Ryder 2015 11-K/A
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
 
FORM 11-K/A
 
 



(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2014



OR



[ ]
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from __________ to __________.


Commission file number: 1-4364


RYDER SYSTEM, INC. 401(k) SAVINGS PLAN

Ryder System, Inc.
11690 NW 105 Street
Miami, Florida 33178
 
Explanatory Note:

The Annual Report on Form 11-K of the Ryder System, Inc. 401(k) Savings Plan for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC) on June 22, 2015 is amended by the filing of this Form 11-K/A Amendment No. 1 to revise certain inadvertent typographical errors in notes 3 and 10 to the Plan's financial statements and in Form 5500, Schedule H, Line 4i. This Form 11-K/A also revises the date in each of the Report of Independent Registered Certified Public Accounting Firm and Exhibit 23.1 ("Consent of Independent Registered Public Accounting Firm") from June 22, 2015 to June 25, 2015. Other than correcting the inadvertent typographical errors described above and amending the dates addressed above, this amendment does not modify or update in any way the financial statements and disclosures in the original Annual Report on Form 11-K.





 
REQUIRED INFORMATION
 
 
 
 
 
 
 
 
 
FINANCIAL STATEMENTS & SUPPLEMENTAL SCHEDULE
    
PAGE NO.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
EXHIBIT
 
 
 
 
 
 
 
  
 
 
          
 
 
 
 
 
 
 
 
 
 
*Other supplemental schedules required by Section 2520-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under Employee Income Security Act of 1974 have been omitted because they are not applicable.
 



1

Table of Contents

Report of Independent Registered Certified Public Accounting Firm

To the Administrator of
Ryder System, Inc. 401(k) Savings Plan:

In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of Ryder System, Inc. 401(k) Savings Plan (the “Plan”) at December 31, 2014 and 2013, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

The supplemental Schedule of Assets (Held at End of Year) has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the Schedule of Assets (Held at End of Year) is fairly stated, in all material respects, in relation to the financial statements as a whole.




/s/ PricewaterhouseCoopers LLP
Miami, Florida
June 25, 2015



2

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS


 
 
 
 
 
 
 
 
December 31,
 
 
2014
 
 
2013
Assets
 
 
 
 
 
Investments (at fair value):
 
 
 
 
 
  Mutual funds
$
552,647,457

 
$
528,685,536

  Fixed income securities
 
149,813,619

 
 
165,494,740

  Common collective trusts
 
229,579,359

 
 
192,716,926

  Ryder System, Inc. common stock
 
123,101,273

 
 
102,310,211

  Short-term money market instruments
 
1,671,422

 
 
3,676,400

  Wrapper contracts
 
34,852

 
 
37,755

      Total investments
 
1,056,847,982

 
 
992,921,568

Receivables:
 
 
 
 
 
  Notes receivable from participants
 
34,946,812

 
 
32,084,934

  Participant contributions
 
424,701

 
 
331,048

  Employer contributions
 
339,427

 
 
268,964

  Due from broker
 
668,797

 
 
732,951

      Total receivables
 
36,379,737

 
 
33,417,897

 
 
 
 
 
 
       Total assets
 
1,093,227,719

 
 
1,026,339,465

 
 
 
 
 
 
Liabilities
 
 
 
 
 
  Due to broker
 
162,914

 
 
211,377

  Other liabilities
 
48,706

 
 
53,376

 
 
 
 
 
 
       Total liabilities
 
211,620

 
 
264,753

 
 
 
 
 
 
Net assets available for plan benefits (at fair value)
$
1,093,016,099

 
$
1,026,074,712

 
 
 
 
 
 
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
 
(1,388,993
)
 
 
(1,857,081
)
 
 
 
 
 
 
Net assets available for plan benefits (at contract value)
$
1,091,627,106

 
$
1,024,217,631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.

3

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS


 
 
 
 
 
 
 
 
Years ended December 31,
 
 
2014
 
 
2013
Additions to net assets attributed to:
 
 
 
 
 
  Investment income:
 
 
 
 
 
    Net appreciation in value of investments
$
64,496,138

 
$
152,577,809

    Dividends
 
25,530,373

 
 
27,840,183

    Interest
 
1,884,428

 
 
2,102,559

        Net investment income
 
91,910,939

 
 
182,520,551

 
 
 
 
 
 
  Interest income on notes receivable from participants
 
1,057,337

 
 
993,150

 
 
 
 
 
 
  Contributions:
 
 
 
 
 
    Employer
 
28,441,089

 
 
26,713,307

    Participants
 
42,228,259

 
 
38,904,343

    Participant rollovers
 
6,275,545

 
 
5,242,777

        Total contributions
 
76,944,893

 
 
70,860,427

 
 
 
 
 
 
 
 
 
 
 
 
        Total additions
 
169,913,169

 
 
254,374,128

 
 
 
 
 
 
Deductions from net assets attributed to:
 
 
 
 
 
  Benefits paid to plan participants
 
101,112,058

 
 
86,838,876

  Administrative expenses
 
1,391,636

 
 
1,379,751

        Total deductions
 
102,503,694

 
 
88,218,627

 
 
 
 
 
 
        Net increase
 
67,409,475

 
 
166,155,501

 
 
 
 
 
 
Transfer in from other plans
 

 
 
6,936,373

 
 
 
 
 
 
Net assets available for plan benefits:
 
 
 
 
 
  Beginning of year
 
1,024,217,631

 
 
851,125,757

  End of year
$
1,091,627,106

 
$
1,024,217,631



4

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS



1.    Description of Plan

The following description of the Ryder System, Inc. 401(k) Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more comprehensive description of the Plan's provisions.

General
The Plan, established January 1, 1993, is a defined contribution plan and, as such, is subject to some, but not all, of the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). It is excluded from coverage under Title IV of ERISA, which generally provides for guaranty and insurance of retirement benefits; and it is not subject to the funding requirements of Title I of ERISA. The Plan is, however, subject to those provisions of Title I and II of ERISA which, among other things, require that each participant be furnished with an annual financial report and a comprehensive description of the participant's rights under the Plan, set minimum standards of responsibility applicable to fiduciaries of the Plan, and establish minimum standards for participation and vesting.

The Plan Administrator is the Ryder System, Inc. Retirement Committee. The Plan's trustee and recordkeeper are Fidelity Management Trust Co. and Fidelity Investments Institutional Operations Company, respectively.
    
