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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of changes in benefit obligations and plan assets and disclosure of funded status and accumulated benefit obligation of nonunion defined benefit plans

The following table discloses the changes in benefit obligations and plan assets of the Company’s nonunion defined benefit plans for years ended December 31, the measurement date of the plans:


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2016		2015		2016		2015		2016		2015
	(in thousands)
Change in benefit obligations
Benefit obligations at beginning of year	$	159,607	$	174,410	$	4,917	$	6,782	$	24,616	$	22,116
Service cost		—		—		—		—		429		406
Interest cost		4,572		5,200		130		123		1,017		913
Actuarial (gain) loss(1)		4,202		494		(7)		(47)		133		1,806
Benefits paid		(16,896)		(20,892)		(246)		(1,941)		(663)		(625)
Settlement loss		521		395		—		—		—		—
Benefit obligations at end of year		152,006		159,607		4,794		4,917		25,532		24,616
Change in plan assets
Fair value of plan assets at beginning of year		136,917		158,265		—		—		—		—
Actual return (loss) on plan assets		11,384		(506)		—		—		—		—
Employer contributions		13,400		50		246		1,941		663		625
Benefits paid		(16,896)		(20,892)		(246)		(1,941)		(663)		(625)
Fair value of plan assets at end of year		144,805		136,917		—		—		—		—
Funded status at end of year	$	(7,201)	$	(22,690)	$	(4,794)	$	(4,917)	$	(25,532)	$	(24,616)
Accumulated benefit obligation	$	152,006	$	159,607	$	4,794	$	4,917	$	25,532	$	24,616

⁽¹⁾

The actuarial loss on the nonunion defined benefit pension plan was higher for 2016, primarily due to a decrease in the discount rate used to remeasure the plan obligation at December 31, 2016 versus December 31, 2015.

Schedule of amounts recognized in the consolidated balance sheets related to nonunion defined benefit plans

Amounts recognized in the consolidated balance sheets at December 31 consisted of the following:


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2016		2015		2016		2015		2016		2015
	(in thousands)
Current liabilities (included in accrued expenses)	$	—	$	—	$	(989)	$	(246)	$	(690)	$	(736)
Noncurrent liabilities (included in pension and postretirement liabilities)		(7,201)		(22,690)		(3,805)		(4,671)		(24,842)		(23,880)
Liabilities recognized	$	(7,201)	$	(22,690)	$	(4,794)	$	(4,917)	$	(25,532)	$	(24,616)

Summary of the components of net periodic benefit cost

The following is a summary of the components of net periodic benefit cost for the Company’s nonunion benefit plans for the years ended December 31:



	Nonunion Defined						Supplemental						Postretirement
	Benefit Pension Plan						Benefit Plan						Health Benefit Plan
	2016		2015		2014		2016		2015		2014		2016		2015		2014
	(in thousands)
Service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	429	$	406	$	280
Interest cost		4,572		5,200		6,039		130		123		184		1,017		913		788
Expected return on plan assets		(8,607)		(9,180)		(10,419)		—		—		—		—		—		—
Amortization of prior service credit		—		—		—		—		—		—		(190)		(190)		(190)
Pension settlement expense		3,023		3,202		5,880		206		—		715		—		—		—
Amortization of net actuarial loss(1)		4,087		3,218		2,398		152		159		214		705		853		93
Net periodic benefit cost	$	3,075	$	2,440	$	3,898	$	488	$	282	$	1,113	$	1,961	$	1,982	$	971

⁽¹⁾

The Company amortizes actuarial losses over the average remaining active service period of the plan participants and does not use a corridor approach.

Summary of pension settlement distributions and settlement expense

The following is a summary of the pension settlement distributions and pension settlement expense for the years ended December 31:


	Nonunion Defined						Supplemental
	Benefit Pension Plan						Benefit Plan
	2016(1)		2015(1)		2014(2)		2016		2015(3)		2014
	(in thousands, except per share data)
Pension settlement distributions	$	16,515	$	20,622	$	57,518	$	246	$	1,941	$	853
Pension settlement expense, pre-tax	$	3,023	$	3,202	$	5,880	$	206	$	—	$	715
Pension settlement expense per diluted share, net of taxes	$	0.07	$	0.07	$	0.14	$	0.01	$	—	$	0.02

⁽¹⁾

Pension settlement distributions represent lump‑sum benefit distributions paid.

