10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________________________

 FORM 10-Q

_____________________________________________________________________________

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

For the quarterly period ended September 30, 2022

OR

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

For the transition period from                      to                     

Commission File Number: 001-38054 

_____________________________________________________________________________

Schneider National, Inc.

(Exact Name of Registrant as Specified in Its Charter)

_____________________________________________________________________________

Wisconsin				39-1258315
(State of Incorporation)				(IRS Employer Identification No.)
	3101 South Packerland Drive
	Green Bay	Wisconsin	54313
	(Address of Registrant’s Principal Executive Offices and Zip Code)

(920) 592-2000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Class B common stock, no par value	SNDR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒           No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☒             No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐            No ☒  

As of October 21, 2022, the registrant had 83,029,500 shares of Class A common stock, no par value, outstanding and 94,982,780 shares of Class B common stock, no par value, outstanding.

SCHNEIDER NATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended September 30, 2022

TABLE OF CONTENTS

				Page
	Cautionary Note Regarding Forward-Looking Statements			1
PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements			2
	Consolidated Statements of Comprehensive Income (Unaudited)			2
	Consolidated Balance Sheets (Unaudited)			3
	Consolidated Statements of Cash Flows (Unaudited)			4
	Consolidated Statements of Shareholders’ Equity (Unaudited)			5
	Notes to Consolidated Financial Statements (Unaudited)			7
			Page
	Note 1	General	7
	Note 2	Acquisitions	7
	Note 3	Leases	9
	Note 4	Revenue Recognition	11
	Note 5	Fair Value	12
	Note 6	Investments	13
	Note 7	Goodwill and Other Intangible Assets	14
	Note 8	Debt and Credit Facilities	15
	Note 9	Income Taxes	15
	Note 10	Common Equity	15
	Note 11	Share-Based Compensation	16
	Note 12	Commitments and Contingencies	16
	Note 13	Segment Reporting	17
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk			34
ITEM 4.	Controls and Procedures			34
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings			35
ITEM 1A.	Risk Factors			35
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds			36
ITEM 3.	Defaults Upon Senior Securities			36
ITEM 4.	Mine Safety Disclosures			36
ITEM 5.	Other Information			36
ITEM 6.	Exhibits			37
Signature				38

i

GLOSSARY OF TERMS

3PL	Provider of outsourced logistics services. In logistics and supply chain management, it means a company’s use of third-party businesses, the 3PL(s), to outsource elements of the company’s distribution, fulfillment, and supply chain management services.
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BNSF	Burlington Northern Santa Fe Railway Company
CARES	Coronavirus Aid, Relief, and Economic Security
ChemDirect	Fortem Invenio, Inc.
CODM	Chief Operating Decision Maker
COVID-19	Coronavirus disease 2019, including its variants
deBoer	deBoer Transportation, Inc.
FASB	Financial Accounting Standards Board
GAAP	United States Generally Accepted Accounting Principles
ILWU	International Longshore and Warehouse Union
IPO	Initial Public Offering
KPI	Key Performance Indicator
LIBOR	London InterBank Offered Rate
MLS	Midwest Logistics Systems, Ltd. and affiliated entities holding assets comprising substantially all of its business.
MLSI	Mastery Logistics Systems, Inc.
NASDAQ	National Association of Securities Dealers Automated Quotations
PMA	Pacific Maritime Association
PSI	Platform Science, Inc.
SEC	United States Securities and Exchange Commission
TuSimple	TuSimple Holdings, Inc. (formerly TuSimple (Cayman) Limited)
UP	Union Pacific Railroad Company
U.S.	United States
WSL	Watkins and Shepard Trucking, Inc. and Lodeso, Inc. These businesses were acquired simultaneously in June 2016.

ii

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current expectations, beliefs, plans, or forecasts with respect to, among other things, future events and financial performance and trends in the business and industry. The words “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “prospects,” “potential,” “budget,” “forecast,” “continue,” “predict,” “seek,” “objective,” “goal,” “guidance,” “outlook,” “effort,” “target,” and similar words, expressions, terms, and phrases among others, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties. Readers are cautioned that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement.

The risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: inflation, both in the U.S. and globally; our ability to successfully manage the demand, supply, and operational challenges and disruptions (including the impact of reduced freight volumes) associated with the COVID-19 pandemic and the associated responses of federal, state, and local governments and businesses; economic and business risks inherent in the truckload and transportation industry, including inflation and competitive pressures pertaining to pricing, capacity, and service; our ability to effectively manage tight truck capacity brought about by driver shortages and successfully execute our yield management strategies; our ability to maintain key customer and supply arrangements (including dedicated arrangements) and to manage disruption of our business due to factors outside of our control, such as natural disasters, acts of war or terrorism, disease outbreaks, or pandemics; volatility in the market valuation of our investments in strategic partners and technologies; our ability to manage and effectively implement our growth and diversification strategies and cost saving initiatives; our dependence on our reputation and the Schneider brand and the potential for adverse publicity, damage to our reputation, and the loss of brand equity; risks related to demand for our service offerings; risks associated with the loss of a significant customer or customers; capital investments that fail to match customer demand or for which we cannot obtain adequate funding; fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase agreements, our ability to recover fuel costs through our fuel surcharge programs, and potential changes in customer preferences (e.g. truckload vs. intermodal services) driven by diesel fuel prices; fluctuations in the value and demand for our used Class 8 heavy-duty tractors and trailers; our ability to attract and retain qualified drivers and owner-operators; our reliance on owner-operators to provide a portion of our truck fleet; our dependence on railroads in the operation of our intermodal business; our ability to successfully transition from BNSF to UP as our primary intermodal rail service provider by January 2023; potential port congestion or interruptions that may result from contract negotiations between the ILWU and west coast port owners; service instability, availability, and/or increased costs from third-party capacity providers used by our business; changes in the outsourcing practices of our third-party logistics customers; difficulty in obtaining material, equipment, goods, and services from our vendors and suppliers; variability in insurance and claims expenses and the risks of insuring claims through our captive insurance company; the impact of laws and regulations that apply to our business, including those that relate to the environment, taxes, associates, owner-operators, and our captive insurance company; changes to those laws and regulations; and the increased costs of compliance with existing or future federal, state, and local regulations; political, economic, and other risks from cross-border operations and operations in multiple countries; risks associated with financial, credit, and equity markets, including our ability to service indebtedness and fund capital expenditures and strategic initiatives; negative seasonal patterns generally experienced in the trucking industry during traditionally slower shipping periods and winter months; risks associated with severe weather and similar events; significant systems disruptions, including those caused by cybersecurity events and firmware defects; exposure to claims and lawsuits in the ordinary course of business; our ability to adapt to new technologies and new participants in the truckload and transportation industry; and those risks and uncertainties discussed in (1) our most recently filed Annual Report on Form 10-K in (a) Part I, Item 1A. “Risk Factors,” (b) Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (c) Part II, Item 8. “Financial Statements and Supplementary Data: Note 14, Commitments and Contingencies,” (2) this Quarterly Report on Form 10-Q in (a) Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” (b) Part I, Item 1. “Financial Statements: Note 12, Commitments and Contingencies,” and (c) Part II, Item 1A. “Risk Factors,” and (3) other factors discussed in filings with the SEC by the Company.

The Company undertakes no obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.

WHERE TO FIND MORE INFORMATION

The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information that the Company files electronically with the SEC. These documents are also available to the public from commercial document retrieval services and at the “Investors” section of our website at www.schneider.com. Information disclosed or available on our website shall not be deemed incorporated into, or to be a part of, this Report.

1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SCHNEIDER NATIONAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in millions, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9
Operating expenses:
Purchased transportation	735.0		692.3		2,254.0		1,900.4
Salaries, wages, and benefits	356.0		290.2		1,034.4		832.9
Fuel and fuel taxes	133.4		70.3		390.9		204.1
Depreciation and amortization	88.2		74.2		258.3		220.5
Operating supplies and expenses—net	149.7		108.7		392.0		362.0
Insurance and related expenses	26.5		19.3		78.0		60.7
Other general expenses	41.1		35.8		178.0		97.6
Total operating expenses	1,529.9		1,290.8		4,585.6		3,678.2
Income from operations	145.4		153.7		457.1		355.7
Other expenses (income):
Interest income	(0.8)		(0.6)		(1.5)		(1.8)
Interest expense	2.1		3.3		7.1		9.7
Other expenses (income)—net	(23.6)		4.0		(12.3)		(14.8)
Total other expenses (income)—net	(22.3)		6.7		(6.7)		(6.9)
Income before income taxes	167.7		147.0		463.8		362.6
Provision for income taxes	41.9		37.0		116.1		91.3
Net income	125.8		110.0		347.7		271.3
Other comprehensive income (loss):
Foreign currency translation adjustment—net	(0.1)		(0.1)		—		0.1
Net unrealized loss on marketable securities—net of tax	(1.3)		(0.2)		(3.9)		(0.6)
Total other comprehensive loss—net	(1.4)		(0.3)		(3.9)		(0.5)
Comprehensive income	$	124.4	$	109.7	$	343.8	$	270.8
Weighted average shares outstanding	178.0		177.7		177.9		177.5
Basic earnings per share	$	0.71	$	0.62	$	1.95	$	1.53
Weighted average diluted shares outstanding	178.7		177.9		178.6		177.8
Diluted earnings per share	$	0.70	$	0.62	$	1.95	$	1.53

See notes to consolidated financial statements (unaudited).

2

SCHNEIDER NATIONAL, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except share data)

	September 30,		December 31,
	2022		2021
Assets
Current Assets:
Cash and cash equivalents	$	349.7	$	244.8
Marketable securities	44.6		49.3
Trade accounts receivable—net of allowance of $10.9 million and $5.2 million, respectively	729.7		705.4
Other receivables	31.3		35.9
Current portion of lease receivables—net of allowance of $1.4 million and $1.1 million, respectively	112.7		110.6
Inventories	43.1		27.4
Prepaid expenses and other current assets	97.2		75.1
Total current assets	1,408.3		1,248.5
Noncurrent Assets:
Property and equipment:
Transportation equipment	3,346.3		3,056.2
Land, buildings, and improvements	217.3		215.7
Other property and equipment	176.1		175.1
Total property and equipment	3,739.7		3,447.0
Less accumulated depreciation	1,538.6		1,396.0
Net property and equipment	2,201.1		2,051.0
Lease receivables	168.8		160.1
Internal use software and other noncurrent assets	299.4		237.2
Goodwill	228.3		240.5
Total noncurrent assets	2,897.6		2,688.8
Total Assets	$	4,305.9	$	3,937.3
Liabilities and Shareholders’ Equity
Current Liabilities:
Trade accounts payable	$	374.9	$	331.7
Accrued salaries, wages, and benefits	96.5		104.5
Claims accruals—current	75.0		83.9
Current maturities of debt and finance lease obligations	72.6		61.4
Other current liabilities	115.2		108.7
Total current liabilities	734.2		690.2
Noncurrent Liabilities:
Long-term debt and finance lease obligations	140.1		208.9
Claims accruals—noncurrent	94.4		88.5
Deferred income taxes	528.9		451.0
Other noncurrent liabilities	70.4		74.9
Total noncurrent liabilities	833.8		823.3
Total Liabilities	1,568.0		1,513.5
Commitments and Contingencies (Note 12)
Shareholders’ Equity:
Preferred shares, no par value, 50,000,000 shares authorized, no shares issued or outstanding	—		—
Class A common shares, no par value, 250,000,000 shares authorized, 83,029,500 shares issued and outstanding	—		—
Class B common shares, no par value, 750,000,000 shares authorized, 95,643,248 and 95,701,868 shares issued, and 94,980,485 and 94,626,740 shares outstanding, respectively	—		—
Additional paid-in capital	1,579.8		1,566.0
Retained earnings	1,162.0		857.8
Accumulated other comprehensive loss	(3.9)		—
Total Shareholders’ Equity	2,737.9		2,423.8
Total Liabilities and Shareholders’ Equity	$	4,305.9	$	3,937.3

See notes to consolidated financial statements (unaudited).

3

SCHNEIDER NATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

	Nine Months Ended September 30,
	2022		2021
Operating Activities:
Net income	$	347.7	$	271.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	258.3		220.5
Gains on sales of property and equipment—net	(75.2)		(48.0)
Proceeds from lease receipts	62.3		54.7
Deferred income taxes	72.4		21.6
Long-term incentive and share-based compensation expense	12.6		11.3
Gains on investments in equity securities—net	(15.8)		(17.1)
Other noncash items—net	(15.2)		0.6
Changes in operating assets and liabilities:
Receivables	(26.5)		(112.3)
Other assets	(53.8)		(53.3)
Payables	5.0		68.0
Claims reserves and other receivables—net	6.3		1.1
Other liabilities	0.2		(22.4)
Net cash provided by operating activities	578.3		396.0
Investing Activities:
Purchases of transportation equipment	(321.1)		(296.9)
Purchases of other property and equipment	(38.4)		(33.4)
Proceeds from sale of property and equipment	101.1		145.2
Proceeds from sale of off-lease inventory	19.9		13.2
Purchases of lease equipment	(80.4)		(72.8)
Proceeds from marketable securities	4.2		11.7
Purchases of marketable securities	(4.6)		(11.6)
Investments in equity securities	(24.1)		(5.0)
Acquisition of businesses, net of cash acquired	(28.1)		—
Net cash used in investing activities	(371.5)		(249.6)
Financing Activities:
Payments of debt and finance lease obligations	(61.3)		(0.5)
Dividends paid	(41.4)		(37.2)
Other financing activities	0.8		—
Net cash used in financing activities	(101.9)		(37.7)
Net increase in cash and cash equivalents	104.9		108.7
Cash and Cash Equivalents:
Beginning of period	244.8		395.5
End of period	$	349.7	$	504.2
Additional Cash Flow Information:
Noncash investing and financing activity:
Transportation and lease equipment purchases in accounts payable	$	50.4	$	43.7
Dividends declared but not yet paid	16.1		14.0
Sale of assets in exchange for notes receivable	2.3		—
Cash paid during the period for:
Interest	8.3		10.0
Income taxes—net of refunds	38.0		77.7

See notes to consolidated financial statements (unaudited).

4

SCHNEIDER NATIONAL, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(in millions, except per share data)

	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total
Balance—December 31, 2020	$	—	$	1,552.2	$	502.5	$	0.8	$	2,055.5
Net income	—		—		54.8		—		54.8
Other comprehensive loss	—		—		—		(0.7)		(0.7)
Share-based compensation expense	—		4.5		—		—		4.5
Dividends declared at $0.07 per share of Class A and Class B common shares	—		—		(12.6)		—		(12.6)
Share issuances	—		0.1		—		—		0.1
Exercise of employee stock options	—		0.7		—		—		0.7
Shares withheld for employee taxes	—		(2.4)		—		—		(2.4)
Balance—March 31, 2021	—		1,555.1		544.7		0.1		2,099.9
Net income	—		—		106.5		—		106.5
Other comprehensive income	—		—		—		0.5		0.5
Share-based compensation expense	—		3.3		—		—		3.3
Dividends declared at $0.07 per share of Class A and Class B common shares	—		—		(12.5)		—		(12.5)
Share issuances	—		0.7		—		—		0.7
Balance—June 30, 2021	—		1,559.1		638.7		0.6		2,198.4
Net income	—		—		110.0		—		110.0
Other comprehensive loss	—		—		—		(0.3)		(0.3)
Share-based compensation expense	—		3.4		—		—		3.4
Dividends declared at $0.07 per share of Class A and Class B common shares	—		—		(12.5)		—		(12.5)
Share issuances	—		0.1		—		—		0.1
Balance—September 30, 2021	$	—	$	1,562.6	$	736.2	$	0.3	$	2,299.1

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	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balance—December 31, 2021	$	—	$	1,566.0	$	857.8	$	—	$	2,423.8
Net income	—		—		92.1		—		92.1
Other comprehensive loss	—		—		—		(1.5)		(1.5)
Share-based compensation expense	—		5.4		—		—		5.4
Dividends declared at $0.08 per share of Class A and Class B common shares	—		—		(14.9)		—		(14.9)
Share issuances	—		0.1		—		—		0.1
Exercise of employee stock options	—		2.3		—		—		2.3
Shares withheld for employee taxes	—		(2.4)		—		—		(2.4)
Balance—March 31, 2022	—		1,571.4		935.0		(1.5)		2,504.9
Net income	—		—		129.8		—		129.8
Other comprehensive loss	—		—		—		(1.0)		(1.0)
Share-based compensation expense	—		3.4		—		—		3.4
Dividends declared at $0.08 per share of Class A and Class B common shares	—		—		(14.2)		—		(14.2)
Exercise of employee stock options	—		0.9		—		—		0.9
Balance—June 30, 2022	—		1,575.7		1,050.6		(2.5)		2,623.8
Net income	—		—		125.8		—		125.8
Other comprehensive loss	—		—		—		(1.4)		(1.4)
Share-based compensation expense	—		4.1		—		—		4.1
Dividends declared at $0.08 per share of Class A and Class B common shares	—		—		(14.4)		—		(14.4)
Balance—September 30, 2022	$	—	$	1,579.8	$	1,162.0	$	(3.9)	$	2,737.9

See notes to consolidated financial statements (unaudited).

6

SCHNEIDER NATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. GENERAL

Nature of Operations

Schneider National, Inc. and its subsidiaries (together “Schneider,” the “Company,” “we,” “us,” or “our”) are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and possess an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the movement of customer products timely, safely, and effectively. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico, thus adding value to their supply chains.

Principles of Consolidation and Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation.

In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented.

Property and Equipment

Gains and losses on property and equipment are recognized at the time of sale or disposition and are classified in operating supplies and expenses—net on the consolidated statements of comprehensive income. For the three months ended September 30, 2022 and 2021, we recognized $11.4 million and $32.0 million of net gains on the sale of property and equipment, respectively, and for the nine months ended September 30, 2022 and 2021, we recognized $75.2 million and $48.0 million of net gains on the sale of property and equipment, respectively. Net gains during the nine months ended September 30, 2022 were primarily related to the sale of the Company’s Canadian facility.

Accounting Standards Recently Adopted

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This standard requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy (for example, International Financial Reporting Standards guidance in International Accounting Standards 20 or guidance on contributions for not-for-profit entities in ASC 958-605), including information about the nature and significant terms and conditions of the transaction, as well as the amounts and specific financial statement line items affected by the transaction. ASU 2021-10 is effective for us beginning with our December 31, 2022 financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements or disclosures.

2. ACQUISITIONS

deBoer Transportation, Inc.

