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OPERATING SEGMENT DATA (Tables)

12 Months Ended

Dec. 31, 2023

OPERATING SEGMENT DATA

Schedule of reportable operating segment information from continuing operations


		2023			2022			2021

		(in thousands)
REVENUES
Asset-Based		$	2,871,004		$	3,010,900		$	2,573,773
Asset-Light			1,680,645			2,139,272			1,300,626
Other and eliminations			(124,206)			(121,164)			(108,214)
Total consolidated revenues		$	4,427,443		$	5,029,008		$	3,766,185
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits		$	1,379,756		$	1,293,487		$	1,198,253
Fuel, supplies, and expenses			361,355			378,558			266,139
Operating taxes and licenses			55,918			52,290			49,461
Insurance			52,025			47,382			37,800
Communications and utilities			19,288			18,949			18,773
Depreciation and amortization			104,165			97,322			93,799
Rents and purchased transportation			338,575			441,167			364,345
Shared services			279,248			281,698			263,532
(Gain) loss on sale of property and equipment and lease impairment charges⁽¹⁾			982			(12,468)			(8,676)
Innovative technology costs⁽²⁾			21,711			27,207			27,631
Other			4,829			4,175			2,009
Total Asset-Based			2,617,852			2,629,767			2,313,066
Asset-Light
Purchased transportation			1,435,604			1,784,668			1,097,332
Supplies and expenses⁽³⁾			12,094			13,955			8,661
Depreciation and amortization⁽⁴⁾			20,370			20,730			11,387
Shared services			194,296			218,133			132,137
Contingent consideration⁽⁵⁾			(19,100)			18,300			—
Lease impairment charges⁽⁶⁾			14,407			—			—
Legal settlement⁽⁷⁾			9,500			—			—
Gain on sale of subsidiary⁽⁸⁾			—			(402)			(6,923)
Other⁽³⁾			25,745			31,163			11,635
Total Asset-Light			1,692,916			2,086,547			1,254,229
Other and eliminations			(55,944)			(81,832)			(78,088)
Total consolidated operating expenses		$	4,254,824		$	4,634,482		$	3,489,207

OPERATING INCOME (LOSS)
Asset-Based		$	253,152		$	381,133		$	260,707
Asset-Light			(12,271)			52,725			46,397
Other and eliminations⁽⁹⁾			(68,262)			(39,332)			(30,126)
Total consolidated operating income		$	172,619		$	394,526		$	276,978
OTHER INCOME (COSTS)
Interest and dividend income		$	14,728		$	3,873		$	1,226
Interest and other related financing costs			(9,094)			(7,726)			(8,914)
Other, net⁽¹⁰⁾			8,662			(2,370)			3,797
Total other income (costs)			14,296			(6,223)			(3,891)
INCOME BEFORE INCOME TAXES		$	186,915		$	388,303		$	273,087

(1)

For 2023, includes a $0.7 million noncash lease-related impairment charge for an Asset-Based service center. For 2022, includes 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. For 2021, includes an $8.6 million gain on the sale of unutilized service center property.

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

(3)	For 2022 and 2021, amounts have been adjusted from those previously reported to reclass certain facility rent expense between line items within the Asset-Light segment. Adjustments made are not material.

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

(5)	Represents the change in fair value of the contingent earnout consideration to the MoLo acquisition (see Note C).

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

(7)	Represents estimated expenses to settle a claim related to the classification of certain Asset-Light employees under the Fair Labor Standards Act.

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

(9)	For 2023, “Other and eliminations” includes $15.1 million of noncash lease-related impairment charges for a freight handling pilot facility.

(10)

Includes the components of net periodic benefit cost (credit) other than service cost related to the Company’s SBP and postretirement plans (see Note K) and proceeds and changes in cash surrender value of life insurance policies. For 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 C).