⁽²⁾

Pension settlement distributions represent $32.1 million of lump‑sum benefit distributions and a $25.4 million nonparticipating annuity contract purchase.

⁽³⁾

The 2015 SBP distribution represents the portion of a benefit related to an officer retirement that occurred in 2014 which was delayed for six months after retirement in accordance with IRC Section 409A. The pension settlement expense related to this distribution was recognized in 2014.

Pre-tax amounts included in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit cost

Included in accumulated other comprehensive loss at December 31 were the following pre‑tax amounts that have not yet been recognized in net periodic benefit cost:


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2016		2015		2016		2015		2016		2015
	(in thousands)
Unrecognized net actuarial loss	$	23,294	$	28,457	$	635	$	1,001	$	5,708	$	6,280
Unrecognized prior service credit		—		—		—		—		(317)		(507)
Total	$	23,294	$	28,457	$	635	$	1,001	$	5,391	$	5,773

Pre-tax amounts, which are reported within accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost in the next fiscal year

The following amounts, which are reported within accumulated other comprehensive loss at December 31, 2016 are expected to be recognized as components of net periodic benefit cost in 2017 on a pre‑tax basis. (Amounts exclude the effect of pension settlements, which the Company will incur for the nonunion defined benefit pension plan.)


	Nonunion		Supplemental		Postretirement
	Defined Benefit		Benefit		Health
	Pension Plan		Plan		Benefit Plan
	(in thousands)
Unrecognized net actuarial loss	$	2,960	$	109	$	620
Unrecognized prior service credit		—		—		(190)
Total	$	2,960	$	109	$	430

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for nonunion defined benefit plans

Weighted‑average assumptions used to determine nonunion benefit obligations at December 31 were as follows:


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2016		2015		2016		2015		2016		2015
Discount rate	3.4	%	3.5	%	2.7	%	2.6	%	4.0	%	4.2	%

Weighted‑average assumptions used to determine net periodic benefit cost for the Company’s nonunion benefit plans for the years ended December 31 were as follows:


	Nonunion Defined						Supplemental						Postretirement
	Benefit Pension Plan						Benefit Plan						Health Benefit Plan
	2016(1)		2015(2)		2014(3)		2016		2015		2014(4)		2016		2015		2014
Discount rate	3.5	%	3.2	%	3.8	%	2.6	%	2.5	%	2.8	%	4.2	%	3.9	%	4.7	%
Expected return on plan assets	6.5	%	6.5	%	6.5	%	N/A		N/A		N/A		N/A		N/A		N/A

⁽¹⁾

The discount rate presented was used to determine the first quarter 2016 expense, and the interim discount rate established upon each quarterly settlement in 2016 of 3.0%, 2.7%, and 2.7% was used to calculate the expense/credit for the second, third, and fourth quarter of 2016, respectively.

⁽²⁾

The discount rate presented was used to determine the first quarter 2015 credit, and the interim discount rate established upon each quarterly settlement in 2015 of 3.0%, 3.5%, and 3.4% was used to calculate the expense/credit for the second, third, and fourth quarter of 2015, respectively.

⁽³⁾

The discount rate presented was used to determine the first quarter 2014 credit, and the interim discount rate established upon each quarterly settlement in 2014 of 3.5%, 3.3%, and 3.4% was used to calculate the credit for the second, third, and fourth quarter of 2014, respectively.

⁽⁴⁾

The discount rate presented was used to determine expense for the first ten months of 2014 and the discount rate of 2.5% established upon the October 31, 2014 settlement was used to calculate expense for the last two months of 2014.