Eligibility
Participation in the Plan is voluntary. In general, all employees on the U.S. payroll of Ryder System, Inc. (the “Company”) and its subsidiaries that have adopted the Plan are immediately eligible to participate in the Plan. However, the following employees or classes of employees are not eligible to participate: (a) an employee who is in a unit of employees represented by a collective bargaining agent is excluded from participation in the Plan unless the unit has negotiated coverage under the Plan; (b) employees eligible to participate under another Company sponsored qualified savings plan; and (c) leased employees.

Contributions
Participant Contributions
Participants may elect to contribute pre-tax dollars to the Plan by having their compensation reduced by a maximum of the lesser of: a) 50% of compensation, b) the IRS limit of $17,500 and $17,500 for 2014 and 2013, respectively, or c) such other amount as shall be determined by the Company’s Retirement Committee from time to time. Additionally, participants may elect to make after-tax contributions to the Plan.

Participants who reach age 50 during the calendar year may be eligible to make catch-up contributions up to $5,500 in addition to the IRS limit of $17,500 for the years ended December 31, 2014 and 2013. Participants can also elect a direct rollover of an existing balance from a tax-qualified retirement or savings plan into the Plan. Participants may elect to contribute to any of twenty-five investment options and may direct the recordkeeper to transfer among investment options on a daily basis.

Employer Contributions
If a participant meets certain requirements related to employment date, age and service hours, the Company may contribute to the participant's account. Company contributions are invested in the investment options in the same allocation percentages as each participant’s contributions.
  
Salaried and non-salaried employees, other than field hourly employees of Ryder Integrated Logistics, Inc. (“RIL”), a wholly-owned subsidiary of the Company and other employee groups as described below, that are not grandfathered into the Ryder System, Inc. Retirement Plan are eligible to receive: (a) Company contributions equal to 3% of eligible pay, even if employees do not make contributions to the Plan and (b) a 50% Company match of participant contributions of up to 5% of eligible pay, subject to IRS limits upon meeting eligibility requirements.

For field hourly employees of RIL, the Company will make a basic contribution of $400 pro-rated on an annual basis, whether or not the employee contributes to the Plan. If the employee contributes to the Plan, in addition to the basic contribution, the Company will match the first $300 at 100% and match the next $800 at 50%.


5

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


The Plan was amended on July 1, 2011 to include employees (SDS/DCC employees) acquired through the Scully Distribution Services, Inc. acquisition. Acquired SDS/DCC employees are eligible to participate in the Plan and will be credited with service earned while employed by the Scully companies. Once eligibility for employer matching contributions has been met, this group of employees, and newly hired employees and employees that transfer into these operations will be eligible to receive a 30% Company match of participant contributions up to 5% of eligible pay.

The plan was amended on June 18, 2012 to provide that employees (1) hired into the Company’s Dedicated Contract Carriage (“DCC”) division on or after April 1, 2012, and who are employed to service a new customer account for a customer with a primary account location located in (i) Arizona, (ii) California, (iii) Washington, (iv) Oregon, (v) Utah, (vi) Idaho, or (vii) Nevada, or who were hired by the Company prior to April 1, 2012 and (2) that have been transferred on or after April 1, 2012 to service a customer account in any of the seven account locations noted above; will not receive a Company contribution. However, upon satisfaction of the eligibility waiting period, these employees will receive a Company matching contribution of 30% of the first 5% of eligible pay.

On January 1, 2011, the Plan was amended to include employees acquired through the Total Logistic Control (“TLC”) acquisition, which was completed on December 31, 2010. The acquired TLC employees who met the requirements and were deemed eligible to participate under TLC’s plan were immediately eligible to receive Company matching contributions under the Plan. The acquired TLC hourly employees are eligible to receive: a) a 100% Company match of participant contributions up to 4% of eligible pay and b) a 50% Company match of participant contributions of the next 2% of eligible pay. The acquired salaried TLC employees are eligible to receive the same benefit as all other salaried employees (defined above). All acquired TLC employees are fully vested in the Company matching contributions.

The Company may make a discretionary contribution for salaried and non-salaried employees, other than RIL employees. This discretionary contribution may be based on the Company’s attainment of specified performance goals. Company contributions are for the benefit of those participants who meet eligibility requirements as defined by the Company’s Retirement Committee. For the years ended December 31, 2014 and 2013, the Company did not make any discretionary contributions.

Vesting
Participants are immediately vested in their contributions plus earnings thereon. Upon completion of two years of service, participants vest 25% in the Company contributions and the earnings attributable to such contributions and 25% upon completion of each year thereafter until they are fully vested. Participants will also become fully vested in Company contributions and the earnings attributable to such contributions when they reach age 65, become permanently disabled or upon death while employed by the Company. RIL field hourly employees’ basic Company contributions and the match on the first $300 of participant contributions are immediately fully vested.


Participant Accounts
Each participant's account is credited with the participant's contribution and with allocations of: (a) the Company's contribution, (b) Plan earnings, and charged with an allocation of administrative expenses. Expenses are allocated evenly across all eligible accounts for recordkeeping services. Loan and distribution expenses are charged directly to the respective participant. Trustee fees are allocated to participants’ accounts on a pro-rata basis based on the participant’s account balance. Earnings are currently allocated on a daily basis. The benefit for a participant is the benefit that can be provided from the participant's vested account. Participants forfeit the nonvested portion of their accounts in the Plan upon termination of employment with the Company. Forfeited balances of terminated participants' nonvested accounts are used to reduce future Company contributions. In 2014 and 2013, employer contributions were reduced by $1,691,401 and $1,236,051, respectively, from forfeited nonvested accounts. At December 31, 2014 and 2013, forfeited nonvested accounts available to reduce future employer contributions totaled $14,212 and $1,394, respectively.
    

6

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


Notes Receivable from Participants
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance. Loan terms range from 1-5 years or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and accrue interest at a fixed rate which is the prime rate as received from Reuters updated on the first business day of the quarter. The loan’s interest rate is fixed for the life of the loan. Principal and interest is paid ratably through payroll deductions. All principal and interest payments are allocated to the Plan's investment funds based on the participant's investment elections at the time of payment. Loans which are granted and repaid in compliance with the Plan provisions will not be considered distributions to the participant for tax purposes.

