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ArcBest

arcb · NASDAQ Industrials
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Ticker arcb
Exchange NASDAQ
Sector Industrials
Industry Trucking
Employees 10,000+
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FY2022 Annual Report · ArcBest
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Message 
from the 
Chairman

This year, we are celebrating our 100th anniversary. This 

is a milestone few have experienced. While we look with 

anticipation toward the horizon, we have much to celebrate 

today. 

ArcBest closed our first century with momentous 

achievements. In 2022, we exceeded $5 billion in revenue 

for the first time in company history — more than a $1 

billion year-over-year increase. We generated record 

financial results in 2022 and executed a balanced capital 

allocation plan, ending the year with financial strength and 

creating optimism for the future. 

This was possible because of the continued commitment 

and agility of our people. They’re at the heart of everything 

we do, and their expertise, skills and diversity, combined 

with our innovative spirit and breadth of technologies and 

solutions, set us apart.  

Though 2022 was another challenging year in the supply 

chain industry, our results remained strong. During the 

year, the freight markets began to soften, and supply 

chains shifted from a focus on capacity to efficiency. Once 

again, ArcBest delivered. Our solutions, innovative mindset 

and large capacity network enabled us to help build and 

execute the flexible, resilient supply chains customers 
need.

I am incredibly proud of all we accomplished last year, and 

we’re just getting started.  

The power of our integrated solutions

As an integrated logistics company with multiple solutions 

and available modes of transport, we are uniquely 

positioned to help our customers find the best options 

for their network. Taking a broader logistics approach with 

our customers has been beneficial to all our business 

— enabling ABF Freight to move shipments that fit best 

within the network and saying “yes” to customers that 

need freight moved another way. Additionally, our Managed 

Solutions services enable us to deliver an incredibly 

strategic approach to logistics.  

Investing in technology

Innovation is at the forefront of our customer-focused 

culture, and that isn’t changing. Our ArcBest Technologies 

team, which is made up of hundreds of creative technology, 

analytics and innovation professionals, stays focused on 

developing transformative solutions that deliver value 

and drive our industry forward. One example of this is our 

City Route Optimization initiative which has successfully 

improved efficiencies and lowered costs in the initial pilot 

locations. 

Throughout 2023 you will hear more about exciting, 

transformational innovation happening at ArcBest to make 

it easier and more efficient for our customers and carrier 

partners to do business. 

Investing in our people

Our people drive our success. We care about attracting, 

hiring and retaining the right people for the right jobs, 

and we offer the resources, tools and training needed 

for each person to be successful. We also are committed 

to advancing diversity, equity and inclusion initiatives to 

create a workplace that respects diverse experiences and 

perspectives. One example of this is our new partnership 

with Integrate Autism Employment Advisors (Integrate) — 

a nonprofit that collaborates with companies to identify, 

recruit and retain professionals on the autism spectrum. This 

partnership is a foundation for us to support all current and 

new neurodivergent employees. 

Leading the way forward

Our commitment to our customers, investment in our people 

and innovative mindset set the stage for the next 100 years.   

With the solutions, capacity, technology and expertise in 

place, along with our financial strength and a dedication to 

creatively meeting our customers’ needs, we can effectively 

navigate potential market challenges while remaining 

focused on our strategy for long-term growth and sustained 

profitability. Our mission remains simple: to connect 

and positively impact the world through solving logistics 

challenges. 

To each person who has helped us reach this significant 

milestone, thank you. Every success we have achieved over 

the past 100 years reflects the trust you have in us. We look 

forward to the next 100. 

Judy R. McReynolds
Chairman, President & Chief Executive Officer

Certain statements contained herein may be considered “forward looking-statements.”
See “Forward-Looking Statements” in ArcBest’s 2022 Annual Report on Form 10-K for 
additional information.

Our Company

ArcBest is a multibillion-dollar integrated 

Our long history of innovation enriches 

construction phase or were completed 

logistics company that leverages our full 

these deep customer relationships. We 

in 2022, resulting in nearly 9,000 

suite of shipping and logistics solutions 

invest heavily in strategic initiatives aimed 

lighting fixtures being converted to LED

to meet our customers’ supply chain 

at transformation — helping shippers and 

needs. 

With the ability to optimize, connect 

and deliver across various modes of 

transportation, we serve as a single 

logistics resource and help keep 

the global supply chain moving. This 

integrated approach, combined with our 

technology and expertise, helps ensure 

our customers have the right solutions 

to get the job done — no matter the 

shipment size, type of product or speed 

of delivery. 

capacity providers successfully navigate 

the complex logistics landscape. With a 

strong emphasis on disruptive technology 

and advanced analytics, we’re enabling 

more sustainable supply chains and 

delivering intelligent solutions that make 

it easier for our customers to achieve 

their objectives. 

Environmental, 
Social and Corporate 
Governance (ESG)

•   ArcBest’s two primary Fort Smith, AR 

campuses became Certified Wildlife 

Habitats through the National Wildlife 

Federation

When it came to our people, we were 

intentional in our efforts to attract, hire 

and retain diverse and underrepresented 

talent, and we remain committed to 

creating a workplace that respects all 

cultures, perspectives and experiences. 

Some of the Corporate Social 

Responsibility progress we made in 

We started 100 years ago as a local 

Grounded in our mission to connect 

2022 includes:

Arkansas freight hauler. Today, through 

and positively impact the world through 

organic growth, smart, strategic 

solving logistics challenges and guided 

acquisitions, visionary leadership and 

by our values, ArcBest is committed to 

a mindset focused on the future, we 

making the world a better place. We 

are a publicly traded $5 billion logistics 

demonstrate this commitment through 

powerhouse with over 15,000 employees 

our ongoing focus on advancing key ESG 

across more than 250 campuses and 

initiatives.  

service centers. 

Some of the sustainability progress 

we made in 2022 includes:

•   Partnered with Integrate to foster a 

more neuroinclusive workforce — 

ArcBest is the first full-scale hiring 

program partner in the logistics 

industry

•   Announced the three pillars of our 

philanthropic efforts that will guide 

our actions and giving efforts — 

Community, Education and People

Our people are at the heart of our 

success, and we are deeply focused on 

a culture grounded in the company’s 

core values of Creativity, Integrity, 

Collaboration, Growth, Excellence and 

Wellness. We support employees by 

•   Calculated and disclosed Scope 1 and 

•   Kicked off the company’s first DEI 

Scope 2 emissions for the first time

events and panel discussions

•   Aligned disclosures to Sustainability 

•   Launched two new Employee Resource 

Accounting Standards Board (SASB) 

Groups

providing a workplace where people with 

standards and Task Force on Climate-

diverse experiences and perspectives can 

Related Financial Disclosures (TCFD) 

grow and make a lasting impact. 

frameworks

•   Delivered leader training focused on 

Cultural Competency

ArcBest serves as a trusted advisor. 

