment are driver salaries and benefits, fuel, fuel taxes (included in taxes and licenses expense), payments to independent contractors (included in rent and purchased transportation expense), supplies and maintenance and insurance and claims.
−Removed: As discussed further in the comparison of operating results for third quarter 2020 to third quarter 2019, several industry-wide issues have caused, and could continue to cause, costs to increase in future periods.
−Removed: These issues include shortages of drivers or independent contractors, changing fuel prices, compliance with new or proposed regulations, tightening of the commercial trucking liability insurance market and a weak used equipment market.
−Removed: Our main fixed costs include depreciation expense for tractors and trailers and equipment licensing fees (included in taxes and licenses
−Removed: The TTS segment requires substantial cash expenditures for tractor and trailer purchases.
+Added: As discussed further in the comparison of operating results for first quarter 2021 to first quarter 2020, several industry-wide issues have caused, and could continue to cause, costs to increase in future periods.
+Added: These issues include shortages of drivers or independent contractors, changing fuel prices, compliance with new or proposed regulations and tightening of the commercial truck liability insurance market.
+Added: Our main fixed costs include depreciation expense for tractors and trailers and equipment licensing fees (included in taxes and licenses expense).
+Added: The TTS segment
+Added: requires substantial cash expenditures for tractor and trailer purchases.
We fund these purchases with net cash from operations and financing available under our existing credit facilities, as management deems necessary.
−Removed: We provide non-trucking services primarily through the four operating units within our Werner Logistics segment (Truckload Logistics, Intermodal, WGL and Final Mile).
+Added: We provide non-trucking services primarily through the three operating units within our Werner Logistics segment (Truckload Logistics, Intermodal, and Final Mile).
+Added: In first quarter 2021, we completed the previously-announced sale of the WGL freight forwarding services for international ocean and air shipments to Scan Global Logistics Group.
+Added: WGL had annual revenues of $53 million in 2020, and we realized a $1.0 million gain from the sale in first quarter 2021.
Unlike our TTS segment, the Werner Logistics segment is less asset-intensive and is instead dependent upon qualified associates, information systems and qualified third-party capacity providers.
11 unchanged sentences
Our leadership team meets frequently to address issues related to customers, freight, drivers, safety, staffing, human resources, and costs and provides regular updates to all our associates.
−Removed: Throughout our offices and terminal network, we are closely following the safety guidelines set forth by the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO), including hygiene and distancing.
−Removed: We made significant investments in personal protective products to keep our associates safe, and over half of our office associates continue working from home.
+Added: Throughout our offices and terminal network, we are closely following the safety guidelines set forth by the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO), including hygiene and social distancing.
+Added: We made and intend to continue to make significant investments in personal protective products to keep our associates safe, and we are helping to get our associates access to the vaccine.
+Added: Over half of our office associates continue working from home.
We introduced Werner-specific associate relief plans to provide rapid and needed assistance to those Werner associates affected by the virus.
1 unchanged sentence
We believe our freight base, which is heavily weighted toward customers delivering essential products that are continually being restocked in today’s economy, is enabling us to more effectively manage through the difficult economic environment created by the pandemic.
−Removed: Revenues from our top 100 customers were 86% of our total revenues in the first nine months of 2020, and 65% of those revenues were from the discount retail, home improvement retail, food and beverage and consumer packaged goods verticals.
−Removed: Our results in third quarter 2020 reflect strong freight market conditions in a rapidly recovering economy and tight driver market.
−Removed: Freight demand in our One-Way Truckload fleet was strong and gained momentum in third quarter, and Dedicated freight demand remained strong during the quarter.
+Added: Our results in first quarter 2021 reflect seasonally strong freight market conditions in a strengthening economy and tight driver market.
+Added: Freight demand in our One-Way Truckload fleet was strong and gained momentum in first quarter, and Dedicated freight demand remained strong during the quarter.
We believe we proactively managed and adapted our fleet and cost structure without compromising service.
−Removed: While there remain significant uncertainties related to COVID-19 and its effect on the economy, we believe that demand for our services will remain strong for the fourth quarter and continuing into 2021.
+Added: While there remain significant uncertainties related to COVID-19 and its effect on the economy, we believe that demand for our services will continue to be strong during the remainder of 2021.
We performed a customer industry and financial risk assessment on our 100 largest customers shortly after the pandemic declaration.
While our financial risk has clearly increased since the pandemic began, we believe we have a relatively lower level of financial risk with the predominance of financially stronger companies in our customer base as well as a lower overall industry risk due to our focus on industries delivering essential products.
−Removed: At the end of third quarter 2020, we believe we are well positioned with a strong balance sheet and sufficient liquidity.
+Added: At the end of first quarter 2021, we believe we are well positioned with a strong balance sheet and sufficient liquidity.
Our debt is low at $175 million, or a net debt ratio of 0.2 times earnings before interest, income taxes, depreciation and amortization for the last twelve months.
−Removed: We had available liquidity of $320 million, considering cash on hand and available credit of $280.4 million under our two facilities that expire in May 2024.
+Added: We had available liquidity of $357 million, considering cash on hand and available credit facilities of $274 million.
We also have sufficient cushion with our two debt covenants.
−Removed: We currently plan to continue paying our quarterly dividend, which we have paid quarterly for 34 consecutive years.
−Removed: This cash outlay currently results in slightly more than $6 million per quarter.
+Added: We currently plan to continue paying our quarterly dividend, which we have paid quarterly since 1987.
+Added: This cash outlay currently results in slightly less than $7 million per quarter.
Net capital expenditures in 2021 currently are expected to be in the range of $275 million to $300 million.
−Removed: We continue to expect free cash flow (net cash provided by operating activities less net cash used for capital expenditures) to exceed $150 million in 2020.
We do not currently expect the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted in March 2020, to have a material impact on our consolidated financial statements.
−Removed: Under the CARES Act, we are deferring payment of certain employer payroll taxes for the remainder of 2020, with 50% due December 31, 2021 and 50% due December 31, 2022.
−Removed: We also expect to utilize a provision allowing accelerated income tax depreciation for certain assets, which will not impact our
−Removed: effective tax rate.