We entered into a Securities Purchase Agreement, dated June 7, 2022, to acquire 100% of the outstanding equity of deBoer, a regional, dedicated carrier headquartered in Blenker, WI. The acquisition provided Schneider the opportunity to expand our tractor and trailer fleet primarily within our dedicated Truckload operations, as well as our company driver capacity. During the third quarter, the Company successfully transitioned equipment and employees from deBoer to Schneider, deBoer operations ceased, and drivers and equipment were deployed primarily within our Truckload segment.

The aggregate purchase price of the acquisition was approximately $34.6 million inclusive of certain cash and net working capital adjustments, and the assets acquired consisted primarily of rolling stock. The acquisition was accounted for under the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized on the consolidated

7

balance sheets at their fair values as of the acquisition date. The fair values of consideration transferred and net assets acquired were determined using Level 3 inputs, and the excess of the purchase price over the estimated fair value of the net assets resulted in $7.7 million of goodwill being recorded within the Truckload reportable segment at the time of acquisition. During the third quarter of 2022, $0.9 million of purchase price adjustments were made relating to deferred taxes and certain working capital amounts resulting in an adjusted goodwill balance of $6.8 million as of September 30, 2022. Certain amounts recorded in connection with the acquisition are still considered preliminary as we continue to gather the necessary information to finalize our fair value estimates and provisional amounts.

Acquisition-related costs, which consisted of fees incurred for advisory, legal, and accounting services, were $0.1 million and $0.3 million for the three and nine months ended September 30, 2022, respectively, and were included in other general expenses in the Company’s consolidated statements of comprehensive income.

Operating results for deBoer are included in our consolidated results of operations from the acquisition date. Pro forma information for this acquisition is not provided as it did not have a material impact on the Company’s consolidated operating results.

Midwest Logistics Systems, Ltd.

We entered into a Securities Purchase Agreement, dated December 31, 2021, to acquire 100% of the outstanding equity of MLS, a dedicated trucking company based in Celina, OH, and certain affiliated entities holding assets comprising substantially all of MLS’s business. MLS is a premier dedicated carrier in the central U.S. that we believe complements our growing dedicated operations.

The aggregate purchase price of the acquisition was approximately $268.8 million inclusive of $5.7 million in net working capital and other post-acquisition adjustments received in the second quarter of 2022 and a deferred payment of $3.2 million made in January 2022. Proceeds from the total purchase consideration were used to settle $26.9 million of MLS’s outstanding debt as of the acquisition date.

The acquisition of MLS was accounted for under the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized on the consolidated balance sheets at their fair values as of the acquisition date. These inputs represent Level 3 measurements in the fair value hierarchy and required significant judgments and estimates at the time of valuation. Fair value estimates of acquired property and equipment were based on an independent appraisal, giving consideration to the highest and best use of the assets. Key assumptions used in the transportation equipment appraisals were based on the market approach, while key assumptions used in the land, buildings and improvements, and other property and equipment appraisals were based on a combination of the income (direct capitalization) and sales comparison approaches, as appropriate.

The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill within the Truckload reportable segment. The goodwill is attributable to expected synergies and growth opportunities within our dedicated business and is expected to be deductible for tax purposes.

Acquisition-related costs, which consisted of fees incurred for advisory, legal, and accounting services, were $1.9 million and were included in other general expenses in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2021.

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The following table summarizes the preliminary purchase price allocation for MLS, including any adjustments during the measurement period.

Recognized amounts of identifiable assets acquired and liabilities assumed (in millions)	December 31, 2021 Opening Balance Sheet		Adjustments		Adjusted December 31, 2021 Opening Balance Sheet
Cash and cash equivalents	$	—	$	1.8	$	1.8
Trade accounts receivable—net of allowance	18.6		(6.1)		12.5
Other receivables	0.9		1.5		2.4
Prepaid expenses and other current assets	1.6		—		1.6
Net property and equipment	148.9		(0.8)		148.1
Internal use software and other noncurrent assets	—		11.7		11.7
Goodwill	122.7		(19.0)		103.7
Total assets acquired	292.7		(10.9)		281.8
Trade accounts payable	1.8		1.6		3.4
Accrued salaries, wages, and benefits	1.7		0.9		2.6
Claims accruals—current	7.5		(3.0)		4.5
Other current liabilities	7.2		(3.9)		3.3
Deferred income taxes	—		(1.1)		(1.1)
Other noncurrent liabilities	—		0.3		0.3
Total liabilities assumed	18.2		(5.2)		13.0
Net assets acquired	$	274.5	$	(5.7)	$	268.8

The above adjustments made during the measurement period were primarily related to working capital, property and equipment, leases, claims accruals, deferred taxes, and intangible assets. The fair values of identifiable intangible assets, including customer relationships and trademarks, were based on valuations using income-based approaches. No material statement of comprehensive income effects were identified with these adjustments. While we may continue to adjust provisional amounts through December 31, 2022, we do not anticipate any material adjustments.

Combined unaudited pro forma operating revenues of the Company and MLS would have been approximately $1,495.0 million, and $4,189.0 million, during the three and nine months ended September 30, 2021, respectively, and our earnings for the same periods would not have been materially different.

3. LEASES

As Lessee

We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

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Additional information related to our leases is as follows:

	Nine Months Ended September 30,
(in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24.6	$	23.3
Operating cash flows for finance leases	0.1		—
Financing cash flows for finance leases	1.3		0.5
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	17.8	$	23.7
Finance leases	3.8		1.2

As of September 30, 2022, we had signed leases that had not yet commenced totaling $23.7 million. These leases will commence during the remainder of 2022 or the beginning of 2023 and have lease terms of one to seven years.

As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2022 and December 31, 2021, investments in lease receivables were as follows:

(in millions)	September 30, 2022		December 31, 2021
Future minimum payments to be received on leases	$	204.6	$	193.9
Guaranteed residual lease values	128.2		123.3
Total minimum lease payments to be received	332.8		317.2
Unearned income	(51.3)		(46.5)
Net investment in leases	$	281.5	$	270.7

Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of September 30, 2022 was $39.5 million, which includes both current and future lease payments.

Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of September 30, 2022, our lease payments past due were $3.9 million.

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The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Revenue	$	53.1	$	57.2	$	146.2	$	169.8
Cost of goods sold	(43.5)		(49.0)		(121.0)		(146.1)
Operating profit	$	9.6	$	8.2	$	25.2	$	23.7
Interest income on lease receivable	$	9.4	$	8.5	$	27.3	$	23.6

4. REVENUE RECOGNITION

Disaggregated Revenues

The majority of our revenues are related to transportation and have similar characteristics. MLS and deBoer revenues since the acquisition dates are included within Transportation revenues, consistent with the remainder of our Truckload segment. The following table summarizes our revenues by type of service.

	Three Months Ended September 30,				Nine Months Ended September 30,
Disaggregated Revenues (in millions)	2022		2021		2022		2021
Transportation	$	1,551.1	$	1,326.3	$	4,663.2	$	3,700.4
Logistics Management	66.5		56.4		221.1		149.7
Other	57.7		61.8		158.4		183.8
Total operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Quantitative Disclosure

The following table provides information related to transactions and expected timing of revenue recognition for performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown.

Remaining Performance Obligations (in millions)	September 30, 2022
Expected to be recognized within one year
Transportation	$	16.9
Logistics Management	10.8
Expected to be recognized after one year
Transportation	28.9
Logistics Management	9.7
Total	$	66.3

This disclosure does not include revenue related to performance obligations that are part of a contract with an original expected duration of one year or less, nor does it include expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice (e.g., usage-based pricing terms).

The following table provides information related to contract balances associated with our contracts with customers as of the dates shown.

Contract Balances (in millions)	September 30, 2022		December 31, 2021
Other current assets—Contract assets	$	36.2	$	33.8
Other current liabilities—Contract liabilities	4.0		3.2

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We generally receive payment within 40 days of completion of performance obligations. Contract assets in the table above relate to revenue in transit at the end of the reporting period. Contract liabilities relate to amounts that customers paid in advance of the associated services.

Non-monetary Consideration

Occasionally we provide freight movements to customers in exchange for non-monetary services. The fair value of non-monetary consideration on these freight movements is included in operating revenues on the consolidated statements of comprehensive income and consists primarily of transportation equipment. The amount of operating revenues recorded for these services was $2.3 million and $15.6 million during the three and nine months ended September 30, 2022, respectively, and $1.3 million during the three and nine months ended September 30, 2021.

5. FAIR VALUE

Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows:

Level 1—Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date.

Level 2—Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities.

Level 3—Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820.

		Fair Value
(in millions)	Level in Fair  Value Hierarchy	September 30, 2022		December 31, 2021
Equity investment in TuSimple (1)	1	$	2.7	$	12.7
Marketable securities (2)	2	44.6		49.3

(1)Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 6, Investments, for additional information.

(2)Marketable securities are classified as Level 2 in the fair value hierarchy as they are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active. See Note 6, Investments, for additional information.

The fair value of the Company’s debt was $197.3 million and $276.7 million as of September 30, 2022 and December 31, 2021, respectively. The carrying value of the Company’s debt was $205.0 million and $265.0 million as of September 30, 2022 and December 31, 2021, respectively. The fair value of our debt was calculated using a fixed rate debt portfolio with similar terms and maturities, which is based on the borrowing rates available to us in the applicable period. This valuation used Level 2 inputs.

The recorded values of cash, trade accounts receivable, lease receivables, and trade accounts payable approximate fair values.

As part of the MLS and deBoer acquisitions, certain assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. Refer to Note 2, Acquisitions, for further details.

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6. INVESTMENTS

Marketable Securities

Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or our liquidity needs may cause us to sell certain securities in advance of their maturity date.

Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. We did not have an allowance for credit losses on our marketable securities as of September 30, 2022 or December 31, 2021. Cost basis is determined using the specific identification method.

The following table presents the maturities and values of our marketable securities as of the dates shown.

	September 30, 2022					December 31, 2021
(in millions, except maturities in months)	Maturities	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. treasury and government agencies	14 to 101	$	20.0	$	17.2	$	19.9	$	19.6
Corporate debt securities	2 to 60	17.0		15.8		20.3		20.4
State and municipal bonds	4 to 157	12.4		11.6		9.1		9.3
Total marketable securities		$	49.4	$	44.6	$	49.3	$	49.3

Equity Investments without Readily Determinable Fair Values

The Company’s primary strategic equity investments without readily determinable fair values include PSI, a provider of telematics and fleet management tools, MLSI, a transportation technology development company, and ChemDirect, a business to business digital marketplace for the chemical industry. These investments are being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative, and their combined values as of September 30, 2022 and December 31, 2021 were $86.0 million and $36.2 million, respectively. If the Company identifies observable price changes for identical or similar securities of the same issuer, the equity security is measured at fair value as of the date the observable transaction occurred using Level 3 inputs.

As of September 30, 2022, our cumulative upward adjustments were $52.0 million. The following table summarizes the activity related to these equity investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Investment in equity securities	$	20.0	$	—	$	24.0	$	—
Upward adjustments (1)	25.8		9.0		25.8		9.0

(1)Our updated investment values in 2022 and 2021 were determined using the backsolve method, a valuation approach that primarily uses an option pricing model to value shares based on the price paid for recently issued shares.

Equity Investments with Readily Determinable Fair Values

In 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a global self-driving technology company. Upon completion of its IPO in April 2021, our investment in TuSimple was converted into Class A common shares and is now being accounted for under ASC 321, Investments - Equity Securities. In the three and nine months ended September 30, 2022, the Company recognized a pre-tax net gain of $0.1 million and a pre-tax net loss of $10.0 million on its investment in TuSimple, respectively. In the three and nine months ended September 30, 2021, the Company recognized a pre-tax net loss of $12.1 million and a pre-tax net gain of $8.1 million, respectively. See Note 5, Fair Value, for additional information on the fair value of our investment in TuSimple.

All of our equity investments are included in other noncurrent assets on the consolidated balance sheets with subsequent gains or losses recognized within other expenses (income)—net on the consolidated statements of comprehensive income.

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7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess of the purchase price of acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by segment during the period ended September 30, 2022.

(in millions)	Truckload		Logistics		Total
Balance at December 31, 2021	$	226.3	$	14.2	$	240.5
Acquisition (see Note 2)	7.7		—		7.7
Acquisition adjustments (see Note 2)	(19.9)		—		(19.9)
Balance at September 30, 2022	$	214.1	$	14.2	$	228.3

During the nine months ended September 30, 2022, we recorded goodwill in conjunction with the acquisition of deBoer, and during the three and nine months ended September 30, 2022, we made measurement period adjustments related to the acquisitions of deBoer and MLS, both of which were recorded within the Truckload segment. Refer to Note 2, Acquisitions, for further details.

At September 30, 2022 and December 31, 2021, we had accumulated goodwill impairment charges of $53.2 million, which consisted of $34.6 million and $18.6 million in our Truckload segment and Other, respectively.

The identifiable finite lived intangible assets other than goodwill listed below are included in internal use software and other noncurrent assets on the consolidated balance sheets and relate to the acquisition of MLS. Our customer relationships and trademarks are amortized over a weighted-average amortization period of ten years. Refer to Note 2, Acquisitions, for further details.

	September 30, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	3.2	$	0.2	$	3.0
Trademarks	6.8		0.5		6.3
Total intangible assets	$	10.0	$	0.7	$	9.3

Amortization expense for intangible assets was $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively.

Estimated future amortization expense related to intangible assets is as follows:

(in millions)
Remaining 2022	$	0.3
2023	1.0
2024	1.0
2025	1.0
2026	1.0
2027 and thereafter	5.0
Total	$	9.3

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8. DEBT AND CREDIT FACILITIES

As of September 30, 2022 and December 31, 2021, debt included the following:

(in millions)	September 30, 2022		December 31, 2021
Unsecured senior notes: principal maturities ranging from 2023 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.90% and 3.61% for 2022 and 2021, respectively	$	205.0	$	265.0
Current maturities	(70.0)		(60.0)
Long-term debt	$	135.0	$	205.0

Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment up to $150.0 million, for a total potential commitment of $400.0 million through August 2023. The agreement also provides a sublimit of $100.0 million to be used for the issuance of letters of credit. We had no outstanding borrowings under this agreement as of September 30, 2022 or December 31, 2021. Standby letters of credit under this agreement amounted to $0.1 million and $3.9 million for September 30, 2022 and December 31, 2021, respectively, and were primarily related to the requirements of certain of our real estate leases. The Company plans to renew the 2018 Credit Facility Agreement in the fourth quarter of 2022.

We also have a Receivables Purchase Agreement (the “2021 Receivables Purchase Agreement”), which allows us to borrow funds against qualifying trade receivables at rates based on one-month LIBOR up to $150.0 million and provides for the issuance of standby letters of credit through July 2024. We had no outstanding borrowings under this facility at September 30, 2022 or December 31, 2021. At September 30, 2022 and December 31, 2021, standby letters of credit under this agreement amounted to $77.1 million and $70.3 million, respectively, and were primarily related to the requirements of certain of our insurance obligations.

9. INCOME TAXES

Our effective income tax rate was 25.0% and 25.2% for the three months ended September 30, 2022 and 2021, respectively, and 25.0% and 25.2% for the nine months ended September 30, 2022 and 2021, respectively. In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, and best estimates of nontaxable and nondeductible income and expense items.

10. COMMON EQUITY

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2022		2021		2022		2021
Numerator:
Net income available to common shareholders	$	125.8	$	110.0	$	347.7	$	271.3
Denominator:
Weighted average common shares outstanding	178.0		177.7		177.9		177.5
Dilutive effect of share-based awards and options outstanding	0.7		0.2		0.7		0.3
Weighted average diluted common shares outstanding (1)	178.7		177.9		178.6		177.8
Basic earnings per common share	$	0.71	$	0.62	$	1.95	$	1.53
Diluted earnings per common share	0.70		0.62		1.95		1.53

(1)Weighted average diluted common shares outstanding may not sum due to rounding.

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The calculation of diluted earnings per share excluded 0.3 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2022 and 0.8 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2021, respectively.

Subsequent Event - Dividends Declared

In October of 2022, the Board of Directors declared a quarterly cash dividend for the fourth fiscal quarter of 2022 in the amount of $0.08 per share to holders of our Class A and Class B common stock. The dividend is payable to shareholders of record at the close of business on December 9, 2022 and will be paid on January 10, 2023.

11. SHARE-BASED COMPENSATION

We grant various equity-based awards relating to Class B common stock to employees under our 2017 Omnibus Incentive Plan (“the Plan”). These awards have historically consisted of restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“performance shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. Performance shares and PSUs granted prior to 2021 are earned based on attainment of threshold performance of earnings and return on capital targets. Beginning with grants in 2021, in addition to achievement of earnings and return on capital targets, a multiplier is applied to performance share and PSU achievement based on relative total shareholder return (“rTSR”) against peers over the performance period.

Share-based compensation expense was $3.8 million and $3.1 million for the three months ended September 30, 2022 and 2021, respectively, and $11.9 million and $10.2 million for the nine months ended September 30, 2022 and 2021, respectively. We recognize share-based compensation expense over the awards’ vesting period. As of September 30, 2022, we had $25.3 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted average period of 2.1 years.

12. COMMITMENTS AND CONTINGENCIES

In the ordinary course of conducting our business, we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements.

We record liabilities for claims against the Company based on our best estimate of expected losses. The primary claims arising for the Company through its trucking, intermodal, and logistics operations consist of accident-related claims for personal injury, collision, and comprehensive compensation, in addition to workers’ compensation, property damage, cargo, and wage and benefit claims. We maintain excess liability insurance with licensed insurance carriers for liability in excess of amounts we self-insure, which serves to largely offset the Company’s liability associated with these claims, with the exception of wage and benefit claims for which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although we expect that our claims accruals will continue to vary based on future developments, assuming that we are able to continue to obtain and maintain excess liability insurance coverage for such claims, we do not anticipate that such accruals will, in any period, materially impact our operating results.

At September 30, 2022, our firm commitments to purchase transportation equipment totaled $508.0 million.

During the first quarter of 2022, the Company recorded a $5.2 million charge as a result of an adverse audit assessment by a state jurisdiction over the applicability of sales tax for prior periods on rolling stock equipment used within that state. The charge is included within operating supplies and expenses—net on the consolidated statements of comprehensive income for the nine months ended September 30, 2022. The Company filed a request for appeal of the audit assessment with the state jurisdiction.

