FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2025

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Schedule components of cash and cash equivalents, short term investments, and restricted funds

	March 31		December 31
	2025		2024
	(in thousands)
Cash and cash equivalents
Cash deposits(1)	$	55,945	$	83,048
Money market funds(2)		18,177		44,396
Total cash and cash equivalents	$	74,122	$	127,444
Short-term investments
Certificates of deposit(3)	$	24,552	$	29,759

(1) Recorded at cost plus accrued interest, which approximates fair value.

(2) Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets and liabilities measured at fair value within this Note).

(3) Recorded at cost plus accrued interest, which approximates fair value due to its short-term nature and is categorized in Level 2 of the fair value hierarchy.

Schedule of fair value and carrying value disclosures of financial instruments

	March 31				December 31
	2025				2024
	(in thousands)
		Carrying		Fair		Carrying		Fair
		Value		Value		Value		Value
Credit Facility(1)	$	25,000	$	25,000	$	—	$	—
Notes payable(2)		189,220		189,070		189,134		187,675
New England Pension Fund withdrawal liability(3)		18,483		16,916		18,671		16,783
	$	232,703	$	230,986	$	207,805	$	204,458

(1) The revolving credit facility (the “Credit Facility”) carries a variable interest rate based on Secured Overnight Financing Rate (“SOFR”), plus a margin, priced at market for debt instruments having similar terms and collateral requirements (Level 2 of the fair value hierarchy).

(2) Fair value of the notes payable was determined using a present value income approach based on quoted interest rates from lending institutions with which the Company would enter into similar transactions (Level 2 of the fair value hierarchy).

(3) ABF Freight’s multiemployer pension plan obligation with the New England Teamsters and Trucking Industry Pension Fund (the “New England Pension Fund”) was restructured under a transition agreement effective on August 1, 2018, which resulted in a related withdrawal liability. The fair value of the outstanding withdrawal liability is equal to the present value of the future withdrawal liability payments, discounted at an interest rate of 5.8% and 6.0% at March 31, 2025 and December 31, 2024, respectively, determined using the 20-year U.S. Treasury rate plus a spread (Level 2 of the fair value hierarchy). As of March 31, 2025, the outstanding withdrawal liability totaled $18.5 million, of which $0.8 million was recorded in accrued expenses, and the remaining portion was recorded in other long-term liabilities.

Schedule of financial assets and liabilities measured at fair value on a recurring basis

	March 31, 2025
			Fair Value Measurements Using
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Money market funds(1)	$	18,177	$	18,177	$	—	$	—
Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2)		5,164		5,164		—		—
	$	23,341	$	23,341	$	—	$	—
Liabilities:
Contingent consideration(3)	$	2,650	$	—	$	—	$	2,650

	December 31, 2024
			Fair Value Measurements Using
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Money market funds(1)	$	44,396	$	44,396	$	—	$	—
Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2)		5,570		5,570		—		—
	$	49,966	$	49,966	$	—	$	—
Liabilities:
Contingent consideration(3)	$	2,650	$	—	$	—	$	2,650

(1) Included in cash and cash equivalents.

(2) Nonqualified deferred compensation plan investments consist of U.S. and international equity mutual funds, government and corporate bond mutual funds, and money market funds which are held in a trust with a third-party brokerage firm. Included in other long-term assets, with a corresponding liability reported within other long-term liabilities.

(3) The estimated fair value of contingent consideration related to the acquisition of MoLo is determined by assessing Level 3 inputs. The Level 3 assessments utilize a Monte Carlo simulation with inputs including scenarios of estimated revenues and expenses to be achieved for the applicable performance period, volatility factors applied to the simulation, and the discount rate applied, which was 12.9% as of December 31, 2024. Fair value of the contingent consideration was qualitatively assessed as of March 31, 2025, which involved analyzing the likelihood of achieving adjusted EBITDA thresholds, as defined by the Agreement and Plan of Merger for our acquisition of MoLo. Changes in the significant unobservable inputs might result in a significantly higher or lower fair value at the reporting date.