+Added: Under the CARES Act, we deferred payment of certain employer payroll taxes for 2020, with 50% due December 31, 2021 and 50% due December 31, 2022.
+Added: We also expect to utilized a provision allowing accelerated income tax depreciation for certain assets, which did not impact our effective tax rate.
There have been a number of regulatory actions and waivers related to the COVID-19 pandemic, in an effort to keep the supply chain moving.
3 unchanged sentences
Three Months Ended (3ME)
−Removed: September 30, Nine Months Ended (9ME)
−Removed: September 30, Percentage Change in Dollar Amounts
−Removed: 2020 2019 2020 2019 3ME 9ME
+Added: March 31, Percentage Change in Dollar Amounts
+Added: 2021 2020 3ME
(Amounts in thousands) $ % $ % %
16 unchanged sentences
Net income $ 46,492 7.5 $ 23,058 3.9 101.6
−Removed: The following tables set forth the operating revenues, operating expenses and operating income for the TTS segment, as well as certain statistical data regarding our TTS segment operations for the periods indicated.
+Added: The following tables set forth the operating revenues, operating expenses and operating income for the TTS segment and certain statistical data regarding our TTS segment operations, as well as statistical data for the One-Way Truckload and Dedicated operating units within TTS.
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2020 2019 2020 2019
Truckload Transportation Services segment (amounts in thousands) $ % $ %
6 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: Truckload Transportation Services segment 2020 2019 % Change 2020 2019 % Change
+Added: Truckload Transportation Services segment 2021 2020 % Change
Average tractors in service 7,790 7,862 (0.9) %
25 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2020 2019 2020 2019
Werner Logistics segment (amounts in thousands) $ % $ %
5 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: Werner Logistics segment 2020 2019 % Change 2020 2019 % Change
+Added: Werner Logistics segment 2021 2020 % Change
Average tractors in service 39 32 21.9 %
1 unchanged sentence
Total trailers (at quarter end) 1,440 1,625 (11.4) %
−Removed: Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019
+Added: Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020
Operating Revenues
−Removed: Operating revenues decreased 4.5% for the three months ended September 30, 2020, compared to the same period of the prior year.
−Removed: When comparing third quarter 2020 to third quarter 2019, TTS segment revenues decreased $22.1 million, or 4.6%, and Werner Logistics revenues decreased $4.0 million, or 3.3%.
−Removed: During third quarter 2020, freight demand in our One-Way Truckload fleet was strong and improved throughout the quarter.
−Removed: This trend has continued during fourth quarter to-date.
−Removed: In our Dedicated fleet, freight demand remained strong in third quarter 2020.
−Removed: Approximately three-quarters of our Dedicated revenues are with essential products customers, and their freight volumes were much better than normal during third quarter 2020.
−Removed: We added 180 Dedicated trucks during third quarter 2020.
−Removed: Trucking revenues, net of fuel surcharge, remained flat in third quarter 2020 compared to third quarter 2019 due to a 4.9% decrease in the average number of tractors in service, which was offset by a 5.0% increase in average revenues per tractor per week, net of fuel surcharge.
−Removed: The increase in average revenues per tractor was due primarily to improved pricing in both Dedicated and One-Way Truckload.
−Removed: We currently expect average revenues per total mile for the One-Way Truckload fleet for the fourth quarter 2020 to be in a range of 3% to 5% higher when compared to fourth quarter 2019.
−Removed: The average number of tractors in service in the TTS segment decreased 4.9% to 7,615 in third quarter 2020 from 8,010 in third quarter 2019.
−Removed: We ended third quarter 2020 with 7,710 trucks in the TTS segment, a year-over-year decrease of 345 trucks compared to the end of third quarter 2019, and a sequential increase of 60 trucks compared to the end of second quarter 2020.
−Removed: We added 180 Dedicated trucks during third quarter 2020, which we had anticipated following delayed implementations of Dedicated fleet start-ups.
−Removed: While we currently expect modest truck growth in fourth quarter 2020, we expect our truck count at the end of 2020 to be at the bottom end of the range of (3)% to (1)% lower when compared to the fleet size at year-end 2019.
+Added: Operating revenues increased 4.0% for the three months ended March 31, 2021, compared to the same period of the prior year.
+Added: When comparing first quarter 2021 to first quarter 2020, TTS segment revenues decreased $1.9 million, or 0.4%, and Werner Logistics revenues increased $25.7 million, or 22.9%.
+Added: During first quarter 2021, freight demand in our One-Way Truckload fleet was seasonally strong.
+Added: This trend has continued during second quarter to-date.
+Added: In our Dedicated fleet, freight demand remained strong in first quarter 2021.
+Added: Improving demand from a strengthening economy, combined with several factors that are limiting capacity, resulted in a very good first quarter freight market.
+Added: The abnormally severe winter weather events in February and March 2021 were disruptive to operations.
+Added: As each event developed, we made safety the highest priority by working with our drivers to park their trucks until it was safe to resume operations.
+Added: These actions lowered our miles per truck, and we experienced increased weather-related maintenance, driver pay and other costs.
+Added: However, we were pleased that our safety-first focus resulted in a decline in our chargeable DOT reportable accident rate in first quarter 2021.
+Added: The unusually cold mid-February weather and resulting power outages also temporarily closed certain of our driving schools and terminal locations.
+Added: Trucking revenues, net of fuel surcharge, increased 0.4% in first quarter 2021 compared to first quarter 2020 due to a 1.3% increase in average revenues per tractor per week, net of fuel surcharge, partially offset by a 0.9% decrease in the average number of tractors in service.
+Added: The increase in average revenues per tractor was due primarily to improved pricing in both Dedicated and One-Way Truckload, offset by a decline in miles per truck caused by adverse winter weather, fewer driver teams, and an increased mix of Dedicated.
+Added: We currently expect average revenues per total mile for the One-Way Truckload fleet for second quarter 2021 to increase in a range of 13% to 16% when compared to the same period in 2020, and we currently expect Dedicated average revenues per truck per week to increase in a range of 3% to 5% in 2021 compared to 2020.
+Added: The average number of tractors in service in the TTS segment decreased 0.9% to 7,790 in first quarter 2021 from 7,862 in first quarter 2020.