As previously disclosed, a representative of the former owners of WSL filed a lawsuit alleging that we did not fulfill certain obligations under the purchase and sale agreement and claiming that the former owners of WSL were entitled to damages including an additional payment of $40.0 million under an earn-out arrangement. On April 25, 2022, the Delaware Superior Court entered judgment in favor of the former owners of WSL, awarding $40.0 million in compensatory damages, plus prejudgment interest and the former owners’ attorneys’ fees, and the Company recorded an estimated total charge of $59.0 million in its results of operations as of March 31, 2022. During the second quarter of 2022, the Company settled with the former owners of WSL for a total of $57.0 million, which was subsequently paid during the third quarter of 2022, and included

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within other general expenses on the consolidated statements of comprehensive income for the nine months ended September 30, 2022.

13. SEGMENT REPORTING

We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides.

As of December 31, 2021, our operating segments within the Truckload reportable segment were VTL and Bulk. The operating results of MLS, a standalone operating segment, have been aggregated into the Truckload reportable segment as it shares similar economic characteristics with our other Truckload operating segments and meets the other aggregation criteria described in ASC 280. The operating results of deBoer are also included within the Truckload reportable segment from the date of acquisition through when their operations ceased in July and their assets were deployed throughout the business. VTL delivers truckload quantities over irregular routes and customer freight with dedicated contracts using dry van and specialty trailers. Bulk transports key inputs to manufacturing processes, such as specialty chemicals, using specialty trailers. MLS provides dedicated truckload services focusing primarily on freight with consistent routes.

The CODM reviews revenues for each segment without the inclusion of fuel surcharge revenues. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at the segment level reflects the measure presented to the CODM for each segment.

Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable by segment. All transactions between reportable segments are eliminated in consolidation.

Substantially all of our revenues and assets were generated or located within the U.S.

The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $19.0 million and $16.0 million for the three months ended September 30, 2022 and 2021, respectively, and $53.4 million and $46.1 million for the nine months ended September 30, 2022, and 2021 respectively.

Revenues by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	571.2	$	484.4	$	1,691.2	$	1,411.3
Intermodal	334.7		295.7		971.9		825.5
Logistics	464.2		474.6		1,531.2		1,261.2
Other	97.3		98.0		274.2		284.9
Fuel surcharge	233.5		114.4		648.5		314.8
Inter-segment eliminations	(25.6)		(22.6)		(74.3)		(63.8)
Operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Income (Loss) from Operations by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	83.2	$	85.1	$	283.3	$	197.0
Intermodal	31.1		45.7		112.3		100.6
Logistics	27.9		22.1		117.1		55.0
Other	3.2		0.8		(55.6)		3.1
Income from operations	$	145.4	$	153.7	$	457.1	$	355.7

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Depreciation and Amortization by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	62.8	$	52.1	$	183.6	$	157.1
Intermodal	14.6		12.4		42.4		35.5
Logistics	—		0.1		0.1		0.2
Other	10.8		9.6		32.2		27.7
Depreciation and amortization	$	88.2	$	74.2	$	258.3	$	220.5

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and related notes and our Annual Report on Form 10-K for the year ended December 31, 2021.

INTRODUCTION

Company Overview

We are a transportation and logistics services company providing a broad portfolio of truckload, intermodal, and logistics solutions and operating one of the largest for-hire trucking fleets in North America. Our diversified portfolio of complementary service offerings enables us to serve the varied needs of our customers and provides us with a greater opportunity to allocate capital in a manner designed to maximize returns across all market cycles and economic conditions. We continually monitor our performance and market conditions to ensure appropriate allocation of capital and resources to grow our businesses while optimizing returns across reportable segments. Our strong balance sheet, scalable platform, and experienced operations team are supportive of our acquisition strategy which includes acquiring high-quality businesses that meet our disciplined selection criteria to enhance our service offerings and broaden our customer base.

Our truckload services consist of freight transported and delivered by our company-employed drivers in company trucks and by owner-operators. These services are executed through either network or dedicated contracts and include standard long-haul and regional shipping services primarily using dry van, bulk, temperature-controlled, and flat-bed equipment, as well as cross dock and customized solutions for high-value and time-sensitive loads with coverage throughout North America.

Our intermodal services consists of door-to-door container on flat car (“COFC”) service through a combination of rail and dray transportation, in association with our rail carrier providers. Our intermodal business uses company-owned containers, chassis, and trucks with primarily company dray drivers, augmented by third-party dray capacity.

Our logistics services consist of freight brokerage (including Power Only which leverages our nationwide trailer pools to match third-party capacity with customer demand), supply chain (including 3PL), warehousing, and import/export services. Our logistics business provides value-added services using both our assets and third-party capacity, augmented by our trailing assets, to manage and move our customers’ freight.

Our success depends on our ability to balance our transportation network and efficiently and effectively manage our resources in the delivery of truckload, intermodal, and logistics services to our customers. Resource requirements vary with customer demand, which may be subject to seasonal or general economic conditions. We believe that our ability to properly select freight and adapt to changes in customer transportation needs allows us to efficiently deploy resources and make capital investments in trucks, trailers, containers, and chassis or obtain qualified third-party capacity at reasonable prices.

Consistent with the transportation industry, our business is seasonal across each of our segments, which generally translates to our reported revenues being the lowest in the first quarter and highest in the fourth quarter. Operating expenses tend to be higher in the winter months, primarily due to colder weather, which causes higher maintenance expense and higher fuel consumption from increased idle time.

Recent Developments

Acquisitions

On December 31, 2021, the Company completed the acquisition of MLS, a privately held truckload carrier based in Celina, OH. MLS is a dedicated carrier that primarily serves the central U.S. and complements our growing dedicated operations. In 2022, MLS financial results are reported in dedicated operations as part of our Truckload segment.

On June 7, 2022, the Company completed the acquisition of deBoer, which provided us the opportunity to expand our company driver capacity, as well as our tractor and trailer fleet primarily within our dedicated Truckload operations. During the third quarter, the Company successfully transitioned equipment and employees from deBoer to Schneider, deBoer operations ceased, and drivers and equipment were deployed primarily within Truckload.

Refer to Note 2, Acquisitions, for additional details on our recent acquisitions.

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Adverse Legal Judgment

On April 25, 2022, in connection with the litigation with the former owners of WSL, the Delaware Superior Court entered judgment in favor of the former owners, awarding $40.0 million in compensatory damages plus interest and attorneys’ fees, and the Company included an estimated total charge of $59.0 million in its results of operations as of March 31, 2022. In May of 2022, the parties re-evaluated their positions including the risks and benefits of a potential appeal of the Delaware Superior Court's judgment, and a final settlement was reached in the amount of $57.0 million. This final settlement has been recognized in our results of operations for the nine months ended September 30, 2022, and payment was made in the third quarter of 2022. Refer to Note 12, Commitments and Contingencies, for additional details.

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

In this section of our report, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted operating ratio, and (4) adjusted net income. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge), we believe the measure is useful to investors because it isolates volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage such fluctuations. Fuel-related costs and their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry.

Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or by other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.

Enterprise Summary

The following table includes key GAAP and non-GAAP financial measures for the consolidated enterprise. Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except ratios)	2022			2021			2022			2021
Operating revenues	$	1,675.3		$	1,444.5		$	5,042.7		$	4,033.9
Revenues (excluding fuel surcharge) (1)	1,441.8			1,330.1			4,394.2			3,719.1
Income from operations	145.4			153.7			457.1			355.7
Adjusted income from operations (2)	145.5			153.7			468.7			355.7
Operating ratio	91.3		%	89.4		%	90.9		%	91.2		%
Adjusted operating ratio (3)	89.9		%	88.4		%	89.3		%	90.4		%
Net income	$	125.8		$	110.0		$	347.7		$	271.3
Adjusted net income (4)	125.9			110.0			356.4			271.3

(1)We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Included below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge).

(2)We define “adjusted income from operations” as income from operations, adjusted to exclude material items that do not reflect our core operating performance. Included below is a reconciliation of income from operations, which is the most

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directly comparable GAAP measure, to adjusted income from operations. Excluded items for the periods shown are explained in the table and notes below. 

(3)We define “adjusted operating ratio” as operating expenses, adjusted to exclude material items that do not reflect our core operating performance, divided by revenues (excluding fuel surcharge). Included below is a reconciliation of operating ratio, which is the most directly comparable GAAP measure, to adjusted operating ratio. Excluded items for the periods shown are explained below under our explanation of “adjusted income from operations.”

(4)We define “adjusted net income” as net income, adjusted to exclude material items that do not reflect our core operating performance. Included below is a reconciliation of net income, which is the most directly comparable GAAP measure, to adjusted net income. Excluded items for the periods shown are explained below under our explanation of “adjusted income from operations.”

Revenues (excluding fuel surcharge)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9
Less: Fuel surcharge revenues	233.5		114.4		648.5		314.8
Revenues (excluding fuel surcharge)	$	1,441.8	$	1,330.1	$	4,394.2	$	3,719.1

Adjusted income from operations

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Income from operations	$	145.4	$	153.7	$	457.1	$	355.7
Litigation and audit assessments (1) (2)	—		—		62.2		—
Acquisition-related costs (3)	0.1		—		0.3		—
Property gain—net (4)	—		—		(50.9)		—
Adjusted income from operations	$	145.5	$	153.7	$	468.7	$	355.7

(1)Includes $5.2 million in charges related to an adverse audit assessment for prior period state sales tax on rolling stock equipment used within that state for the nine months ended September 30, 2022.

(2)Includes a $57.0 million charge for an adverse settlement related to a lawsuit with former owners of WSL, inclusive of prejudgment interest and the former owners’ attorneys’ fees, for the nine months ended September 30, 2022. Refer to Note 12, Commitments and Contingencies, for additional details.

(3)Advisory, legal, and accounting costs related to the Company’s acquisitions. Refer to Note 2, Acquisitions, for additional details.

(4)Net gain on the sale of our Canadian facility due to a change in approach to servicing Canada.

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Adjusted operating ratio

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except ratios)	2022			2021			2022			2021
Total operating expenses	$	1,529.9		$	1,290.8		$	4,585.6		$	3,678.2
Divide by: Operating revenues	1,675.3			1,444.5			5,042.7			4,033.9
Operating ratio	91.3		%	89.4		%	90.9		%	91.2		%
Total operating expenses	$	1,529.9		$	1,290.8		$	4,585.6		$	3,678.2
Adjusted for:
Fuel surcharge revenues	(233.5)			(114.4)			(648.5)			(314.8)
Litigation and audit assessments	—			—			(62.2)			—
Acquisition-related costs	(0.1)			—			(0.3)			—
Property gain—net	—			—			50.9			—
Adjusted total operating expenses	$	1,296.3		$	1,176.4		$	3,925.5		$	3,363.4
Operating revenues	$	1,675.3		$	1,444.5		$	5,042.7		$	4,033.9
Less: Fuel surcharge revenues	233.5			114.4			648.5			314.8
Revenues (excluding fuel surcharge)	$	1,441.8		$	1,330.1		$	4,394.2		$	3,719.1
Adjusted operating ratio	89.9		%	88.4		%	89.3		%	90.4		%

Adjusted net income

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Net income	$	125.8	$	110.0	$	347.7	$	271.3
Litigation and audit assessments	—		—		62.2		—
Acquisition-related costs	0.1		—		0.3		—
Property gain—net	—		—		(50.9)		—
Income tax effect of non-GAAP adjustments (1)	—		—		(2.9)		—
Adjusted net income	$	125.9	$	110.0	$	356.4	$	271.3

(1)Our estimated tax rate on non-GAAP items is determined annually using the applicable consolidated federal and state effective tax rate, modified to remove the impact of tax credits and adjustments that are not applicable to the specific items. Due to differences in the tax treatment of items excluded from non-GAAP income, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP items may differ from our GAAP tax rate and from our actual tax liabilities.

Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021

Enterprise Results Summary

Enterprise net income increased $15.8 million, approximately 14%, in the third quarter of 2022 compared to the same quarter in 2021. Income from operations declined $8.3 million during that same period inclusive of a $20.6 million decline in gains on sales of property and equipment. Changes in our equity investments for the three months ended September 30, 2022 included pre-tax net gains of $25.9 million compared to $3.1 million in pre-tax net losses during the three months ended September 30, 2021. A corresponding increase in income taxes partially offset the net increase in pre-tax income.

Adjusted net income increased $15.9 million, approximately 14%.

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Components of Enterprise Net Income

Enterprise Revenues

Enterprise operating revenues increased $230.8 million, approximately 16%, in the third quarter of 2022 compared to the same quarter in 2021.

Factors contributing to the increase were as follows:

•a $119.1 million increase in fuel surcharge revenues resulting from increased fuel prices in the third quarter of 2022 compared to the same quarter in 2021, as well as fuel surcharge revenues from the acquisition of MLS;

•an $86.8 million increase in Truckload segment revenues (excluding fuel surcharge) resulting from improved revenue per truck per week, the addition of revenues (excluding fuel surcharge) from the acquisition of MLS, and incremental dedicated volumes, partially offset by lower network volumes due to a return to more balanced market conditions and reduced network productivity; and

•a $39.0 million increase in Intermodal segment revenues (excluding fuel surcharge) due to an increase in revenue per order and orders despite continued network fluidity challenges.

The above factors were partially offset by:

•a $10.4 million decrease in Logistics segment revenues (excluding fuel surcharge) driven by decreased revenue per order due to moderating market conditions, partially offset by volume growth within our brokerage business (including our Power Only offering) in addition to incremental port dray revenues.

Enterprise revenues (excluding fuel surcharge) increased $111.7 million, approximately 8%.

Enterprise Income from Operations and Operating Ratio

Enterprise income from operations decreased $8.3 million, approximately 5%, in the third quarter of 2022 compared to the same quarter in 2021, primarily due to higher rail purchased transportation costs within Intermodal, an increase in driver-related costs resulting from pay increases and an increase in company drivers, fewer equipment sales resulting in lower gains, and higher maintenance costs due to inflationary cost pressures and the MLS acquisition. The above factors were partially offset by an increase in revenue per order in Intermodal, revenue per truck per week in Truckload, and net revenue per order in Logistics driven by effective network and revenue management. Our dedicated Truckload volumes grew due to the acquisition of MLS and new business start-ups, while our brokerage business experienced a 5% increase in order volume driven by the continued expansion of our Power Only offering and leveraging our Schneider FreightPower® digital platform.

Adjusted income from operations decreased $8.2 million, approximately 5%.

Enterprise operating ratio (operating expenses as a percentage of operating revenues) increased on both a GAAP and adjusted basis when compared to the third quarter of 2021. Among other factors, our operating ratio can be negatively impacted by changes in portfolio mix when our higher operating ratio, less asset-focused Logistics segment grows faster than our lower operating ratio, capital-intensive Truckload segment.

Enterprise Operating Expenses

Key operating expense fluctuations are described below.

•Purchased transportation increased $42.7 million, or 6%, quarter over quarter, primarily resulting from higher rail purchased transportation driven by increases in Intermodal rail cost per mile. These increases were partially offset by a decline in third-party carrier costs within Logistics due to lower purchased transportation costs per order driven by moderating market conditions.

•Salaries, wages, and benefits increased $65.8 million, or 23%, quarter over quarter, largely due to higher driver pay within Truckload and Intermodal resulting from pay increases and an increase in company drivers. The acquisition of MLS and an increase in headcount across the organization contributed to the remaining increase quarter over quarter.

•Fuel and fuel taxes for company trucks increased $63.1 million, or 90%, quarter over quarter, driven primarily by an increase in cost per gallon, as well as additional fuel expense recorded related to the acquisition of MLS. A significant portion of fuel costs are recovered through our fuel surcharge programs.

•Depreciation and amortization increased $14.0 million, or 19%, quarter over quarter, mainly due to the acquisition of MLS, which accounted for nearly half of the increase. The remaining increase was driven by additional depreciation expense incurred as a result of truck and trailer growth within Truckload and container growth within Intermodal.

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•Operating supplies and expenses—net increased $41.0 million, or 38%, quarter over quarter, largely resulting from a decrease in gains on sales of property and equipment due to fewer equipment gains, higher maintenance costs due to inflationary cost pressures and the MLS acquisition, additional rail storage expenses caused by network fluidity challenges, and an increase in equipment rental expense driven by port congestion and higher customer dwell time. These factors were partially offset by lower cost of goods sold in our leasing business due to a reduction in lease activity.

•Insurance and related expenses increased $7.2 million, or 37%, quarter over quarter, primarily due to increases in auto liability insurance costs relating to favorable claims frequency and severity in the prior year. The remaining increase was also attributable to increased claims frequency in the current year and insurance premium costs for MLS.

•Other general expenses increased $5.3 million, or 15%, quarter over quarter, primarily related to increased professional service costs.

Total Other Expenses (Income)

Total other expenses decreased $29.0 million in the third quarter of 2022 compared to the same quarter in 2021. This change was driven by a $25.9 million pre-tax gain on our equity investments in the third quarter of 2022 compared to a $3.1 million pre-tax net loss in the third quarter of 2021. See Note 6, Investments, for more information on our equity investments.

Income Tax Expense

Our provision for income taxes increased $4.9 million, approximately 13%, in the third quarter of 2022 compared to the same quarter in 2021, primarily due to higher taxable income. The effective income tax rate was 25.0% for the three months ended September 30, 2022 compared to 25.2% for the same quarter last year. Our provision for income taxes may fluctuate in future periods to the extent there are changes to tax laws and regulations.

Revenues and Income from Operations by Segment

The following tables summarize revenues and income from operations by segment.

	Three Months Ended September 30,
Revenues by Segment (in millions)	2022		2021
Truckload	$	571.2	$	484.4
Intermodal	334.7		295.7
Logistics	464.2		474.6
Other	97.3		98.0
Fuel surcharge	233.5		114.4
Inter-segment eliminations	(25.6)		(22.6)
Operating revenues	$	1,675.3	$	1,444.5

	Three Months Ended September 30,
Income from Operations by Segment (in millions)	2022		2021
Truckload	$	83.2	$	85.1
Intermodal	31.1		45.7
Logistics	27.9		22.1
Other	3.2		0.8
Income from operations	145.4		153.7
Adjustments:
Acquisition-related costs	0.1		—
Adjusted income from operations	$	145.5	$	153.7

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We monitor and analyze a number of KPIs to manage our business and evaluate our financial and operating performance.

Truckload

The following table presents our Truckload segment KPIs for the periods indicated, consistent with how revenues and expenses are reported internally for segment purposes. The two operations that make up our Truckload segment are as follows:

•Dedicated - Transportation services with equipment devoted to customers under long-term contracts.

•Network - Transportation services of one-way shipments.

MLS and deBoer impacts are included within dedicated operations below beginning in the first and third quarters of 2022, respectively.

