Ryder System Inc 10-Q for FY2021 Q3

Ryder System Inc (R)

10-Q 2021-10-27 For: 2021-09-30

Added on April 10, 2026

About this 10-Q

Ryder System Inc filed this 10-Q on October 27, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.46B; up 14.3% from $2.15B a year earlier
Net income: $138.05M; up 285.3% from net income of $35.83M a year earlier
Diluted EPS: $2.57; up 277.9% from $0.68 a year earlier

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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



		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


	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)


	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)


	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


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	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


	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


	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



	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


	Estimated Useful Lives	September 30, 2021						December 31, 2020
		Cost		Accumulated Depreciation		Net		Cost		Accumulated Depreciation		Net
	(In years)	(In thousands)
Held for use:
Trucks	3 — 7	$	5,151,634	$	(1,993,329)	$	3,158,305	$	5,061,266	$	(1,818,594)	$	3,242,672
Tractors	4 — 7.5	7,266,726		(3,032,901)		4,233,825		7,013,595		(2,853,591)		4,160,004
Trailers and other	9.5 — 12	1,816,896		(839,048)		977,848		2,046,768		(804,006)		1,242,762
Held for sale		304,079		(239,026)		65,053		644,132		(512,555)		131,577
Total		$	14,539,335	$	(6,104,304)	$	8,435,031	$	14,765,761	$	(5,988,746)	$	8,777,015



					Valuation Adjustments
					Three months ended September 30,				Nine months ended September 30,
	September 30, 2021		December 31, 2020 (2)		2021		2020		2021		2020
	(In thousands)
Revenue earning equipment held for sale (1):

Trucks	$	1,140	$	3,848	$	1,224	$	511	$	2,798	$	16,962
Tractors	446		2,211		2,177		603		2,836		12,091
Trailers and other	560		4,092		1,161		819		5,036		5,404
Total assets at fair value	$	2,146	$	10,151	$	4,562	$	1,933	$	10,670	$	34,457


	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


	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


	September 30, 2021						December 31, 2020
	Accrued Expenses		Non-Current Liabilities		Total		Accrued Expenses		Non-Current Liabilities		Total
	(In thousands)
Salaries and wages	$	196,383	$	—	$	196,383	$	158,122	$	—	$	158,122
Deferred compensation	5,656		85,635		91,291		5,117		77,823		82,940
Pension benefits	3,777		253,910		257,687		3,776		265,178		268,954
Other postretirement benefits	1,381		16,890		18,271		1,381		20,245		21,626
Other employee benefits	18,751		—		18,751		20,599		—		20,599
Insurance obligations (1)	183,927		306,687		490,614		169,936		292,298		462,234




Operating taxes (2)	171,149		41,683		212,832		164,293		41,687		205,980
Income taxes	15,946		14,763		30,709		4,588		15,598		20,186
Interest	38,328		—		38,328		38,887		—		38,887
Deposits, mainly from customers	93,289		3,173		96,462		79,840		3,014		82,854
Operating lease liabilities	82,950		191,050		274,000		78,785		186,429		265,214
Deferred revenue (3)	179,642		417,297		596,939		183,474		446,265		629,739

Restructuring liabilities	2,490		—		2,490		7,683		—		7,683
Other	72,737		48,600		121,337		72,697		55,324		128,021
Total	$	1,066,406	$	1,379,688	$	2,446,094	$	989,178	$	1,403,861	$	2,393,039


	Weighted Average Interest Rate
	September 30, 2021	Maturities	September 30, 2021		December 31, 2020
			(In thousands)




Debt:
U.S. commercial paper	0.18%	2023	$	166,626	$	214,375
Canadian commercial paper	0.29%	2023	14,946		62,800
Trade receivables financing program	—%	2022	—		—
Global revolving credit facility	—%	2023	—		200
Unsecured U.S. obligations	3.47%	2024	200,000		200,000
Unsecured U.S. notes — Medium-term notes (1)	3.40%	2022-2026	4,852,348		5,174,180
Unsecured foreign obligations	1.89%	2022-2024	161,932		254,259
Asset-backed U.S. obligations (2)	2.59%	2021-2026	563,747		682,383
Finance lease obligations and other		2021-2030	47,185		48,418
			6,006,784		6,636,615
Debt issuance costs and original issue discounts			(19,667)		(26,379)
Total debt			5,987,117		6,610,236
Short-term debt and current portion of long-term debt			(1,354,821)		(516,581)
Long-term debt			$	4,632,296	$	6,093,655


	September 30,
			2021		2020
		(In thousands)
Cumulative translation adjustments			$	(157,446)	$	(196,114)
Net actuarial loss and prior service cost			(638,575)		(716,711)
Unrealized gain (loss) from cash flow hedges			(10,460)		(16,893)

