Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

The following table presents Knight-Swift's transactions with companies controlled by and/or affiliated with its related parties:



	Quarter Ended March 31,
	2019				2018
	Provided by Knight-Swift		Received by Knight-Swift		Provided by Knight-Swift		Received by Knight-Swift
	(In thousands)
Freight Services:
Central Freight Lines ¹	$	3,116	$	—	$	427	$	—
SME Industries ¹	155		—		249		—
Total	$	3,271	$	—	$	676	$	—
Facility and Equipment Leases:
Central Freight Lines ¹	$	244	$	93	$	241	$	92
Other Affiliates ¹	4		—		6		—
Total	$	248	$	93	$	247	$	92
Other Services:
Updike Distribution and Logistics ²	$	1	$	—	$	545	$	—
Other Affiliates ¹	9		662		9		603
Total	$	10	$	662	$	554	$	603


1	Entities affiliated with former Board member Jerry Moyes include Central Freight Lines, SME Industries, Compensi Services, and DPF Mobile. Transactions with these entities that are controlled by and/or are otherwise affiliated with Jerry Moyes, include freight services, facility and equipment leases, equipment sales, and other services.


•	Freight Services Provided by Knight-Swift — The Company charges each of these companies for transportation services.


•	Freight Services Received by Knight-Swift — Transportation services received from Central Freight represent less-than-truckload freight services rendered to haul parts and equipment to Company shop locations.


•	Other Services Provided by Knight-Swift — Other services provided by the Company to the identified related parties include equipment sales and miscellaneous services.


•	Other Services Received by Knight-Swift — Consulting fees and certain third-party payroll and employee benefits administration services from the identified related parties are included in other services received by the Company.

In conjunction with Swift's September 8, 2016 announcement that Jerry Moyes would retire from his position as Chief Executive Officer effective December 31, 2016, Swift entered into an agreement with Mr. Moyes to memorialize the terms of his retirement, which was assumed by Knight-Swift. Swift contracted with Mr. Moyes to serve as a non-employee consultant from January 1, 2017 through December 31, 2019, during which time Swift pays Mr. Moyes a monthly consulting fee in cash.

The following is a rollforward of the accrued liability for the consulting fees:



	(In thousands)
Accrued consulting fees – Jerry Moyes, balance at December 31, 2018 ^1a	$	2,225
Less: payments	(600		)
Accrued consulting fees – Jerry Moyes, balance at March 31, 2019 ^1a	$	1,625


1a	The balance is included in "Accrued liabilities" in the condensed consolidated balance sheet.

Knight had an arrangement with Updike Distribution and Logistics, a company that is owned by the father and three brothers of Executive Vice President of Sales and Marketing, James Updike, Jr. The arrangement allowed Updike Distribution and Logistics to purchase fuel from Knight's vendors at cost, plus an administrative fee. The arrangement was discontinued during the second quarter of 2018. Activities in the quarter ended March 31, 2019 pertain to sales of spare parts.

Receivables and payables pertaining to related party transactions were:



	March 31, 2019				December 31, 2018
	Receivable		Payable		Receivable		Payable
	(In thousands)
Central Freight Lines	$	1,825	$	—	$	254	$	—
SME Industries	54		—		24		—
Other Affiliates	—		9		—		20
Total	$	1,879	$	9	$	278	$	20

Jerry Moyes consulting fees rollforward

The following is a rollforward of the accrued liability for the consulting fees:



	(In thousands)
Accrued consulting fees – Jerry Moyes, balance at December 31, 2018 ^1a	$	2,225
Less: payments	(600		)
Accrued consulting fees – Jerry Moyes, balance at March 31, 2019 ^1a	$	1,625


1a	The balance is included in "Accrued liabilities" in the condensed consolidated balance sheet.