Benefits Paid
If a participant leaves the Company, the participant is entitled to receive the vested value of the account balance. If a participant’s vested account value is $1,000 or less, it will be paid as an automatic distribution. As of December 31, 2014 and 2013, there were no automatic distributions pending. If the vested value of the account balance is greater than $1,000, a participant may request an immediate lump-sum payment, or a participant may choose to delay payment to a later date, but not beyond April 1st of the year after the participant reaches age 70 ½. Participants may request a withdrawal of all or a portion of their elective contribution account balance if they can demonstrate financial hardship as defined by the Plan. Such amounts will be considered distributions to the participant for income tax purposes.

2.    Summary of Significant Accounting Policies
                                                    
Basis of Accounting
The financial statements of the Plan are prepared on the accrual basis of accounting. Accounting guidance requires investment contracts held by a defined-contribution plan to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were able to initiate permitted transactions under the terms of the Plan. Accordingly, the Statements of Net Assets Available for Plan Benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statements of Changes in Net Assets Available for Plan Benefits is prepared on a contract value basis.

Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires the Plan Administrator to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts.

Investment Valuation and Income Recognition
Purchases and sales of securities are recorded on a trade-date basis. The Plan presents in the Statements of Changes in Net Assets Available for Plan Benefits the net appreciation (depreciation) in the fair value of its investments which consists of the related gains (losses) and the unrealized appreciation (depreciation) on those investments. Dividends on mutual funds and Ryder System, Inc. common stock are recorded on the record date. Interest income is recorded on the accrual basis.

Notes Receivable from Participants
Notes Receivable from Participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Loans in default are recorded as distributions based upon the terms of the plan document and are included in benefits paid to participants.

Due to/from broker
Due to/from broker for investment securities purchased/sold include amounts payable or receivable to/from clearing organizations relating to investment security transactions to be settled.



7

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


Payment of Benefits
Benefits are recorded when paid.


Administrative Expenses
Trustee fees, management fees and other fund expenses are paid from the assets of the Plan. Loan administrative and origination fees and recordkeeping fees are paid by the participants.

Recent Accounting Pronouncements
On May 1, 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-07, Fair Value Measurements (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which removes the requirements to categorize within the fair value hierarchy and to make certain disclosures for investments eligible to be measured at fair value using the net asset value per share practical expedient.   The ASU becomes effective for the Plan January 1, 2016, with early adoption permitted.  Since this new guidance only amends the disclosure requirements, it will not impact the Plan’s statements of net assets available for plan benefits or statements of changes in net assets available for plan benefits.


3.    Fair Value Measurements

The Plan defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are as follows:

Level 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan has the ability to access at the measurement date. An active market for the asset or liability is a market in which the transaction for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2
Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs for the asset or liability. These inputs reflect the Plan’s own assumption about the assumptions a market participant would use in pricing the asset or liability.

The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Plan’s policy is to recognize significant transfers between levels at the end of the reporting period. There have been no changes in the methodologies at December 31, 2014 and 2013.













8

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS






The following tables present the Plan assets that are measured at fair value, on a recurring basis, and the levels of inputs used to measure fair value:
 
 
 
 
 
Fair Value Measurements
 
 
 
 
 
At December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
  Growth funds
 
$
385,701,354

$

$

$
385,701,354

 
 
  International growth funds
 
 
54,469,642

 

 

 
54,469,642

 
 
  Index funds
 
 
67,522,985

 

 

 
67,522,985

 
 
  Fixed income funds
 
 
44,953,476

 

 

 
44,953,476

 
 
 
 
 
552,647,457

 

 

 
552,647,457

 
 
 
 
 
 
 
 
 
 
 
 
 
Synthetic guaranteed investment contracts:
 
 
 
 
 
 
 
 
 
  Fixed income securities
 
 

 
149,813,619

 

 
149,813,619

 
 
  Wrapper contracts
 
 

 

 
34,852

 
34,852

 
 
 
 
 

 
149,813,619

 
34,852

 
149,848,471

 
 
 
 
 
 
 
 
 
 
 
 
 
Common collective trusts
 
 

 
229,579,359

 

 
229,579,359

 
Ryder System, Inc. common stock
 
 
123,101,273

 

 

 
123,101,273

 
Short-term money market instruments
 
 
1,671,422

 

 

 
1,671,422

 
Total investments at fair value
 
$
677,420,152

$
379,392,978

$
34,852

$
1,056,847,982

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
 
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
  Growth funds
 
$
366,488,551

$

$

$
366,488,551

 
 
  International growth funds
 
 
60,260,704

 

 

 
60,260,704

 
 
  Index funds
 
 
61,092,049

 

 

 
61,092,049

 
 
  Fixed income funds
 
 
40,844,232

 

 

 
40,844,232

 
 
 
 
 
528,685,536

 

 

 
528,685,536

 
 
 
 
 
 
 
 
 
 
 
 
 
Synthetic guaranteed investment contracts:
 
 
 
 
 
 
 
 
 
  Fixed income securities
 
 

 
165,494,740

 

 
165,494,740

 
 
  Wrapper contracts
 
 

 

 
37,755

 
37,755

 
 
 
 
 

 
165,494,740

 
37,755

 
165,532,495

 
 
 
 
 
 
 
 
 
 
 
 
 
Common collective trusts
 
 

 
192,716,926

 

 
192,716,926

 
Ryder System, Inc. common stock
 
 
102,310,211

 

 

 
102,310,211

 
Short-term money market instruments
 
 
3,676,400

 

 

 
3,676,400

 
Total investments at fair value
 
$
634,672,147

$
358,211,666

$
37,755

$
992,921,568




9

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


For the year ended December 31, 2014, there were no transfers in or out of Levels 1, 2 and 3.

The following table sets forth a summary of the changes in the fair value of the Plan’s Level 3 assets for the years ended December 31, 2014 and 2013:

 
 
 
 
Wrapper
 
 
 
 
Contracts
 
 
 
 
 
 
Balance at January 1, 2013
$
206,361

 
 
Unrealized gains (losses) relating to instruments
 
 
 
 
held at December 31, 2013
 
(168,606
)
 
Balance at December 31, 2013
 
37,755

 
 
Unrealized gains (losses) relating to instruments
 
 
 
 
held at December 31, 2014
 
(2,903
)
 
Balance at December 31, 2014
$
34,852


Gains and losses (realized and unrealized) included in changes in net assets for the period above are reported in net appreciation (depreciation) in fair value of investments in the Statements of Changes in Net Assets Available for Plan Benefits.