+Added: We ended first quarter 2021 with 7,735 trucks in the TTS segment, a year-over-year decrease of 100 trucks compared to the end of first quarter 2020, and a sequential decrease of 95 trucks compared to the end of fourth quarter 2020.
+Added: Within TTS, our Dedicated unit ended first quarter 2021 with 4,920 trucks (or 64% of our total TTS segment trucks) compared to 4,685 trucks (or 60%) a year ago.
+Added: We currently expect modest truck growth in 2021 and expect our truck count at the end of 2021 to be in the range of 1% to 3% higher when compared to the fleet size at year-end 2020.
We cannot predict whether future driver shortages, if any, will adversely affect our ability to maintain our fleet size.
If such a driver shortage were to occur, it could result in a fleet size reduction, and our results of operations could be adversely affected.
−Removed: Trucking fuel surcharge revenues decreased 35.6% to $36.8 million in third quarter 2020 from $57.2 million in third quarter 2019 due to lower average fuel prices in the third 2020 quarter.
+Added: Trucking fuel surcharge revenues decreased 7.0% to $47.5 million in first quarter 2021 from $51.0 million in first quarter 2020 due to fewer miles in first quarter 2021, despite higher average diesel fuel prices.
These revenues represent collections from customers for the increase in fuel and fuel-related expenses, including the fuel component of our independent contractor cost (recorded as rent and purchased transportation expense) and fuel taxes (recorded in taxes and licenses expense), when diesel fuel prices rise.
3 unchanged sentences
Department of Energy fuel price survey which is released every Monday.
−Removed: Our fuel surcharge programs are designed to (i) recoup higher fuel costs from customers when fuel prices rise and (ii) provide customers with the benefit of
−Removed: lower fuel costs when fuel prices decline.
+Added: Our fuel surcharge programs are designed to (i) recoup higher fuel costs from customers when fuel prices rise and (ii) provide customers with the benefit of lower fuel costs when fuel prices decline.
These programs generally enable us to recover a majority, but not all, of the fuel price increases.
1 unchanged sentence
Fuel prices that change rapidly in short time periods also impact our recovery because the surcharge rate in most programs only changes once per week.
−Removed: Werner Logistics revenues are generated by its four operating units and exclude revenues for full truckload shipments transferred to the TTS segment, which are recorded as trucking revenues by the TTS segment.
−Removed: Werner Logistics also recorded revenue and brokered freight expense of $30 thousand in third quarter 2020 and $1 thousand in third quarter 2019 for Intermodal drayage movements performed by the TTS segment (also recorded as trucking revenue by the TTS segment), and these transactions between reporting segments are eliminated in consolidation.
−Removed: In third quarter 2020, Werner Logistics revenues decreased $4.0 million, or 3.3%, primarily due to lower Truckload Logistics revenues (60% of total Logistics revenues).
−Removed: Truckload Logistics volume declined 15% in third quarter 2020, and revenue per load was unchanged.
−Removed: Intermodal revenues (28% of Logistics revenues) increased 31% in third quarter 2020, due to volume growth of 37% and 5% lower revenue per load from lower rates and fuel surcharges.
−Removed: The Werner Logistics gross margin percentage in third quarter 2020 of 10.8% decreased from 15.2% in third quarter 2019 due to the unprecedented large and rapid rise in spot truckload rates which significantly increased the cost of capacity for contractual brokerage shipments in third quarter 2020.
−Removed: The Werner Logistics operating margin in third quarter 2020 declined to (0.7)% from 2.5% as the 31.0% decline in gross profit exceeded the 11.9% decline in other operating expenses.
−Removed: During third quarter 2020, we addressed customer pricing for many of our contractual brokerage accounts, and we currently expect that Werner Logistics will be profitable in fourth quarter 2020.
+Added: Werner Logistics revenues are generated by its three operating units, following the sale of its WGL freight forwarding services for international ocean and air shipments in first quarter 2021.
+Added: Werner Logistics revenues exclude revenues for full truckload shipments transferred to the TTS segment, which are recorded as trucking revenues by the TTS segment.
+Added: Werner Logistics also recorded revenue and brokered freight expense of $134 thousand in first quarter 2021 and $11 thousand in first quarter 2020 for Intermodal drayage movements performed by the TTS segment (also recorded as trucking revenue by the TTS segment), and these transactions between reporting segments are eliminated in consolidation.
+Added: In first quarter 2021, Werner Logistics revenues increased $25.7 million, or 22.9%, primarily due to higher pricing in Truckload Logistics and Intermodal.
+Added: Truckload Logistics revenues (63% of total Logistics revenues) increased by 20%.
+Added: Truckload Logistics volume decreased 1% in first quarter 2021, and revenues per load increased 22%.
+Added: Intermodal revenues (24% of Logistics revenues) increased 30% in first quarter 2021, due to volume growth of 23% and 6% higher revenues per load.
+Added: The Werner Logistics gross margin dollars increased 6.7% to $17.3 million in first quarter 2021 from $16.2 million in first quarter 2020 on the higher revenues, despite a lower gross margin percentage.
+Added: The Werner Logistics gross margin percentage in first quarter 2021 of 12.6% decreased from 14.5% in first quarter 2020 due to higher spot truckload and dray rates which significantly increased the cost of capacity for contractual brokerage shipments and intermodal shipments in first quarter 2021.
+Added: The Werner Logistics operating margin in first quarter 2021 increased to 3.3% from 1.0% because of the increase in gross profit, lower operating expenses and the $1.0 million gain on the WGL sale.
Operating Expenses
−Removed: Our operating ratio (operating expenses expressed as a percentage of operating revenues) was 89.5% for the three months ended September 30, 2020 and 91.4% for the three months ended September 30, 2019.
+Added: Our operating ratio (operating expenses expressed as a percentage of operating revenues) was 89.9% for the three months ended March 31, 2021 and 94.8% for the three months ended March 31, 2020.
Expense items that impacted the overall operating ratio are described on the following pages.
The tables on pages 20 through 22 show the Consolidated Statements of Income in dollars and as a percentage of total operating revenues and the percentage increase or decrease in the dollar amounts of those items compared to the same quarter of the prior year, as well as the operating ratios, operating margins, and certain statistical information for our two reportable segments, TTS and Werner Logistics.