Accumulated other comprehensive loss			$	(806,481)	$	(929,718)




	Shares Granted	Weighted-Average Fair Market Value
	(Shares in thousands)

Time-vested restricted stock rights	391		$	64.89
Performance-based restricted stock rights	119		67.11






Total	510		$	65.41


	Three months ended September 30,				Nine months ended September 30,				Change 2021/2020
	2021		2020		2021		2020		Three Months	Nine Months
	(In thousands, except per share amounts)
Total revenue	$	2,459,049	$	2,150,575	$	7,062,908	$	6,207,163	14%	14%
Operating revenue (1)	1,982,855		1,790,166		5,723,038		5,184,657		11%	10%


Earnings (loss) from continuing operations before income taxes (EBT)	$	183,206	$	54,765	$	457,046	$	(153,646)	NM	NM
Comparable EBT (1)	181,784		77,750		436,023		(77,123)		NM	NM
Earnings (loss) from continuing operations	138,659		45,085		339,811		(137,749)		NM	NM
Comparable earnings (loss) from continuing operations (1)	137,458		63,821		324,786		(57,740)		NM	NM
Net earnings (loss)	138,054		35,834		337,984		(147,878)		NM	NM
Comparable EBITDA (1) (2)	611,721		625,445		1,803,191		1,690,783		(2)%	7%

Earnings (loss) per common share (EPS) — Diluted
Continuing operations	$	2.58	$	0.85	$	6.33	$	(2.64)	NM	NM
Comparable (1)	2.55		1.21		6.05		(1.11)		NM	NM
Net earnings (loss)	2.57		0.68		6.30		(2.83)		NM	NM


	Proceeds per unit change 2021/2020 (1)
	Three Months	Nine Months

Tractors	100%	62%
Trucks	103%	66%


		Three months ended September 30,				Nine months ended September 30,
Description	Classification	2021		2020		2021		2020
		(In thousands)
Restructuring and other, net (1)	Restructuring and other items, net	$	(4,137)	$	(18,738)	$	(9,742)	$	(65,528)

ERP implementation costs (1)	Restructuring and other items, net	—		(5,751)		(12,721)		(27,109)




Gains on sale of properties (1)	Miscellaneous (income) loss, net	5,411		3,733		42,179		3,733
ChoiceLease liability insurance revenue (1)	Revenue	—		4,971		777		21,738
Other items impacting comparability, net		1,274		(15,785)		20,493		(67,166)
Non-operating pension costs, net (2)	Non-operating pension costs	148		(7,200)		530		(9,357)
		$	1,422	$	(22,985)	$	21,023	$	(76,523)


				Change
	September 30, 2021	December 31, 2020	September 30, 2020	Sept 2021/ Dec 2020	Sept 2021/ Sept 2020
End of period vehicle count
By type:
Trucks (1)	75,000	77,300	79,400	(3)%	(6)%
Tractors (2)	71,900	73,300	75,400	(2)%	(5)%
Trailers and other (3)	43,800	44,100	44,800	(1)%	(2)%

Total	190,700	194,700	199,600	(2)%	(4)%

By product line:
ChoiceLease	144,700	149,600	150,900	(3)%	(4)%
Commercial rental	40,300	35,000	35,400	15%	14%
Service vehicles and other	2,200	2,400	2,600	(8)%	(15)%
	187,200	187,000	188,900	—%	(1)%
Held for sale	3,500	7,700	10,700	(55)%	(67)%
Total	190,700	194,700	199,600	(2)%	(4)%



Customer vehicles under SelectCare contracts (4)	53,900	50,300	55,000	7%	(2)%


Quarterly average vehicle count
By product line:
ChoiceLease	145,200	150,400	152,400	(3)%	(5)%
Commercial rental	39,400	35,100	36,000	12%	9%
Service vehicles and other	2,300	2,500	2,600	(8)%	(12)%
	186,900	188,000	191,000	(1)%	(2)%
Held for sale	3,900	9,000	12,800	(57)%	(70)%
Total	190,800	197,000	203,800	(3)%	(6)%




Customer vehicles under SelectCare contracts (4)	53,400	52,700	56,500	1%	(5)%
Customer vehicles under SelectCare on-demand (5)	6,000	6,400	6,200	(6)%	(3)%
Total vehicles serviced	250,200	256,100	266,500	(2)%	(6)%


	(In millions)

Global revolving credit facility	$	1,218
Trade receivables financing program	$	300