The following is a description of the valuation methodologies used as well as the level of input used to measure fair value.

Mutual funds: valued at quoted market prices, which represent the net asset value of the shares held in such funds. Each of these funds is considered an open ended mutual fund and are valued using a market approach. Fair value is based on a daily net asset value (“NAV”) that can be validated with a sufficient level of observable activity (i.e. purchases and sales at NAV) and therefore the mutual funds have been classified within Level 1 of the fair value hierarchy.

Synthetic guaranteed investment contracts (“GICs”): are stated at fair value. The fair value of GICs is calculated based on the market values of the underlying securities. A synthetic GIC is comprised of two components, an underlying investment contract (Fixed income securities) and a “wrapper” contract. Wrapper contracts generally change the investment characteristics of underlying securities to those of guaranteed investment contracts. The wrapper contracts provide that benefit-responsive distributions for specific underlying securities may be withdrawn at contract or face value. Benefit-responsive distributions are generally defined as a withdrawal due to a participant’s retirement, disability or death, or participant directed transfers, in accordance with the terms of the Plan. The fair value of the wrapper contracts is determined using a discounted cash flow model which considers recent rebids as determined by recognized dealers, discount rate and the duration of the underlying portfolio.

The investment contract includes a variety of investment grade government and corporate debt securities. The government and corporate debt securities are not actively traded and fair values are estimated using bids provided by brokers, dealers or quoted prices of similar securities with similar characteristics or pricing models and have been classified within Level 2 of the fair value hierarchy.

Common collective trusts: valued at the net asset value per unit as determined by the collective trust as of the valuation date, which approximates fair value. Each fund consists of a commingled trust that invests in a diversified portfolio of equity index, fixed income index and/or short-term products. The fund’s fair value is measured as the fair value of the ownership interest in the fund. Since the units of the trusts are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy.

Ryder System, Inc. common stock: valued at the closing price reported on the active market on which the individual security is traded and therefore, has been classified within Level 1 of the fair value hierarchy.


10

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


Short-term money market instruments: are stated at NAV. The short-term money market instruments are invested in the Colchester Street Fund - Money Market Portfolio: Class I and Fidelity Institutional Money Market Portfolio: Class I fund. The funds invest in money market funds to provide daily liquidity. Fair value is based on the NAV that can be validated with a sufficient level of observable activity (i.e. purchases and sales at NAV) and were therefore classified within Level 1 of the fair value hierarchy.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.


11

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


4.     Investments
            
The Plan held the following individual investments whose aggregate fair value equaled or exceeded 5% of the Plan's net assets at December 31:

 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
2013
 
 
 
 
 
 
 
 
 
Ryder System, Inc. common stock,1,325,808 and 1,386,693 shares, respectively
 
$
123,101,273

 
$
102,310,211

 
 
 
 
 
 
 
 
 
Fidelity Contrafund K, 1,145,077 and 1,154,835 shares respectively
 
$
112,103,045

 
$
110,945,039

 
 
 
 
 
 
 
 
 
Fidelity Growth Co. K 1,347,211 and 1,371,132 shares respectively
 
$
177,454,587

 
$
164,138,238

 
 
 
 
 
 
 
 
 
JP Morgan Equity Income Select Fund, 4,975,986 and 5,027,971 shares, respectively
 
$
71,007,316

 
$
65,615,027

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MFS Institutional International Equity Fund, 2,371,401 and 2,487,561 shares, respectively
 
$
49,585,996

 
$
55,796,003

 
 
 
 
 
 
 
 

The Plan's investments (including gains (losses) on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows during the years ended December 31:


 
 
 
 
2014
 
 
2013
 
 
 
 
 
 
 
 
 
Mutual funds
 
$
26,114,493

 
$
94,393,011

 
Common collective trusts
 
 
12,466,696

 
 
23,454,149

 
Ryder System, Inc. common stock
 
 
25,914,949

 
 
34,730,649

 
 
 
$
64,496,138

 
$
152,577,809


5.    Investment Contracts with Insurance Companies
    
The Interest Income Fund, one of the Plan's investment options, may be invested in short-term money market instruments and in fully benefit-responsive synthetic guaranteed investment contracts with various insurance companies, banks, and financial institutions. The fund is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The guaranteed investment contract issuer is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan.

As described in Note 2, because the guaranteed investment contracts are fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for the benefits attributable to the guaranteed investment contract. Contract value, as reported to the Plan, represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of the investment at contract value.
        
There are no reserves against contract value for credit risk of a contract issuer or otherwise. The crediting interest rate is based on a formula agreed upon with the issuer, but it may not be less than zero percent. Such interest rates are reviewed on a quarterly basis for resetting.

Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (1) any substantive modification to the Plan or administration of the Plan that is not consented to by the contract issuer (including complete or partial plan termination or merger with another plan), (2) establishment of a defined contribution

12

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


plan that competes with the Plan for employee contributions, (3) plan sponsor events, such as divestitures, spin-offs or early retirement programs that cause a significant withdrawal from the Plan, (4) transfer of assets from the fund directly to a competing option (5) the failure of the Plan to qualify under Section 401(a) or Section 401(k) of the Internal Revenue Code. The Plan administrator does not believe that the occurrence of any of these events, which would limit the Plan’s ability to transact at contract value with participants, is probable.

In general, the wrap issuers may terminate the contract at fair value if there is a change in the qualification status of the Plan, if there is a breach of material obligations under the contract and misrepresentations by the contract holder, if there is a failure of the underlying portfolio to conform to the pre-established investment guidelines, if the contract holder assigns its interest in the contract without permission, if the investment manager is terminated and a successor manager acceptable by the wrap issuers is not appointed, or the contract holder engages in fraud or deceit related to the wrap contract.

The average yield earned by the Plan for all investments held by the Interest Income Fund was approximately 0.8% and 0.9% for the year ended December 31, 2014 and 2013, respectively. The average yields earned by the Plan for all investments held by the Interest Income Fund based on the actual interest rates credited to participants was approximately 0.9% and 0.8% for the year ended December 31, 2014 and 2013, respectively.