We listen, get to know our customers’ 

businesses, and look at things from 

•   Earned the EcoVadis Bronze medal 

Learn more about our ongoing initiatives 

for sustainability for the second 

in our most recent ESG report, available 

consecutive year

at arcb.com 

their perspective, so the strategies and 

•   As part of our Facility Enhancement 

solutions we recommend align with their 

and Growth Roadmap, more than 40 of 

goals. 

our facilities began the planning phase, 

Certain statements contained herein may be considered “forward looking-statements.”

See “Forward-Looking Statements” in ArcBest’s 2022 Annual Report on Form 10-K for 

additional information.

                                                                                                                    2022                     2021

                                                                                                           ($ thousands, except per share data)
Operations for the Year

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $   5,324,052         $   3 ,980,067

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . .    $     399,269          $      280,986

Non-GAAP Operating income(1). . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . .  .    $      472,896          $        318 ,143

Earnings per diluted common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $          11.69           $           7.98 

Non-GAAP Earnings per diluted common share(1) . . . . . . . . . . . . . . . . . . . . . .      $          13.66           $           8.52

Information at Year End

Total assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $   2,494,286         $    2,112,676

Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    $       66,252          $         50,615

Long-term debt (including notes payable, excluding current portion). . . . . . .    $       198,371          $        174,917

Stockholders’ equity  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . .  . .  . . . .    $      1 ,151,401           $     929,067

Number of common shares outstanding  . . . . . . . . . . . .  . . . . . .  . .  . . . . . . . .             24,229                    24,867

(1) See reconciliations of GAAP to Non-GAAP financial measures on the inside back cover.   

Stock Performance Graph

The following graph and data table show a comparison of the 
cumulative total return for ArcBest, the Russell 2000® Index 
and a peer group index selected by ArcBest for the five-year 

period ending December 31, 2022:

Cumulative Total Return

                                          12/31/17              12/31/18         12/31/19        12/31/20         12/31/21           12/31/22

ArcBest Corporation . . . . . .   $ 100.00           $   96.58          $  78.62          $  123.07            $  347.19        $   203.99
Russell 2000® Index . . . . . .    $ 100.00             $   88.99           $  111 .70             $  134.00          $ 153.85      $  122.41

New Peer Group Index . . . .    $ 100.00             $   79.37         $    108.32        $   141.87         $ 234.81           $   194.17 

Old Peer Group Index . . . . .  $ 100.00 

   $   79.37        $    108.32         $   141.87        $ 229.16        $  187.71

The comparisons assume $100 was invested on 

December 31, 2017, in ArcBest’s Common Stock with 

reinvestment of dividends. All calculations have been prepared 

by Zacks Investment Research, Inc. The stockholder return 

shown on the graph is not necessarily indicative of future 

performance.

ArcBest is an integrated logistics company that provides freight 

transportation services and logistics solutions. Accordingly, it 

is important that ArcBest’s performance be compared to that 

of other companies with similar operations. Therefore, the new 

peer group includes the following diversified mix of ArcBest’s 

transportation and logistics related competitors: Covenant 

Logistics Group, Inc., Forward Air Corporation, Hub Group, Inc., 

J.B. Hunt Transport Services, Inc., Knight-Swift Transportation 

Holdings Inc., Landstar System, Inc., Old Dominion Freight 

Line, Inc., Saia, Inc., Schneider National, Inc., TFI International 

Inc., U.S. Xpress Enterprises, Inc., Werner Enterprises, Inc. and 

Yellow Corporation. As compared to the old peer group, the new 

peer group reflects the addition of TFI International Inc. 

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 

FORM 10-K 

☒  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

for the fiscal year December 31, 2022. 

☐  Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

for the transition period from            to            . 
Commission file number 0-19969 
ARCBEST CORPORATION 
(Exact name of registrant as specified in its charter) 

Delaware 
(State or other jurisdiction of 
incorporation or organization) 

8401 McClure Drive, Fort Smith, Arkansas 
(Address of principal executive offices) 

71-0673405 
(I.R.S. Employer 
Identification No.) 

72916 
(Zip Code) 

Registrant’s telephone number, including area code  479-785-6000 
Securities registered pursuant to Section 12(b) of the Act: 

Title of each class 
Common Stock, $0.01 Par Value 

Trading Symbol(s) 
ARCB 

Name of each exchange on which registered 
The Nasdaq Global Select Market 

Securities registered pursuant to Section 12(g) of the Act: 
None 
(Title of Class) 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ☒ No ☐ 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes ☐ No ☒ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.  Yes ☒ No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of 
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such 
files).  Yes ☒ No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an 
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 
company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer ☒ 
Non-accelerated filer ☐ 

Accelerated filer ☐ 
Smaller reporting company ☐ 
Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any 
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal 
control  over  financial  reporting  under  Section  404(b)  of  the  Sarbanes-Oxley  Act  (15  U.S.C.  7262(b))  by  the  registered  public  accounting  firm  that 
prepared or issued its audit report. ☒ 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the 
filing reflect the correction of an error to previously issued financial statements. ☐  

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received 
by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒ 

The aggregate market value of the Common Stock held by nonaffiliates of the registrant, based on the closing price of the shares of Common Stock on 
the Nasdaq Global Select Market as of June 30, 2022, was $1,689,914,269. 

The number of shares of Common Stock, $0.01 par value, outstanding as of February 20, 2023, was 24,258,338. 

DOCUMENTS INCORPORATED BY REFERENCE 
Portions of the registrant’s Definitive Proxy Statement to be filed pursuant to Regulation 14A of the Securities Exchange Act of 1934 in connection with 
the registrant’s Annual Stockholders’ Meeting to be held April 26, 2023, are incorporated by reference in Part III of this Form 10-K. 

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARCBEST CORPORATION 

FORM 10-K 

TABLE OF CONTENTS 

ITEM 
NUMBER 

PAGE 
NUMBER 

Forward-Looking Statements 

Item 1.  Business 
Item 1A.  Risk Factors 
Item 1B.  Unresolved Staff Comments 
Item 2. 
Properties 
Item 3.  Legal Proceedings 
Item 4.  Mine Safety Disclosures 

PART I 

PART II 

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of 

Equity Securities 

Item 6.  Reserved 
Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations 
Item 7A.  Quantitative and Qualitative Disclosures About Market Risk 
Item 8. 
Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 
Item 9A.  Controls and Procedures 
Item 9B.  Other Information 
Item 9C.  Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 

Financial Statements and Supplementary Data 

PART III 

Item 10.  Directors, Executive Officers and Corporate Governance 
Item 11.  Executive Compensation 
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 
Item 13.  Certain Relationships and Related Transactions, and Director Independence 
Item 14.  Principal Accountant Fees and Services 

PART IV 

Item 15.  Exhibits and Financial Statement Schedules 
Item 16.  Form 10-K Summary 