	Three Months Ended September 30,
	2022			2021
Dedicated
Revenues (excluding fuel surcharge) (1)	$	306.7		$	204.0
Average trucks (2) (3)	6,020			4,240
Revenue per truck per week (4)	$	3,925		$	3,706
Network
Revenues (excluding fuel surcharge) (1)	$	265.3		$	279.9
Average trucks (2) (3)	4,526			4,942
Revenue per truck per week (4)	$	4,514		$	4,364
Total Truckload
Revenues (excluding fuel surcharge) (5)	$	571.2		$	484.4
Average trucks (2) (3)	10,546			9,182
Revenue per truck per week (4)	$	4,178		$	4,060
Average company trucks (3)	8,560			6,875
Average owner-operator trucks (3)	1,986			2,307
Trailers (6)	42,980			36,434
Operating ratio (7)	85.4		%	82.4		%

(1)Revenues (excluding fuel surcharge), in millions, exclude revenue in transit.

(2)Includes company and owner-operator trucks.

(3)Calculated based on beginning and end of month counts and represents the average number of trucks available to haul freight over the specified timeframe.

(4)Calculated excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes, using weighted workdays.

(5)Revenues (excluding fuel surcharge), in millions, include revenue in transit at the operating segment level and, therefore does not sum with amounts presented above.

(6)Includes entire fleet of owned trailers, including trailers with leasing arrangements between Truckload and Logistics.

(7)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Truckload revenues (excluding fuel surcharge) increased $86.8 million, approximately 18%, in the third quarter of 2022 compared to the same quarter in 2021, due to an 11% increase in volume resulting from the acquisition of MLS and new business start-ups within dedicated, while network volumes decreased mainly due to a return to more balanced market conditions. Rate per loaded mile also increased 5%, achieved in support of inflationary operating costs and ongoing challenges with longer dwell times at customer locations, and was partially offset by reduced network productivity. Additionally, dedicated average trucks grew nearly 1,800 units quarter over quarter to approximately 6,000, which was a milestone crossed in the second quarter of 2022 and further supported increased volumes. Network average trucks declined approximately 400 units quarter over quarter to approximately 4,500.

Truckload income from operations decreased $1.9 million, approximately 2%, in the third quarter of 2022 compared to the same quarter in 2021. Factors contributing to the decrease in income from operations include reduced network volumes, an increase in driver-related costs resulting largely from pay increases and more company drivers within dedicated, fewer equipment sales resulting in lower gains, and higher maintenance costs due to inflationary cost pressures and the MLS acquisition. These items were mostly offset by favorable pricing conditions, as well as volume growth within dedicated bolstered by the acquisition of MLS.

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Intermodal

The following table presents the KPIs for our Intermodal segment for the periods indicated.

	Three Months Ended September 30,
	2022			2021
Orders (1)	115,743			111,801
Containers	28,308			23,796
Trucks (2)	1,691			1,569
Revenue per order (3)	$	2,936		$	2,624
Operating ratio (4)	90.7		%	84.5		%

(1)Based on delivered rail orders.

(2)Includes company and owner-operator trucks at the end of the period.

(3)Calculated using rail revenues excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes.

(4)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Intermodal revenues (excluding fuel surcharge) increased $39.0 million, approximately 13%, in the third quarter of 2022 compared to the same quarter in 2021, primarily due to a $312, or 12%, improvement in revenue per order, a result of higher rate per mile, and a 4% increase in orders. Intermodal also grew its container count by 4,512, or 19%, from the third quarter of 2021, which helped drive the increase in order count despite continued fluidity challenges resulting from supply chain constraints, including the impact of rail labor negotiations.

Intermodal income from operations decreased $14.6 million, approximately 32%, in the third quarter of 2022 compared to the same quarter in 2021. Factors contributing to the decrease in income from operations include higher rail-related costs, mainly due to network fluidity issues which put upward pressure on carrier rates, increased dray execution costs, and nonrecurring costs related to the transition to the UP as our Western rail provider on January 1, 2023.

Logistics

The following table presents the KPI for our Logistics segment for the periods indicated.

	Three Months Ended September 30,
	2022		2021
Operating ratio (1)	94.0	%	95.3	%

(1)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Logistics revenues (excluding fuel surcharge) decreased $10.4 million, approximately 2%, in the third quarter of 2022 compared to the same quarter in 2021. This was primarily due to a decrease in revenue per order driven by moderating market conditions. The decrease was partially offset by increased volume within our brokerage business due to further leveraging our Schneider FreightPower® digital platform, continued expansion of our Power Only offering, and incremental port dray revenues.

Logistics income from operations increased $5.8 million, approximately 26%, in the third quarter of 2022 compared to the same quarter in 2021. Increased net revenue per order within our brokerage business, in addition to volume growth cited above, contributed to the increase in income from operations quarter over quarter.

Other

Other income from operations increased $2.4 million in the third quarter of 2022 compared to the same quarter in 2021. The increase was primarily driven by a higher income from operations in our leasing business and a decrease in performance-based incentive compensation.

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Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

Enterprise Results Summary

Enterprise net income increased $76.4 million, approximately 28%, in the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to a $101.4 million increase in income from operations, partially offset by the corresponding increase in income taxes.

Adjusted net income increased $85.1 million, approximately 31%.

Components of Enterprise Net Income

Enterprise Revenues

Enterprise operating revenues increased $1,008.8 million, approximately 25%, in the nine months ended September 30, 2022 compared to the same period in 2021.

Factors contributing to the increase were as follows:

•a $333.7 million increase in fuel surcharge revenues resulting from increased fuel prices in the first nine months of 2022 compared to the same period in 2021, as well as fuel surcharge revenues from the acquisition of MLS;

•a $279.9 million increase in Truckload segment revenues (excluding fuel surcharge) driven by improved revenue per truck per week, the addition of revenues (excluding fuel surcharge) from the acquisition of MLS, and increased dedicated volumes, partially offset by lower network volumes due to driver capacity constraints primarily in the first half of 2022, reduced network productivity, and a return to more balanced market conditions in the third quarter of 2022;

•a $270.0 million increase in Logistics segment revenues (excluding fuel surcharge) resulting from increased revenue per order in the first half of 2022, volume growth within our brokerage business (including our Power Only offering), and incremental port dray revenues predominately in the first half of 2022 driven by port congestion and supply chain constraints; and

•a $146.4 million increase in Intermodal segment revenues (excluding fuel surcharge) due to an increase in revenue per order and orders despite network fluidity constraints.

Enterprise revenues (excluding fuel surcharge) increased $675.1 million, approximately 18%.

Enterprise Income from Operations and Operating Ratio

Enterprise income from operations increased $101.4 million, approximately 29%, in the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to an increase in revenue per truck per week in Truckload, revenue per order in Intermodal, and net revenue per order in Logistics driven by strong freight market conditions in the first half of 2022, in addition to effective network and revenue management. A net gain on sale of $50.9 million in connection with the sale of our Canadian facility due to a change in approach to servicing Canada also contributed to the increase. Our dedicated Truckload volumes grew with the acquisition of MLS and new business start-ups, while our brokerage business experienced a 13% increase in order volume driven by leveraging our Schneider FreightPower® digital platform and the continued expansion of our Power Only offering. The above factors were partially offset by an increase in driver-related costs resulting from pay increases, costs incurred to attract and retain drivers, and an increase in company drivers. Higher rail purchased transportation costs within Intermodal, a $57.0 million adverse settlement related to a lawsuit with former owners of WSL, fewer equipment sales resulting in lower gains, and higher maintenance costs due to inflationary cost pressures also partially offset the favorable impacts on income from operations noted above.

Adjusted income from operations increased $113.0 million, approximately 32%.

Enterprise operating ratio (operating expenses as a percentage of operating revenues) improved on both a GAAP and adjusted basis when compared to the same period of 2021. Among other factors, our operating ratio can be negatively impacted by changes in portfolio mix when our higher operating ratio, less asset-focused Logistics segment grows faster than our lower operating ratio, capital-intensive Truckload segment.

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Enterprise Operating Expenses

Key operating expense fluctuations are described below. 

•Purchased transportation costs increased $353.6 million, or 19%, period over period, primarily resulting from increased third-party carrier costs within Logistics due to volume growth and higher purchased transportation costs per order during the first half of 2022, as well as higher rail purchased transportation resulting from an increase in both rail costs and orders in Intermodal.

•Salaries, wages, and benefits increased $201.5 million, or 24%, period over period, largely due to higher driver pay within Truckload and Intermodal resulting from pay increases and actions to address driver capacity constraints, in addition to an increase in company drivers. The acquisition of MLS, an increase in headcount across the organization, and incremental healthcare costs contributed to the remaining increase period over period.

•Fuel and fuel taxes for company trucks increased $186.8 million, or 92%, period over period, driven by an increase in cost per gallon and additional fuel expense recorded related to the acquisition of MLS. A significant portion of fuel costs are recovered through our fuel surcharge programs.

•Depreciation and amortization increased $37.8 million, or 17%, period over period, mainly due to the acquisition of MLS, which accounted for nearly half of the increase. The remaining increase was driven by additional depreciation expense incurred as a result of truck and container growth within Truckload and Intermodal, respectively.

•Operating supplies and expenses—net increased $30.0 million, or 8%, period over period, driven by fewer equipment sales period over period, an increase in equipment rental expense largely due to port congestion, higher maintenance costs due to inflationary cost pressures and the MLS acquisition, additional rail storage expenses caused by network fluidity challenges, and a $5.2 million increase in expense related to an adverse audit assessment over the applicability of state sales tax. These factors were partially offset by the gain relating to the sale of the Company’s Canadian facility in the first quarter of 2022 and lower cost of goods sold in our leasing business due to a reduction in lease activity.

•Insurance and related expenses increased $17.3 million, or 29%, period over period, primarily due to increases in auto liability insurance costs relating to favorable claims frequency and severity in the prior year. The remaining increase can be attributed to increased claims frequency in the current year and insurance premium costs for MLS.

•Other general expenses increased $80.4 million, or 82%, period over period, primarily due to a $57.0 million adverse settlement related to a lawsuit with former owners of WSL and higher driver onboarding costs resulting from increased costs to attract and retain drivers and the hiring of additional company drivers in 2022.

Total Other Expenses (Income)

Total other expenses increased $0.2 million, approximately 3%, in the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to a $15.8 million pre-tax gain on our equity investments compared to a $17.1 million pre-tax gain recorded for the same period in 2021, partially offset by a $1.2M decrease in interest expense. See Note 6, Investments, for more information on our equity investments.

Income Tax Expense

Our provision for income taxes increased $24.8 million, approximately 27%, in the nine months ended September 30, 2022 compared to the same period in 2021 due to higher taxable income. The effective income tax rate was 25.0% for the nine months ended September 30, 2022 compared to 25.2% for the same period last year. Our provision for income taxes may fluctuate in future periods to the extent there are changes to tax laws and regulations.

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Revenues and Income (Loss) from Operations by Segment

The following tables summarize revenues and income (loss) from operations by segment.

	Nine Months Ended September 30,
Revenues by Segment (in millions)	2022		2021
Truckload	$	1,691.2	$	1,411.3
Intermodal	971.9		825.5
Logistics	1,531.2		1,261.2
Other	274.2		284.9
Fuel surcharge	648.5		314.8
Inter-segment eliminations	(74.3)		(63.8)
Operating revenues	$	5,042.7	$	4,033.9

	Nine Months Ended September 30,
Income (Loss) from Operations by Segment (in millions)	2022		2021
Truckload	$	283.3	$	197.0
Intermodal	112.3		100.6
Logistics	117.1		55.0
Other	(55.6)		3.1
Income from operations	457.1		355.7
Adjustments:
Litigation and audit assessments	62.2		—
Acquisition-related costs	0.3		—
Property gain—net	(50.9)		—
Adjusted income from operations	$	468.7	$	355.7

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We monitor and analyze a number of KPIs to manage our business and evaluate our financial and operating performance.

Truckload

The following table presents our Truckload segment KPIs for the periods indicated, consistent with how revenues and expenses are reported internally for segment purposes. The two operations that make up our Truckload segment are as follows:

•Dedicated - Transportation services with equipment devoted to customers under long-term contracts.

•Network - Transportation services of one-way shipments.

MLS and deBoer impacts are included within dedicated operations below beginning in the first and third quarters of 2022, respectively.

	Nine Months Ended September 30,
	2022			2021
Dedicated
Revenues (excluding fuel surcharge) (1)	$	892.1		$	587.3
Average trucks (2) (3)	5,908			4,182
Revenue per truck per week (4)	$	3,922		$	3,643
Network
Revenues (excluding fuel surcharge) (1)	$	796.6		$	821.6
Average trucks (2) (3)	4,533			5,159
Revenue per truck per week (4)	$	4,564		$	4,133
Total Truckload
Revenues (excluding fuel surcharge) (5)	$	1,691.2		$	1,411.3
Average trucks (2) (3)	10,441			9,341
Revenue per truck per week (4)	$	4,201		$	3,914
Average company trucks (3)	8,420			6,960
Average owner-operator trucks (3)	2,021			2,381
Trailers (6)	42,980			36,434
Operating ratio (7)	83.2		%	86.0		%

(1)Revenues (excluding fuel surcharge), in millions, exclude revenue in transit.

(2)Includes company and owner-operator trucks.

(3)Calculated based on beginning and end of month counts and represents the average number of trucks available to haul freight over the specified timeframe.

(4)Calculated excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes, using weighted workdays.

(5)Revenues (excluding fuel surcharge), in millions, include revenue in transit at the operating segment level and, therefore does not sum with amounts presented above.

(6)Includes entire fleet of owned trailers, including trailers with leasing arrangements between Truckload and Logistics.

(7)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Truckload revenues (excluding fuel surcharge) increased $279.9 million, approximately 20%, in the nine months ended September 30, 2022 compared to the same period in 2021, due to a 12% increase in rate per loaded mile, realized in response to the impacts of inflation on operating costs and ongoing challenges at customer locations resulting in longer dwell times, partially offset by reduced network productivity. Additionally, an 8% increase in volume resulted from the acquisition of MLS and new business start-ups within dedicated, while network volumes declined mainly due to driver capacity constraints in the first half of 2022 and a return to more balanced market conditions in the third quarter of 2022.

Truckload income from operations increased $86.3 million, approximately 44%, in the nine months ended September 30, 2022 compared to the same period in 2021. Factors contributing to the increase in income from operations include favorable pricing conditions, a $50.9 million net gain related to the sale of the Company’s Canadian facility, and additional dedicated volumes inclusive of the MLS acquisition. These items were partially offset by lower volumes within network; an increase in driver-related costs resulting largely from pay increases, actions taken to attract and retain drivers, and an increase in company drivers within dedicated; fewer equipment sales resulting in lower gains; and higher maintenance costs due to inflationary cost pressures.

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Intermodal

The following table presents the KPIs for our Intermodal segment for the periods indicated.

	Nine Months Ended September 30,
	2022			2021
Orders (1)	345,533			334,480
Containers	28,308			23,796
Trucks (2)	1,691			1,569
Revenue per order (3)	$	2,803		$	2,442
Operating ratio (4)	88.4		%	87.8		%

(1)Based on delivered rail orders.

(2)Includes company and owner-operator trucks at the end of the period.

(3)Calculated using rail revenues excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes.

(4)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Intermodal revenues (excluding fuel surcharge) increased $146.4 million, approximately 18%, in the nine months ended September 30, 2022 compared to the same period in 2021. Contributing to the increase was a $361, or 15%, improvement in revenue per order and a 3% increase in volume; both of which were driven by strong market conditions in the first half of the year. This was partially offset by shorter length of haul. Intermodal grew its container count by 4,512, or 19%, period over period, which helped drive the increase in order count despite fluidity challenges.

Intermodal income from operations increased $11.7 million, approximately 12%, in the nine months ended September 30, 2022 compared to the same period in 2021, mainly the result of factors impacting revenues discussed above, partially offset by higher rail-related and dray execution costs.

Logistics

The following table presents the KPI for our Logistics segment for the periods indicated.

	Nine Months Ended September 30,
	2022		2021
Operating ratio (1)	92.4	%	95.6	%

(1)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.

Logistics revenues (excluding fuel surcharge) increased $270.0 million, approximately 21%, in the nine months ended September 30, 2022 compared to the same period in 2021. This increase was mainly the result of an increase in revenue per order and 13% volume growth within our brokerage business driven by supportive market conditions in the first half of 2022, and expansion of our Power Only offering and Schneider FreightPower® digital platform. Also contributing to the increase were additional port dray revenues predominately in the first half of 2022 resulting from port congestion and supply chain constraints.

Logistics income from operations increased $62.1 million, approximately 113%, in the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to net revenue per order improvements in addition to volume growth within both brokerage and our port dray business.

Other

Included in Other was a loss from operations of $55.6 million in the nine months ended September 30, 2022 compared to income of $3.1 million in the same period in 2021. The change was primarily due to a $57.0 million adverse settlement related to a lawsuit with former owners of WSL and $5.2 million of expense related to an adverse audit assessment over the applicability of state sales tax. The above items were partially offset by an increase in income from operations within our leasing business.

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LIQUIDITY AND CAPITAL RESOURCES

Our primary uses of cash are working capital requirements, capital expenditures, dividend payments, and debt service requirements. Additionally, we may use cash for acquisitions and other investing and financing activities. Working capital is required principally to ensure we are able to run the business and have sufficient funds to satisfy maturing short-term debt and operational expenses. Our capital expenditures consist primarily of transportation equipment and information technology.

Historically, our primary source of liquidity has been cash flow from operations. In addition, we have a $250.0 million revolving credit facility and a $150.0 million accounts receivable facility, for which our available capacity as of September 30, 2022 was $322.8 million. We anticipate that cash generated from operations, together with amounts available under our credit facilities, will be sufficient to meet our requirements for the foreseeable future. To the extent additional funds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that we will obtain these funds through additional borrowings, equity offerings, or a combination of these potential sources of liquidity. Our ability to fund future operating expenses and capital expenditures, as well as our ability to meet future debt service obligations or refinance our indebtedness, will depend on our future operating performance, which will be affected by general economic, financial, and other factors beyond our control.

The following table presents our cash and cash equivalents, marketable securities, and outstanding debt as of the dates shown.

(in millions)	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	349.7	$	244.8
Marketable securities	44.6		49.3
Total cash, cash equivalents, and marketable securities	$	394.3	$	294.1
Debt:
Senior notes	$	205.0	$	265.0
Finance leases	7.7		5.3
Total debt	$	212.7	$	270.3

Debt

At September 30, 2022, we were in compliance with all financial covenants under our credit agreements and the agreements governing our senior notes. See Note 8, Debt and Credit Facilities, for information about our financing arrangements.