6.    Risks and Uncertainties

The Plan's invested assets ultimately consist of stocks, bonds, fixed income securities, and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Plan Benefits and the Statements of Changes in Net Assets Available for Plan Benefits.

The Plan's exposure to a concentration of credit risk is limited by the diversification of investments across twenty-three participant-directed fund elections. Additionally, the investments within each participant-directed fund election are further diversified into varied financial instruments, with the exception of the Ryder System, Inc. common stock fund, which invests in a single security. The Plan's exposure to credit risk on the wrapper contracts is limited to the fair value of the contracts with each company.


7.     Related Party Transactions

The Plan holds shares of Ryder System, Inc. common stock (1,325,808 and 1,386,693 shares at December 31, 2014 and 2013, respectively), and recorded dividend income ($1,924,608 and $1,878,656 in 2014 and 2013, respectively), net realized gains on sale ($11,040,074 and $8,180,466 in 2014 and 2013, respectively) and net unrealized appreciation in value of these securities ($14,874,875 and $26,550,183 in 2014 and 2013, respectively). Accordingly, these shares qualify as a party-in-interest.

The Plan also holds shares of mutual funds managed by Fidelity Management Company, which are affiliated with the Plan's current trustee. The Plan has recorded dividend income, net realized gains (losses) on sales and net unrealized appreciation (depreciation) in value of these securities. Accordingly, these transactions qualify as a party-in-interest. Fees incurred by the Plan to Fidelity Management Company for investment management and recordkeeping services amounted to $783,430 and $763,784 for the years ended December 31, 2014 and 2013, respectively. These fees are recorded as administrative expenses in the accompanying Statements of Changes in Net Assets Available for Plan Benefits.


13

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS





8.     Plan Termination

While it has not expressed any intention to do so, the Company may amend or terminate the Plan at any time. In the event of termination, Plan assets are payable to each participant in a lump sum equal to the balance in the participant's account.

            
9.     Tax Status of the Plan    

The Plan qualifies as a profit sharing plan under Section 401(a) of the Internal Revenue Code of 1986, as amended, (the "Code") and also qualifies as a cash or deferred arrangement under Section 401(k) of the Code and, therefore, is exempt from federal income taxes under Section 501(a) of the Code. A favorable tax determination letter dated September 23, 2013 has been obtained from the Internal Revenue Service. Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the code.

Under a plan qualified pursuant to Sections 401(a) and (k) of the Code, participants generally will not be taxed on contributions or matching contributions, or earnings thereon, until such amounts are distributed to participants or their beneficiaries under the Plan. The tax-deferred contributions and matching contributions are deductible by the Company for tax purposes when those contributions are made, subject to certain limitations set forth in Section 404 of the Code.

Participants or their beneficiaries will be taxed, at ordinary income tax rates, on the amount they receive as a distribution from the Plan at the time they receive the distribution. However, if the participant or beneficiary receives a lump sum payment of the balance under the Plan in a single taxable year, and the distribution is made by reason of death, disability or termination of employment of the participant, or after the participant has attained age 59 1/2, then certain special tax rules may be applicable.

Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the plan and recognize a tax liability (or asset) if the plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Company has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2014, there are no uncertain tax positions taken or expected to be taken. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2010.


14

RYDER SYSTEM, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS


10.     Reconciliation of Financial Statements to Form 5500    


The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500:

 
 
December 31,
 
 
2014
 
 
2013
 
 
 
 
 
 
Net assets available for plan benefits per the financial statements
$
1,091,627,106

 
$
1,024,217,631

Adjustment for fair value of fully benefit-responsive
 
 
 
 
 
investment contracts
 
1,388,993

 
 
1,857,081

Net assets available for plan benefits per the Form 5500
$
1,093,016,099

 
$
1,026,074,712


The following is a reconciliation of total additions per the financial statements to the Form 5500:

 
 
December 31,
 
 
2014
 
 
2013
 
 
 
 
 
 
Total additions per the financial statements
$
169,913,169

 
$
254,374,128

Prior year adjustment from fair value to contract value
 
 
 
 
 
for fully benefit-responsive investment contracts
 
(1,857,081
)
 
 
(3,195,500
)
Current adjustment from fair value to contract value
 
 
 
 
 
for fully benefit-responsive investment contracts
 
1,388,993

 
 
1,857,081

Total income per the Form 5500
$
169,445,081

 
$
253,035,709



11. Plan Transfers

There were no transfers into or out of the Plan during 2014. During 2013, assets of $6,936,373 were transferred into the Plan related to the acquisition of a certain group of employees.




15

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
FORM 5500, SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2014


(a)
 
(b)
 
  (c)
 
(d)
 
(e)
 
 
Identity of Issue, Borrower, Lessor or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Par or Maturity Value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
SHORT-TERM MONEY MARKET INSTRUMENTS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
 
COLCHESTER STREET FUND: MONEY MARKET PORTFOLIO:CLASS I
 

 
0.064
%
 
**
$
946,616

*
 
FIDELITY INSTITUTIONAL MONEY MARKET PORTFOLIO:CLASS I
 

 
0.07
%
 
**
 
724,806

 
 
Total Short-Term Money Market Instruments
 
 
 
 
 
 
 
1,671,422

 
 
 
 
 
 
 
 
 
 
 
 
 
SYNTHETIC GUARANTEED INVESTMENT CONTRACTS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED INCOME SECURITIES:
 
 
 
 
 
 
 
 
 
 
SSGA GOVERNMENT ST INVESTMENT FUND
 

 
1.04
%
 
**
 
3,536,717

 
 
AMERICAN EXP MTN
 
6/5/2017

 
1.125
%
 
**
 
798,431

 
 
AMXCA
 
6/15/2020

 
1.43
%
 
**
 
724,047

 
 
AMERICAN HONDA
 
7/14/2017

 
1.2
%
 
**
 
501,058

 
 
AMERICAN INTL GROUP
 
7/16/2019

 
2.3
%
 
**
 
303,468

 
 
ANHEUSER BUSCH
 
7/15/2017

 
1.375
%
 
**
 
317,744

 
 
AUSTRALIA & NZ BK
 
2/12/2016

 
0.9
%
 
**
 
343,202

 
 
