OPERATING SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2023

OPERATING SEGMENT DATA

Schedule of reportable operating segment information from continuing operations

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2023		2022		2023		2022
	(in thousands)
REVENUES
Asset-Based	$	741,186	$	791,531	$	2,161,018	$	2,299,464
Asset-Light		419,312		515,235		1,267,220		1,660,174
Other and eliminations		(32,148)		(31,036)		(90,330)		(94,125)
Total consolidated revenues	$	1,128,350	$	1,275,730	$	3,337,908	$	3,865,513
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	357,582	$	332,359	$	1,037,725	$	973,924
Fuel, supplies, and expenses		91,493		97,279		276,678		281,406
Operating taxes and licenses		13,865		13,089		41,938		38,405
Insurance		13,654		13,180		39,816		35,808
Communications and utilities		4,729		4,794		14,586		14,129
Depreciation and amortization		26,537		24,117		76,721		72,885
Rents and purchased transportation		79,233		123,714		271,899		348,249
Shared services		70,699		72,286		209,780		215,020
(Gain) loss on sale of property and equipment and lease impairment charges(1)		540		(5,910)		905		(9,975)
Innovative technology costs(2)		7,300		6,068		21,711		20,982
Other		731		1,243		3,640		2,629
Total Asset-Based		666,363		682,219		1,995,399		1,993,462
Asset-Light
Purchased transportation		365,217		425,567		1,078,482		1,382,107
Supplies and expenses		2,773		4,378		10,193		11,907
Depreciation and amortization(3)		5,097		5,072		15,250		15,720
Shared services		47,411		56,371		147,825		164,554
Contingent consideration(4)		(17,840)		—		(12,800)		810
Lease impairment charges(5)		14,407		—		14,407		—
Gain on sale of subsidiary(6)		—		—		—		(402)
Other		5,951		8,463		18,478		21,499
Total Asset-Light		423,016		499,851		1,271,835		1,596,195
Other and eliminations(7)		(6,120)		(21,676)		(37,692)		(68,461)
Total consolidated operating expenses	$	1,083,259	$	1,160,394	$	3,229,542	$	3,521,196

(1) The three and nine months ended September 30, 2023 include a $0.7 million noncash lease-related impairment charge for a service center. The three and nine months ended September 30, 2022 include a $4.3 million noncash gain on a like-kind property exchange of a service center, with the remaining gains related primarily to sales of replaced equipment.

(2) Represents costs associated with the freight handling pilot test program at ABF Freight. The decision was made to pause the pilot during third quarter 2023, as previously announced.

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

(4) Represents the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Note B). The decrease in fair value for third quarter 2023 and the net decrease in fair value for the nine months ended September 30, 2023 reflect the impact of continuing softer market conditions in 2023 and revised business growth assumptions for 2024 and 2025 on the forecasts utilized at the September 30, 2023 remeasurement date.

(5) Represents noncash lease-related impairment charges for certain office spaces that were made available for sublease.

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

(7) “Other and eliminations” includes $15.1 million of noncash lease-related impairment charges for a freight handling pilot facility.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2023		2022		2023		2022
	(in thousands)
OPERATING INCOME (LOSS)
Asset-Based	$	74,823	$	109,312	$	165,619	$	306,002
Asset-Light		(3,704)		15,384		(4,615)		63,979
Other and eliminations(1)		(26,028)		(9,360)		(52,638)		(25,664)
Total consolidated operating income	$	45,091	$	115,336	$	108,366	$	344,317
OTHER INCOME (COSTS)
Interest and dividend income	$	3,946	$	1,127	$	10,604	$	1,579
Interest and other related financing costs		(2,236)		(1,755)		(6,768)		(5,558)
Other, net(2)		89		(189)		6,907		(3,822)
Total other income (costs)		1,799		(817)		10,743		(7,801)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	$	46,890	$	114,519	$	119,109	$	336,516

(1) “Other and eliminations” includes $15.1 million of noncash lease-related impairment charges for a freight handling pilot facility.

(2) 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 nine months ended September 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				Nine Months Ended
	September 30				September 30
	2023		2022(1)		2023		2022(1)
	(in thousands)
Revenues from customers
Asset-Based	$	709,126	$	761,616	$	2,073,101	$	2,211,688
Asset-Light		417,744		512,745		1,261,703		1,650,737
Other		1,480		1,369		3,104		3,088
Total consolidated revenues	$	1,128,350	$	1,275,730	$	3,337,908	$	3,865,513
Intersegment revenues
Asset-Based	$	32,060	$	29,915	$	87,917	$	87,776
Asset-Light		1,568		2,490		5,517		9,437
Other and eliminations		(33,628)		(32,405)		(93,434)		(97,213)
Total intersegment revenues	$	—	$	—	$	—	$	—
Total segment revenues
Asset-Based	$	741,186	$	791,531	$	2,161,018	$	2,299,464
Asset-Light		419,312		515,235		1,267,220		1,660,174
Other and eliminations		(32,148)		(31,036)		(90,330)		(94,125)
Total consolidated revenues	$	1,128,350	$	1,275,730	$	3,337,908	$	3,865,513

(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				Nine Months Ended
	September 30				September 30
	2023		2022		2023		2022
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	456,022	$	444,164	$	1,342,028	$	1,301,944
Rents, purchased transportation, and other costs of services		410,436		517,106		1,255,753		1,633,193
Fuel, supplies, and expenses		122,700		125,349		369,466		365,213
Depreciation and amortization(1)		37,141		34,229		107,962		103,509
Contingent consideration(2)		(17,840)		—		(12,800)		810
Lease impairment charges(3)		30,162		—		30,162		—
Other		44,638		39,546		136,971		116,527
	$	1,083,259	$	1,160,394	$	3,229,542	$	3,521,196

(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).

(3) Represents noncash lease-related impairment charges for a freight handling pilot facility, a service center, and office spaces that were made available for sublease.