OPERATING SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2022

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(in thousands)
REVENUES
Asset-Based	$	791,531	$	681,164	$	2,299,464	$	1,890,288
ArcBest(1)		515,235		305,207		1,660,174		828,291
FleetNet		89,276		66,514		249,786		185,224
Other and eliminations		(44,211)		(36,228)		(129,590)		(108,960)
Total consolidated revenues	$	1,351,831	$	1,016,657	$	4,079,834	$	2,794,843
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	332,359	$	305,839	$	973,924	$	893,903
Fuel, supplies, and expenses		97,279		66,947		281,406		192,477
Operating taxes and licenses		13,089		12,426		38,405		36,977
Insurance		13,180		10,175		35,808		28,568
Communications and utilities		4,794		4,559		14,129		14,192
Depreciation and amortization		24,117		23,233		72,885		70,025
Rents and purchased transportation		123,714		95,855		348,249		266,525
Shared services		72,286		71,017		215,020		196,255
Gain on sale of property and equipment(2)		(5,910)		—		(9,975)		(8,624)
Innovative technology costs(3)		6,068		6,903		20,982		21,303
Other		1,243		592		2,629		1,103
Total Asset-Based		682,219		597,546		1,993,462		1,712,704
ArcBest(1)
Purchased transportation		425,567		256,900		1,382,107		694,498
Supplies and expenses		4,378		2,741		11,907		7,785
Depreciation and amortization(4)		5,072		2,352		15,720		7,104
Shared services		56,371		31,048		164,554		86,198
Gain on sale of subsidiary(5)		—		—		(402)		(6,923)
Other		8,463		1,984		22,309		6,055
Total ArcBest		499,851		295,025		1,596,195		794,717
FleetNet		88,395		65,245		245,596		181,794
Other and eliminations		(34,395)		(28,720)		(103,454)		(88,423)
Total consolidated operating expenses	$	1,236,070	$	929,096	$	3,731,799	$	2,600,792

(1) The 2022 periods include the operations of MoLo, which was acquired on November 1, 2021.

(2) The three and nine months ended September 30, 2022 include a $4.3 million noncash gain on a like-kind property exchange of a service center, with the remaining gains related primarily to sales of replaced equipment. The nine months ended September 30, 2021 include an $8.6 million gain on the sale of an unutilized service center property.

(3) Represents costs associated with the freight handling pilot test program at ABF Freight.

(4) Depreciation and amortization includes amortization of intangibles associated with acquired businesses.

(5) Gain recognized relates to the sale of the labor services portion of the ArcBest segment’s moving business in May 2021, including the contingent amount recognized in second quarter 2022 when the funds were released from escrow.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(in thousands)
OPERATING INCOME
Asset-Based	$	109,312	$	83,618	$	306,002	$	177,584
ArcBest(1)		15,384		10,182		63,979		33,574
FleetNet		881		1,269		4,190		3,430
Other and eliminations		(9,816)		(7,508)		(26,136)		(20,537)
Total consolidated operating income	$	115,761	$	87,561	$	348,035	$	194,051
OTHER INCOME (COSTS)
Interest and dividend income	$	1,147	$	323	$	1,614	$	1,037
Interest and other related financing costs		(1,749)		(2,072)		(5,551)		(6,774)
Other, net(2)		(189)		338		(3,822)		2,641
Total other income (costs)		(791)		(1,411)		(7,759)		(3,096)
INCOME BEFORE INCOME TAXES	$	114,970	$	86,150	$	340,276	$	190,955

(1) The 2022 periods include the operations of MoLo which was acquired on November 1, 2021.

(2) Includes the components of net periodic benefit cost other than service cost related to the Company’s SBP and postretirement plans (see Note H) and proceeds and changes in cash surrender value of life insurance policies.

Schedule of revenues from customers and intersegment revenues

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(in thousands)
Revenues from customers
Asset-Based	$	778,473	$	655,737	$	2,242,964	$	1,815,606
ArcBest(1)		503,182		303,076		1,633,684		821,355
FleetNet		72,318		56,656		207,505		155,041
Other		(2,142)		1,188		(4,319)		2,841
Total consolidated revenues(1)	$	1,351,831	$	1,016,657	$	4,079,834	$	2,794,843
Intersegment revenues
Asset-Based	$	13,058	$	25,427	$	56,500	$	74,682
ArcBest		12,053		2,131		26,490		6,936
FleetNet		16,958		9,858		42,281		30,183
Other and eliminations		(42,069)		(37,416)		(125,271)		(111,801)
Total intersegment revenues	$	—	$	—	$	—	$	—
Total segment revenues
Asset-Based	$	791,531	$	681,164	$	2,299,464	$	1,890,288
ArcBest(1)		515,235		305,207		1,660,174		828,291
FleetNet		89,276		66,514		249,786		185,224
Other and eliminations		(44,211)		(36,228)		(129,590)		(108,960)
Total consolidated revenues(1)	$	1,351,831	$	1,016,657	$	4,079,834	$	2,794,843

(1) The 2022 periods include the operations of MoLo, which was acquired on November 1, 2021.

Schedule of consolidated operating expenses by component

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022(1)		2021		2022(1)		2021
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	451,824	$	397,116	$	1,321,871	$	1,145,657
Rents, purchased transportation, and other costs of services		596,631		382,759		1,854,387		1,039,857
Fuel, supplies, and expenses		112,834		82,051		331,759		235,221
Depreciation and amortization(2)		34,707		30,359		104,860		90,995
Other(3)		40,074		36,811		118,922		89,062
	$	1,236,070	$	929,096	$	3,731,799	$	2,600,792

(1) The 2022 periods include the operations of MoLo, which was acquired on November 1, 2021.

(2) Includes amortization of intangible assets.

(3) The nine months ended September 30, 2021 include a $6.9 million gain related to the sale of a subsidiary within the ArcBest segment.