Cash Flows

The following table summarizes the changes to our net cash flows provided by (used in) operating, investing, and financing activities for the periods indicated. 

	Nine Months Ended September 30,
(in millions)	2022		2021
Net cash provided by operating activities	$	578.3	$	396.0
Net cash used in investing activities	(371.5)		(249.6)
Net cash used in financing activities	(101.9)		(37.7)

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

Operating Activities

Net cash provided by operating activities increased $182.3 million, approximately 46%, in the first nine months of 2022 compared to the same period in 2021. The increase was a result of an increase in net income adjusted for various noncash charges and a decrease in cash used for working capital. Working capital changes were driven by a decrease in cash used for trade accounts receivable and other liabilities, primarily the result of a larger increase in trade accounts receivable during 2021 than in 2022 and prior year’s $30.7 million payment of payroll taxes deferred under the CARES Act.

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Investing Activities

Net cash used in investing activities increased $121.9 million, approximately 49%, in the first nine months of 2022 compared to the same period in 2021. The increase in cash used was primarily driven by an increase in net capital expenditures; the acquisition of deBoer for $32.5 million, net of cash acquired; and additional investments in equity securities in 2022.

Net Capital Expenditures

The following table sets forth our net capital expenditures for the periods indicated.

	Nine Months Ended September 30,
(in millions)	2022		2021
Purchases of transportation equipment	$	321.1	$	296.9
Purchases of other property and equipment	38.4		33.4
Proceeds from sale of property and equipment	(101.1)		(145.2)
Net capital expenditures	$	258.4	$	185.1

Net capital expenditures increased $73.3 million in the first nine months of 2022 compared to the same period in 2021. The increase was driven by a $44.1 million decrease in proceeds from the sale of property and equipment and a $24.2 million increase in purchases of transportation equipment mainly due to growth capital and higher costs for new equipment. The decrease in proceeds is primarily due to fewer equipment sales, partially offset by the sale of our Canadian facility in the first quarter of 2022.

Financing Activities

Net cash used in financing activities increased $64.2 million, approximately 170%, in the first nine months of 2022 compared to the same period in 2021. The main driver of the increase in net cash used was a $60.0 million repayment of a private placement note in March of 2022.

Other Considerations that Could Affect Our Results, Liquidity, or Capital Resources

Factors that Could Result in a Goodwill Impairment

Goodwill is tested for impairment at least annually using the discounted cash flow and guideline public company methods in calculating the fair values of our reporting units. Key inputs used in the discounted cash flow approach include growth rates for sales and operating profit, perpetuity growth assumptions, and discount rates. As interest rates rise, the calculated fair values of our reporting units will decrease, which could impact the results of our goodwill impairment tests.

We will perform our annual evaluation of goodwill for impairment as of October 31, 2022, with such analysis expected to be finalized during the fourth quarter. As part of our annual process of updating our goodwill impairment evaluation, we will assess the impact of current operating results and our resulting management actions to determine whether they have an impact on the long-term valuation of reporting units and the related recoverability of our goodwill.

Off-Balance Sheet Arrangements

As of September 30, 2022, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources.

Contractual Obligations

See the disclosure under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Contractual Obligations” in our Annual Report on Form 10-K for the year ended December 31, 2021 for our contractual obligations as of December 31, 2021. There were no material changes to our contractual obligations during the nine months ended September 30, 2022.

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CRITICAL ACCOUNTING ESTIMATES

We have reviewed our critical accounting policies and considered whether new critical accounting estimates or other significant changes to our accounting policies require additional disclosures. We have found that the disclosures made in our Annual Report on Form 10-K for the year ended December 31, 2021 are still current and that there have been no significant changes.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our market risks have not changed significantly from the market risks discussed in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the SEC on February 18, 2022.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this report. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is party to various lawsuits in the ordinary course of its business. For information relating to legal proceedings, see Note 12, Commitments and Contingencies, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS

Except as set forth below, there have been no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”).

The following risk factor replaces in its entirety the risk factor titled “We depend on railroads in the operation of our intermodal business, and therefore, our ability to offer intermodal services could be limited if we experience instability from third parties we use in that business” included in our 2021 Form 10-K. For the avoidance of doubt, only the second and final paragraphs of this risk factor have been modified.

We depend on railroads in the operation of our intermodal business, and therefore, our ability to offer intermodal services could be limited if we experience instability from third parties we use in that business.

Our Intermodal segment utilizes railroads and some third-party drayage carriers to transport freight for our intermodal customers. The majority of these services are provided pursuant to contractual relationships with the railroads. While we have had agreements with all of the Class I railroads, our primary contracts are currently with the BNSF and CSX Transportation (“CSX”) freight railroads to provide rail-based freight transportation services in support of our intermodal operations. One of our competitors has a preferential contractual arrangement with BNSF, which limits the market share and relative profitability of the services we provide through the BNSF. Beginning in 2023, UP will replace BNSF as our primary rail service provider in the western U.S. The transition to UP and away from BNSF will be complete by January 2023. The transition will require cooperation and coordination by Schneider with both BNSF and UP to be successful and to ensure no interruptions in our intermodal service results. Our results of operations could be adversely affected by any extended interruption of our intermodal service offering due to this transition or UP's ability to manage our rail volumes following the transition.

In certain markets and rail corridors, rail service is limited to a few railroads or even a single railroad due to the lack of competition. Our ability to provide intermodal services in certain traffic lanes is likely to be reduced or constricted if any of the Class I railroads were to discontinue service or have interruptions of service in those lanes or if the overall quality of rail service in those lanes were to deteriorate. Since 2020, the National Carriers’ Conference Committee (“NCC”), which represents all major Class 1 freight railroads in the U.S., as well as many smaller freight and passenger lines in national collective bargaining and labor organizations representing North American rail workers have been engaged in negotiations to settle disputes of rates of pay, rules, and working conditions for railroad workers, but those negotiations failed to progress. A three-person presidential emergency board, created and appointed by President Biden, became involved in the process and conducted hearings in July and August and were also unsuccessful in resolving the dispute. A federally mandated cooling-off period for negotiations expired on September 16, 2022, opening the possibility of a nationwide strike by rail workers or lockout by the railroads. On September 16, 2022, the major railroads and unions representing railroad workers reached a tentative agreement thereby averting significant rail and shipping disruptions in the U.S. The deal must still be ratified by the 12 unions representing the rail workers; however, while the ratification process remains pending, the rail workers have agreed not to strike. As of the date of this Quarterly Report on Form 10-Q, six unions have ratified the agreement; two unions have rejected the agreement; one union initially rejected the agreement but recently reached a new tentative agreement after continued negotiations with the railroads; one union, the third largest rail union, recently rejected the agreement but will maintain the status quo during continued negotiations until at least November 19, 2022; and the remaining two unions will hold votes by November 20, 2022. If an agreement is not ultimately ratified or rail service is interrupted or experiences a deterioration in quality due to the ongoing labor dispute, it could have a material adverse effect on our business.

Our contracts with the railroads are subject to periodic renewal, and our intermodal business may be adversely affected by any adverse change in our contract terms with the railroads, our relationships with the railroads, or declines in service and volume levels provided by the railroads.

In addition, a portion of the freight we deliver through both our Intermodal and Truckload segments is imported to the U.S. through ports of call where workers are largely unionized, and which recently have been, subject to COVID-induced congestion, backlogs, and unloading delays. The ILWU is a labor union which primarily represents dock workers on the West Coast of the U.S. The ILWU’s current coast wide contract with west coast port owners expired on July 1, 2022. As of the date

35

of this Quarterly Report on Form 10-Q, the ILWU and PMA, which represents west coast port owners, had not entered into a new contract. In the previous four contract negotiations between the ILWU and port owners dating back to the late 1990s, negotiations went past the July 1 deadline, and in those contract years, work slowdowns or employer lockouts ensued. News reports indicate that the expiration of the contract without an extension removes mechanisms for handling workplace grievances and, as a result, may increase the likelihood of slowdowns if there are labor disputes at any relevant ports, and that there have been recent actions at certain ports, including refusal to work in specific areas or on specific vessels due to safety concerns, as well as accusations of work slowdown tactics by the ILWU. Although, as of the date of this Quarterly Report on Form 10-Q, there have been no reports or signs of work stoppages or strikes while the ILWU and PMA continue to negotiate and the reported incidents generally haven’t delayed cargo movement; there can be no guarantee that work stoppages, shipping backlogs, port congestion, or other disruptions at any of these ports will not occur or that confrontations over work disputes won’t escalate. Furthermore, according to news reports, throughout the first half of 2022 cargo had been re-routed to East Coast ports in preparation for labor issues at West Coast ports. If cargo continues to be re-routed due to ongoing labor issues, the East Coast ports may also experience increased congestion for the foreseeable future. In addition, recent news reports indicate that the security guards at the Los Angeles-Long Beach Ports voted to authorize a strike, although a date was not set, and it is possible that dock workers would not cross picket lines in the event of strike by security guards at those ports. Any such event could have a material adverse effect on our business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company does not have a share repurchase program and did not repurchase any equity securities during the three months ended September 30, 2022. 

Limitation Upon Payment of Dividends

The 2018 Credit Facility includes covenants limiting our ability to pay dividends or make distributions on our capital stock if a default exists under the 2018 Credit Facility or would be caused by giving effect to such dividend.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

36

ITEM 6. EXHIBITS

Exhibit Number	Exhibit Description
31.1*	Certification pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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 Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
104*	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL

*    Filed herewith.

** Furnished herewith.

37

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Schneider National, Inc., has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SCHNEIDER NATIONAL, INC.
Date:	October 27, 2022	/s/ Stephen L. Bruffett
		Stephen L. Bruffett
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

38

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a),

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Mark B. Rourke, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Schneider National, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 27, 2022	/s/ Mark B. Rourke
		Mark B. Rourke
		Chief Executive Officer and President
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a),

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Stephen L. Bruffett, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Schneider National, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 27, 2022	/s/ Stephen L. Bruffett
		Stephen L. Bruffett
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002

In connection with the Annual Report on Form 10-K of Schneider National, Inc. (the “Company”), for the period ended September 30, 2022, filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark B. Rourke, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	October 27, 2022	/s/ Mark B. Rourke
		Mark B. Rourke
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002

In connection with the Annual Report on Form 10-K of Schneider National, Inc. (the “Company”), for the period ended September 30, 2022, filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen L. Bruffett, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	October 27, 2022	/s/ Stephen L. Bruffett
		Stephen L. Bruffett
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 21, 2022
Document Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-38054
Entity Registrant Name	Schneider National, Inc.
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1258315
Entity Address, Address Line One	3101 South Packerland Drive
Entity Address, City or Town	Green Bay
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	54313
City Area Code	920
Local Phone Number	592-2000
Title of 12(b) Security	Class B common stock, no par value
Trading Symbol	SNDR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001692063
Current Fiscal Year End Date	--12-31
Class A Common Shares
Document Information
Entity Common Stock, Shares Outstanding		83,029,500
Class B Common Stock
Document Information
Entity Common Stock, Shares Outstanding		94,982,780

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Operating revenues	$ 1,675.3	$ 1,444.5	$ 5,042.7	$ 4,033.9
Operating expenses:
Purchased transportation	735.0	692.3	2,254.0	1,900.4
Salaries, wages, and benefits	356.0	290.2	1,034.4	832.9
Fuel and fuel taxes	133.4	70.3	390.9	204.1
Depreciation and amortization	88.2	74.2	258.3	220.5
Operating supplies and expenses—net	149.7	108.7	392.0	362.0
Insurance and related expenses	26.5	19.3	78.0	60.7
Other general expenses	41.1	35.8	178.0	97.6
Total operating expenses	1,529.9	1,290.8	4,585.6	3,678.2
Income from operations	145.4	153.7	457.1	355.7
Other expenses (income):
Interest income	(0.8)	(0.6)	(1.5)	(1.8)
Interest expense	2.1	3.3	7.1	9.7
Other expenses (income)—net	(23.6)	4.0	(12.3)	(14.8)
Total other expenses (income)—net	(22.3)	6.7	(6.7)	(6.9)
Income before income taxes	167.7	147.0	463.8	362.6
Provision for income taxes	41.9	37.0	116.1	91.3
Net income	125.8	110.0	347.7	271.3
Other comprehensive income (loss):
Foreign currency translation adjustment—net	(0.1)	(0.1)	0.0	0.1
Net unrealized loss on marketable securities—net of tax	(1.3)	(0.2)	(3.9)	(0.6)
Total other comprehensive loss—net	(1.4)	(0.3)	(3.9)	(0.5)
Comprehensive income	$ 124.4	$ 109.7	$ 343.8	$ 270.8
Weighted average common shares outstanding	178.0	177.7	177.9	177.5
Basic earnings per share	$ 0.71	$ 0.62	$ 1.95	$ 1.53
Weighted average diluted shares outstanding	178.7	177.9	178.6	177.8
Diluted earnings per share	$ 0.70	$ 0.62	$ 1.95	$ 1.53

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 349.7	$ 244.8
Marketable securities	44.6	49.3
Trade accounts receivable—net of allowance of $10.9 million and $5.2 million, respectively	729.7	705.4
Other receivables	31.3	35.9
Current portion of lease receivables—net of allowance of $1.4 million and $1.1 million, respectively	112.7	110.6
Inventories	43.1	27.4
Prepaid expenses and other current assets	97.2	75.1
Total current assets	1,408.3	1,248.5
Property and equipment:
Transportation equipment	3,346.3	3,056.2
Land, buildings, and improvements	217.3	215.7
Other property and equipment	176.1	175.1
Total property and equipment	3,739.7	3,447.0
Less accumulated depreciation	1,538.6	1,396.0
Net property and equipment	2,201.1	2,051.0
Lease receivables	168.8	160.1
Internal use software and other noncurrent assets	299.4	237.2
Goodwill	228.3	240.5
Total noncurrent assets	2,897.6	2,688.8
Total Assets	4,305.9	3,937.3
Current Liabilities:
Trade accounts payable	374.9	331.7
Accrued salaries, wages, and benefits	96.5	104.5
Claims accruals—current	75.0	83.9
Current maturities of debt and finance lease obligations	72.6	61.4
Other current liabilities	115.2	108.7
Total current liabilities	734.2	690.2
Noncurrent Liabilities:
Long-term debt and finance lease obligations	140.1	208.9
Claims accruals—noncurrent	94.4	88.5
Deferred income taxes	528.9	451.0
Other noncurrent liabilities	70.4	74.9
Total noncurrent liabilities	833.8	823.3
Total Liabilities	1,568.0	1,513.5
Shareholders’ Equity:
Additional paid-in capital	1,579.8	1,566.0
Retained earnings	1,162.0	857.8
Accumulated other comprehensive loss	(3.9)	0.0
Total Shareholders' Equity	2,737.9	2,423.8
Total Liabilities and Shareholders’ Equity	4,305.9	3,937.3
Supplemental Income Statement Elements
Trade accounts receivable allowance	10.9	5.2
Lease receivables allowance	1.4	1.1
Preferred Stock
Shareholders’ Equity:
Preferred stock	$ 0.0	$ 0.0
Preferred stock, par value (usd per share)	$ 0	$ 0
Preferred stock, shares authorized (shares)	50,000,000	50,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Class A Common Shares
Shareholders’ Equity:
Common stock	$ 0.0	$ 0.0
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (shares)	250,000,000	250,000,000
Common stock, shares issued (shares)	83,029,500	83,029,500
Common stock, shares outstanding (shares)	83,029,500	83,029,500
Class B Common Stock
Shareholders’ Equity:
Common stock	$ 0.0	$ 0.0
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (shares)	750,000,000	750,000,000
Common stock, shares issued (shares)	95,643,248	95,701,868
Common stock, shares outstanding (shares)	94,980,485	94,626,740

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net cash provided by operating activities
Net income	$ 347.7	$ 271.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	258.3	220.5
Gains on sales of property and equipment—net	(75.2)	(48.0)
Proceeds from lease receipts	62.3	54.7
Deferred income taxes	72.4	21.6
Long-term incentive and share-based compensation expense	12.6	11.3
Gains on investment in equity securities—net	(15.8)	(17.1)
Other noncash items—net	(15.2)	0.6
Changes in operating assets and liabilities:
Receivables	(26.5)	(112.3)
Other assets	(53.8)	(53.3)
Payables	5.0	68.0
Claims reserves and other receivables—net	6.3	1.1
Other liabilities	0.2	(22.4)
Net cash provided by operating activities	578.3	396.0
Investing Activities:
Purchases of transportation equipment	(321.1)	(296.9)
Purchases of other property and equipment	(38.4)	(33.4)
Proceeds from sale of property and equipment	101.1	145.2
Proceeds from sale of off-lease inventory	19.9	13.2
Purchases of lease equipment	(80.4)	(72.8)
Proceeds from marketable securities	4.2	11.7
Purchases of marketable securities	(4.6)	(11.6)
Investments in equity securities	(24.1)	(5.0)
Acquisition of businesses, net of cash acquired	(28.1)	0.0
Net cash used in investing activities	(371.5)	(249.6)
Financing Activities:
Payments of debt and finance lease obligations	(61.3)	(0.5)
Dividends paid	(41.4)	(37.2)
Other financing activities	0.8	0.0
Net cash used in financing activities	(101.9)	(37.7)
Net increase in cash and cash equivalents	104.9	108.7
Cash and Cash Equivalents:
Cash and cash equivalents, beginning balance	244.8	395.5
Cash and cash equivalents, ending balance	349.7	504.2
Noncash investing and financing activity:
Transportation and lease equipment purchases in accounts payable	50.4	43.7
Dividends declared but not yet paid	16.1	14.0
Sale of assets in exchange for notes receivable	2.3	0.0
Cash paid during the period for:
Interest	8.3	10.0
Income taxes—net of refunds	$ 38.0	$ 77.7

