RYDER SYSTEM, INC. (NYSE:R) Files An 8-K Results of Operations and Financial Condition

RYDER SYSTEM, INC. (NYSE:R) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition

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On December 22, 2017, the President signed the Tax Cuts and Jobs Act (H.R. 1) (the “Tax Act”) into law. The many changes in the Tax Act include a permanent reduction in the maximum federal corporate income tax rate from 35% to 21% effective as of January 1, 2018.

Based on its preliminary analysis of the Tax Act, including the reduction in the federal corporate income tax rate, Ryder System, Inc. (the “Company”) estimates that it will record a net one-time benefit from the Tax Act of approximately $586 million or $11.04 per diluted share in the quarter ended December 31, 2017. The net benefit is due to the estimated impact of the change in future tax rates on the Company’s net deferred tax liabilities, partially offset by the Company’s provisional reasonable estimate of a one-time tax on the repatriation of foreign earnings. The resulting net tax benefit will be excluded from the Company's comparable earnings from continuing operations (non-GAAP) reported in the Company's fourth quarter earnings release expected to be filed on February 16, 2018.

In connection with the anticipated benefit of the Tax Act, the Company awarded a one-time cash bonus, estimated to be approximately $23 million or $0.27 per diluted share, to all non-incentive bonus eligible employees of the Company employed on December31, 2017. The bonus will be paid to eligible employees in February 2018. The bonus will be excluded from the Company's comparable earnings from continuing operations (non-GAAP) reported in the Company's fourth quarter earnings release scheduled for February 16, 2018.

This disclosure herein is related only to the estimated impact of the Tax Act on the Company’s operating results for fourth quarter of 2017. The Tax Act is expected to result in a reduction of the Company’s effective income tax rate in 2018. The Company will continue to analyze the full effects of the Tax Act, including the new lower corporate tax rate, on its financial results and operations and will provide more guidance in its fourth quarter earnings release and Form 10-K expected to be filed on February 16, 2018.

The information in this Report is being furnished to Item 2.02 of Form 8-K and General Instruction B.2 thereunder and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference to such filing.

Cautionary Note About Forward-Looking Statements

This Current Report on Form 8-K includes statements which may constitute forward-looking statements made to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements regarding the impact on the Company of the Tax Act, including the anticipated effective tax rate for 2018 fiscal year. The accuracy of these statements is necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include the risk that the Company’s preliminary analysis of the impact of the Tax Act may be incorrect; additional changes in tax laws; guidance that may be issued and actions the Company may take as a result of the Tax Act; and the factors discussed in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. The Company expressly disclaims any intent or obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries.


About RYDER SYSTEM, INC. (NYSE:R)

Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides full service leasing, commercial rental, contract maintenance and contract-related maintenance of trucks, tractors and trailers to customers in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. It provides purchase option for a selection of used trucks, tractors and trailers through its used vehicle sales program. It offers services to various industries, including automotive, consumer packaged goods, transportation and warehousing, retail, consumer brands, housing, and paper and publishing.

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