−Removed: Salaries, wages and benefits decreased $12.4 million or 5.9% in third quarter 2020 compared to third quarter 2019 and decreased 0.5% as a percentage of operating revenues to 33.4%.
−Removed: The lower dollar amount of salaries, wages and benefits expense in the 2020 third quarter was due primarily to lower fringe benefits and having fewer placement drivers, both of which were impacted by COVID-19.
−Removed: Our workers’ compensation costs improved, and we incurred lower group health insurance costs which we believe is a temporary effect of COVID-19.
+Added: Salaries, wages and benefits decreased $1.1 million or 0.6% in first quarter 2021 compared to first quarter 2020 and decreased 1.6% as a percentage of operating revenues to 33.2%.
+Added: The lower dollar amount of salaries, wages and benefits expense in the first quarter of 2021 was due primarily to approximately 12.0 million fewer company truck miles and improved workers’ compensation costs, partially offset by increased driver pay rates.
+Added: In January 2021, we implemented driver pay increases of approximately $10 million annually in our One-Way Truckload fleet, and we are implementing pay increases as needed in Dedicated.
+Added: As a result, driver pay per company driver mile increased nearly 7% in first quarter 2021.
Non-driver salaries, wages and benefits in the non-trucking Werner Logistics segment decreased 10.6%.
−Removed: We renewed our workers’ compensation insurance coverage on April 1, 2020 and took on additional risk exposure by increasing our self-insurance retention from $1.0 million to $2.0 million per claim as of April 1, 2020.
−Removed: As a result of the higher self-insured retention, our workers’ compensation insurance premiums for the policy year beginning April 2020 are $0.8 million lower than the premiums for the previous policy year.
−Removed: The tight driver recruiting market further intensified in third quarter 2020, as the improving freight market caused increased competition for the finite number of experienced drivers that meet our hiring standards.
+Added: We renewed our workers’ compensation insurance coverage on April 1, 2021.
+Added: Our coverage levels are the same as the prior policy year.
+Added: We continue to maintain a self-insurance retention of $2.0 million per claim.
+Added: Our workers’ compensation insurance premiums for the policy year beginning April 2021 are $0.3 million higher than the premiums for the previous policy year.
+Added: The tight driver recruiting market further intensified in first quarter 2021, as the improving freight market caused increased competition for the finite number of experienced drivers that meet our hiring standards.
Several ongoing market factors persisted including a declining number of, and increased competition for, driver training school graduates, particularly considering COVID-19 constraints, aging truck driver demographics and increased truck safety regulations.
−Removed: We continue to take significant actions to strengthen our driver recruiting and retention to make Werner a preferred choice for the best drivers, including raising driver pay, maintaining a new truck and trailer fleet, purchasing best-in-class safety features for all new trucks, investing in our driver training school network and collaborating with customers to improve or eliminate unproductive freight.
+Added: We continue to take significant actions to strengthen our driver recruiting and retention as we strive to be the truckload employer of choice, including raising driver pay, providing a modern truck and trailer fleet with the latest safety equipment and technology, investing in our driver training school network and offering a wide variety of driving positions including daily and weekly home time opportunities.
These efforts continue to have positive results on our driver retention.
−Removed: We are unable to predict whether we will experience future driver shortages or continue to maintain our current driver retention rates.
+Added: We are unable to predict
+Added: whether we will experience future driver shortages or maintain our current driver retention rates.
If such a driver shortage were to occur and additional driver pay rate increases became necessary to attract and retain drivers, our results of operations would be negatively impacted to the extent that we could not obtain corresponding freight rate increases.
−Removed: Fuel decreased $21.6 million or 36.3% in third quarter 2020 compared to third quarter 2019 and decreased 3.2% as a percentage of operating revenues due to lower average diesel fuel prices and approximately 5.0 million fewer company truck miles in third quarter 2020.
−Removed: Average diesel fuel prices we r e 69 cents per gallon lower in third quarter 2020 than in third quarter 2019 and were 25 cents per gallon higher than in second quarter 2020.
−Removed: We continue to employ measures to improve our fuel mpg such as (i) limiting truck engine idle time, (ii) optimizing the speed, weight and specifications of our equipment and (iii) implementing mpg-enhancing equipment changes to our fleet including
−Removed: new trucks, more aerodynamic truck features, idle reduction systems, trailer tire inflation systems, trailer skirts and automated manual transmissions to reduce our fuel gallons purchased.
+Added: Fuel increased $2.1 million or 4.2% in first quarter 2021 compared to first quarter 2020 and remained flat as a percentage of operating revenues due to higher average diesel fuel prices, partially offset by approximately 12.0 million fewer company truck miles in first quarter 2021.
+Added: Average diesel fuel prices were 23 cents per gallon higher in first quarter 2021 than in first quarter 2020 and were 47 cents per gallon higher than in fourth quarter 2020.
+Added: We continue to employ measures to improve our fuel mpg such as (i) limiting truck engine idle time, (ii) optimizing the speed, weight and specifications of our equipment and (iii) implementing mpg-enhancing equipment changes to our fleet including new trucks, more aerodynamic truck features, idle reduction systems, trailer tire inflation systems, trailer skirts and automated manual transmissions to reduce our fuel gallons purchased.
However, fuel savings from mpg improvement is partially offset by higher depreciation expense and the additional cost of diesel exhaust fluid.
1 unchanged sentence
The SmartWay Transport Partnership is a national voluntary program developed by the EPA and freight industry representatives to reduce greenhouse gases and air pollution and promote cleaner, more efficient ground freight transportation.
−Removed: For October 2020, the average diesel fuel price per gallon was approximately 78 cents lower than the average diesel fuel price per gallon in October 2019 and approximately 78 cents lower than in fourth quarter 2019.
+Added: For April 2021, the average diesel fuel price per gallon was approximately $1.04 higher than the average diesel fuel price per gallon in April 2020 and approximately 96 cents higher than in second quarter 2020.
Shortages of fuel, increases in fuel prices and petroleum product rationing can have a materially adverse effect on our operations and profitability.
−Removed: We are unable to pred ict whether fuel price levels will increase or decrease in the future or the extent to which fuel surcharges will be collected from customers.