SIGNATURES 

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Forward-Looking Statements 

PART I 

This Annual Report on Form 10-K contains certain “forward-looking statements” within the meaning of the Private Securities 
Litigation Reform Act of 1995. All statements, other than statements of historical fact, included or incorporated by reference in 
this Annual Report on Form 10-K, including, but not limited to, those in Item 1 (Business), Item 1A (Risk Factors), Item 3 (Legal 
Proceedings),  and  Item  7  (Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations),  are 
forward-looking  statements.  Terms  such  as  “anticipate,”  “believe,”  “could,”  “estimate,”  “expect,”  “forecast,”  “foresee,” 
“intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such 
terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, 
and expectations based on currently available information, are not guarantees of future performance, and involve certain risks 
and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-
looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. 
Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a 
number of factors, including, but not limited to: 

 

 

 

 

 
 

 
 
 

unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce 
stoppage by our employees covered under ABF Freight’s collective bargaining agreement; 
the effects of a widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public 
health crisis, as well as regulatory measures implemented in response to such events; 
external events which may adversely affect us or the third parties who provide services for us, for which our business 
continuity  plans  may  not  adequately  prepare  us,  including,  but  not  limited  to,  acts  of  war  or  terrorism,  or  military 
conflicts; 
data  privacy  breaches,  cybersecurity  incidents,  and/or  failures  of  our  information  systems,  including  disruptions  or 
failures of services essential to our operations or upon which our information technology platforms rely; 
interruption or failure of third-party software or information technology systems or licenses; 
untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, 
new  or  enhanced  technology  or  processes,  including  the  pilot  test  program  at  ABF  Freight  and  our  investments  in 
human-centered remote operation software; 
the loss or reduction of business from large customers; 
the timing and performance of growth initiatives and the ability to manage our cost structure; 
the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, 
LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; 

  maintaining our corporate reputation and intellectual property rights; 
 
 
 

nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; 
competitive initiatives and pricing pressures; 
increased  prices  for  and  decreased  availability  of  new  revenue  equipment,  decreases  in  value  of  used  revenue 
equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; 
availability  of  fuel,  the  effect  of  volatility  in  fuel  prices  and  the  associated  changes  in  fuel  surcharges  on  securing 
increases in base freight rates, and the inability to collect fuel surcharges; 
relationships with employees, including unions, and our ability to attract, retain, and upskill employees; 
union employee wages and benefits, including changes in required contributions to multiemployer plans; 
availability and cost of reliable third-party services; 
our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their 
services; 
litigation or claims asserted against us; 
governmental regulations; 
environmental laws and regulations, including emissions-control regulations; 
default on covenants of financing arrangements and the availability and terms of future financing arrangements; 
our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements 
and other business initiatives; 
self-insurance claims and insurance premium costs; 
potential impairment of goodwill and intangible assets; 
general economic conditions and related shifts in market demand that impact the performance and needs of industries 
we serve and/or limit our customers’ access to adequate financial resources; 
increasing costs due to inflation and rising interest rates; 
seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and 
other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public 
filings with the Securities and Exchange Commission (“SEC”). 

 

 
 
 
 

 
 
 
 
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 
 
 

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 

3 

 
 
 
For additional information regarding known material factors that could cause our actual results to differ from those expressed in 
these forward-looking statements, please see Item 1A (Risk Factors). All forward-looking statements included or incorporated 
by reference in this Annual Report on Form 10-K and all subsequent written or oral forward-looking statements attributable to 
us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements. The forward-looking 
statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or 
revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 

ITEM 1. 

BUSINESS 

ArcBest Corporation 

ArcBest Corporation™ (together with its subsidiaries, the “Company,” “ArcBest,” “we,” “us,” and “our”) is a multibillion-
dollar logistics company that leverages our technology and a full suite of shipping and logistics solutions to meet our 
customers’ supply chain needs and help keep the global supply chain moving. With the ability to optimize, connect and 
deliver across various modes of transportation, we serve as a single logistics resource. This integrated approach, combined 
with our technology and expertise, helps ensure our customers have the right solutions and capacity to meet their constantly 
changing needs. 

We started 100 years ago as a local Arkansas freight hauler. Through organic growth, strategic acquisitions, visionary 
leadership  and  a  mindset  focused  on  the  future,  ArcBest®  has  evolved  into  a  $5  billion  logistics  powerhouse.  With 
approximately 15,700 employees across 250 campuses and service centers, we serve as a trusted advisor to some of the 
world’s biggest and most recognizable brands. Our customers are at the center of our strategy. We listen, thoughtfully 
analyze how our processes, services, and technologies impact their business, and customize solutions that align with their 
goals. Our long history of innovation enriches these deep customer relationships. With a meaningful investment in strategic 
initiatives aimed at transformation and a strong emphasis on disruptive technology and advanced analytics, we enable 
more sustainable supply chains and deliver intelligent solutions that meet our customers’ needs. In pursuit of our mission 
to connect and positively impact the world through solving logistics challenges, and aligned with our values-driven culture, 
we also are focused on conducting business in a way that helps create a safer, more sustainable, and inclusive company 
and world. This approach includes our commitment to a workplace that respects all cultures, perspectives, and experiences, 
so that we may provide the best atmosphere for our employees and the best service to our customers.  

United as ArcBest, we offer ground, air, and ocean transportation through a variety of capacity providers, including our 
less-than-truckload (“LTL”) carrier – ABF Freight®, our truckload brokerage service – MoLo Solutions, LLC (“MoLo”), 
and our ground expedite fleet – Panther Premium Logistics® (“Panther”). Through our managed transportation solutions, 
we partner with customers to create and execute a logistics strategy designed to increase operational efficiencies, reduce 
costs,  and  give  customers  better  insights  into  their  supply  chains.  We  also  offer  fleet  maintenance  and  repair  services 
through FleetNet America® (“FleetNet”) and household goods moving through U-Pack®. Our innovative tech company, 
ArcBest  Technologies,  provides  custom-built  solutions,  leading-edge  technologies,  and  advanced  analytics  that  help 
support our customers and optimize supply chains. 

Our  operations  are  conducted  through  our  three  reportable  operating  segments,  which  are  described  in  the  Business 
Description section below: 

  Asset-Based, which represents ABF Freight System, Inc. and certain other subsidiaries, including ABF Freight 
System  (B.C.)  ULC;  ABF  Freight  System  Canada  ULC;  ABF  Cartage,  Inc.;  and  Land-Marine  Cargo,  Inc. 
(collectively “ABF Freight”);  

  ArcBest, our asset-light logistics operation, including MoLo®, Panther, and certain other subsidiaries; and  
  FleetNet.  

The ArcBest and FleetNet reportable segments, combined, represent our Asset-Light operations. 

Vision and Values 

“We’ll Find a Way” is our vision. It is a testament to what our customers say about us – that we’re the kind of company 
that  partners  with  them  to  solve  problems  and  make  things  happen.  Our  integrated  logistics  approach  and  innovative 
technology enable our vision, but it’s our people who ensure our customers’ solutions and capacity needs are met. Our 
people are at the heart of our success. They are fueled by the simple notion of finding a way to get the job done, no matter 

4 

 
 
 
 
 
 
 
 
 
 
what. We support our employees by providing an exceptional workplace where people with diverse experiences, needs 
and perspectives can grow and make a lasting impact.  