Schedule of the assumed health care cost trend rates for the postretirement health benefit plan

The assumed health care cost trend rates for the Company’s postretirement health benefit plan at December 31 were as follows:


	2016		2015

Health care cost trend rate assumed for next year	8.0	%	6.7	%
Rate to which the cost trend rate is assumed to decline	4.5	%	4.5	%
Year that the rate reaches the cost trend assumed rate	2031		2030

Effects of one-percentage-point change in assumed health care cost trend rates on the postretirement health benefit plan

A one‑percentage‑point change in assumed health care cost trend rates would have the following effects on the Company’s postretirement health benefit plan for the year ended December 31, 2016:


	One Percentage Point
	Increase		Decrease
	(in thousands)
Effect on total of service and interest cost components	$	322	$	(252)
Effect on postretirement benefit obligation	$	5,059	$	(4,036)

Schedule of estimated future benefit payments for nonunion defined benefit plans

Estimated future benefit payments from the Company’s nonunion defined benefit pension (paid from trust assets), SBP, and postretirement health benefit plans, which reflect expected future service as appropriate, as of December 31, 2016 are as follows:


	Nonunion		Supplemental		Postretirement
	Defined Benefit		Benefit		Health
	Pension Plan		Plan		Benefit Plan
	(in thousands)
2017	$	26,608	$	989	$	690
2018	$	12,386	$	—	$	777
2019	$	12,372	$	3,107	$	854
2020	$	12,543	$	—	$	928
2021	$	12,031	$	—	$	1,003
2022-2026	$	51,341	$	—	$	6,202

Weighted-average target, acceptable ranges, and actual asset allocations of the nonunion defined benefit pension plan

The weighted‑average target, acceptable ranges, and actual asset allocations of the Company’s nonunion defined benefit pension plan at December 31 are summarized in the following table:


	2016
	Target		Acceptable					Weighted-Average Allocation
	Allocation		Range					2016		2015
Equity Securities
Large Cap U.S. Equity	13.0	%	8.0	%	-	20.0	%	14.0	%	17.2	%
Mid Cap U.S. Equity	9.0		7.0	%	-	11.0	%	9.4		10.4
Small Cap U.S. Equity	9.0		7.0	%	-	11.0	%	10.0		10.3
International Equity	14.0		10.0	%	-	18.0	%	14.4		17.1

Income Securities
Debt Instruments	25.0		20.0	%	-	30.0	%	25.0		19.5
Floating Rate Loan Fund	10.0		3.0	%	-	15.0	%	10.8		11.6

Cash Equivalents
Cash and Cash Equivalents	20.0		0.0	%	-	25.0	%	16.4		13.9
	100.0	%						100.0	%	100.0	%

Fair value of the nonunion defined benefit pension plan assets, by major asset category and fair value hierarchy level

The fair value of the Company’s nonunion defined benefit pension plan assets at December 31, 2016, by major asset category and fair value hierarchy level (see Fair Value Measurements accounting policy in Note B), were as follows:


			Fair Value Measurements Using
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Cash and Cash Equivalents(1)	$	23,696	$	23,696	$	—	$	—
Debt Instruments(2)		36,245		—		36,245		—
Floating Rate Loans(3)		15,687		15,687		—		—
Large Cap U.S. Equity		20,208		20,208		—		—
Mid Cap U.S. Equity		13,597		13,597		—		—
Small Cap U.S. Equity		14,561		14,561		—		—
International Equity		20,811		20,811		—		—
	$	144,805	$	108,560	$	36,245	$	—

⁽¹⁾

Consists primarily of money market mutual funds.

⁽²⁾

Includes corporate debt instruments (81%), mortgage-backed instruments (10%), treasury instruments (7%), municipal debt instruments (1%), and agency debt instruments (1%) which are priced using daily bid prices. The fair value measurements are provided by a pricing service which uses the market approach with inputs derived from observable market data.

⁽³⁾

Consists of a floating rate loan mutual fund.

The fair value of the Company’s nonunion defined benefit pension plan assets at December 31, 2015, by major asset category and fair value hierarchy level (see Fair Value Measurements accounting policy in Note B), were as follows:


			Fair Value Measurements Using
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Cash and Cash Equivalents(1)	$	19,079	$	19,079	$	—	$	—
Debt Instruments(2)		26,662		—		26,662		—
Floating Rate Loans(3)		15,868		15,868		—		—
Large Cap U.S. Equity		23,459		23,459		—		—
Mid Cap U.S. Equity		14,276		14,276		—		—
Small Cap U.S. Equity		14,135		14,135		—		—
International Equity		23,438		23,438		—		—
	$	136,917	$	110,255	$	26,662	$	—

⁽¹⁾

Consists primarily of money market mutual funds.