−Removed: As of September 30, 2020, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
−Removed: Supplies and maintenance decreased $2.9 million or 6.2% in third quarter 2020 compared to third quarter 2019 and decreased 0.1% as a percentage of operating revenues.
−Removed: The lower dollar amount of supplies and maintenance expense was due primarily to lower travel and entertainment costs resulting from COVID-19 restrictions.
−Removed: Insurance and claims increased $1.4 million or 6.3% in third quarter 2020 compared to third quarter 2019 and increased 0.4% as a percentage of operating revenues due primarily to higher liability insurance premiums of $1.4 million and unfavorable reserve development on small dollar claims in the 2020 third quarter, partially offset by lower expense for large dollar claims.
−Removed: We also incurred insurance and claims expense of $1.2 million in third quarter 2020 and $0.8 million in third quarter 2019 for accrued interest related to a previously-disclosed adverse jury verdict rendered May 17, 2018, which we are appealing (see Note 5 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report).
+Added: We are unable to predict whether fuel price levels will increase or decrease in the future or the extent to which fuel surcharges will be collected from customers.
+Added: As of March 31, 2021, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
+Added: Supplies and maintenance increased $0.4 million or 0.9% in first quarter 2021 compared to first quarter 2020 and decreased 0.2% as a percentage of operating revenues.
+Added: The higher dollar amount of supplies and maintenance expense was due primarily to higher driver and placement driver-related costs such as driver lodging and advertising.
+Added: Insurance and claims decreased $14.0 million or 38.8% in first quarter 2021 compared to first quarter 2020 and decreased 2.5% as a percentage of operating revenues due primarily to lower expense for new large dollar claims, partially offset by higher liability insurance premiums of $2.0 million.
+Added: In January 2020, one of our trucks was involved in a serious accident.
+Added: We self-insure for the first $10.0 million of liability coverage for this policy period and have appropriate excess liability coverage with insurance carriers above that amount.
+Added: As a result, we recorded $10.0 million of insurance and claims expense in first quarter 2020 for this accident.
+Added: We also incurred insurance and claims expense of $1.3 million in first quarter 2021 and $1.2 million in first quarter 2020 for accrued interest related to a previously-disclosed adverse jury verdict rendered May 17, 2018, which we are appealing (see Note 6 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report).
Interest is accrued at $0.4 million per month, until such time as the outcome of our appeal is finalized.
1 unchanged sentence
the remainder results from insurance premiums for claims in excess of our self-insured limits.
−Removed: We renewed our liability insurance policies on August 1, 2020 and are now responsible for the first $10.0 million per claim on all claims with no annual aggregates.
−Removed: For the policy year that began August 1, 2019 , we were responsible for the first $3.0 million per claim with an annual $6.0 million aggregate for claims between $3.0 million and $5.0 million and an additional $5.0 million deductible per claim for each claim between $5.0 million and $10.0 million.
+Added: We ren ewed our liability insurance policies on August 1, 2020 and are now responsible for the first $10.0 million per claim on all claims with no annual aggregates.
+Added: For the policy year that began August 1, 2019, we were responsible for the first $3.0 million per claim with an annual $6.0 million aggregate for claims between $3.0 million and $5.0 million and an additional $5.0 million deduc tible per claim for each claim between $5.0 million and $10.0 million.
We maintain liability insurance coverage with insurance carriers in excess of the $10.0 million per claim.
−Removed: Our liability insurance premiums for the policy year that began August 1, 2020 are $7.
−Removed: 8 million higher than premiums for the previous policy year.
−Removed: Depreciation expense increased $0.4 million or 0.6% in third quarter 2020 compared to third quarter 2019 and increased 0.6% as a percentage of operating revenues.
−Removed: During first quarter 2020, we changed the estimated life of certain trucks currently expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market.
−Removed: The effect of this change in accounting estimate increased third quarter 2020 depreciation expense by $0.9 million.
−Removed: The remaining trucks will continue to depreciate at the same higher rate per truck until the trucks are sold.
−Removed: Information technology and communications infrastructure upgrades also added to the higher depreciation expense in third quarter 2020.
−Removed: The average age of our truck fleet remains low by industry standards and was 2.0 years as of September 30, 2020, and the average age of our trailers was 4.0 years.
+Added: Our liability insurance premiums for the policy year that began August 1, 2020 are $7.8 million higher than premiums for the previous policy year.
+Added: Depreciation expense decreased $4.9 million or 7.1% in first quarter 2021 compared to first quarter 2020 and decreased 1.2% as a percentage of operating revenues.
+Added: During first quarter 2020, we changed the estimated life of certain trucks to be sold in 2020 to more rapidly depreciate these truck to their estimated residual values due to the weak used truck market.
+Added: These trucks continued to depreciate at the same higher rate per truck until all were sold in 2020.
+Added: The effect of this change in accounting estimate increased first quarter 2020 depreciation expense by $5.0 million and had no effect on first quarter 2021.
+Added: The average age of our truck fleet remains low by industry standards and was 2.0 years as of March 31, 2021, and the average age of our trailers was 4.0 years.
We are continuing to invest in new trucks and trailers and our terminals in 2021 to improve our driver experience, increase operational efficiency and more effectively manage our maintenance, safety and fuel costs.
During the remainder of 2021, we expect the average age of our truck and trailer fleet to remain at or near current levels.
−Removed: Rent and purchased transportation expense decreased $3.0 million or 2.2% in third quarter 2020 compared to third quarter 2019 and increased 0.5% as a percentage of operating revenues.
+Added: Rent and purchased transportation expense increased $20.1 million or 15.9% in first quarter 2021 compared to first quarter 2020 and increased 2.5% as a percentage of operating revenues.
Rent and purchased transportation expense consists mostly of payments to third-party capacity providers in the Werner Logistics segment and other non-trucking operations and payments to independent contractors in the TTS segment.
The payments to third-party capacity providers generally vary depending on changes in the volume of services generated by the Werner Logistics segment.
−Removed: Werner Logistics rent and purchased transportation expense increased $1.7 million despite lower logistics revenues, and as a percentage of Werner Logistics revenues increased to 89.2% in third quarter 2020 from 84.8% in third quarter 2019, due primarily to the unprecedented large and rapid rise in spot truckload rates which significantly increased the cost of capacity for contractual brokerage shipments in third quarter 2020.