Non-GAAP Financial Measure			Comparable GAAP Measure
Operating Revenue Measures:
Operating Revenue			Total Revenue
FMS Operating Revenue			FMS Total Revenue
SCS Operating Revenue			SCS Total Revenue
DTS Operating Revenue			DTS Total Revenue
FMS EBT as a % of FMS Operating Revenue			FMS EBT as a % of FMS Total Revenue
SCS EBT as a % of SCS Operating Revenue			SCS EBT as a % of SCS Total Revenue
DTS EBT as a % of DTS Operating Revenue			DTS EBT as a % of DTS Total Revenue
Comparable Earnings Measures:
Comparable Earnings (Loss) Before Income Tax			Earnings (Loss) Before Income Tax
Comparable Earnings (Loss)			Earnings (Loss) from Continuing Operations
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)			Net Earnings (Loss)
Comparable EPS			EPS from Continuing Operations
Comparable Tax Rate			Effective Tax Rate from Continuing Operations
Adjusted Return on Equity (ROE)			Not Applicable. However, non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders' equity to adjusted average equity is provided in the following reconciliations.
Cash Flow Measures:
Total Cash Generated and Free Cash Flow			Cash Provided by Operating Activities


Operating Revenue Measures:
Operating Revenue FMS Operating Revenue SCS Operating Revenue DTS Operating Revenue FMS EBT as a % of FMS Operating Revenue SCS EBT as a % of SCS Operating Revenue DTS EBT as a % of DTS Operating Revenue			Operating revenue is defined as total revenue for Ryder System, Inc. or each business segment (FMS, SCS and DTS) excluding any (1) fuel and (2) subcontracted transportation, as well as (3) revenue from our ChoiceLease liability insurance program which was discontinued in early 2020. We believe operating revenue provides useful information to investors as we use it to evaluate the operating performance of our core businesses and as a measure of sales activity at the consolidated level for Ryder System, Inc., as well as for each of our business segments. We also use segment EBT as a percentage of segment operating revenue for each business segment for the same reason. Note: FMS EBT, SCS EBT and DTS EBT, our primary measures of segment performance, are not non-GAAP measures. Fuel: We exclude FMS, SCS and DTS fuel from the calculation of our operating revenue measures, as fuel is an ancillary service that we provide our customers, which is impacted by fluctuations in market fuel prices and the costs are largely a pass-through to our customers, resulting in minimal changes in our profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by rapid changes in market fuel prices during a short period of time, as customer pricing for fuel services is established based on current market fuel costs. Subcontracted transportation: We exclude subcontracted transportation from the calculation of our operating revenue measures, as these services are also typically a pass-through to our customers and, therefore, fluctuations result in minimal changes to our profitability. While our SCS and DTS business segments subcontract certain transportation services to third party providers, our FMS business segment does not engage in subcontracted transportation and, therefore, this item is not applicable to FMS. ChoiceLease liability insurance: We exclude ChoiceLease liability insurance as we announced our plan in the first quarter of 2020 to exit the extension of our liability insurance coverage for ChoiceLease customers. The exit of this program was completed in the first quarter of 2021. We are excluding the revenues associated with this program for better comparability of our on-going operations.


Comparable Earnings Measures:
Comparable Earnings (Loss) before Income Taxes (EBT) Comparable Earnings (Loss) Comparable Earnings (Loss) per Diluted Common Share (EPS) Comparable Tax Rate Adjusted Return on Equity (ROE)			Comparable EBT, comparable earnings and comparable EPS are defined, respectively, as GAAP EBT, earnings and EPS, all from continuing operations, excluding (1) non-operating pension costs, net and (2) any other significant items that are not representative of our business operations. We believe these comparable earnings measures provide useful information to investors and allow for better year-over-year comparison of operating performance. Non-operating pension costs, net: Our comparable earnings measures exclude non-operating pension costs, which include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. We exclude non-operating pension costs, net because we consider these to be impacted by financial market performance and outside the operational performance of our business. Other Items Impacting Comparability: Our comparable and adjusted earnings measures also exclude other significant items that are not representative of our business operations as detailed in the reconciliation table below. These other significant items vary from period to period and, in some periods, there may be no such significant items. Comparable tax rate is computed using the same methodology as the GAAP provision for income taxes. Income tax effects of non-GAAP adjustments are calculated based on the marginal tax rates to which the non-GAAP adjustments are related. Adjusted ROE is defined as adjusted net earnings divided by adjusted average shareholders' equity and represents the rate of return on shareholders' investment. Other items impacting comparability described above are excluded, as applicable, from the calculation of net earnings and average shareholders' equity. We use adjusted ROE as an internal measure of how effectively we use the owned capital invested in our operations.


Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)			Comparable EBITDA is defined as net earnings (loss), first adjusted to exclude discontinued operations and the following items, all from continuing operations: (1) non-operating pension costs, net and (2) any other items that are not representative of our business operations (these items are the same items that are excluded from comparable earnings measures for the relevant periods as described immediately above) and then adjusted further for (1) interest expense, (2) income taxes, (3) depreciation, (4) used vehicle sales results and (5) amortization. We believe comparable EBITDA provides investors with useful information, as it is a standard measure commonly reported and widely used by analysts, investors and other interested parties to measure financial performance and our ability to service debt and meet our payment obligations. In addition, we believe that the inclusion of comparable EBITDA provides consistency in financial reporting and enables analysts and investors to perform meaningful comparisons of past, present and future operating results. Other companies may calculate comparable EBITDA differently; therefore, our presentation of comparable EBITDA may not be comparable to similarly-titled measures used by other companies. Comparable EBITDA should not be considered as an alternative to net earnings (loss), earnings (loss) from continuing operations before income taxes or earnings (loss) from continuing operations determined in accordance with GAAP, as an indicator of the Company’s operating performance, as an alternative to cash flows from operating activities (determined in accordance with GAAP), as an indicator of cash flows, or as a measure of liquidity.
Cash Flow Measures:
Total Cash Generated Free Cash Flow			We consider total cash generated and free cash flow to be important measures of comparative operating performance, as our principal sources of operating liquidity are cash from operations and proceeds from the sale of revenue earning equipment. Total Cash Generated is defined as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment, (3) net cash provided by the sale of operating property and equipment and (4) other cash inflows from investing activities. We believe total cash generated is an important measure of total cash flows generated from our ongoing business activities. Free Cash Flow is defined as the net amount of cash generated from operating activities and investing activities (excluding acquisitions) from continuing operations. We calculate free cash flow as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment and operating property and equipment, and (3) other cash inflows from investing activities, less (4) purchases of property and revenue earning equipment. We believe free cash flow provides investors with an important perspective on the cash available for debt service and for shareholders, after making capital investments required to support ongoing business operations. Our calculation of free cash flow may be different from the calculation used by other companies and, therefore, comparability may be limited. * See Total Cash Generated and Free Cash Flow reconciliations in the Financial Resources and Liquidity section of Management's Discussion and Analysis.


	Three months ended September 30,				Nine months ended September 30,				Twelve months ended September 30,
	2021		2020		2021		2020		2021		2020
	(In thousands)
FMS total revenue	$	1,436,340	$	1,297,217	$	4,180,066	$	3,835,631	$	5,514,902	$	5,267,179
Fuel	(188,759)		(138,880)		(538,922)		(429,468)		(678,528)		(626,924)
ChoiceLease liability insurance revenue (1)	—		(4,971)		(777)		(21,738)		(2,856)		(31,345)
FMS operating revenue	$	1,247,581	$	1,153,366	$	3,640,367	$	3,384,425	$	4,833,518	$	4,608,910

FMS EBT	$	186,391	$	16,152	$	408,244	$	(202,157)	$	468,444	$	(282,538)
FMS EBT as a % of FMS total revenue	13.0%		1.2%		9.8%		(5.3)%		8.5%		(5.4)%
FMS EBT as a % of FMS operating revenue	14.9%		1.4%		11.2%		(6.0)%		9.7%		(6.1)%


	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs	Maximum Number of Shares That May Yet Be Purchased Under the Anti-Dilutive Program (2)
July 1 through July 31, 2021	30,115	$	76.45	30,000	195,001
August 1 through August 31, 2021	67,426	77.08		67,293	127,708
September 1 through September 30, 2021	130	80.80		—	127,708
Total	97,671	$	76.89	97,293


Exhibit Number						Description

31.1						Certification of Robert E. Sanchez pursuant to Rule 13a-14(a) or Rule 15d-14(a)

31.2						Certification of John J. Diez pursuant to Rule 13a-14(a) or Rule 15d-14(a)

32						Certification of Robert E. Sanchez and John J. Diez pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C Section 1350

101.INS						XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

101.SCH						XBRL Taxonomy Extension Schema Document

101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF						XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						XBRL Taxonomy Extension Label Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document

104						Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)


		RYDER SYSTEM, INC.
		(Registrant)

Date:	October 27, 2021	By:	/s/ JOHN J. DIEZ
			John J. Diez
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

Date:	October 27, 2021	By:	/s/ CRISTINA GALLO-AQUINO
			Cristina Gallo-Aquino
			Senior Vice President and Controller
			(Principal Accounting Officer)


Date:	October 27, 2021	/s/ ROBERT E. SANCHEZ
		Robert E. Sanchez President and Chief Executive Officer


/s/ JOHN J. DIEZ
John J. Diez Executive Vice President and Chief Financial Officer
October 27, 2021