⁽²⁾

Includes corporate debt instruments (74%), mortgage‑backed instruments (17%), treasury instruments (6%), municipal debt instruments (2%), and agency debt instruments (1%) which are priced using daily bid prices. The fair value measurements are provided by a pricing service which uses the market approach with inputs derived from observable market data.

⁽³⁾

Consists of a floating rate loan mutual fund.

Schedule of multiemployer pension funds and key participation information


		Pension		FIP/RP
		Protection Act		Status	Contributions (d)
	EIN/Pension	Zone Status (b)		Pending/	(in thousands)						Surcharge
Legal Name of Plan	Plan Number (a)	2016	2015	Implemented (c)	2016		2015		2014		Imposed (e)
Central States, Southeast and Southwest Areas Pension Plan(1)(2)	36-6044243	Critical and Declining	Critical and Declining	Implemented(3)	$	77,891	$	77,491	$	74,001	No

Western Conference of Teamsters Pension Plan(2)	91-6145047	Green	Green	No		25,075		24,474		23,030	No

Central Pennsylvania Teamsters Defined Benefit Plan(1)(2)	23-6262789	Green	Green	No		13,381		13,147		12,810	No

I. B. of T. Union Local No. 710 Pension Fund(5)(6)	36-2377656	Green(4)	Green(4)	No		9,670		10,020		9,186	No

All other plans in the aggregate						28,122		26,766		25,150
Total multiemployer pension contributions paid(7)					$	154,139	$	151,898	$	144,177

Table Heading Definitions

^(a)

The “EIN/Pension Plan Number” column provides the Federal Employer Identification Number (EIN) and the three‑digit plan number, if applicable.

^(b)

Unless otherwise noted, the most recent PPA zone status available in 2016 and 2015 is for the plan’s year‑end status at December 31, 2015 and 2014, respectively. The zone status is based on information received from the plan and was certified by the plan’s actuary. Green zone funds are those that are in neither endangered, critical, or critical and declining status and generally have a funded percentage of at least 80%.

^(c)

The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (FIP) or a rehabilitation plan (RP), if applicable, is pending or has been implemented.

^(d)

Amounts reflect contributions made in the respective year and differ from amounts expensed during the year.

^(e)

The surcharge column indicates if a surcharge was paid by ABF Freight to the plan.

⁽¹⁾

ABF Freight System, Inc. was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended December 31, 2015 and 2014.

⁽²⁾

Information for this fund was obtained from the annual funding notice, other notices received from the plan, and the Form 5500 filed for the plan years ended December 31, 2015 and 2014.

⁽³⁾

Adopted a rehabilitation plan effective March 25, 2008 as updated. Utilized amortization extension granted by the IRS effective December 31, 2003.

⁽⁴⁾

PPA zone status relates to plan years February 1, 2015 – January 31, 2016 and February 1, 2014 – January 31, 2015.

⁽⁵⁾

The Company was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended January 31, 2016 and 2015.

⁽⁶⁾

Information for this fund was obtained from the annual funding notice, other notices received from the plan, and the Form 5500 filed for the plan years ended January 31, 2016 and January 31, 2015.

⁽⁷⁾

Contribution levels can be impacted by several factors such as changes in business levels and the related time worked by contractual employees, contractual rate increases for pension benefits, and the specific funding structure, which differs among funds. The pension contribution rate for contractual employees increased an average of approximately 2.8%, 1.3%, and 0.8% effective primarily on August 1, 2016, 2015, and 2014, respectively. The Supplemental Negotiating Committee for the Central States Pension Plan approved no pension contribution increase effective August 1, 2016, 2015, and 2014. The Supplemental Negotiating Committee for the Western Conference of Teamsters Pension Plan approved no pension increase effective August 1, 2016, 2015, and 2014. The year‑over‑year changes in multiemployer pension plan contributions presented above were also influenced by changes in Asset-Based business levels.