−Removed: Rent and purchased transportation expense for the TTS segment decreased $4.5 million in third quarter 2020 compared to third quarter 2019.
−Removed: Independent contractor miles decreased approximately 4.5 million miles in third quarter 2020 and as a percentage of total miles were 8.2% in third quarter 2020 compared to 9.9% in third quarter 2019.
−Removed: The per-mile settlement rate for independent contractors also decreased in third quarter 2020 compared to third quarter 2019, due to lower diesel fuel prices.
+Added: Werner Logistics rent and purchased transportation expense increased $24.6 million, and as a percentage of Werner Logistics revenues increased to 87.4% in first quarter 2021 from 85.5% in first quarter 2020, due primarily to higher spot truckload and dray rates which significantly increased the cost of capacity for contractual brokerage shipments and intermodal shipments in first quarter 2021.
+Added: Rent and purchased transportation expense for the TTS segment decreased $4.4 million in first quarter 2021 compared to first quarter 2020.
+Added: Independent contractor miles decreased approximately 5.8 million miles in first quarter 2021 and as a percentage of total miles were 6.7% in first quarter 2021 compared to 8.9% in first quarter 2020.
+Added: The lower expense resulting from fewer independent contractor miles was partially offset by an increase in the per-mile settlement rate for certain independent contractors in first quarter 2021 and higher average diesel fuel prices.
Because independent contractors supply their own tractors and drivers and are responsible for their operating expenses, the decrease in independent contractor miles as a percentage of total miles shifted costs from the rent and purchased transportation category to other expense categories, including (i) salaries, wages and benefits, (ii) fuel, (iii) depreciation, (iv) supplies and maintenance and (v) taxes and licenses.
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These rate increases could negatively affect our results of operations to the extent that we would not be able to obtain corresponding freight rate increases.
−Removed: Other operating expenses increased $1.6 million in third quarter 2020 compared to third quarter 2019 and increased 0.3% as a percentage of operating revenues.
+Added: Other operating expenses decreased $9.8 million in first quarter 2021 compared to first quarter 2020 and decreased 1.6% as a percentage of operating revenues.
Gains on sales of assets (primarily used trucks and trailers) are reflected as a reduction of other operating expenses and are reported net of sales-related expenses (which include costs to prepare the equipment for sale).
−Removed: Gains on sales of assets were $3.9 million in third quarter 2020 compared to $4.1 million in third quarter 2019.
−Removed: We realized significantly lower average gains per truck and slightly higher average gains per trailer and sold substantially more trucks and fewer trailers in third quarter 2020 compared to third quarter 2019.
−Removed: Pricing in the market for our used trucks began to improve in third quarter 2020.
−Removed: Higher expense for professional services also contributed to the increase in other operating expense.
−Removed: Other Expense (Income)
−Removed: Other expense (income) decreased $1.1 million in third quarter 2020 compared to third quarter 2019.
−Removed: We had lower interest expense due to lower average outstanding debt in third quarter 2020, and interest income also decreased in third quarter 2020 compared to third quarter 2019.
−Removed: Our effective income tax rate (income taxes expressed as a percentage of income before income taxes) was 24.6% in third quarter 2020 compared to 24.4% in third quarter 2019.
−Removed: The higher income tax rate in third quarter 2020 was attributed primarily to a lower amount of favorable discrete income tax items in third quarter 2020.
−Removed: Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019
−Removed: Operating Revenues
−Removed: Operating revenues decreased 4.9% for the nine months ended September 30, 2020, compared to the same period of the prior year.
−Removed: In the TTS segment, trucking revenues, net of fuel surcharge, increased $6.2 million, or 0.5%, due primarily to a 3.1% increase in average revenues per tractor per week, partially offset by a 2.5% decrease in average tractors in service.
−Removed: Average revenues per total mile, net of fuel surcharge, increased 2.4% in the first nine months of 2020 compared to the same period in 2019, and average monthly miles per tractor increased by 0.7%.
−Removed: TTS segment fuel surcharge revenues for the nine months ended September 30, 2020 decreased $55.8 million or 31.4% when compared to the nine months ended September 30, 2019 due to lower average fuel prices in the 2020 period.
−Removed: Werner Logistics revenues decreased $29.9 million, or 8.1%, primarily due to lower Truckload Logistics revenues.
−Removed: Operating Expenses
−Removed: Our operating ratio (operating expenses expressed as a percentage of operating revenues) was 91.7% for the nine months ended September 30, 2020, compared to 91.3% for the nine months ended September 30, 2019.
−Removed: Expense items that impacted the overall operating ratio are described on the following pages.
−Removed: The tables on pages 21 through 23 show the Consolidated Statements of Income in dollars and as a percentage of total operating revenues and the percentage increase or decrease in the dollar amounts of those items compared to the same period of the prior year, as well as the operating ratios, operating margins, and certain statistical information for our two reportable segments, TTS and Werner Logistics.
−Removed: Salaries, wages and benefits decreased $20.3 million or 3.3% in the first nine months of 2020 compared to the first nine months of 2019 and increased 0.5% as a percentage of operating revenues to 34.1%.
−Removed: The lower dollar amount of salaries, wages and benefits expense was due primarily to lower fringe benefits and having fewer placement drivers, both of which were impacted
−Removed: We incurred lower group health insurance expense which we believe is a temporary effect of COVID-19, and our workers’ compensation costs improved.
−Removed: These decreases were partially offset by higher driver pay rates in the first nine months of 2020.
−Removed: Non-driver salaries, wages and benefits in the non-trucking Werner Logistics segment decreased 12.4%.
−Removed: Fuel decreased $59.3 million or 33.6% in the first nine months of 2020 compared to the same period in 2019 and decreased 2.9% as a percentage of operating revenues due to lower average diesel fuel prices in 2020.
−Removed: Average diesel fuel prices were 70 cents per gallon lower in the first nine months of 2020 than in the same 2019 period.
−Removed: Supplies and maintenance decreased $3.9 million or 2.8% in the first nine months of 2020 compared to the same period in 2019 and increased 0.2% as a percentage of operating revenues.