ANZ NY BRAN
 
1/10/2017

 
1.25
%
 
**
 
251,575

 
 
BG ENERGY
 
10/15/2016

 
2.875
%
 
**
 
206,272

 
 
BNP PARIBAS MTN
 
9/14/2017

 
2.375
%
 
**
 
327,755

 
 
BPCE SA
 
2/10/2017

 
1.625
%
 
**
 
352,955

 
 
BPCE SA
 
7/15/2019

 
2.5
%
 
**
 
253,867

 
 
BMWLT
 
2/21/2017

 
0.73
%
 
**
 
715,505

 
 
BANK OF AMER NA
 
11/14/2016

 
1.125
%
 
**
 
848,428

 
 
BANK AMER NA
 
2/14/2017

 
1.25
%
 
**
 
264,664

 
 
BANK AMER FDG
 
9/1/2015

 
3.7
%
 
**
 
221,426

 
 
BANK AMER FDG COR
 
8/25/2017

 
1.7
%
 
**
 
321,984

 
 
BANK TOKYO-MTS
 
9/9/2016

 
1.55
%
 
**
 
454,192

 
 
BANK T-M UFJ
 
9/8/2017

 
1.45
%
 
**
 
298,611

 
 
BARCLAYS PLC
 
11/8/2019

 
2.75
%
 
**
 
199,557

 
 
BAYER US FIN
 
10/6/2017

 
1.5
%
 
**
 
340,414

 
 
BAYER US FIN2
 
10/8/2019

 
2.375
%
 
**
 
201,889

 
 
BECTON DICKINSO
 
12/15/2017

 
1.8
%
 
**
 
209,954

 
 
BECTON DICKINSO
 
12/15/2019

 
2.675
%
 
**
 
46,660

 
 
COMET
 
9/16/2019

 
0.96
%
 
**
 
1,495,116

 
 
COMET
 
1/15/2020

 
1.26
%
 
**
 
999,341

 
 
CARMX
 
4/16/2018

 
0.97
%
 
**
 
1,172,972

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

16

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
FORM 5500, SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2014


(a)
 
(b)
 
  (c)
 
(d)
 
(e)
 
 
Identity of Issue, Borrower, Lessor or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Par or Maturity Value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAIT
 
1/15/2019

 
1.15
%
 
**
 
750,015

 
 
CHEVRON CORP NE
 
12/5/2017

 
1.104
%
 
**
 
323,644

 
 
CISCO SYSTEMS
 
3/3/2017

 
1.1
%
 
**
 
351,528

 
 
CITIGROUP INC.
 
8/14/2017

 
1.55
%
 
**
 
300,944

 
 
CITIGROUP INC.
 
11/24/2017

 
1.85
%
 
**
 
620,481

 
 
CCCIT
 
9/7/2018

 
1.32
%
 
**
 
504,862

 
 
CCCIT
 
2/22/2019

 
1.02
%
 
**
 
999,810

 
 
CITIZENS BANK NA
 
12/4/2017

 
1.6
%
 
**
 
299,018

 
 
COMMONWLTH BK ASTL
 
3/13/2017

 
1.125
%
 
**
 
329,968

 
 
COMMONWEALTH BK NY
 
9/8/2017

 
1.4
%
 
**
 
469,546

 
 
CREDIT SUISSE NY
 
5/26/2017

 
1.375
%
 
**
 
399,504

 
 
CREDIT SUISSE M FRN
 
3/11/2016

 
0.5389
%
 
**
 
499,958

 
 
DAIMLER FIN
 
8/1/2017

 
1.375
%
 
**
 
800,904

 
 
DEUTSCHE BANK AG
 
2/13/2017

 
1.4
%
 
**
 
832,770

 
 
DCENT
 
4/15/2019

 
1.04
%
 
**
 
799,582

 
 
DCENT
 
10/15/2019

 
1.22
%
 
**
 
1,548,196

 
 
DCENT
 
4/15/2020

 
1.39
%
 
**
 
793,831

 
 
FHLG 15YR #E98688
 
8/1/2018

 
4.5
%
 
**
 
50,746

 
 
FHLG 15YR #E99205
 
9/1/2018

 
4.5
%
 
**
 
19,123

 
 
FHLG 15YR #E99833
 
10/1/2018

 
4.5
%
 
**
 
26,388

 
 
FHLG 15YR #G13598
 
4/1/2020

 
5
%
 
**
 
99,372

 
 
FHLG 15YR #G05815
 
7/1/2035

 
5.5
%
 
**
 
44,178

 
 
FHLM ARM #1J1228
 
11/1/2035

 
2.164
%
 
**
 
38,836

 
 
FHLG 10YR #J16393
 
8/1/2021

 
3
%
 
**
 
88,158

 
 
FHLG 10YR #J16442
 
8/1/2021

 
3
%
 
**
 
77,610

 
 
FHLM ARM #1B8124
 
5/1/2041

 
3.71
%
 
**
 
26,473

 
 
FHLM ARM #1B8179
 
4/1/2041

 
3.242
%
 
**
 
21,464

 
 
FHLM ARM #1B8304
 
5/1/2041

 
3.468
%
 
**
 
23,140

 
 
FHLM ARM #1B8372
 
6/1/2041

 
3.626
%
 
**
 
31,492

 
 
FHLM ARM
 
6/1/2041

 
3.298
%
 
**
 
21,237

 
 
FHLM ARM #1B8533
 
8/1/2041

 
2.971
%
 
**
 
63,724

 
 
FHLM ARM #1B8608
 
9/1/2041

 
3.126
%
 
**
 
41,561

 
 
FHLM ARM #1B8659
 
9/1/2041

 
3.227
%
 
**
 
12,459

 
 
FHLG #G01665
 
3/1/2034

 
5.5
%
 
**
 
65,022

 
 
FHLG 15YR #E02787
 
9/1/2025

 
4
%
 
**
 
120,510

 
 
FHLG 15YR #E02867
 
4/1/2026

 
4
%
 
**
 
62,087

 
 
FHLG 15YR #B10931
 
11/1/2018

 
4.5
%
 
**
 
16,095

 
 
FHLB
 
5/24/2017

 
0.875
%
 
**
 
964,449

 
 
FHLB
 
9/28/2016

 
0.5
%
 
**
 
1,498,371

 
 
