OPERATING SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2023

OPERATING SEGMENT DATA

Schedule of reportable operating segment information from continuing operations

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
	(in thousands)
REVENUES
Asset-Based	$	722,015	$	802,622	$	1,419,832	$	1,507,933
Asset-Light		409,816		549,655		847,908		1,144,939
Other and eliminations		(28,367)		(30,585)		(58,182)		(63,089)
Total consolidated revenues	$	1,103,464	$	1,321,692	$	2,209,558	$	2,589,783
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	344,538	$	328,068	$	680,143	$	641,565
Fuel, supplies, and expenses		90,897		99,296		185,185		184,127
Operating taxes and licenses		14,094		12,823		28,073		25,316
Insurance		12,889		12,197		26,162		22,628
Communications and utilities		4,553		4,648		9,857		9,335
Depreciation and amortization		25,273		24,463		50,184		48,768
Rents and purchased transportation		101,922		121,550		192,666		224,535
Shared services		74,468		75,584		139,081		142,734
(Gain) loss on sale of property and equipment		416		(1,370)		365		(4,065)
Innovative technology costs(1)		8,343		7,954		14,411		14,914
Other		1,297		753		2,909		1,386
Total Asset-Based		678,690		685,966		1,329,036		1,311,243
Asset-Light
Purchased transportation		343,102		448,160		713,265		956,540
Supplies and expenses		3,348		4,263		7,420		7,529
Depreciation and amortization(2)		5,085		5,468		10,153		10,648
Shared services		48,985		57,986		100,414		108,183
Contingent consideration(3)		(10,000)		—		5,040		810
Gain on sale of subsidiary(4)		—		(402)		—		(402)
Other		6,116		6,701		12,527		13,036
Total Asset-Light		396,636		522,176		848,819		1,096,344
Other and eliminations		(13,978)		(22,488)		(31,572)		(46,785)
Total consolidated operating expenses	$	1,061,348	$	1,185,654	$	2,146,283	$	2,360,802

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

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

(3) Represents the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Note B). The second quarter 2023 decrease in fair value reflects the impact of continuing softer market conditions in 2023 and revised growth assumptions for 2024 and 2025 on the forecasts utilized at the June 30, 2023 remeasurement date. The net increase in fair value for the six months ended June 30, 2023 reflects an increase in fair value based on assumptions for business growth projected at March 31, 2023, partially offset by revised growth assumptions at June 30, 2023, which resulted in a decrease in fair value for the second quarter.

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
	(in thousands)
OPERATING INCOME
Asset-Based	$	43,325	$	116,656	$	90,796	$	196,690
Asset-Light		13,180		27,479		(911)		48,595
Other and eliminations		(14,389)		(8,097)		(26,610)		(16,304)
Total consolidated operating income	$	42,116	$	136,038	$	63,275	$	228,981
OTHER INCOME (COSTS)
Interest and dividend income	$	3,725	$	353	$	6,658	$	452
Interest and other related financing costs		(2,205)		(1,863)		(4,532)		(3,803)
Other, net(1)		5,038		(2,807)		6,818		(3,633)
Total other income (costs)		6,558		(4,317)		8,944		(6,984)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	$	48,674	$	131,721	$	72,219	$	221,997

(1) Includes the components of net periodic benefit cost (credit) other than service cost related to the Company’s SBP and postretirement health benefit plan and proceeds and changes in cash surrender value of life insurance policies. For the three and six months ended June 30, 2023, includes a $3.7 million fair value increase related to the Company’s equity investment in Phantom Auto, based on an observable price change during second quarter 2023 (see Note B).

Schedule of revenues from customers and intersegment revenues

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022(1)		2023		2022(1)
	(in thousands)
Revenues from customers
Asset-Based	$	694,755	$	774,554	$	1,363,975	$	1,450,072
Asset-Light		407,926		546,270		843,959		1,137,992
Other		783		868		1,624		1,719
Total consolidated revenues	$	1,103,464	$	1,321,692	$	2,209,558	$	2,589,783
Intersegment revenues
Asset-Based	$	27,260	$	28,068	$	55,857	$	57,861
Asset-Light		1,890		3,385		3,949		6,947
Other and eliminations		(29,150)		(31,453)		(59,806)		(64,808)
Total intersegment revenues	$	—	$	—	$	—	$	—
Total segment revenues
Asset-Based	$	722,015	$	802,622	$	1,419,832	$	1,507,933
Asset-Light		409,816		549,655		847,908		1,144,939
Other and eliminations		(28,367)		(30,585)		(58,182)		(63,089)
Total consolidated revenues	$	1,103,464	$	1,321,692	$	2,209,558	$	2,589,783

(1) The 2022 amounts have been adjusted from those previously reported to correct the intersegment breakdown of certain revenues from customers and intersegment revenues between the segments. Adjustments made are not material.

Schedule of consolidated operating expenses by component

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	449,024	$	442,875	$	886,006	$	857,780
Rents, purchased transportation, and other costs of services		415,712		538,238		845,317		1,116,087
Fuel, supplies, and expenses		124,148		129,505		246,766		239,864
Depreciation and amortization(1)		35,811		34,884		70,821		69,280
Contingent consideration(2)		(10,000)		—		5,040		810
Other		46,653		40,152		92,333		76,981
	$	1,061,348	$	1,185,654	$	2,146,283	$	2,360,802

(1) Includes amortization of intangible assets.

(2) Represents the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Note B).