EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

EMPLOYEE BENEFIT PLANS

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

	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2021		2020		2021		2020
	(in thousands)
Change in benefit obligations
Benefit obligations, beginning of year	$	392	$	3,236	$	18,751	$	20,630
Service cost		—		—		192		187
Interest cost		4		9		427		576
Actuarial (gain) loss(1)		(15)		34		(1,736)		(2,027)
Benefits paid		—		(2,887)		(642)		(615)
Benefit obligations, end of year		381		392		16,992		18,751
Change in plan assets
Fair value of plan asset, beginning of year		—		—		—		—
Employer contributions		—		2,887		642		615
Benefits paid		—		(2,887)		(642)		(615)
Fair value of plan assets, end of year		—		—		—		—
Funded status at period end	$	(381)	$	(392)	$	(16,992)	$	(18,751)
Accumulated benefit obligation	$	381	$	392	$	16,992	$	18,751

(1) The actuarial gain on the postretirement health benefit plan for 2021 and 2020 is primarily related to the impact of actuarial assumptions on the valuation of plan costs. For 2021, these actuarial assumptions include an increase in the discount rate used to remeasure the plan obligation at December 31, 2021 versus December 31, 2020 and lower actual healthcare premium costs versus the assumed trend rates. For 2020, these actuarial assumptions include lower health care cost trend rates, partially offset by a decrease in the discount rate used to remeasure the plan obligation at December 31, 2020 versus December 31, 2019.

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

	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2021		2020		2021		2020
Current portion of pension and postretirement liabilities	$	—	$	—	$	(640)	$	(588)
Pension and postretirement liabilities, less current portion		(381)		(392)		(16,352)		(18,163)
Liabilities recognized	$	(381)	$	(392)	$	(16,992)	$	(18,751)

Summary of the components of net periodic benefit cost

	Nonunion Defined						Supplemental						Postretirement
	Benefit Pension Plan						Benefit Plan						Health Benefit Plan
	2021		2020		2019		2021		2020		2019		2021		2020		2019
	(in thousands)
Service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	192	$	187	$	320
Interest cost		—		—		624		4		9		39		427		576		1,212
Expected return on plan assets		—		—		(31)		—		—		—		—		—		—
Amortization of prior service credit		—		—		—		—		—		—		—		(1)		(33)
Pension settlement expense(1)		—		—		4,164		—		89		370		—		—		—
Amortization of net actuarial (gain) loss(2)		—		—		260		9		8		95		(548)		(597)		898
Net periodic benefit cost	$	—	$	—	$	5,017	$	13	$	106	$	504	$	71	$	165	$	2,397

(1) For 2019, the presentation of pension settlement expense excludes a $4.0 million noncash pension termination expense which is further described within this Note.

(2) The Company amortizes actuarial gains and 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

	Nonunion Defined						Supplemental
	Benefit Pension Plan						Benefit Plan
	2021		2020		2019(1)		2021		2020(2)		2019(3)
	(in thousands, except per share data)
Pension settlement distributions	$	—	$	—	$	33,938	$	—	$	2,887	$	937
Pension settlement expense, pre-tax(4)	$	—	$	—	$	4,164	$	—	$	89	$	370
Pension settlement expense per diluted share, net of taxes	$	—	$	—	$	0.12	$	—	$	—	$	0.01

(1) Pension settlement distributions for 2019 represent $18.4 million of lump-sum benefit distributions, including participant-elected distributions associated with the plan’s termination, a $14.0 million nonparticipating annuity contract purchase, and a $1.5 million transfer of benefit obligations to the PBGC.

(2) The 2020 SBP distributions include the portion of a benefit related to an officer retirement that occurred in 2019 which was delayed for six months after retirement in accordance with IRC Section 409A.

(3) The 2019 SBP distribution excludes the portion of the benefit related to an officer retirement which was delayed for six months after retirement in accordance with IRC Section 409A. The pension settlement expense related to the delayed distribution was recognized in 2019.

(4) For 2019, the presentation of pension settlement expense excludes a $4.0 million noncash pension termination expense which is further described within this Note.

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

	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2021		2020		2021		2020
Unrecognized net actuarial (gain) loss	$	40	$	64	$	(5,642)	$	(4,454)

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

	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2021		2020		2021		2020
Discount rate	1.8	%	1.1	%	2.7	%	2.3	%

	Nonunion Defined				Supplemental						Postretirement
	Benefit Pension Plan				Benefit Plan						Health Benefit Plan
	2021	2020	2019(1)		2021		2020		2019		2021		2020		2019
Discount rate	N/A	N/A	3.9	%	1.1	%	2.4	%	3.6	%	2.3	%	3.1	%	4.2	%
Expected return on plan assets	N/A	N/A	1.4	%	N/A		N/A		N/A		N/A		N/A		N/A

(1) The discount rate presented was used to determine the first quarter 2019 expense, and the short-term discount rate established upon quarterly settlements in 2019 of 3.8% and 3.7%, was used to calculate the expense for the second and third quarter of 2019, respectively. The expected return on plan assets presented was used to determine nonunion pension expense for first quarter 2019, and no expected return on plan assets was assumed for the second and third quarters of 2019.