We carry out our vision by exemplifying our corporate values: 

  Creativity – We create solutions. 
 
Integrity – We do the right thing. 
  Collaboration – We work together. 
  Growth – We grow our people and our business. 
  Excellence – We exceed expectations. 
  Wellness – We embrace total health. 

Strategy 

Our customer-led strategy is to produce long-term value with our creative problem solvers by growing informed, trusted, 
and  innovative  relationships  with  shippers  and  capacity  providers  and  delivering  a  best-in-class  experience  efficiently 
through their desired channels.  

We work to build long-term value for our customers, employees and shareholders by: 

  Expanding our revenue opportunities. We expand our revenue opportunities by deepening our existing customer 
and carrier relationships and securing new ones. We build relationships that last for decades, and our customers 
assign a high degree of value to the capacity options, high level of service, and professionalism we provide. We 
increase these capacity options and enable high service levels by growing mutually beneficial relationships with 
our carrier partners and enhancing our capabilities through strategic acquisitions and organic investments. When 
customers talk about us, they say we solve their logistics and transportation challenges, we are a trusted provider 
and partner who understands them, and we make their jobs easier. 

  Balancing our revenue and profit mix. We differentiate ourselves from our competition with our ability to offer 
full-service logistics solutions with a wide variety of fulfillment options, which can include our own assets. As 
our Asset-Light operations continue to grow alongside our Asset-Based services, we are balancing our revenue 
mix between our Asset-Based segment and our Asset-Light operations. This more balanced mix of revenue better 
reflects  our  customers’  spending  on  these  services,  and  it  drives  long-term  financial  sustainability  for  us  by 
making  our  business  less  capital-intensive  relative  to  our  size  and  by  reducing  volatility  in  our  business 
performance through varying cycles, events, and/or environments. 

  Optimizing our cost structure. We are focused on profitable growth, which requires continually reviewing our 
costs and investment decisions. Our technology infrastructure enables business processes, insight and analytics 
that allow us to optimize our cost structure, driving improved cost efficiency in our business.  We continue to 
invest in technology to transform our business and improve the customer experience. 

Business Description 

ArcBest is a growth-oriented, digitally-enabled integrated logistics company that delivers reliable, innovative solutions for 
various supply chain challenges — meeting our customers’ critical supply chain needs and helping keep the global supply 
chain moving. We offer LTL freight transportation through the ABF Freight network; truckload freight transportation, 
including brokerage services offered through MoLo; specialized transportation and premium logistics services, including 
ground  expedite  solutions  through  the  Panther  brand  and  household  goods  moving  services  under  the  U-Pack  brand; 
managed  transportation  solutions;  and  commercial  vehicle  maintenance  and  repair  through  FleetNet.  ArcBest 
Technologies  provides  leading-edge  technologies  that  help  support  our  customers  and  optimize  supply  chains.  From 
Fortune 100 companies to small businesses, our customers trust ArcBest for their transportation and logistics needs.  

With a relentless focus on customer needs and unique access to assured transportation capacity, which includes more than 
40,000 owned and operated assets, we create solutions for even the most complex and demanding supply chains. We strive 
to help customers solve their logistics challenges by efficiently providing a best-in-class experience with easy access to 
our integrated solutions.    

For the year ended December 31, 2022, no single customer accounted for more than 2% of our consolidated revenues, and 
the  ten  largest  customers,  on  a  combined  basis,  accounted  for  approximately  12%  of  our  consolidated  revenues.  The 
Company was incorporated in Delaware in 1966 and is headquartered in Fort Smith, Arkansas. 

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Asset-Based Segment 
Our Asset-Based segment provides LTL services through ABF Freight’s motor carrier operations. Asset-Based revenues 
accounted for approximately 55% of our total revenues before other revenues and intercompany eliminations in 2022. For 
the  year  ended  December  31,  2022,  no  single  customer  accounted  for  more  than  3%  of  revenues  in  the  Asset-Based 
segment, and the segment’s ten largest customers, on a combined basis, accounted for approximately 12% of its revenues. 
Note N to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K contains 
additional  segment  financial 
the  years  ended 
December 31, 2022, 2021, and 2020. 

including  revenues  and  operating 

information, 

income  for 

Our  Asset-Based  carrier,  ABF  Freight,  has  been  in  continuous  service  since  1923.  ABF  Freight  System,  Inc.  is  the 
successor to Arkansas Motor Freight, a business formed in 1935 that was the successor to a local transfer and storage 
carrier established in 1923. ABF Freight expanded operations through several strategic acquisitions and organic growth 
and is now one of North America’s largest LTL motor carriers, providing direct service to more than 98% of U.S. cities 
with  a  population  of  30,000  or  more.  ABF  Freight  offers  interstate  and  intrastate  services  to  approximately 
51,000 communities in all 50 states, Canada, and Puerto Rico through 239 service centers. ABF Freight also provides 
motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies in that 
country. 

Our Asset-Based segment offers transportation of general commodities through standard, time-critical, and guaranteed 
LTL services. General commodities include all freight except hazardous waste, dangerous explosives, commodities of 
exceptionally high value, commodities in bulk, and those requiring special equipment. Shipments of general commodities 
differ from shipments of bulk raw materials, commonly transported by railroad, truckload tank car, pipeline, and water 
carrier.  General  commodities  transported  by  our  Asset-Based  operations  include,  among  other  things,  food,  textiles, 
apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, 
glass, automotive parts, machinery, and miscellaneous manufactured products. 

The LTL transportation industry, which requires networks of local pickup and delivery service centers combined with 
larger distribution facilities, is significantly more infrastructure-intensive than truckload operations and, as such, has higher 
barriers to entry. Costs associated with an expansive LTL network, including investments in or costs associated with real 
estate and labor costs related to local pickup, delivery, and cross-docking of shipments, are primarily fixed unless service 
levels are significantly changed. 

ArcBest  Technologies,  Inc.,  our  wholly  owned  subsidiary  focused  on  advancing  supply  chain  execution  technologies, 
began a pilot test program (the “pilot”) in 2019 to improve freight-handling at ABF Freight. The pilot utilizes patented 
handling equipment, patented software, and a patented process to load and unload trailers more rapidly and safely, with 
full freight loads pulled out of the trailer onto the facility floor and accessible from multiple points. The pilot operates in 
a limited number of locations, including a distribution center in Kansas City, Missouri. ABF Freight signed a lease for a 
new pilot location in Salt Lake City, Utah, which is set to open in early 2023. The pilot allows ABF Freight to evaluate 
the  potential  for  improving  safety  and  working  conditions  for  employees  and  for  providing  a  better  experience  for 
customers. Potential benefits include improved transit performance, reduced cargo claims, reduced injuries and workers’ 
compensation  claims,  and  faster  employee  training.  While  we  believe  the  pilot  has  the  potential  to  provide  safer  and 
improved freight handling, a number of factors will be involved in determining proof of concept, and there can be no 
assurances that pilot testing will be successful. 