FHLB
 
11/23/2016

 
0.625
%
 
**
 
879,899

 
 
FHLM ARM #848185
 
8/1/2036

 
2.352
%
 
**
 
19,165

 
 
FHLM AR #849255
 
10/1/2042

 
2.405
%
 
**
 
176,020

 
 
 
 

 
 
 
 
 
 

17

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
FORM 5500, SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2014


(a)
 
(b)
 
  (c)
 
(d)
 
(e)
 
 
Identity of Issue, Borrower, Lessor or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Par or Maturity Value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
Cost
 
Value
 
 
FHR 2313 C
 
5/15/2031

 
6
%
 
**
 
19,276

 
 
FHLMC
 
5/12/2017

 
1.25
%
 
**
 
241,240

 
 
FHLMC
 
2/22/2017

 
0.875
%
 
**
 
1,491,139

 
 
FNMA 15YR #253633
 
1/1/2016

 
6.5
%
 
**
 
1,065

 
 
FNMA #310105
 
11/1/2034

 
5.5
%
 
**
 
351,025

 
 
FNMA ARM #AI3469
 
7/1/2041

 
3.235
%
 
**
 
32,786

 
 
FNMA ARM #AI4358
 
8/1/2041

 
2.984
%
 
**
 
23,587

 
 
FNMA ARM #AI6050
 
7/1/2041

 
3.563
%
 
**
 
26,125

 
 
FNMA ARM #AI6819
 
10/1/2041

 
3.318
%
 
**
 
10,288

 
 
FNMA ARM #AI9813
 
9/1/2041

 
2.982
%
 
**
 
12,389

 
 
FNMA ARM #AJ3399
 
10/1/2041

 
3.059
%
 
**
 
16,642

 
 
FNMA ARM #AH5259
 
8/1/2041

 
2.739
%
 
**
 
117,558

 
 
FNMA 15YR #AO2244
 
6/1/2042

 
2.542
%
 
**
 
31,803

 
 
FNMA 15YR #545725
 
6/1/2017

 
7
%
 
**
 
4,602

 
 
FNMA 15YR #555532
 
12/1/2017

 
7
%
 
**
 
5,160

 
 
FNMA 15YR #619196
 
2/1/2016

 
7
%
 
**
 
344

 
 
FNMA 15YR #637071
 
3/1/2017

 
6.5
%
 
**
 
12,197

 
 
FNR 2008-95 AD
 
12/25/2023

 
4.5
%
 
**
 
92,841

 
 
FNMA ARM #735011
 
11/1/2034

 
2.153
%
 
**
 
34,157

 
 
FNMA ARM #802852
 
12/1/2034

 
2.428
%
 
**
 
31,757

 
 
FNMA ARM #889946
 
5/1/2035

 
2.329
%
 
**
 
45,008

 
 
FNMA ARM #995017
 
2/1/2035

 
2.246
%
 
**
 
378,962

 
 
FNMA ARM #995414
 
7/1/2035

 
2.375
%
 
**
 
42,709

 
 
FNMA ARM #995415
 
10/1/2035

 
2.211
%
 
**
 
133,048

 
 
FNMA ARM #995606
 
11/1/2036

 
2.276
%
 
**
 
47,460

 
 
FNMA ARM #995609
 
4/1/2035

 
2.359
%
 
**
 
17,347

 
 
FNMA ARM #AD0066
 
12/1/2033

 
2.364
%
 
**
 
65,632

 
 
FNMA ARM #AD0820
 
3/1/2040

 
2.445
%
 
**
 
35,156

 
 
FNMA ARM #AD1555
 
3/1/2040

 
3.567
%
 
**
 
50,380

 
 
FNMA ARM #AE6806
 
11/1/2040

 
2.96
%
 
**
 
11,188

 
 
GSINC
 
1/22/2018

 
2.375
%
 
**
 
175,541

 
 
GOLDMAN SAC GRP
 
2/7/2016

 
3.625
%
 
**
 
468,329

 
 
GOLDMAN SACHS GRP
 
1/31/2019

 
2.625
%
 
**
 
650,955

 
 
HSBC USA INC
 
1/16/2018

 
1.625
%
 
**
 
154,554

 
 
HSBC USA INC
 
11/13/2017

 
1.5
%
 
**
 
300,030

 
 
HSBC USA INC
 
6/23/2019

 
2.25
%
 
**
 
159,835

 
 
HSBC BANK
 
5/24/2016

 
3.1
%
 
**
 
880,512

 
 
HSBC
 
5/15/2018

 
1.5
%
 
**
 
198,220

 
 
HART
 
2/15/2018

 
1.01
%
 
**
 
1,003,324

 
 
HYUNDAI CAP AME
 
2/6/2019

 
2.55
%
 
**
 
222,290

 
 
INTERCONT EXCH
 
10/15/2018

 
2.5
%
 
**
 
119,749

 
 
JPMORGAN CHASE & CO
 
8/15/2017

 
2
%
 
**
 
813,708

 
 
 
 
 
 
 
 
 
 
 

18

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
FORM 5500, SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2014


(a)
 
(b)
 
  (c)
 
(d)
 
(e)
 
 
Identity of Issue, Borrower, Lessor or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Par or Maturity Value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
KEYBANK NATL
 
2/1/2018

 
1.65
%
 
**
 
250,778

 
 
KEY BANK
 
11/25/2016

 
1.1
%
 
**
 
799,714

 
 
MFRS & TRADERS TR
 
7/25/2017

 
1.4
%
 
**
 
803,737

 
 
MEDTRONIC PLC
 
3/15/2020

 
2.5
%
 
**
 
154,629

 
 
MEDTRONIC PLC
 
3/15/2018

 
1.5
%
 
**
 
252,033

 
 
MBART
 
8/15/2017

 
0.78
%
 
**
 
901,584

 
 
MET LIFE GLBL
 
1/10/2018

 
1.5
%
 
**
 
600,536

 
 
MET LIFE GLB
 
4/10/2017

 
1.3
%
 
**
 
801,289

 
 
MICROSOFT CORP
 
11/15/2017

 
0.875
%
 
**
 
51,544

 
 
MITSUBISHI
 
10/16/2019

 
2.45
%
 
**
 
200,962

 
 
MIZUHO CORP BK
 
10/17/2017

 
1.55
%
 
**
 
710,560

 
 
