General

Basis of Presentation

The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. We believe such statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of our financial position, results of operations and cash flows at the dates and for the periods indicated. Pursuant to the requirements of the Securities and Exchange Commission (SEC) applicable to quarterly reports on Form

-Q, the accompanying financial statements do

not

include all disclosures required by GAAP for annual financial statements. While we believe the disclosures presented are adequate to make the information

not

misleading, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form

-K for the year ended

December 31, 2016.

Operating results for the periods presented in this report are

not

necessarily indicative of the results that

may

be expected for the calendar year ending

December 31, 2017,

or any other interim period. Our business is somewhat seasonal with slightly higher freight volumes typically experienced during

August

through early

November

in our full-load freight transportation business.

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

No.

2014

09,

Revenue from Contracts with Customers, which supersedes virtually all existing revenue recognition guidance. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.

August 2015,

the FASB issued ASU

2015

14,

Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of ASU

2014

09,

one

year to interim and annual periods beginning after

December 15, 2017.

Early adoption is permitted after the original effective date of

December 15, 2016.

We have selected an implementation team and are in the process of contract review and documentation in accordance with the standard. We intend to adopt this new standard in the

first

quarter

2018,

using the modified retrospective transition approach. Based on our work to date, we do

not

expect the standard to have a material impact on our financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases, which requires lessees to recognize a right-of-use asset and a lease liability for most leases in the balance sheet as well as other qualitative and quantitative disclosures. ASU

2016

is to be applied using a modified retrospective method and is effective for interim and annual periods beginning after

December 15, 2018,

but early adoption is permitted. We are currently evaluating the potential effects of the adoption of this update on our financial statements.

Accounting Prono

uncement

Adopted in

201

March 2016,

the FASB issued ASU

2016

09,

Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which amended and simplified certain aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments were effective for interim and annual periods beginning after

December 15, 2016.

The application methods used in adoption varied with each component of the standard. We prospectively adopted ASU

2016

during the

first

quarter

2017,

which, upon vesting of share-based awards, will result in the recognition of excess tax benefits or tax deficiencies from share-based compensation as a discrete item in our income tax expense. Historically, these amounts were recorded as additional paid-in capital. Effectively all of our outstanding share-based awards vest within the

third

quarter of the vesting year. In addition, cash flows from excess tax benefits from share-based compensation, which historically have been reported as cash flows from financing activities are now reported, on a prospective basis, as cash flows from operating activities in our Condensed Consolidated Statement of Cash Flows. The remaining amendments within the standard had

impact on our Condensed Consolidated Financial Statements.