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Consolidated Statements Shareholders' Equity - USD ($) $ in Millions	Total	Class A Common Shares	Class B Common Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2020	$ 2,055.5			$ 0.0	$ 1,552.2	$ 502.5	$ 0.8
Increase (Decrease) in Stockholders' Equity
Net income	54.8			0.0	0.0	54.8	0.0
Other comprehensive (loss) income	(0.7)			0.0	0.0	0.0	(0.7)
Share-based compensation expense	4.5			0.0	4.5	0.0	0.0
Dividends declared per share		$ 0.07	$ 0.07
Dividends declared	(12.6)			0.0	0.0	(12.6)	0.0
Share issuances	0.1			0.0	0.1	0.0	0.0
Exercise of employee stock options	0.7			0.0	0.7	0.0	0.0
Shares withheld for employee taxes	(2.4)			0.0	(2.4)	0.0	0.0
Balance at Mar. 31, 2021	2,099.9			0.0	1,555.1	544.7	0.1
Balance at Dec. 31, 2020	2,055.5			0.0	1,552.2	502.5	0.8
Increase (Decrease) in Stockholders' Equity
Net income	271.3
Balance at Sep. 30, 2021	2,299.1			0.0	1,562.6	736.2	0.3
Balance at Mar. 31, 2021	2,099.9			0.0	1,555.1	544.7	0.1
Increase (Decrease) in Stockholders' Equity
Net income	106.5			0.0	0.0	106.5	0.0
Other comprehensive (loss) income	0.5			0.0	0.0	0.0	0.5
Share-based compensation expense	3.3			0.0	3.3	0.0	0.0
Dividends declared per share		0.07	0.07
Dividends declared	(12.5)			0.0	0.0	(12.5)	0.0
Share issuances	0.7			0.0	0.7	0.0	0.0
Balance at Jun. 30, 2021	2,198.4			0.0	1,559.1	638.7	0.6
Increase (Decrease) in Stockholders' Equity
Net income	110.0			0.0	0.0	110.0	0.0
Other comprehensive (loss) income	(0.3)			0.0	0.0	0.0	(0.3)
Share-based compensation expense	3.4			0.0	3.4	0.0	0.0
Dividends declared per share		0.07	0.07
Dividends declared	(12.5)			0.0	0.0	(12.5)	0.0
Share issuances	0.1			0.0	0.1	0.0	0.0
Balance at Sep. 30, 2021	2,299.1			0.0	1,562.6	736.2	0.3
Balance at Dec. 31, 2021	2,423.8			0.0	1,566.0	857.8	0.0
Increase (Decrease) in Stockholders' Equity
Net income	92.1			0.0	0.0	92.1	0.0
Other comprehensive (loss) income	(1.5)			0.0	0.0	0.0	(1.5)
Share-based compensation expense	5.4			0.0	5.4	0.0	0.0
Dividends declared per share		0.08	0.08
Dividends declared	(14.9)			0.0	0.0	(14.9)	0.0
Share issuances	0.1			0.0	0.1	0.0	0.0
Exercise of employee stock options	2.3			0.0	2.3	0.0	0.0
Shares withheld for employee taxes	(2.4)			0.0	(2.4)	0.0	0.0
Balance at Mar. 31, 2022	2,504.9			0.0	1,571.4	935.0	(1.5)
Balance at Dec. 31, 2021	2,423.8			0.0	1,566.0	857.8	0.0
Increase (Decrease) in Stockholders' Equity
Net income	347.7
Balance at Sep. 30, 2022	2,737.9			0.0	1,579.8	1,162.0	(3.9)
Balance at Mar. 31, 2022	2,504.9			0.0	1,571.4	935.0	(1.5)
Increase (Decrease) in Stockholders' Equity
Net income	129.8			0.0	0.0	129.8	0.0
Other comprehensive (loss) income	(1.0)			0.0	0.0	0.0	(1.0)
Share-based compensation expense	3.4			0.0	3.4	0.0	0.0
Dividends declared per share		0.08	0.08
Dividends declared	(14.2)			0.0	0.0	(14.2)	0.0
Exercise of employee stock options	0.9			0.0	0.9	0.0	0.0
Balance at Jun. 30, 2022	2,623.8			0.0	1,575.7	1,050.6	(2.5)
Increase (Decrease) in Stockholders' Equity
Net income	125.8			0.0	0.0	125.8	0.0
Other comprehensive (loss) income	(1.4)			0.0	0.0	0.0	(1.4)
Share-based compensation expense	4.1			0.0	4.1	0.0	0.0
Dividends declared per share		$ 0.08	$ 0.08
Dividends declared	(14.4)			0.0	0.0	(14.4)	0.0
Balance at Sep. 30, 2022	$ 2,737.9			$ 0.0	$ 1,579.8	$ 1,162.0	$ (3.9)

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General

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

GENERAL

Nature of Operations

Schneider National, Inc. and its subsidiaries (together “Schneider,” the “Company,” “we,” “us,” or “our”) are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and possess an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the movement of customer products timely, safely, and effectively. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico, thus adding value to their supply chains.

Principles of Consolidation and Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation.

In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented.

Property and Equipment

Gains and losses on property and equipment are recognized at the time of sale or disposition and are classified in operating supplies and expenses—net on the consolidated statements of comprehensive income. For the three months ended September 30, 2022 and 2021, we recognized $11.4 million and $32.0 million of net gains on the sale of property and equipment, respectively, and for the nine months ended September 30, 2022 and 2021, we recognized $75.2 million and $48.0 million of net gains on the sale of property and equipment, respectively. Net gains during the nine months ended September 30, 2022 were primarily related to the sale of the Company’s Canadian facility.

Accounting Standards Recently Adopted

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This standard requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy (for example, International Financial Reporting Standards guidance in International Accounting Standards 20 or guidance on contributions for not-for-profit entities in ASC 958-605), including information about the nature and significant terms and conditions of the transaction, as well as the amounts and specific financial statement line items affected by the transaction. ASU 2021-10 is effective for us beginning with our December 31, 2022 financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements or disclosures.

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Business Combinations and Asset Acquisitions

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

ACQUISITIONS

deBoer Transportation, Inc.

We entered into a Securities Purchase Agreement, dated June 7, 2022, to acquire 100% of the outstanding equity of deBoer, a regional, dedicated carrier headquartered in Blenker, WI. The acquisition provided Schneider the opportunity to expand our tractor and trailer fleet primarily within our dedicated Truckload operations, as well as our company driver capacity. During the third quarter, the Company successfully transitioned equipment and employees from deBoer to Schneider, deBoer operations ceased, and drivers and equipment were deployed primarily within our Truckload segment.

The aggregate purchase price of the acquisition was approximately $34.6 million inclusive of certain cash and net working capital adjustments, and the assets acquired consisted primarily of rolling stock. The acquisition was accounted for under the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized on the consolidated

balance sheets at their fair values as of the acquisition date. The fair values of consideration transferred and net assets acquired were determined using Level 3 inputs, and the excess of the purchase price over the estimated fair value of the net assets resulted in $7.7 million of goodwill being recorded within the Truckload reportable segment at the time of acquisition. During the third quarter of 2022, $0.9 million of purchase price adjustments were made relating to deferred taxes and certain working capital amounts resulting in an adjusted goodwill balance of $6.8 million as of September 30, 2022. Certain amounts recorded in connection with the acquisition are still considered preliminary as we continue to gather the necessary information to finalize our fair value estimates and provisional amounts.

Acquisition-related costs, which consisted of fees incurred for advisory, legal, and accounting services, were $0.1 million and $0.3 million for the three and nine months ended September 30, 2022, respectively, and were included in other general expenses in the Company’s consolidated statements of comprehensive income.

Operating results for deBoer are included in our consolidated results of operations from the acquisition date. Pro forma information for this acquisition is not provided as it did not have a material impact on the Company’s consolidated operating results.

Midwest Logistics Systems, Ltd.

We entered into a Securities Purchase Agreement, dated December 31, 2021, to acquire 100% of the outstanding equity of MLS, a dedicated trucking company based in Celina, OH, and certain affiliated entities holding assets comprising substantially all of MLS’s business. MLS is a premier dedicated carrier in the central U.S. that we believe complements our growing dedicated operations.

The aggregate purchase price of the acquisition was approximately $268.8 million inclusive of $5.7 million in net working capital and other post-acquisition adjustments received in the second quarter of 2022 and a deferred payment of $3.2 million made in January 2022. Proceeds from the total purchase consideration were used to settle $26.9 million of MLS’s outstanding debt as of the acquisition date.

The acquisition of MLS was accounted for under the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized on the consolidated balance sheets at their fair values as of the acquisition date. These inputs represent Level 3 measurements in the fair value hierarchy and required significant judgments and estimates at the time of valuation. Fair value estimates of acquired property and equipment were based on an independent appraisal, giving consideration to the highest and best use of the assets. Key assumptions used in the transportation equipment appraisals were based on the market approach, while key assumptions used in the land, buildings and improvements, and other property and equipment appraisals were based on a combination of the income (direct capitalization) and sales comparison approaches, as appropriate.

The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill within the Truckload reportable segment. The goodwill is attributable to expected synergies and growth opportunities within our dedicated business and is expected to be deductible for tax purposes.

Acquisition-related costs, which consisted of fees incurred for advisory, legal, and accounting services, were $1.9 million and were included in other general expenses in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2021.

The following table summarizes the preliminary purchase price allocation for MLS, including any adjustments during the measurement period.

Recognized amounts of identifiable assets acquired and liabilities assumed (in millions)	December 31, 2021 Opening Balance Sheet		Adjustments		Adjusted December 31, 2021 Opening Balance Sheet
Cash and cash equivalents	$	—	$	1.8	$	1.8
Trade accounts receivable—net of allowance	18.6		(6.1)		12.5
Other receivables	0.9		1.5		2.4
Prepaid expenses and other current assets	1.6		—		1.6
Net property and equipment	148.9		(0.8)		148.1
Internal use software and other noncurrent assets	—		11.7		11.7
Goodwill	122.7		(19.0)		103.7
Total assets acquired	292.7		(10.9)		281.8
Trade accounts payable	1.8		1.6		3.4
Accrued salaries, wages, and benefits	1.7		0.9		2.6
Claims accruals—current	7.5		(3.0)		4.5
Other current liabilities	7.2		(3.9)		3.3
Deferred income taxes	—		(1.1)		(1.1)
Other noncurrent liabilities	—		0.3		0.3
Total liabilities assumed	18.2		(5.2)		13.0
Net assets acquired	$	274.5	$	(5.7)	$	268.8

The above adjustments made during the measurement period were primarily related to working capital, property and equipment, leases, claims accruals, deferred taxes, and intangible assets. The fair values of identifiable intangible assets, including customer relationships and trademarks, were based on valuations using income-based approaches. No material statement of comprehensive income effects were identified with these adjustments. While we may continue to adjust provisional amounts through December 31, 2022, we do not anticipate any material adjustments.

Combined unaudited pro forma operating revenues of the Company and MLS would have been approximately $1,495.0 million, and $4,189.0 million, during the three and nine months ended September 30, 2021, respectively, and our earnings for the same periods would not have been materially different.

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Leases (Notes)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Finance Leases

LEASES

As Lessee

We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:

	Nine Months Ended September 30,
(in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24.6	$	23.3
Operating cash flows for finance leases	0.1		—
Financing cash flows for finance leases	1.3		0.5
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	17.8	$	23.7
Finance leases	3.8		1.2

As of September 30, 2022, we had signed leases that had not yet commenced totaling $23.7 million. These leases will commence during the remainder of 2022 or the beginning of 2023 and have lease terms of one to seven years.

As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2022 and December 31, 2021, investments in lease receivables were as follows:

(in millions)	September 30, 2022		December 31, 2021
Future minimum payments to be received on leases	$	204.6	$	193.9
Guaranteed residual lease values	128.2		123.3
Total minimum lease payments to be received	332.8		317.2
Unearned income	(51.3)		(46.5)
Net investment in leases	$	281.5	$	270.7

Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of September 30, 2022 was $39.5 million, which includes both current and future lease payments.

Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of September 30, 2022, our lease payments past due were $3.9 million.

The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Revenue	$	53.1	$	57.2	$	146.2	$	169.8
Cost of goods sold	(43.5)		(49.0)		(121.0)		(146.1)
Operating profit	$	9.6	$	8.2	$	25.2	$	23.7
Interest income on lease receivable	$	9.4	$	8.5	$	27.3	$	23.6

Operating Leases

LEASES

As Lessee

We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:

	Nine Months Ended September 30,
(in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24.6	$	23.3
Operating cash flows for finance leases	0.1		—
Financing cash flows for finance leases	1.3		0.5
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	17.8	$	23.7
Finance leases	3.8		1.2

As of September 30, 2022, we had signed leases that had not yet commenced totaling $23.7 million. These leases will commence during the remainder of 2022 or the beginning of 2023 and have lease terms of one to seven years.

As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2022 and December 31, 2021, investments in lease receivables were as follows:

(in millions)	September 30, 2022		December 31, 2021
Future minimum payments to be received on leases	$	204.6	$	193.9
Guaranteed residual lease values	128.2		123.3
Total minimum lease payments to be received	332.8		317.2
Unearned income	(51.3)		(46.5)
Net investment in leases	$	281.5	$	270.7

Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of September 30, 2022 was $39.5 million, which includes both current and future lease payments.

Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of September 30, 2022, our lease payments past due were $3.9 million.

The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Revenue	$	53.1	$	57.2	$	146.2	$	169.8
Cost of goods sold	(43.5)		(49.0)		(121.0)		(146.1)
Operating profit	$	9.6	$	8.2	$	25.2	$	23.7
Interest income on lease receivable	$	9.4	$	8.5	$	27.3	$	23.6

Sales-type Leases

LEASES

As Lessee

We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:

	Nine Months Ended September 30,
(in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24.6	$	23.3
Operating cash flows for finance leases	0.1		—
Financing cash flows for finance leases	1.3		0.5
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	17.8	$	23.7
Finance leases	3.8		1.2

As of September 30, 2022, we had signed leases that had not yet commenced totaling $23.7 million. These leases will commence during the remainder of 2022 or the beginning of 2023 and have lease terms of one to seven years.

As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2022 and December 31, 2021, investments in lease receivables were as follows:

(in millions)	September 30, 2022		December 31, 2021
Future minimum payments to be received on leases	$	204.6	$	193.9
Guaranteed residual lease values	128.2		123.3
Total minimum lease payments to be received	332.8		317.2
Unearned income	(51.3)		(46.5)
Net investment in leases	$	281.5	$	270.7

Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of September 30, 2022 was $39.5 million, which includes both current and future lease payments.

Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of September 30, 2022, our lease payments past due were $3.9 million.

The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Revenue	$	53.1	$	57.2	$	146.2	$	169.8
Cost of goods sold	(43.5)		(49.0)		(121.0)		(146.1)
Operating profit	$	9.6	$	8.2	$	25.2	$	23.7
Interest income on lease receivable	$	9.4	$	8.5	$	27.3	$	23.6

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Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE RECOGNITION

Disaggregated Revenues

The majority of our revenues are related to transportation and have similar characteristics. MLS and deBoer revenues since the acquisition dates are included within Transportation revenues, consistent with the remainder of our Truckload segment. The following table summarizes our revenues by type of service.

	Three Months Ended September 30,				Nine Months Ended September 30,
Disaggregated Revenues (in millions)	2022		2021		2022		2021
Transportation	$	1,551.1	$	1,326.3	$	4,663.2	$	3,700.4
Logistics Management	66.5		56.4		221.1		149.7
Other	57.7		61.8		158.4		183.8
Total operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Quantitative Disclosure

The following table provides information related to transactions and expected timing of revenue recognition for performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown.

Remaining Performance Obligations (in millions)	September 30, 2022
Expected to be recognized within one year
Transportation	$	16.9
Logistics Management	10.8
Expected to be recognized after one year
Transportation	28.9
Logistics Management	9.7
Total	$	66.3

This disclosure does not include revenue related to performance obligations that are part of a contract with an original expected duration of one year or less, nor does it include expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice (e.g., usage-based pricing terms).

The following table provides information related to contract balances associated with our contracts with customers as of the dates shown.

Contract Balances (in millions)	September 30, 2022		December 31, 2021
Other current assets—Contract assets	$	36.2	$	33.8
Other current liabilities—Contract liabilities	4.0		3.2

We generally receive payment within 40 days of completion of performance obligations. Contract assets in the table above relate to revenue in transit at the end of the reporting period. Contract liabilities relate to amounts that customers paid in advance of the associated services.

Non-monetary Consideration

Occasionally we provide freight movements to customers in exchange for non-monetary services. The fair value of non-monetary consideration on these freight movements is included in operating revenues on the consolidated statements of comprehensive income and consists primarily of transportation equipment. The amount of operating revenues recorded for these services was $2.3 million and $15.6 million during the three and nine months ended September 30, 2022, respectively, and $1.3 million during the three and nine months ended September 30, 2021.

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Fair Value

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows:

Level 1—Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date.

Level 2—Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities.

Level 3—Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820.

		Fair Value
(in millions)	Level in Fair  Value Hierarchy	September 30, 2022		December 31, 2021
Equity investment in TuSimple (1)	1	$	2.7	$	12.7
Marketable securities (2)	2	44.6		49.3

(1)Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 6, Investments, for additional information.

(2)Marketable securities are classified as Level 2 in the fair value hierarchy as they are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active. See Note 6, Investments, for additional information.

The fair value of the Company’s debt was $197.3 million and $276.7 million as of September 30, 2022 and December 31, 2021, respectively. The carrying value of the Company’s debt was $205.0 million and $265.0 million as of September 30, 2022 and December 31, 2021, respectively. The fair value of our debt was calculated using a fixed rate debt portfolio with similar terms and maturities, which is based on the borrowing rates available to us in the applicable period. This valuation used Level 2 inputs.

The recorded values of cash, trade accounts receivable, lease receivables, and trade accounts payable approximate fair values.

As part of the MLS and deBoer acquisitions, certain assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. Refer to Note 2, Acquisitions, for further details.

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Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

INVESTMENTS

Marketable Securities

Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or our liquidity needs may cause us to sell certain securities in advance of their maturity date.

Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. We did not have an allowance for credit losses on our marketable securities as of September 30, 2022 or December 31, 2021. Cost basis is determined using the specific identification method.

The following table presents the maturities and values of our marketable securities as of the dates shown.

	September 30, 2022					December 31, 2021
(in millions, except maturities in months)	Maturities	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. treasury and government agencies	14 to 101	$	20.0	$	17.2	$	19.9	$	19.6
Corporate debt securities	2 to 60	17.0		15.8		20.3		20.4
State and municipal bonds	4 to 157	12.4		11.6		9.1		9.3
Total marketable securities		$	49.4	$	44.6	$	49.3	$	49.3

Equity Investments without Readily Determinable Fair Values

The Company’s primary strategic equity investments without readily determinable fair values include PSI, a provider of telematics and fleet management tools, MLSI, a transportation technology development company, and ChemDirect, a business to business digital marketplace for the chemical industry. These investments are being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative, and their combined values as of September 30, 2022 and December 31, 2021 were $86.0 million and $36.2 million, respectively. If the Company identifies observable price changes for identical or similar securities of the same issuer, the equity security is measured at fair value as of the date the observable transaction occurred using Level 3 inputs.