Labor costs, which amounted to 43.0% of Asset-Based revenues for 2022, are the largest component of the segment’s 
operating expenses. As of December 2022, approximately 82% of the Asset-Based segment’s employees were covered 
under a collective bargaining agreement, the ABF National Master Freight Agreement (the “2018 ABF NMFA”), with the 
International Brotherhood of Teamsters (the “IBT”), which was ratified on May 10, 2018, by a majority of ABF Freight’s 
IBT member employees who voted. Following ratification of the supplements to the collective bargaining agreement, the 
2018 ABF NMFA was implemented on July 29, 2018, with certain components effective retroactively to April 1, 2018, 
and will remain in effect through June 30, 2023. The major economic provisions of the 2018 ABF NMFA include the 
restoration of one week of vacation that was previously reduced in the prior collective bargaining agreement, with the new 
vacation eligibility schedule being the same as the applicable 2008 to 2013 supplemental agreements; wage rate increases 
in each year of the contract, beginning July 1, 2018; ratification bonuses for qualifying employees; profit-sharing bonuses 
upon  the  Asset-Based  segment’s  achievement  of  certain  annual  operating  ratios  calculated  in  accordance  with  U.S. 
generally accepted accounting principles (“GAAP”) for any full calendar year under the contract; and changes to purchased 
transportation provisions with certain protections for road drivers as specified in the contract. The 2018 ABF NMFA and 

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the related supplemental agreements provide for contributions to multiemployer pension plans frozen at the current rates 
for each fund, continuation of existing health coverage, and annual contribution rate increases to multiemployer health and 
welfare plans maintained for the benefit of ABF Freight’s employees who are members of the IBT. Under the 2018 ABF 
NMFA, the contractual wage and benefits costs, including the ratification bonuses and vacation restoration, are estimated 
to increase approximately 2.0% on a compounded annual basis through the end of the agreement. Profit-sharing bonuses 
based on the Asset-Based segment’s annual operating ratios for any full calendar year under the contract represent an 
additional increase in costs under the 2018 ABF NMFA. The profit-sharing bonus under the 2018 ABF NMFA was earned 
for  the  years  ended  December  31,  2022,  2021,  and  2020  upon  the  Asset-Based  segment  achieving  an  annual  GAAP 
operating ratio of 87.3% for 2022, 89.9% for 2021, and 95.3% for 2020. ABF Freight paid the profit-sharing bonus to 
qualified union-represented employees at the 3% maximum amount provided in the 2018 ABF NMFA as a result of the 
operating ratios achieved in 2022 and 2021.   

ABF Freight contributes to multiemployer pension and health and welfare plans, which have been established pursuant to 
the Labor Management Relations Act of 1947 (the “Taft-Hartley Act”), to provide benefits for its contractual employees. 
Amendments to the Employee Retirement Income Security Act of 1974 (“ERISA”), pursuant to the Multiemployer Pension 
Plan  Amendments  Act  of  1980  (the  “MPPA  Act”),  substantially  expanded  the  potential  liabilities  of  employers  who 
participate in multiemployer pension plans. Under ERISA, as amended by the MPPA Act, an employer who contributes 
to a multiemployer pension plan and the members of such employer’s controlled group are jointly and severally liable for 
their share of the plan’s unfunded vested benefits in the event the employer ceases to have an obligation to contribute to 
the plan or substantially reduces its contributions to the plan (i.e., in the event of a complete or partial withdrawal from 
the multiemployer plans). ABF Freight’s funding obligations to the multiemployer pension plans to which it contributes 
are  intended  to  satisfy  the  requirements  imposed  by  the  Pension  Protection  Act  of  2006  (the  “PPA”),  which  was 
permanently extended by the Multiemployer Pension Reform Act of 2014 (the “Reform Act”) included in the Consolidated 
and Further Continuing Appropriations Act of 2015. Through the term of its current collective bargaining agreement, ABF 
Freight’s  multiemployer  pension  plan  contribution  obligations  generally  will  be  satisfied  by  making  the  specified 
contributions when due. However, we cannot determine with any certainty the contributions that will be required under 
future collective bargaining agreements for ABF Freight’s contractual employees. See Note J to the consolidated financial 
statements included in Part II, Item 8 of this Annual Report on Form 10-K for more specific disclosures regarding the 
multiemployer pension plans to which ABF Freight contributes, and see the discussion of recent legislation impacting  
funding for multiemployer pension plans within “Asset-Based Operations” in the “Results of Operations” section of Item 7 
(Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations)  of  this  Annual  Report  on 
Form 10-K. 

ABF  Freight  operates  in  a  highly  competitive  industry  comprised  primarily  of  nonunion  motor  carriers.  Nonunion 
competitors have a lower fringe benefit cost structure and less stringent labor work rules, and certain carriers also have 
lower wage rates for their freight-handling and driving personnel. Wage and benefit concessions granted to certain union 
competitors also allow for a lower cost structure. ABF Freight has continued to address with the IBT the effect of the wage 
and benefit cost structure on its operating results. Lower cost increases throughout the 2018 ABF NMFA contract period 
and increased flexibility in labor work rules are essential factors in bringing ABF Freight’s labor cost structure closer in 
line with that of its competitors; however, ABF Freight continues to pay some of the highest benefit contribution rates in 
the industry. These rates include ABF Freight’s multiemployer plan contributions, a portion of which are used to fund 
benefits for individuals who were never employed by ABF Freight.  

ABF  Freight  will  commence  negotiations  with  the  IBT  in  late  first  quarter  or  early  second  quarter  2023  for  its  new 
collective bargaining agreement for the period subsequent to June 30, 2023. The negotiation of terms of the collective 
bargaining agreement is a very complex process, and there can be no assurances regarding the terms of the new agreement 
and the related impact on ABF Freight’s operations and its wage and benefit cost structure for the new period. The risks 
related to negotiations for the new collective bargaining agreement are further discussed in Part I, Item 1A (Risk Factors) 
of this Annual Report on Form 10-K. 

Asset-Light Operations  
The  ArcBest  and  FleetNet  reportable  segments,  combined,  represent  our  Asset-Light  operations.  Our  Asset-Light 
operations are a key component of our strategy to offer customers a single source of integrated logistics solutions, designed 
to satisfy the complex supply chain and unique shipping requirements customers encounter. Through unique methods and 
processes, including technology solutions and the use of third-party service providers, our Asset-Light operations provide 
various logistics and maintenance services without significant investment in revenue equipment or real estate. 

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For  the  year  ended  December  31,  2022,  the  combined  revenues  of  our  Asset-Light  operations  have  increased  to 
approximately 45%  of  our  total  revenues before  other revenues  and  intercompany  eliminations,  versus  38% for  2021, 
indicating strong momentum in our efforts to align our revenue mix with that of our customers’ logistics spend, accelerated 
by the acquisition of MoLo in November 2021. For the year ended December 31, 2022, no single customer accounted for 
more than 4% of the ArcBest segment’s revenues, and the segment’s ten largest customers, on a combined basis, accounted 
for approximately 20% of its revenues. Note N to our consolidated financial statements included in Part II, Item 8 of this 
Annual Report on Form 10-K contains additional segment financial information, including revenues and operating income 
for the years ended December 31, 2022, 2021, and 2020. 