		For the year ended December 31
		2023			2022			2021

		(in thousands)
CAPITAL EXPENDITURES, GROSS
Asset-Based⁽¹⁾		$	207,072		$	137,117		$	96,180
Asset-Light			7,587			14,372			9,565
Other and eliminations⁽²⁾⁽³⁾			37,752			77,720			11,193
		$	252,411		$	229,209		$	116,938


		For the year ended December 31
		2023			2022			2021

		(in thousands)
DEPRECIATION AND AMORTIZATION EXPENSE⁽²⁾
Asset-Based		$	104,165		$	97,322		$	93,799
Asset-Light⁽⁴⁾			20,370			20,730			11,387
Other and eliminations⁽²⁾			20,814			20,107			17,374
		$	145,349		$	138,159		$	122,560

(1)	Includes assets acquired through notes payable of $33.5 million, $79.0 million, and $59.7 million in 2023, 2022, and 2021, respectively.

(2)

Other and eliminations includes certain assets held for the benefit of multiple segments, including information systems equipment. For 2022, also includes the purchase of a property for $37.5 million. Depreciation and amortization associated with these assets is allocated to the reporting segments. Depreciation and amortization expense includes amortization of internally developed capitalized software which has not been included in gross capital expenditures presented in the table.

(3)	Includes assets acquired through notes payable of $3.4 million in 2022.

(4)	Includes amortization of intangibles of $12.8 million, $12.9 million, and $5.3 million in 2023, 2022, and 2021, respectively.

Schedule of revenues from customers and intersegment revenues


		2023			2022			2021

		(in thousands)
Revenues from customers
Asset-Based		$	2,749,803		$	2,896,284		$	2,470,529
Asset-Light			1,673,399			2,128,394			1,291,679
Other			4,241			4,330			3,977
Total consolidated revenues		$	4,427,443		$	5,029,008		$	3,766,185

Intersegment revenues
Asset-Based		$	121,201		$	114,616		$	103,244
Asset-Light			7,246			10,878			8,947
Other and eliminations			(128,447)			(125,494)			(112,191)
Total intersegment revenues		$	—		$	—		$	—

Total segment revenues
Asset-Based		$	2,871,004			3,010,900		$	2,573,773
Asset-Light			1,680,645			2,139,272			1,300,626
Other and eliminations			(124,206)			(121,164)			(108,214)
Total consolidated revenues		$	4,427,443		$	5,029,008		$	3,766,185

Schedule of consolidated operating expenses by component


		For the year ended December 31

		2023			2022			2021

		(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits		$	1,781,304		$	1,728,653		$	1,527,533
Rents, purchased transportation, and other costs of services			1,642,669			2,100,663			1,349,106
Fuel, supplies, and expenses⁽¹⁾			479,688			488,009			360,657
Depreciation and amortization⁽²⁾			145,349			138,159			122,560
Contingent consideration⁽³⁾			(19,100)			18,300			—
Lease impairment charges⁽⁴⁾			30,162			—			—
Other⁽¹⁾⁽⁵⁾			194,752			160,698			129,351
		$	4,254,824		$	4,634,482		$	3,489,207

(1)	For 2022 and 2021, amounts have been adjusted from those previously reported to reclass certain facility rent expense between line items within the Asset-Light segment. Adjustments made are not material.

(2)	Includes amortization of intangibles assets.

(3)	Represents the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Notes C and E).

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

(5)	For 2023, includes estimated expenses of $9.5 million to settle a claim related to the classification of certain Asset-Light employees under the Fair Labor Standards Act. For 2022, includes a $12.5 million gain related to the sale of property and equipment within

the Asset-Based segment and the sale of replaced equipment and a like-kind exchange of a service center property in the prior year. For 2021, includes a $6.9 million gain related to the sale of a subsidiary within the Asset-Light segment and an $8.6 million gain related to the sale of an unutilized service center property within the Asset-Based segment. For 2023, 2022, and 2021, also includes innovative technology costs of $52.4 million, $40.8 million, and $32.8 million, respectively, associated with the freight handling pilot program at ABF Freight, costs related to the Company’s customer pilot offering of Vaux^TM, and initiatives to optimize performance through technological innovation.