As of September 30, 2022, our cumulative upward adjustments were $52.0 million. The following table summarizes the activity related to these equity investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Investment in equity securities	$	20.0	$	—	$	24.0	$	—
Upward adjustments (1)	25.8		9.0		25.8		9.0

(1)Our updated investment values in 2022 and 2021 were determined using the backsolve method, a valuation approach that primarily uses an option pricing model to value shares based on the price paid for recently issued shares.

Equity Investments with Readily Determinable Fair Values

In 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a global self-driving technology company. Upon completion of its IPO in April 2021, our investment in TuSimple was converted into Class A common shares and is now being accounted for under ASC 321, Investments - Equity Securities. In the three and nine months ended September 30, 2022, the Company recognized a pre-tax net gain of $0.1 million and a pre-tax net loss of $10.0 million on its investment in TuSimple, respectively. In the three and nine months ended September 30, 2021, the Company recognized a pre-tax net loss of $12.1 million and a pre-tax net gain of $8.1 million, respectively. See Note 5, Fair Value, for additional information on the fair value of our investment in TuSimple.

All of our equity investments are included in other noncurrent assets on the consolidated balance sheets with subsequent gains or losses recognized within other expenses (income)—net on the consolidated statements of comprehensive income.

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Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles Disclosure

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess of the purchase price of acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by segment during the period ended September 30, 2022.

(in millions)	Truckload		Logistics		Total
Balance at December 31, 2021	$	226.3	$	14.2	$	240.5
Acquisition (see Note 2)	7.7		—		7.7
Acquisition adjustments (see Note 2)	(19.9)		—		(19.9)
Balance at September 30, 2022	$	214.1	$	14.2	$	228.3

During the nine months ended September 30, 2022, we recorded goodwill in conjunction with the acquisition of deBoer, and during the three and nine months ended September 30, 2022, we made measurement period adjustments related to the acquisitions of deBoer and MLS, both of which were recorded within the Truckload segment. Refer to Note 2, Acquisitions, for further details.

At September 30, 2022 and December 31, 2021, we had accumulated goodwill impairment charges of $53.2 million, which consisted of $34.6 million and $18.6 million in our Truckload segment and Other, respectively.

The identifiable finite lived intangible assets other than goodwill listed below are included in internal use software and other noncurrent assets on the consolidated balance sheets and relate to the acquisition of MLS. Our customer relationships and trademarks are amortized over a weighted-average amortization period of ten years. Refer to Note 2, Acquisitions, for further details.

	September 30, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	3.2	$	0.2	$	3.0
Trademarks	6.8		0.5		6.3
Total intangible assets	$	10.0	$	0.7	$	9.3

Amortization expense for intangible assets was $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively.

Estimated future amortization expense related to intangible assets is as follows:

(in millions)
Remaining 2022	$	0.3
2023	1.0
2024	1.0
2025	1.0
2026	1.0
2027 and thereafter	5.0
Total	$	9.3

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Debt and Credit Facilities

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt and Credit Facilities

DEBT AND CREDIT FACILITIES

As of September 30, 2022 and December 31, 2021, debt included the following:

(in millions)	September 30, 2022		December 31, 2021
Unsecured senior notes: principal maturities ranging from 2023 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.90% and 3.61% for 2022 and 2021, respectively	$	205.0	$	265.0
Current maturities	(70.0)		(60.0)
Long-term debt	$	135.0	$	205.0

Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment up to $150.0 million, for a total potential commitment of $400.0 million through August 2023. The agreement also provides a sublimit of $100.0 million to be used for the issuance of letters of credit. We had no outstanding borrowings under this agreement as of September 30, 2022 or December 31, 2021. Standby letters of credit under this agreement amounted to $0.1 million and $3.9 million for September 30, 2022 and December 31, 2021, respectively, and were primarily related to the requirements of certain of our real estate leases. The Company plans to renew the 2018 Credit Facility Agreement in the fourth quarter of 2022.

We also have a Receivables Purchase Agreement (the “2021 Receivables Purchase Agreement”), which allows us to borrow funds against qualifying trade receivables at rates based on one-month LIBOR up to $150.0 million and provides for the issuance of standby letters of credit through July 2024. We had no outstanding borrowings under this facility at September 30, 2022 or December 31, 2021. At September 30, 2022 and December 31, 2021, standby letters of credit under this agreement amounted to $77.1 million and $70.3 million, respectively, and were primarily related to the requirements of certain of our insurance obligations.

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Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESOur effective income tax rate was 25.0% and 25.2% for the three months ended September 30, 2022 and 2021, respectively, and 25.0% and 25.2% for the nine months ended September 30, 2022 and 2021, respectively. In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, and best estimates of nontaxable and nondeductible income and expense items.

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Common Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Common Equity

COMMON EQUITY

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2022		2021		2022		2021
Numerator:
Net income available to common shareholders	$	125.8	$	110.0	$	347.7	$	271.3
Denominator:
Weighted average common shares outstanding	178.0		177.7		177.9		177.5
Dilutive effect of share-based awards and options outstanding	0.7		0.2		0.7		0.3
Weighted average diluted common shares outstanding (1)	178.7		177.9		178.6		177.8
Basic earnings per common share	$	0.71	$	0.62	$	1.95	$	1.53
Diluted earnings per common share	0.70		0.62		1.95		1.53

(1)Weighted average diluted common shares outstanding may not sum due to rounding.

The calculation of diluted earnings per share excluded 0.3 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2022 and 0.8 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2021, respectively.

Subsequent Event - Dividends Declared

In October of 2022, the Board of Directors declared a quarterly cash dividend for the fourth fiscal quarter of 2022 in the amount of $0.08 per share to holders of our Class A and Class B common stock. The dividend is payable to shareholders of record at the close of business on December 9, 2022 and will be paid on January 10, 2023.

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Share-based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement	SHARE-BASED COMPENSATIONWe grant various equity-based awards relating to Class B common stock to employees under our 2017 Omnibus Incentive Plan (“the Plan”). These awards have historically consisted of restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“performance shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. Performance shares and PSUs granted prior to 2021 are earned based on attainment of threshold performance of earnings and return on capital targets. Beginning with grants in 2021, in addition to achievement of earnings and return on capital targets, a multiplier is applied to performance share and PSU achievement based on relative total shareholder return (“rTSR”) against peers over the performance period.Share-based compensation expense was $3.8 million and $3.1 million for the three months ended September 30, 2022 and 2021, respectively, and $11.9 million and $10.2 million for the nine months ended September 30, 2022 and 2021, respectively. We recognize share-based compensation expense over the awards’ vesting period. As of September 30, 2022, we had $25.3 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted average period of 2.1 years.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

In the ordinary course of conducting our business, we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements.

We record liabilities for claims against the Company based on our best estimate of expected losses. The primary claims arising for the Company through its trucking, intermodal, and logistics operations consist of accident-related claims for personal injury, collision, and comprehensive compensation, in addition to workers’ compensation, property damage, cargo, and wage and benefit claims. We maintain excess liability insurance with licensed insurance carriers for liability in excess of amounts we self-insure, which serves to largely offset the Company’s liability associated with these claims, with the exception of wage and benefit claims for which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although we expect that our claims accruals will continue to vary based on future developments, assuming that we are able to continue to obtain and maintain excess liability insurance coverage for such claims, we do not anticipate that such accruals will, in any period, materially impact our operating results.

At September 30, 2022, our firm commitments to purchase transportation equipment totaled $508.0 million.

During the first quarter of 2022, the Company recorded a $5.2 million charge as a result of an adverse audit assessment by a state jurisdiction over the applicability of sales tax for prior periods on rolling stock equipment used within that state. The charge is included within operating supplies and expenses—net on the consolidated statements of comprehensive income for the nine months ended September 30, 2022. The Company filed a request for appeal of the audit assessment with the state jurisdiction.

As previously disclosed, a representative of the former owners of WSL filed a lawsuit alleging that we did not fulfill certain obligations under the purchase and sale agreement and claiming that the former owners of WSL were entitled to damages including an additional payment of $40.0 million under an earn-out arrangement. On April 25, 2022, the Delaware Superior Court entered judgment in favor of the former owners of WSL, awarding $40.0 million in compensatory damages, plus prejudgment interest and the former owners’ attorneys’ fees, and the Company recorded an estimated total charge of $59.0 million in its results of operations as of March 31, 2022. During the second quarter of 2022, the Company settled with the former owners of WSL for a total of $57.0 million, which was subsequently paid during the third quarter of 2022, and included

within other general expenses on the consolidated statements of comprehensive income for the nine months ended September 30, 2022.

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Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides.

As of December 31, 2021, our operating segments within the Truckload reportable segment were VTL and Bulk. The operating results of MLS, a standalone operating segment, have been aggregated into the Truckload reportable segment as it shares similar economic characteristics with our other Truckload operating segments and meets the other aggregation criteria described in ASC 280. The operating results of deBoer are also included within the Truckload reportable segment from the date of acquisition through when their operations ceased in July and their assets were deployed throughout the business. VTL delivers truckload quantities over irregular routes and customer freight with dedicated contracts using dry van and specialty trailers. Bulk transports key inputs to manufacturing processes, such as specialty chemicals, using specialty trailers. MLS provides dedicated truckload services focusing primarily on freight with consistent routes.

The CODM reviews revenues for each segment without the inclusion of fuel surcharge revenues. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at the segment level reflects the measure presented to the CODM for each segment.

Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable by segment. All transactions between reportable segments are eliminated in consolidation.

Substantially all of our revenues and assets were generated or located within the U.S.

The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $19.0 million and $16.0 million for the three months ended September 30, 2022 and 2021, respectively, and $53.4 million and $46.1 million for the nine months ended September 30, 2022, and 2021 respectively.

Revenues by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	571.2	$	484.4	$	1,691.2	$	1,411.3
Intermodal	334.7		295.7		971.9		825.5
Logistics	464.2		474.6		1,531.2		1,261.2
Other	97.3		98.0		274.2		284.9
Fuel surcharge	233.5		114.4		648.5		314.8
Inter-segment eliminations	(25.6)		(22.6)		(74.3)		(63.8)
Operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Income (Loss) from Operations by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	83.2	$	85.1	$	283.3	$	197.0
Intermodal	31.1		45.7		112.3		100.6
Logistics	27.9		22.1		117.1		55.0
Other	3.2		0.8		(55.6)		3.1
Income from operations	$	145.4	$	153.7	$	457.1	$	355.7

Depreciation and Amortization by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	62.8	$	52.1	$	183.6	$	157.1
Intermodal	14.6		12.4		42.4		35.5
Logistics	—		0.1		0.1		0.2
Other	10.8		9.6		32.2		27.7
Depreciation and amortization	$	88.2	$	74.2	$	258.3	$	220.5

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General (Policies)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of OperationsSchneider National, Inc. and its subsidiaries (together “Schneider,” the “Company,” “we,” “us,” or “our”) are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and possess an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the movement of customer products timely, safely, and effectively. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico, thus adding value to their supply chains.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation.

In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented.

Property and Equipment

Property and Equipment

Gains and losses on property and equipment are recognized at the time of sale or disposition and are classified in operating supplies and expenses—net on the consolidated statements of comprehensive income. For the three months ended September 30, 2022 and 2021, we recognized $11.4 million and $32.0 million of net gains on the sale of property and equipment, respectively, and for the nine months ended September 30, 2022 and 2021, we recognized $75.2 million and $48.0 million of net gains on the sale of property and equipment, respectively. Net gains during the nine months ended September 30, 2022 were primarily related to the sale of the Company’s Canadian facility.

Accounting Standards Recently Adopted

Accounting Standards Recently AdoptedIn November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This standard requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy (for example, International Financial Reporting Standards guidance in International Accounting Standards 20 or guidance on contributions for not-for-profit entities in ASC 958-605), including information about the nature and significant terms and conditions of the transaction, as well as the amounts and specific financial statement line items affected by the transaction. ASU 2021-10 is effective for us beginning with our December 31, 2022 financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements or disclosures.

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Business Combinations and Asset Acquisitions (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary purchase price allocation for MLS, including any adjustments during the measurement period.

Recognized amounts of identifiable assets acquired and liabilities assumed (in millions)	December 31, 2021 Opening Balance Sheet		Adjustments		Adjusted December 31, 2021 Opening Balance Sheet
Cash and cash equivalents	$	—	$	1.8	$	1.8
Trade accounts receivable—net of allowance	18.6		(6.1)		12.5
Other receivables	0.9		1.5		2.4
Prepaid expenses and other current assets	1.6		—		1.6
Net property and equipment	148.9		(0.8)		148.1
Internal use software and other noncurrent assets	—		11.7		11.7
Goodwill	122.7		(19.0)		103.7
Total assets acquired	292.7		(10.9)		281.8
Trade accounts payable	1.8		1.6		3.4
Accrued salaries, wages, and benefits	1.7		0.9		2.6
Claims accruals—current	7.5		(3.0)		4.5
Other current liabilities	7.2		(3.9)		3.3
Deferred income taxes	—		(1.1)		(1.1)
Other noncurrent liabilities	—		0.3		0.3
Total liabilities assumed	18.2		(5.2)		13.0
Net assets acquired	$	274.5	$	(5.7)	$	268.8

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Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Schedule of Lease Information

Additional information related to our leases is as follows:

	Nine Months Ended September 30,
(in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	24.6	$	23.3
Operating cash flows for finance leases	0.1		—
Financing cash flows for finance leases	1.3		0.5
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	17.8	$	23.7
Finance leases	3.8		1.2

Schedule of Investment In Lease Receivables

As of September 30, 2022 and December 31, 2021, investments in lease receivables were as follows:

(in millions)	September 30, 2022		December 31, 2021
Future minimum payments to be received on leases	$	204.6	$	193.9
Guaranteed residual lease values	128.2		123.3
Total minimum lease payments to be received	332.8		317.2
Unearned income	(51.3)		(46.5)
Net investment in leases	$	281.5	$	270.7

Schedule of Sales-type Lease Income

The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Revenue	$	53.1	$	57.2	$	146.2	$	169.8
Cost of goods sold	(43.5)		(49.0)		(121.0)		(146.1)
Operating profit	$	9.6	$	8.2	$	25.2	$	23.7
Interest income on lease receivable	$	9.4	$	8.5	$	27.3	$	23.6

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes our revenues by type of service.

	Three Months Ended September 30,				Nine Months Ended September 30,
Disaggregated Revenues (in millions)	2022		2021		2022		2021
Transportation	$	1,551.1	$	1,326.3	$	4,663.2	$	3,700.4
Logistics Management	66.5		56.4		221.1		149.7
Other	57.7		61.8		158.4		183.8
Total operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Remaining Performance Obligations

The following table provides information related to transactions and expected timing of revenue recognition for performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown.

Remaining Performance Obligations (in millions)	September 30, 2022
Expected to be recognized within one year
Transportation	$	16.9
Logistics Management	10.8
Expected to be recognized after one year
Transportation	28.9
Logistics Management	9.7
Total	$	66.3

Contract Balances

The following table provides information related to contract balances associated with our contracts with customers as of the dates shown.

Contract Balances (in millions)	September 30, 2022		December 31, 2021
Other current assets—Contract assets	$	36.2	$	33.8
Other current liabilities—Contract liabilities	4.0		3.2

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Assets Measured on Recurring Basis

The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820.

		Fair Value
(in millions)	Level in Fair  Value Hierarchy	September 30, 2022		December 31, 2021
Equity investment in TuSimple (1)	1	$	2.7	$	12.7
Marketable securities (2)	2	44.6		49.3

(1)Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 6, Investments, for additional information.

(2)Marketable securities are classified as Level 2 in the fair value hierarchy as they are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active. See Note 6, Investments, for additional information.

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Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities

The following table presents the maturities and values of our marketable securities as of the dates shown.

	September 30, 2022					December 31, 2021
(in millions, except maturities in months)	Maturities	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. treasury and government agencies	14 to 101	$	20.0	$	17.2	$	19.9	$	19.6
Corporate debt securities	2 to 60	17.0		15.8		20.3		20.4
State and municipal bonds	4 to 157	12.4		11.6		9.1		9.3
Total marketable securities		$	49.4	$	44.6	$	49.3	$	49.3

Equity Investments without Readily Determinable Fair Values

As of September 30, 2022, our cumulative upward adjustments were $52.0 million. The following table summarizes the activity related to these equity investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Investment in equity securities	$	20.0	$	—	$	24.0	$	—
Upward adjustments (1)	25.8		9.0		25.8		9.0

(1)Our updated investment values in 2022 and 2021 were determined using the backsolve method, a valuation approach that primarily uses an option pricing model to value shares based on the price paid for recently issued shares.

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Goodwill (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

The following table shows changes to our goodwill balances by segment during the period ended September 30, 2022.

(in millions)	Truckload		Logistics		Total
Balance at December 31, 2021	$	226.3	$	14.2	$	240.5
Acquisition (see Note 2)	7.7		—		7.7
Acquisition adjustments (see Note 2)	(19.9)		—		(19.9)
Balance at September 30, 2022	$	214.1	$	14.2	$	228.3

Schedule of Finite-Lived Intangible Assets

The identifiable finite lived intangible assets other than goodwill listed below are included in internal use software and other noncurrent assets on the consolidated balance sheets and relate to the acquisition of MLS. Our customer relationships and trademarks are amortized over a weighted-average amortization period of ten years. Refer to Note 2, Acquisitions, for further details.

	September 30, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	3.2	$	0.2	$	3.0
Trademarks	6.8		0.5		6.3
Total intangible assets	$	10.0	$	0.7	$	9.3

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense related to intangible assets is as follows:

(in millions)
Remaining 2022	$	0.3
2023	1.0
2024	1.0
2025	1.0
2026	1.0
2027 and thereafter	5.0
Total	$	9.3

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Debt and Credit Facilities (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of Debt

As of September 30, 2022 and December 31, 2021, debt included the following:

(in millions)	September 30, 2022		December 31, 2021
Unsecured senior notes: principal maturities ranging from 2023 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.90% and 3.61% for 2022 and 2021, respectively	$	205.0	$	265.0
Current maturities	(70.0)		(60.0)
Long-term debt	$	135.0	$	205.0

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Common Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2022		2021		2022		2021
Numerator:
Net income available to common shareholders	$	125.8	$	110.0	$	347.7	$	271.3
Denominator:
Weighted average common shares outstanding	178.0		177.7		177.9		177.5
Dilutive effect of share-based awards and options outstanding	0.7		0.2		0.7		0.3
Weighted average diluted common shares outstanding (1)	178.7		177.9		178.6		177.8
Basic earnings per common share	$	0.71	$	0.62	$	1.95	$	1.53
Diluted earnings per common share	0.70		0.62		1.95		1.53

(1)Weighted average diluted common shares outstanding may not sum due to rounding.