ArcBest Segment 
Our  ArcBest  segment  originated  with  the  formation  of  ABF  Logistics  in  July  2013,  when  we  aligned  the  sales  and 
operations functions of our organically developed logistics businesses. We have continued to strategically invest in our 
Asset-Light operations to ensure we are positioned to serve the changing marketplace and meet our customers’ expanding 
needs  by  providing  a  comprehensive  suite  of  transportation  and  logistics  services.  The  ArcBest  segment  includes  the 
acquired ground expedite services of Panther; our acquired truckload and dedicated operations, including the truckload 
brokerage services of MoLo described below; household goods moving services under the U-Pack brand, for which the 
majority of the moves are provided with our Asset-Based operations; and our managed transportation solutions. Under our 
enhanced market approach to offer customers a single source of integrated logistics solutions, the service offerings of the 
ArcBest segment have become more integrated. Management’s operating decisions are focused on the ArcBest segment’s 
combined operations, rather than individual service offerings within the segment’s operations. The ArcBest segment offers 
the following solutions: 

Truckload and Dedicated 
Our truckload and dedicated services provide third-party transportation brokerage services by sourcing various capacity 
solutions,  including  dry  van  over-the-road,  temperature-controlled  and  refrigerated,  flatbed,  intermodal  or  container 
shipping, and specialized equipment, coupled with strong technology and carrier- and customer-based Web tools.  

Our November 1, 2021 acquisition of MoLo, one of the fastest-growing truckload brokers in North America, provided 
additional truckload capacity in our Asset-Light operations and has improved our ability to serve larger customers – better 
meeting their critical needs through comprehensive supply chain solutions. With the addition of MoLo, we offer a growing 
network of more than 95,000 approved contract carriers, with service to all 50 states, Canada, and Mexico. Additional 
value is created for customers through seamless access to the ABF Freight network. 

Expedite  
Leveraging our best-in-class Panther fleet, we offer expedite freight transportation services to commercial and government 
customers. We also offer premium logistics services that involve the rapid deployment of highly specialized equipment to 
meet  precise  linehaul  requirements,  such  as  temperature  control,  hazardous  materials,  geofencing  (routing  a  shipment 
across a mandatory, defined route with satellite monitoring and automated alerts concerning any deviation from the route), 
specialized government cargo, security services, and life sciences. Through these services, ArcBest solves the toughest 
shipping and logistics challenges customers face through a global network of owner operators and contract carriers.  

Substantially all of the network capacity for our expedite operations is provided by third-party carriers, including owner 
operators, ground linehaul providers, cartage agents, and other transportation asset providers, which are selected based on 
their ability to serve our customers effectively concerning price, technology capabilities, geographic coverage, and quality 
of  service.  Third-party-owned  vehicles  are  driven  by  independent  contract  drivers  and  drivers  engaged  directly  by 
independent owners of multiple pieces of equipment, commonly referred to as fleet owners. Our expedite operations own 
a  fleet  of  trailers,  the  communication  devices  used  by  its  owner  operators,  and  certain  highly  specialized  equipment, 
primarily temperature-controlled and temperature-validated trailers, to meet the service requirements of certain customers. 

Managed Transportation 
Through  our  managed  transportation  solutions,  we  partner  with  customers  to  create  and  execute  a  logistics  strategy 
designed to increase operational efficiencies, reduce costs, and give our customers better insight into their supply chains. 
ArcBest seeks to offer value by identifying specific challenges relating to customers’ supply chain needs and providing 
customized  solutions  utilizing  technology,  both  internally  to  manage  our  business  processes  and  externally  to  provide 
shipment and inventory visibility to our customers. Additional value is created for customers through seamless access to 
the ABF Freight network, the Panther fleet, the MoLo truckload brokerage operation, our dedicated truckload division, 
and an extensive carrier network, offering strategic supply chain solutions with unique access to assured capacity. 

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International  
Our international shipping and logistics services provide international ocean and air shipping solutions by partnering with 
ocean shipping lines and air freight carriers worldwide, as well as cross-border shipping and ground transportation to and 
from ports. As a non-vessel operating common carrier, we provide less-than-container load and full container load service, 
offering ocean transport to approximately 90% of the total ocean international market to and from the United States. We 
also  offer  warehousing  and  distribution  services  to  and  from  major  global  ports  to  streamline  our  customers’  ocean 
shipping processes. 

Moving  
Our moving services offer flexibility and convenience for how people move through targeted service offerings for the “do-
it-yourself” consumer. We offer these targeted services at competitive prices that reflect the additional value customers 
find in our convenient, reliable moving service offerings. Industry-leading technology, customer-friendly interfaces, and 
supply chain solutions are combined to provide a wide range of options customized to meet unique customer needs. 

Other Logistics Services 
We also provide other services to meet our customers’ logistics needs, such as final mile, time-critical, product launch, 
warehousing and distribution, retail logistics, supply chain optimization, brokered LTL, and trade show shipping services. 
Our Retail+ compliance solution is designed to help vendors better meet large retailers’ stringent shipping and delivery 
requirements by combining innovative software solutions with enhanced operations processes. 

FleetNet Segment 
The  FleetNet  segment  includes  the  results  of  operations  of  FleetNet  America,  Inc.  (“FleetNet”),  our  subsidiary  that 
provides vehicle maintenance and repair solutions, including emergency roadside services, for commercial and private 
fleets through a network of third-party service providers in the United States, Canada, and Puerto Rico. FleetNet began in 
1953 as the internal breakdown department for Carolina Freight Carriers Corp. and was incorporated in 1993 as Carolina 
Breakdown Service, Inc. In 1995, we purchased WorldWay Corporation, which operated various subsidiaries, including 
Carolina Freight Carriers Corp. and Carolina Breakdown Service, Inc. The name of Carolina Breakdown Service, Inc. was 
changed to FleetNet America, Inc. in 1997. 

Competition, Pricing, and Industry Factors 

Competition 
Our Asset-Based segment actively competes for freight business with other national, regional, and local motor carriers 
and, to a lesser extent, with private carriage, domestic and international freight forwarders, railroads, and airlines. The 
segment competes most directly with nonunion and union LTL carriers, including FedEx Freight Corporation, the LTL 
reporting segment of FedEx Corporation; the LTL segment of Knight-Swift Transportation Holdings Inc.; Old Dominion 
Freight  Line,  Inc.;  Saia,  Inc.;  the  LTL  reporting  segment  of  TFI  International  Inc.;  XPO  Logistics,  Inc.;  and  Yellow 
Corporation.  The  segment’s  U-Pack  business  also  competes  with  self-move  businesses  who  offer  moving  and  storage 
container  service.  Competition  is  based  primarily  on  price,  service,  and  availability  of  flexible  shipping  options  to 
customers.  The  Asset-Based  segment’s  careful  cargo  handling,  access  to  other  ArcBest  logistics  solutions,  and  use  of 
technology, both internally to manage its business processes and externally to provide shipment visibility to its customers, 
are examples of how we add value to our services. 