MIZUHO CORP
 
3/21/2018

 
1.85
%
 
**
 
249,946

 
 
MORGAN STANLEY
 
1/5/2018

 
1.875
%
 
**
 
379,593

 
 
NEW YORK LIFE
 
10/30/2017

 
1.3
%
 
**
 
428,838

 
 
NALT
 
2/15/2017

 
0.8
%
 
**
 
999,687

 
 
NORDEA BK AB
 
4/4/2019

 
2.375
%
 
**
 
202,912

 
 
NORDEA BK AG
 
5/13/2016

 
0.875
%
 
**
 
200,098

 
 
NEF 2005-1 A5
 
10/30/2045

 
0.9831
%
 
**
 
57,684

 
 
PRICOA GLOBAL
 
11/25/2016

 
1.15
%
 
**
 
849,582

 
 
PRICOA GLOBAL
 
8/18/2017

 
1.35
%
 
**
 
230,216

 
 
RIO TINTO FIN
 
6/17/2016

 
1.375
%
 
**
 
270,391

 
 
ROYAL BK CAN GL
 
3/8/2016

 
0.85
%
 
**
 
451,453

 
 
ROYAL BANK CAN
 
9/9/2016

 
1.45
%
 
**
 
303,557

 
 
ROYAL BANK OF CAN
 
1/23/2017

 
1.2
%
 
**
 
351,606

 
 
SHERWIN WILLIAM
 
12/15/2017

 
1.35
%
 
**
 
168,942

 
 
SIMON PROPERTY
 
2/1/2019

 
2.2
%
 
**
 
161,295

 
 
SUMITOMO BKG
 
7/19/2016

 
1.45
%
 
**
 
353,671

 
 
SUMITOMO BKG
 
1/10/2019

 
2.45
%
 
**
 
254,041

 
 
SUMITOMO BKG
 
7/11/2019

 
2.25
%
 
**
 
250,280

 
 
TORONTO DOMINI
 
10/19/2016

 
2.375
%
 
**
 
514,096

 
 
TORONTO DOMINI
 
9/9/2016

 
1.5
%
 
**
 
253,460

 
 
TOTAL CAP INTL
 
6/28/2017

 
1.55
%
 
**
 
170,613

 
 
TOTAL CAP INTL
 
1/10/2017

 
1
%
 
**
 
850,532

 
 
TRANS CAD PIPE
 
6/30/2016

 
0.9366
%
 
**
 
351,674

 
 
US BANK NA
 
1/30/2017

 
1.1
%
 
**
 
1,003,835

 
 
US BANK NA CIN
 
10/28/2019

 
2.125
%
 
**
 
271,129

 
 
UNION BK NA
 
6/6/2016

 
3
%
 
**
 
360,127

 
 
UST NOTES
 
12/15/2016

 
0.625
%
 
**
 
5,815,835

 
 
USTN
 
1/15/2017

 
0.75
%
 
**
 
8,881,863

 
 
USTN
 
9/30/2016

 
0.5
%
 
**
 
23,323,092

 
 
USTN
 
10/15/2017

 
0.875
%
 
**
 
11,325,279

 
 
USTN
 
10/31/2016

 
0.375
%
 
**
 
2,641,095


19

RYDER SYSTEM, INC. 401(k) SAVINGS PLAN
FORM 5500, SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2014


(a)
 
(b)
 
  (c)
 
(d)
 
(e)
 
 
Identity of Issue, Borrower, Lessor or Similar Party
 
Description of Investment Including Maturity Date, Rate of Interest, Par or Maturity Value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
USTN
 
12/15/2017

 
1
%
 
**
 
2,052,301

 
 
USTN
 
7/31/2015

 
1.75
%
 
**
 
11,508,851

 
 
USTN
 
9/30/2016

 
1
%
 
**
 
5,449,367

 
 
USTN
 
11/30/2016

 
0.875
%
 
**
 
4,819,106

 
 
USTN
 
6/30/2017

 
0.75
%
 
**
 
16,275,957

 
 
VOLKSWAGEN GR
 
5/23/2017

 
1.25
%
 
**
 
797,169

 
 
VOLKSWAGEN
 
11/18/2016

 
1.125
%
 
**
 
1,000,547

 
 
WESTPAC BANK CORP
 
5/19/2017

 
1.2
%
 
**
 
797,620

 
 
WESTPAC BANKING
 
12/1/2017

 
1.5
%
 
**
 
309,051

 
 
Total Fixed Income Securities
 
 
 
 
 
 
 
149,813,619

 
 
 
 
 
 
 
 
 
 
 
 
 
WRAPPER CONTRACTS:
 
 
 
 
 
 
 
 
*
 
Transamerica Premier Life
 
evergreen

 
1.07% contract

 
**
 
18,258

*
 
State Street Bank and Trust Company, ACT/107035
 
evergreen

 
1.07% contract

 
**
 
16,594

 
 
Total Wrapper Contracts
 
 
 
 
 
 
 
34,852

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Synthetic Guaranteed Investment Contracts
 
 
 
 
 
 
 
149,848,471

 
 
 
 
 
 
 
 
 
 
 
 
 
MUTUAL FUNDS:
 
 
 
 
 
 
 
 
*
 
Spartan Ext Mkt Index
 
 
 
451,759 shares

 
**
 
24,928,078

*
 
Spartan Int'l Index
 
 
 
131,210 shares

 
**
 
4,883,646

*
 
Fidelity Contrafund K
 
 
 
1,145,077 shares

 
**
 
112,103,045

*
 
Fidelity Growth Co K
 
 
 
1,347,211 shares

 
**
 
177,454,587

*
 
Spartan US Bond Idx Is
 
 
 
3,829,087 shares

 
**
 
44,953,476

*
 
Spartan 500 Index Inst.
 
 
 
584,613 shares

 
**
 
42,594,907

 
 
VOYA Small Cap Opps
 
 
 
428,364 shares

 
**
 
25,136,406

 
 
MFS Institutional International Equity Fund
 
 
 
2,371,401 shares

 
**
 
49,585,996

 
 
JP Morgan Equity Income Select Fund
 
 
 
4,975,986 shares

 
**
 
71,007,316

 
 
Total Mutual Funds
 
 
 
 
 
 
 
552,647,457