The calculation of diluted earnings per share excluded 0.3 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2022 and 0.8 million share-based awards and options that had an anti-dilutive effect for the three and nine months ended September 30, 2021, respectively.

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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Summary of Segment Reporting Information

The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $19.0 million and $16.0 million for the three months ended September 30, 2022 and 2021, respectively, and $53.4 million and $46.1 million for the nine months ended September 30, 2022, and 2021 respectively.

Revenues by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	571.2	$	484.4	$	1,691.2	$	1,411.3
Intermodal	334.7		295.7		971.9		825.5
Logistics	464.2		474.6		1,531.2		1,261.2
Other	97.3		98.0		274.2		284.9
Fuel surcharge	233.5		114.4		648.5		314.8
Inter-segment eliminations	(25.6)		(22.6)		(74.3)		(63.8)
Operating revenues	$	1,675.3	$	1,444.5	$	5,042.7	$	4,033.9

Income (Loss) from Operations by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	83.2	$	85.1	$	283.3	$	197.0
Intermodal	31.1		45.7		112.3		100.6
Logistics	27.9		22.1		117.1		55.0
Other	3.2		0.8		(55.6)		3.1
Income from operations	$	145.4	$	153.7	$	457.1	$	355.7

Depreciation and Amortization by Segment	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Truckload	$	62.8	$	52.1	$	183.6	$	157.1
Intermodal	14.6		12.4		42.4		35.5
Logistics	—		0.1		0.1		0.2
Other	10.8		9.6		32.2		27.7
Depreciation and amortization	$	88.2	$	74.2	$	258.3	$	220.5

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General (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gains on sales of property and equipment—net	$ 11.4	$ 32.0	$ 75.2	$ 48.0

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Business Combinations and Asset Acquisitions- Acquisition Details (Details)	Jun. 07, 2022	Dec. 31, 2021
Midwest Logistics Systems (MLS)
Business Acquisition
Date of acquisition		Dec. 31, 2021
Percentage of business acquired		100.00%
deBoer Transportation, Inc.
Business Acquisition
Date of acquisition	Jun. 07, 2022
Percentage of business acquired	100.00%

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Business Combinations and Assets Acquisitions- Consideration Transferred (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Midwest Logistics Systems (MLS)
Business Acquisition
Fair value of consideration transferred	$ 268.8
Midwest Logistics Systems (MLS) | Deferred cash consideration
Business Acquisition
Fair value of consideration transferred	3.2
Midwest Logistics Systems (MLS) | Consideration for Debt Payments
Business Acquisition
Fair value of consideration transferred	26.9
Midwest Logistics Systems (MLS) | Net working capital adjustment
Business Acquisition
Fair value of consideration transferred	(5.7)
deBoer Transportation, Inc.
Business Acquisition
Fair value of consideration transferred	$ 34.6

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Business Combinations and Asset Acquisitions- Acquisition-Related Costs (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Midwest Logistics Systems (MLS)
Business Acquisition
Acquisition-related costs			$ 1.9
deBoer Transportation, Inc.
Business Acquisition
Acquisition-related costs	$ 0.1	$ 0.3

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Business Combinations and Asset Acquisitions- Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Business Acquisition
Goodwill acquired during period	$ 7.7
Goodwill	228.3	$ 240.5
Truckload
Business Acquisition
Goodwill	214.1	226.3
Midwest Logistics Systems (MLS)
Business Acquisition
Cash and cash equivalents	1.8	0.0
Trade accounts receivable-net of allowance	12.5	18.6
Other receivables	2.4	0.9
Prepaid expenses and other current assets	1.6	1.6
Net property and equipment	148.1	148.9
Internal use software and other noncurrent assets	11.7	0.0
Goodwill	103.7	122.7
Total assets acquired	281.8	292.7
Trade accounts payable	3.4	1.8
Accrued salaries, wages, and benefits	2.6	1.7
Claims accruals-current	4.5	7.5
Other current liabilities	3.3	7.2
Deferred income taxes	(1.1)	0.0
Other noncurrent liabilities	0.3	0.0
Total liabilities assumed	13.0	18.2
Net asses acquired	268.8	$ 274.5
Midwest Logistics Systems (MLS) | Purchase price adjustments
Business Acquisition
Cash and cash equivalents	1.8
Trade accounts receivable-net of allowance	(6.1)
Other receivables	1.5
Prepaid expenses and other current assets	0.0
Net property and equipment	(0.8)
Internal use software and other noncurrent assets	11.7
Goodwill	(19.0)
Total assets acquired	(10.9)
Trade accounts payable	1.6
Accrued salaries, wages, and benefits	0.9
Claims accruals-current	(3.0)
Other current liabilities	(3.9)
Deferred income taxes	(1.1)
Other noncurrent liabilities	0.3
Total liabilities assumed	(5.2)
Net asses acquired	(5.7)
deBoer Transportation, Inc.
Business Acquisition
Goodwill	6.8
deBoer Transportation, Inc. | Truckload
Business Acquisition
Goodwill acquired during period	7.7
deBoer Transportation, Inc. | Purchase price adjustments
Business Acquisition
Goodwill	$ (0.9)

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Business Combinations and Asset Acquisitions- Pro Forma Disclosures (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Midwest Logistics Systems (MLS)
Business Acquisition
Pro forma operating revenues	$ 1,495.0	$ 4,189.0

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Leases - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Leases - Lessee
Leases not yet commenced	$ 23.7
Leases - Lessor
Lease payments	332.8	$ 317.2
Past due
Leases - Lessor
Lease payments	3.9
Past Due
Leases - Lessor
Net investment in leases	$ 39.5
Minimum
Leases - Lessee
Lease terms of leases not yet commenced	1 year 2 months
Leases - Lessor
Terms of sales-type lease	1 year
Maximum
Leases - Lessee
Lease terms of leases not yet commenced	7 years
Leases - Lessor
Terms of sales-type lease	3 years

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Leases - Schedule of Lease Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating cash flows for operating leases	$ 24.6	$ 23.3
Operating cash flows for finance leases	0.1	0.0
Financing cash flows for finance leases	1.3	0.5
Right-of-use assets obtained in exchange for new operating lease liability	17.8	23.7
Right-of-use assets obtained in exchange for new finance lease liability	$ 3.8	$ 1.2

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Leases - Summary of Investment in Lease Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Future minimum payments to be received on leases	$ 204.6	$ 193.9
Guaranteed residual lease values	128.2	123.3
Total minimum lease payments to be received	332.8	317.2
Unearned income	(51.3)	(46.5)
Net investment in leases	$ 281.5	$ 270.7

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Leases - Schedule of Sales-type Lease Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Revenue	$ 53.1	$ 57.2	$ 146.2	$ 169.8
Cost of goods sold	(43.5)	(49.0)	(121.0)	(146.1)
Operating profit	9.6	8.2	25.2	23.7
Interest income on lease receivable	$ 9.4	$ 8.5	$ 27.3	$ 23.6

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue
Operating revenues	$ 1,675.3	$ 1,444.5	$ 5,042.7	$ 4,033.9
Transportation
Disaggregation of Revenue
Operating revenues	1,551.1	1,326.3	4,663.2	3,700.4
Logistics Management
Disaggregation of Revenue
Operating revenues	66.5	56.4	221.1	149.7
Other
Disaggregation of Revenue
Operating revenues	$ 57.7	$ 61.8	$ 158.4	$ 183.8

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Revenue Recognition - Revenue Remaining Performance Obligation (Details) $ in Millions	Sep. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining Performance Obligation	$ 66.3
Expected to be recognized within one year | Transportation
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining Performance Obligation	16.9
Expected to be recognized within one year | Logistics Management
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining Performance Obligation	10.8
Expected to be recognized after one year | Transportation
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining Performance Obligation	28.9
Expected to be recognized after one year | Logistics Management
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining Performance Obligation	$ 9.7

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Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 36.2	$ 33.8
Contract liabilities	$ 4.0	$ 3.2

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Revenue Recognition- Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Timing of payment after completion of performance obligations			40 days
Noncash consideration recorded as revenue	$ 2.3	$ 1.3	$ 15.6	$ 1.3

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Fair Value - Recurring Fair Value Measurements (Details) - Recurring fair value measurements - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Level 1 inputs
Fair Value, Assets Measured on Recurring Basis
Fair value of equity investment in TuSimple	$ 2.7	$ 12.7
Level 2 inputs
Fair Value, Assets Measured on Recurring Basis
Fair value of marketable securities	$ 44.6	$ 49.3

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Fair Value - Debt Portfolio (Details) - Unsecured Senior Notes - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument
Total principal outstanding	$ 205.0	$ 265.0
Level 2 inputs
Debt Instrument
Fair value of debt	$ 197.3	$ 276.7

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Investments - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Credit loss allowance	$ 0.0	$ 0.0
Value of investments without readily determinable fair values	$ 86.0	$ 36.2

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Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Available for Sale Debt Securities
Amortized cost	$ 49.4	$ 49.3
US treasury and government agencies
Available for Sale Debt Securities
Amortized cost	20.0	19.9
Corporate debt securities
Available for Sale Debt Securities
Amortized cost	17.0	20.3
State and municipal bonds
Available for Sale Debt Securities
Amortized cost	12.4	9.1
Current asset
Available for Sale Debt Securities
Fair value	44.6	49.3
Current asset | US treasury and government agencies
Available for Sale Debt Securities
Fair value	17.2	19.6
Current asset | Corporate debt securities
Available for Sale Debt Securities
Fair value	15.8	20.4
Current asset | State and municipal bonds
Available for Sale Debt Securities
Fair value	$ 11.6	$ 9.3
Minimum | US treasury and government agencies
Available for Sale Debt Securities
Maturity date	Nov. 30, 2023
Minimum | Corporate debt securities
Available for Sale Debt Securities
Maturity date	Nov. 01, 2022
Minimum | State and municipal bonds
Available for Sale Debt Securities
Maturity date	Jan. 01, 2023
Maximum | US treasury and government agencies
Available for Sale Debt Securities
Maturity date	Feb. 15, 2031
Maximum | Corporate debt securities
Available for Sale Debt Securities
Maturity date	Sep. 19, 2027
Maximum | State and municipal bonds
Available for Sale Debt Securities
Maturity date	Oct. 01, 2035

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Investments - Equity Investments without Readily Determinable Fair Values (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Investments
Cumulative upward adjustments	$ 52.0		$ 52.0
Investment in equity security	20.0	$ 0.0	24.0	$ 0.0
Upward adjustments	$ 25.8	$ 9.0	$ 25.8	$ 9.0

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Investments - Investment in TuSimple (Details) - TuSimple - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jan. 12, 2021
Other Investments
Investment in equity security					$ 5.0
Net loss on investment		$ 12.1	$ 10.0
Net gain on investment	$ 0.1			$ 8.1

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Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill
Beginning balance	$ 240.5
Goodwill acquired during period	7.7
Acquisition adjustments	(19.9)
Ending balance	228.3
deBoer Transportation, Inc.
Goodwill
Ending balance	6.8
Midwest Logistics Systems (MLS)
Goodwill
Beginning balance	122.7
Ending balance	103.7
Truckload
Goodwill
Beginning balance	226.3
Ending balance	214.1
Truckload | deBoer Transportation, Inc.
Goodwill
Goodwill acquired during period	7.7
Truckload | Midwest Logistics Systems (MLS) and deBoer Transportation, Inc.
Goodwill
Acquisition adjustments	(19.9)
Logistics
Goodwill
Beginning balance	14.2
Goodwill acquired during period	0.0
Acquisition adjustments	0.0
Ending balance	$ 14.2

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Intangibles- Schedule of Changes in Carrying Amount of Intangibles (Details) - Midwest Logistics Systems (MLS) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets
Gross carrying amount	$ 10.0
Accumulated amortization	0.7
Net carrying amount	9.3
Customer Relationships
Finite-Lived Intangible Assets
Gross carrying amount	3.2
Accumulated amortization	0.2
Net carrying amount	$ 3.0
Weighted average useful life	10 years
Trademarks
Finite-Lived Intangible Assets
Gross carrying amount	$ 6.8
Accumulated amortization	0.5
Net carrying amount	$ 6.3
Weighted average useful life	10 years

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Intangibles- Future Amortization Expense (Details) - Midwest Logistics Systems (MLS) $ in Millions	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets
Remaining 2022	$ 0.3
2023	1.0
2024	1.0
2025	1.0
2026	1.0
2027 and thereafter	5.0
Net carrying amount	$ 9.3

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Goodwill - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Goodwill
Accumulated goodwill impairment charge	$ 53.2	$ 53.2
Truckload
Goodwill
Accumulated goodwill impairment charge	34.6	34.6
Other
Goodwill
Accumulated goodwill impairment charge	$ 18.6	$ 18.6

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Intangibles- Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Midwest Logistics Systems (MLS)
Finite-Lived Intangible Assets
Amortization of intangible assets	$ 0.2	$ 0.7

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Debt and Credit Facilities - Summary of Debt (Details) - Unsecured Senior Notes - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument
Frequency of payments	semiannual
Weighted-average interest rate	3.90%	3.61%
Total principal outstanding	$ 205.0	$ 265.0
Current maturities	(70.0)	(60.0)
Long-term debt	$ 135.0	$ 205.0
Minimum
Debt Instrument
Maturity year	2023
Maximum
Debt Instrument
Maturity year	2025

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Debt and Credit Facilities - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Credit Facility
Debt Instrument
Current borrowing capacity	$ 250.0
Potential increase amount	150.0
Maximum borrowing capacity	$ 400.0
Expiration date	Aug. 06, 2023
Outstanding borrowings	$ 0.0	$ 0.0
Credit Facility | Standby Letters of Credit
Debt Instrument
Maximum borrowing capacity	100.0
Standby letters of credit	0.1	3.9
Receivables Purchase Agreement
Debt Instrument
Maximum borrowing capacity	$ 150.0
Expiration date	Jul. 30, 2024
Outstanding borrowings	$ 0.0	0.0
Receivables Purchase Agreement | Standby Letters of Credit
Debt Instrument
Standby letters of credit	$ 77.1	$ 70.3

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Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	25.00%	25.20%	25.00%	25.20%

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Common Equity - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Basic earnings per common share
Net income available to common shareholders	$ 125.8	$ 129.8	$ 92.1	$ 110.0	$ 106.5	$ 54.8	$ 347.7	$ 271.3
Weighted average common shares outstanding	178.0			177.7			177.9	177.5
Diluted earnings per common share
Dilutive effect of share-based awards and options outstanding	0.7			0.2			0.7	0.3
Weighted average diluted shares outstanding	178.7			177.9			178.6	177.8
Basic earnings per share	$ 0.71			$ 0.62			$ 1.95	$ 1.53
Diluted earnings per share	$ 0.70			$ 0.62			$ 1.95	$ 1.53
Anti-dilutive share-based awards and options excluded from computation of diluted earnings per share	0.3			0.8			0.3	0.8

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Common Equity - Additional Information (Details) - $ / shares		3 Months Ended
	Oct. 20, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Class A Common Shares
Class of Stock
Dividends declared per share		$ 0.08	$ 0.08	$ 0.08	$ 0.07	$ 0.07	$ 0.07
Class A Common Shares | Subsequent Event | Quarterly Dividend Declared
Class of Stock
Dividends declared per share	$ 0.08
Class B Common Stock
Class of Stock
Dividends declared per share		$ 0.08	$ 0.08	$ 0.08	$ 0.07	$ 0.07	$ 0.07
Class B Common Stock | Subsequent Event | Quarterly Dividend Declared
Class of Stock
Dividends declared per share	$ 0.08

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Share-based Compensation - Additional Information (Details) - 2017 Omnibus Incentive Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	$ 3.8	$ 3.1	$ 11.9	$ 10.2
Pre-tax unrecognized compensation cost	$ 25.3		$ 25.3
Unrecognized compensation cost, period for recognition	2 years 1 month 6 days

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Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments to purchase transportation equipment		$ 508.0
Loss Contingencies
Loss contingency expense		5.2
WSL
Loss Contingencies
Loss contingency damages sought		40.0
Loss contingency damages awarded		40.0
Loss contingency expense	$ 59.0	57.0
Loss contingency accrual	$ 59.0
Loss contingency payment		$ 57.0

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Segment Reporting - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)
Segment Reporting Information
Number of reportable segments | Segment			3
Operating revenues	$ 1,675.3	$ 1,444.5	$ 5,042.7	$ 4,033.9
Other
Segment Reporting Information
Operating revenues	97.3	98.0	274.2	284.9
Other | Other Insurance
Segment Reporting Information
Operating revenues	$ 19.0	$ 16.0	$ 53.4	$ 46.1

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Segment Reporting - Revenue by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information
Operating revenues	$ 1,675.3	$ 1,444.5	$ 5,042.7	$ 4,033.9
Intersegment Eliminations
Segment Reporting Information
Operating revenues	(25.6)	(22.6)	(74.3)	(63.8)
Truckload
Segment Reporting Information
Revenues (excluding fuel charge by segment)	571.2	484.4	1,691.2	1,411.3
Intermodal
Segment Reporting Information
Revenues (excluding fuel charge by segment)	334.7	295.7	971.9	825.5
Logistics
Segment Reporting Information
Revenues (excluding fuel charge by segment)	464.2	474.6	1,531.2	1,261.2
Other
Segment Reporting Information
Operating revenues	97.3	98.0	274.2	284.9
Fuel Surcharge
Segment Reporting Information
Operating revenues	$ 233.5	$ 114.4	$ 648.5	$ 314.8

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Segment Reporting - Income From Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information
Income from operations	$ 145.4	$ 153.7	$ 457.1	$ 355.7
Truckload
Segment Reporting Information
Income from operations	83.2	85.1	283.3	197.0
Intermodal
Segment Reporting Information
Income from operations	31.1	45.7	112.3	100.6
Logistics
Segment Reporting Information
Income from operations	27.9	22.1	117.1	55.0
Other
Segment Reporting Information
Income from operations	$ 3.2	$ 0.8	$ (55.6)	$ 3.1

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Segment Reporting - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information
Depreciation and amortization	$ 88.2	$ 74.2	$ 258.3	$ 220.5
Truckload
Segment Reporting Information
Depreciation and amortization	62.8	52.1	183.6	157.1
Intermodal
Segment Reporting Information
Depreciation and amortization	14.6	12.4	42.4	35.5
Logistics
Segment Reporting Information
Depreciation and amortization	0.0	0.1	0.1	0.2
Other
Segment Reporting Information
Depreciation and amortization	$ 10.8	$ 9.6	$ 32.2	$ 27.7