Our ArcBest segment operates in a very competitive asset-light logistics market that includes approximately 17,000 active 
brokerage authorities, as well as asset-based truckload carriers; logistics companies including large and small expedite 
carriers; foreign and U.S.-based non-vessel-operating common carriers; freight forwarders; internal shipping departments 
at  companies  that  have  substantial  transportation  requirements;  smaller  niche  service  providers;  and  a  wide  variety  of 
solution providers, including large integrated transportation companies as well as regional warehouse and transportation 
management firms. The segment competes most directly with logistics companies, including the North American Surface 
Transportation  segment  of  C.H.  Robinson  Worldwide,  Inc.;  Covenant  Logistics  Group,  Inc.;  Hub  Group,  Inc.;  the 
Integrated  Capacity  Solutions  segment  of  J.B.  Hunt  Transport  Services,  Inc.;  the  Logistics  segment  of  Knight-Swift 
Transportation Holdings Inc.; Landstar System, Inc.; RXO, Inc., after its spin-off from XPO Logistics, Inc.; and the Freight 
segment of Uber Technologies, Inc. ArcBest’s moving services compete with truck rental, self-move, and van line service 
providers, and several emerging self-move competitors who offer moving and storage container service. Quality of service, 
technological  capabilities,  and  industry  expertise  are  critical  differentiators  among  the  competition.  In  particular, 
companies with advanced systems that offer optimized shipping solutions, reliable access to capacity, real-time visibility 

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of shipments, verification of chain of custody procedures, and advanced security have significant operational advantages 
and create enhanced customer value.  

FleetNet competes in the commercial vehicle maintenance and repair industry in two major sectors: emergency roadside 
and  preventive  maintenance.  FleetNet  competes  directly  against  other  third-party  service  providers,  automotive  fleet 
managers,  leasing  companies,  and  companies  handling  repairs  in-house  via  individual  service  providers.  Market 
competition for FleetNet is based primarily on maintenance solutions service offerings. In partnership with best-in-class 
third-party vendors, FleetNet offers flexible, customized solutions and utilizes technology to provide valuable information 
and data to minimize fleet downtime, reduce maintenance events, and lower total maintenance costs for its customers. 

Pricing 
Approximately 20% to 25% of our Asset-Based business is subject to base LTL tariffs, which are affected by general rate 
increases,  combined  with  individually  negotiated  discounts.  Rates  on  the  remaining  Asset-Based  business,  including 
business priced in the spot market, are subject to individual pricing arrangements negotiated at various times throughout 
the year. The majority of the business that is subject to negotiated pricing arrangements is associated with larger customer 
accounts with annually negotiated pricing arrangements. The remaining business is priced on an individual shipment basis 
considering each shipment’s unique profile, the value we provide to the customer, and current market conditions.  

We allow shippers without negotiated published rates to obtain competitive LTL rates for their shipping needs with ABF 
Freight’s reliable service and capacity options. This innovative pricing mechanism enables customers to instantly access 
LTL rates online, by phone, or through application programming interface (“API”) technology for shipments within the 
United States, Canadian cross-border, Mexico, and Puerto Rico. We can offer customers the best price on each shipment 
by leveraging available capacity within the ABF Freight network at the time of the shipment. The market has been receptive 
to this dynamic pricing option for transactional LTL shipments, and the program has been beneficial in optimizing our 
business levels.  

We also utilize a space-based pricing approach for shipments subject to LTL tariffs to better reflect freight shipping trends, 
including the overall growth and ongoing profile shift to bulkier shipments across the entire supply chain, the acceleration 
in e-commerce, and the unique requirements of many shipping and logistics solutions. We are experienced in handling 
complicated  freight  and offer  logistics  solutions  that respond  to  the  unique  shipment  characteristics  of  our  customers’ 
various  products  and  commodities.  An  increasing  percentage  of  freight  is  taking  up  more  space  in  trailers  without  a 
corresponding increase in weight. Space-based pricing involves the use of freight dimensions (length, width, and height) 
to  determine  applicable  cubic  minimum  charges  (“CMC”)  that  supplement  weight-based  metrics  when  appropriate. 
Traditional  LTL  pricing  is  generally  weight-based,  while  our  linehaul  costs  are  generally  space-based  (i.e.,  costs  are 
impacted by the volume of space required for each shipment). We believe space-based pricing better aligns our pricing 
mechanisms with the metrics which affect our resources and, therefore, our costs to provide logistics services. The CMC 
is an additional pricing mechanism to better capture the value we provide in transporting these shipments.  

Our Asset-Based and certain operations within our ArcBest segment assess a fuel surcharge based on the index of national 
on-highway average diesel fuel prices published weekly by the U.S. Department of Energy. While the fuel surcharge is 
one of several components in our overall rate structure, the actual rate paid by customers is governed by market forces and 
the overall value of services provided to the customer. 

Industry Factors 
According to management’s estimates, and market studies by Armstrong & Associates, Inc. and the U.S. Department of 
Commerce, the total market potential in the industry segments we serve is approximately $479 billion, with $53 billion of 
market spend in the LTL segment, $383 billion in the markets served by our ArcBest segment, and $43 billion in the 
maintenance and repair market served by our FleetNet segment. The LTL industry has significant barriers to entry and is 
highly  competitive,  as  previously  discussed  in  “Asset-Based  Segment”  within  this  Business  section.  Our  Asset-Light 
operations represent a minor portion of the total market, which evidences the significant growth opportunity for us in the 
outsourced logistics market, a growth position already strengthened with the addition of MoLo in November 2021. More 
sophisticated supply chain practices are required as supply chains expand and become more complex, product and service 
needs  continue  to  evolve,  and  companies  look  for  solutions  to  their  logistics  challenges  and  lower-cost  supply  chain 
alternatives.  

The  transportation  industry  is  subject  to  numerous  laws,  rules,  and  regulations,  as  further  discussed  below  within 
“Environmental and Other Government Regulations,” and carriers are required to obtain and maintain various licenses and 

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permits, some of which are difficult to obtain. The trucking industry faces rising costs of compliance with government 
regulations on safety, equipment design and maintenance, driver utilization, and fuel economy, as well as increasing costs 
in certain areas, which are not industry-specific, including health care and retirement benefits. Higher compliance costs 
will continue to impair the competitiveness of smaller carriers in the logistics market, which may lead to tighter capacity 
or consolidation within certain sectors. In addition, disruptions from unexpected events such as natural disasters and the 
COVID-19 pandemic have resulted in further utilization of expedited shipping and premium logistics services and have 
caused companies to focus on risk management within their supply chains. 