−Removed: The lower dollar amount of supplies and maintenance expense was due primarily to lower travel and entertainment costs resulting from COVID-19 restrictions, as well as lower driver and placement driver recruiting and other driver-related expenses.
−Removed: These decreases were partially offset by the increased costs related to COVID-19 safety items and increased tractor maintenance costs.
−Removed: Insurance and claims increased $19.5 million or 29.8% in the first nine months of 2020 compared to the same period in 2019 and increased 1.3% as a percentage of operating revenues due primarily to higher expense for new large dollar claims and unfavorable reserve development on large dollar claims.
−Removed: In January 2020, one of our trucks was involved in a serious accident.
−Removed: We self-insure for the first $10.0 million of liability coverage for this policy period and have appropriate excess liability insurance coverage with insurance carriers above this amount.
−Removed: As a result, we accrued $10.0 million of insurance and claims expense in first quarter 2020 for this accident.
−Removed: Depreciation expense increased $14.7 million or 7.9% in the first nine months of 2020 compared to the 2019 period and increased 1.4% as a percentage of operating revenues.
−Removed: During first quarter 2020, we changed the estimated life of certain trucks currently expected to be sold in 2020 to more rapidly depreciate these trucks to their estimated residual values due to the weak used truck market.
−Removed: The effect of this change in accounting estimate increased depreciation expense by $9.6 million in the first nine months of 2020.
−Removed: These trucks will continue to depreciate at the same higher rate per truck until the trucks are sold.
−Removed: Information technology and communications infrastructure upgrades also added to the higher depreciation expense in the first nine months of 2020.
−Removed: Rent and purchased transportation expense decreased $34.8 million or 8.4% in the first nine months of 2020 compared the same 2019 period and decreased 0.9% as a percentage of operating revenues.
−Removed: Rent and purchased transportation for the TTS segment decreased $18.7 million in the first nine months of 2020 compared to the same 2019 period due to lower diesel fuel prices and having 10.3 million fewer independent contractor miles in the nine months ended September 30, 2020.
−Removed: Werner Logistics rent and purchased transportation expense decreased $16.3 million as a result of lower logistics revenues, but as a percentage of Werner Logistics revenues increased to 86.4% in the 2020 period from 83.8% in the 2019 period.
−Removed: Other operating expenses increased $8.5 million in the first nine months of 2020 compared to the same period in 2019 and increased 0.5% as a percentage of operating revenues.
−Removed: Gains on sales of assets were $7.3 million in the first nine months ended September 30, 2020 compared to $14.5 million in the nine months ended September 30, 2019.
−Removed: In the 2020 year-to-date period, we sold 15% more trucks and 13% fewer trailers and realized significantly lower average gains per truck and lower average gains per trailer.
+Added: Gains on sales of equipment were $10.5 million in first quarter 2021, compared to $2.5 million in first quarter 2020.
+Added: We realized substantially higher average gains per truck and trailer due to improved pricing in the market for our used equipment.
+Added: We sold significantly more trucks and more trailers in first quarter 2021 than in first quarter 2020.
+Added: We also realized a $1.0 million gain from the sale of WGL in first quarter 2021.
Other Expense (Income)
−Removed: Other expense (income) increased $0.4 million in the first nine months of 2020 compared to the same 2019 period.
−Removed: Interest income decreased in the first nine months of 2020 compared to the first nine months of 2019 due to lower variable interest rates in the 2020 period.
−Removed: The decreased interest income was partially offset by lower interest expense due to lower average outstanding debt in the 2020 period.
−Removed: Our effective income tax rate (income taxes expressed as a percentage of income before income taxes) was 24.4% for the first nine months of 2020 compared to 24.9% for the first nine months of 2019.
−Removed: The lower income tax rate in the year-to-date 2020 period was attributed primarily to a higher amount of favorable discrete income tax items in the 2020 period.
+Added: Other expense (income) decreased $0.4 million in first quarter 2021 compared to first quarter 2020.
+Added: Interest expense decreased $0.8 million in first quarter 2021 compared to first quarter 2020 due to lower average outstanding debt in the 2021 period.
+Added: The lower interest expense was partially offset by lower interest income in first quarter 2021 compared to first quarter 2020.
+Added: Our effective income tax rate (income taxes expressed as a percentage of income before income taxes) was 24.9% in first quarter 2021 compared to 23.3% in first quarter 2020.
+Added: The higher income tax rate in first quarter 2021 was attributed primarily to a lower amount of favorable discrete income tax items in first quarter 2021.
Liquidity and Capital Resources:
−Removed: During the nine months ended September 30, 2020, we generated cash flow from operations of $346.4 million, a 4.3% or $14.2 million increase in cash flows compared to the same nine-month period a year ago.
−Removed: The increase in net cash provided by operating activities resulted primarily from deferring payment of certain 2020 employer payroll taxes under the CARES Act
−Removed: and from higher non-cash depreciation, partially offset by lower net income.
+Added: During the three months ended March 31, 2021, we generated cash flow from operations of $135.9 million, a 1.9% or $2.5 million increase in cash flows compared to the same three-month period a year ago.
+Added: The increase in net cash provided by operating activities resulted primarily from higher net income partially offset by higher gain on disposal of property and equipment, lower non-cash depreciation and decreased cash flows from working capital.
We were able to make net capital expenditures, repay debt, pay dividends and repurchase company stock with the net cash provided by operating activities and existing cash balances.
−Removed: Net cash used in investing activities decreased to $181.0 million for the nine-month period ended September 30, 2020 from $262.4 million for the nine-month period ended September 30, 2019.
−Removed: Net property additions (primarily revenue equipment) were $187.3 million for the nine-month period ended September 30, 2020, compared to $271.7 million during the same period of 2019.
−Removed: The decrease was due in part to new truck delivery delays resulting from temporary closures of manufacturing plants.
−Removed: We currently estimate net capital expenditures (primarily revenue equipment) in 2020 to be in the range of $275 million to $300 million, compared to net capital expenditures in 2019 of $283.9 million.
+Added: Net cash used in investing activities increased to $41.3 million for the three-month period ended March 31, 2021 from $16.5 million for the three-month period ended March 31, 2020.