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

	2021		2020
Health care cost trend rate assumed for next year(1)	7.0	%	7.0	%
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	2033		2032

(1) At each December 31 measurement date, health care cost rates for the following year are based on known premiums for the fully-insured postretirement health benefit plan. Therefore, the first year of assumed health care cost trend rates presented as of December 31, 2021 and 2020 are for 2023 and 2022, respectively.

Schedule of estimated future benefit payments for nonunion defined benefit plans

	Supplemental		Postretirement
	Benefit		Health
	Plan		Benefit Plan
2022	$	—	$	640
2023	$	—	$	633
2024	$	—	$	584
2025	$	—	$	605
2026	$	—	$	642
2027-2031	$	424	$	3,522

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)	2021	2020	Implemented (c)	2021		2020		2019		Imposed (e)
Central States, Southeast and Southwest Areas Pension Plan(1)(2)	36-6044243	Critical and Declining	Critical and Declining	Implemented(3)	$	71,045	$	68,704	$	75,803	No
Western Conference of Teamsters Pension Plan(2)	91-6145047	Green	Green	No		25,861		23,633		24,860	No
Central Pennsylvania Teamsters Defined Benefit Plan(1)(2)	23-6262789	Green	Green	No		13,931		13,485		13,907	No
I. B. of T. Union Local No. 710 Pension Fund(5)(6)	36-2377656	Green(4)	Green(4)	No		9,553		9,885		10,164	No
New England Teamsters Pension Fund(7)(8)	04-6372430	Critical and Declining(9)	Critical and Declining(9)	Implemented(10)		4,357		4,464		4,802	No
All other plans in the aggregate						22,146		22,023		24,210
Total multiemployer pension contributions paid(11)					$	146,893	$	142,194	$	153,746

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 2021 and 2020 is for the plan’s year-end status at December 31, 2020 and 2019, respectively, and prior to financial assistance from the Pension Relief Act. 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, 2020 and 2019.

(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, 2020 and 2019.

(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, 2020 – January 31, 2021 and February 1, 2019 – January 31, 2020.

(5) The Company was listed by the plan as providing more than 5% of the total contributions to the plan for the plan year ended January 31, 2020.

(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, 2021 and 2020.

(7) Contributions include $1.6 million for 2021, 2020, and 2019, respectively, related to the multiemployer pension fund withdrawal liability. ABF Freight’s multiemployer pension plan obligation with the New England Teamsters and Trucking Industry Pension Fund was restructured under a transition agreement effective on August 1, 2018, which triggered a withdrawal liability settlement to satisfy ABF Freight’s existing potential withdrawal liability obligation to the fund. ABF

Freight recognized a one-time charge of $37.9 million (pre-tax) to record the withdrawal liability in second quarter 2018; partially settled the withdrawal liability through the initial lump sum cash payment of $15.1 million made in third quarter 2018; and will settle the remainder with monthly payments over a period of 23 years.

(8) 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 September 30, 2020 and 2019.

(9) PPA zone status relates to plan years October 1, 2020 – September 30, 2021 and October 1, 2019 – September 30, 2020.

(10) Adopted a rehabilitation plan effective January 1, 2009.

(11) 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 2018 ABF NMFA and the related supplemental agreements provided for contributions to multiemployer pension plans to be frozen at the current rates for each fund, although certain funds have imposed contribution increases under their rehabilitation or funding improvement plans. The year-over-year changes in multiemployer pension plan contributions presented above were influenced by changes in Asset-Based business levels. Due to the negative impact of the COVID-19 pandemic on tonnage levels, most significantly in the second quarter of 2020, the Company made operational changes in the Asset-Based network in the second and third quarters of 2020, including workforce reductions to better align resources with business levels. The reduction in hours worked by a portion of ABF Freight’s contractual employees contributed to lower contributions to multiemployer pension plans for 2020. An increase in hours worked by ABF Freight’s contractual employees in 2021, as well as additional contractual employees hired primarily in the second half of the year, to service higher shipment levels in response to increased customer demand resulted in an increase in multiemployer pension contributions for 2021, compared to 2020.