+Added: Net property additions (primarily revenue equipment) were $37.9 million for the three-month period ended March 31, 2021, compared to $18.8 million during the same period of 2020.
+Added: The increase was due primarily to delays in receiving new trucks and trailers from our manufacturers in the first three months of 2020.
+Added: We currently estimate net capital expenditures (primarily revenue equipment) in 2021 to be in the range of $275 million
+Added: to $300 million, compared to net capital expenditures in 2020 of $266.2 million.
We intend to fund these net capital expenditures through cash flow from operations and financing available under our existing credit facilities, if necessary.
−Removed: As of September 30, 2020, we were committed to property and equipment purchases of approximately $133.6 million.
−Removed: Net financing activities used $156.4 million during the nine months ended September 30, 2020, and used $89.4 million during the same period in 2019.
−Removed: We repaid $125.0 million of debt during the nine months ended September 30, 2020, bringing our outstanding debt at September 30, 2020 to $175.0 million.
−Removed: We paid dividends of $18.7 million in the nine-month period ended September 30, 2020 and $280.0 million in the nine-month period ended September 30, 2019.
−Removed: In May 2019, we declared a special dividend of $3.75 per share, or $261.1 million, which was paid on June 7, 2019.
−Removed: Financing activities for the nine months ended September 30, 2020, also included common stock repurchases of 282,992 shares at a cost of $8.8 million.
−Removed: In the nine-month period ended September 30, 2019, we repurchased 1,300,000 shares at a cost of $42.3 million.
+Added: As of March 31, 2021, we were committed to property and equipment purchases of approximately $164.4 million.
+Added: Net financing activities used $40.4 million during the three months ended March 31, 2021, and used $69.0 million during the same period in 2020.
+Added: We repaid $25.0 million of debt during the three months ended March 31, 2021, reducing our outstanding debt at March 31, 2021 to $175.0 million, and repaid $50.0 million of debt during the three months ended March 31, 2020.
+Added: We paid dividends of $6.1 million in the three-month period ended March 31, 2021 and $6.2 million in the three-month period ended March 31, 2020.
+Added: We increased our quarterly dividend rate by $0.01 per share, or 11%, beginning with the quarterly dividend to be paid in May 2021.
+Added: Financing activities for the three months ended March 31, 2021, also included common stock repurchases of 130,446 shares at a cost of $5.5 million.
The Company has repurchased, and may continue to repurchase, shares of the Company’s common stock.
The timing and amount of such purchases depend upon economic and stock market conditions and other factors.
−Removed: As of September 30, 2020, the Company had purchased 982,992 shares pursuant to our current Board of Directors repurchase authorization and had 4,017,008 shares remaining available for repurchase.
−Removed: Management believes our financial position at September 30, 2020 is strong.
−Removed: As of September 30, 2020, we had $40.5 million of cash and cash equivalents and nearly $1.2 billion of stockholders’ equity.
+Added: As of March 31, 2021, the Company had purchased 2,313,438 shares pursuant to our current Board of Directors repurchase authorization and had 2,686,562 shares remaining available for repurchase.
+Added: Management believes our financial position at March 31, 2021 is strong.
+Added: As of March 31, 2021, we had $83.1 million of cash and cash equivalents and over $1.2 billion of stockholders’ equity.
Cash is invested primarily in government portfolio money market funds.
−Removed: As of September 30, 2020, we had $175.0 million of debt outstanding.
−Removed: We had total borrowing capacity of $500.0 million under our two credit facilities that expire in May 2024 (see Note 4 in the Notes to Consolidated Financial Statements (Unaudited) under Item I of Part I of this Form 10-Q) of which $280.4 million is available for future borrowing as of September 30, 2020, after considering the $175.0 million of outstanding debt and $44.6 million in stand-by letters of credit under which we are obligated.
+Added: As of March 31, 2021, we had a total borrowing capacity of $500.0 million under our two credit facilities (see Note 5 in the Notes to Consolidated Financial Statements (Unaudited) under Item I of Part I of this Form 10-Q), of which we had borrowed $175.0 million.
+Added: The remaining $325.0 million of credit available under the facilities at March 31, 2021 is reduced by the $50.9 million in stand-by letters of credit under which we are obligated.
These stand-by letters of credit are primarily required as security for insurance policies.
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Item 7 of Part II of our 2020 Form 10-K includes our disclosure of contractual obligations and commercial commitments as of December 31, 2020.
−Removed: Except for the expiration of our $75.0 million unsecured line of credit with U.S.
−Removed: on July 13, 2020, there were no material changes in the nature of these items during the nine months ended September 30, 2020.
+Added: There were no material changes in the nature of these items during the three months ended March 31, 2021.
Item 1 of Part I of our 2020 Form 10-K includes a discussion of pending proposed regulations that may have an effect on our operations if they become adopted and effective as proposed.
−Removed: Except as described below, there have been no material changes in the status of the proposed regulations previously disclosed in the 2019 Form 10-K.
−Removed: On June 1, 2020, the Federal Motor Carrier Safety Administration published revisions to the Hours of Service (“HOS”) requirements.
−Removed: The HOS final rule increases driver flexibility and introduces modifications to the existing rule set, including changes to the 30-minute break requirement, split sleeper berth, adverse driving conditions, and the short-haul exception.
−Removed: The final rule compliance date was September 29, 2020.
−Removed: All three countries ratified the United States-Mexico-Canada Agreement (“USMCA”) to replace the North American Free Trade Agreement (“NAFTA”).
−Removed: The effective date of USMCA was July 1, 2020.
+Added: There have been no material changes in the status of the proposed regulations previously disclosed in the 2020 Form 10-K.
Critical Accounting Estimates:
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the (i) reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (ii) reported amounts of revenues and expenses during the reporting period.
−Removed: We evaluate these estimates on an ongoing basis as events and
−Removed: circumstances change, utilizing historical experience, consultation with experts and other methods considered reasonable in the particular circumstances.
+Added: We evaluate these estimates on an ongoing basis as events and circumstances change, utilizing historical experience, consultation with experts and other methods considered reasonable in the particular circumstances.
Actual results could differ from those estimates and may significantly impact our results of operations from period to period.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.