Seasonality 

Our operations are impacted by seasonal fluctuations that affect tonnage, shipment or service event levels, and demand for 
our services, which in turn may impact our revenues and operating results. In recent periods, including the year ended 
December 31, 2022, our operations have not been as heavily impacted by seasonal fluctuations, due in part to strategic 
initiatives we have undertaken to enable profitable growth through seasons and cycles. 

Inclement weather conditions can adversely affect freight shipments and operating costs of our Asset-Based and ArcBest 
segments. Historically, the second and third calendar quarters of each year usually have the highest tonnage levels, while 
the first quarter generally has the lowest, although other factors, including the state of the U.S. and global economies, 
available capacity in the market, the impact of yield initiatives; and the impact of adverse external events or conditions 
may influence quarterly business levels. Our yield initiatives, along with the overall increase in demand, have allowed us 
to add shipments in non-peak times, making us less susceptible to seasonal fluctuations in recent years. In the future, we 
do not expect seasonality to impact our business as significantly as it has in the past.  

ArcBest segment operations are influenced by seasonal fluctuations that impact customers’ supply chains. Shipments of 
the ArcBest segment may decline during winter months because of post-holiday slowdowns; however, expedite shipments 
can be subject to short-term increases depending on the impact of weather or other disruptions to customers’ supply chains. 
Plant shutdowns during summer months may affect shipments for automotive and manufacturing customers of the ArcBest 
segment, but disruptive events can result in higher demand for expedite services. Moving services of the ArcBest segment 
are impacted by seasonal fluctuations, generally resulting in higher business levels in the second and third quarters, as the 
demand for moving services is typically stronger in the summer months. 

Emergency roadside service events of the FleetNet segment are favorably impacted by extreme weather conditions that 
affect  commercial  vehicle  operations,  and  the  segment’s  results  of  operations  are  influenced  by  seasonal  variations  in 
service event volume and the impact of other external events or conditions. 

Technology 

As a multibillion integrated logistics company focused on making it easier for our customers to do business, ArcBest is 
building the future of logistics. Rooted in a strong history of innovation, technology is a key enabler of our strategy — it 
differentiates us in the marketplace and allows us to continuously evolve. Most of the technology applications used at 
ArcBest  have  been  developed  internally  by  our  ArcBest  Technologies  subsidiary  and  are  tailored  specifically  for 
customers,  capacity  suppliers  and  internal  business  processing  needs.  Our  teams  of  highly  engaged  and  creative 
technology,  analytics  and  innovation  professionals  are  proactive  surveyors  of  emerging  technology  —  constantly 
analyzing  and  creating  intelligent  solutions  that  deliver  value  and  drive  the  supply  chain  industry  forward.  Through 
implementing  custom-built  solutions  and  leading-edge  technologies,  we  help  our  customers  successfully  navigate  the 
complex logistics landscape so they can use their supply chain as their competitive advantage. 

ArcBest internal product owners, architects, developers, data scientists, and others, who have a deep understanding of the 
transportation and logistics industry and our strategy and execution models, supplemented by expert external contractor 
services, work together to rapidly deliver superior solutions throughout our organization for customers and carrier capacity. 

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Directly  addressing  our  customers’  supply  chain  challenges  is  a  natural  extension  of  our  mission.  We  work  to  build 
efficiencies  and  sustainable  best  practices  within  our  own  business  and  the  supply  chain  as  a  whole.  We  have  made 
additional technology investments to improve both customer experience and carrier capacity experience while continuing 
to optimize costs. Some examples of these investments include: 

  Our pilot, which was started by ArcBest Technologies in 2019 to improve freight handling at ABF Freight, as 
previously  disclosed  in  the  “Asset-Based  Segment”  within  this  Business  section.  This  advanced  technology 
utilizes patented handling equipment, patented software, and a patented process to load and unload trailers more 
rapidly  and  safely.  A  new  warehouse  distribution  center  located  in  Salt  Lake  City,  Utah  is  expected  to  be 
completed in early 2023, where additional pilot testing will be conducted. 
Investment in a 235,000-square-foot innovation warehouse where our robotics engineers, mechanical engineers, 
fabricators,  research  and  development  analysts,  software  engineers,  and  data  scientists  test  technology  in  an 
environment that mirrors our customers’ facilities, enabling us to create transformational solutions that address 
their most critical needs.  

 

  Our $25 million investment in Phantom Auto, the leading human-centered remote operation software provider. 
This  investment  centers  around  remote-operated  forklifts  and  was  developed  to  create  overall  intralogistics 
strategies in ArcBest customer locations and help our customers build efficiencies in their own warehouses and 
distribution centers.  

 

  Creation and implementation of an environmental, social, and governance (“ESG”) dashboard as part of our work 
to  collect,  analyze,  and  report  Scope  1  (direct)  and  Scope  2  (indirect)  emissions.  This  dashboard  can  filter 
emissions by type, equipment, location, and timeframe, giving us a holistic approach to measuring emissions and 
enabling us to benchmark performance, identify areas of improvement, and monitor progress. 
Implementation of ArcBest Virtual Agent (AVA), which uses artificial intelligence to quickly schedule shipment 
pickups, supply tracking information, and address other questions through email, phone, and web chat.  
Implementation of cognitive technologies to improve customer service and optimize our operations, including in 
the  ArcBest  segment,  where  we  have  developed  machine-learning  cognitive  technologies  that  use  natural 
language processing and computer vision embedded in the applications our employees use that learn from past 
interactions  and  predict  customer  needs  before  the  customer  makes  a  request  —  simplifying  workflows  and 
driving better decision-making.  

 

  Our City Route Optimization initiative, which has successfully improved efficiencies and lowered costs in the 

initial pilot locations. 

  Enhancement  of  a  capacity  sourcing  tool  that  optimizes  the  utilization  of  internal  equipment  capacity  while 

reducing the time it takes to secure external equipment capacity to better meet customer requirements. 

Typically, freight transportation customers communicate their freight needs, on a shipment-by-shipment basis, by using 
telephone,  email,  web,  mobile  applications,  through  electronic  data  interchange  (“EDI”)  or  by  API.  In  the  ArcBest 
segment,  the  information  about  each  shipment  is  entered  into  an  operating  system  that  facilitates  the  selection  of  a 
contracted  carrier  or  carriers  based  on  the  carrier’s  service  capability,  equipment  availability,  freight  rates,  and  other 
relevant  factors.  Once  the  carrier  is  selected,  the  cost  for  the  transportation  has  been  agreed  upon,  and  the  carrier  has 
committed to providing the transportation, we are in contact with the carrier through numerous means of communication 
(i.e., mobile apps, satellite tracking, electronic logging device (“ELD”), and other communication units on the vehicles) 
to continually update the position of equipment in order to meet customers’ requirements to track the status of the shipment 
from  origin  to  delivery.  The  various  tracking  methods  automatically  update  our  fully  integrated  internal  software  and 
provide customers with real-time electronic updates.  

We make information readily accessible to our customers through various electronic pricing, billing, and tracking services, 
including mobile-responsive websites that allow customers to access information about their shipments, request shipment 
pickup, and utilize various other digital tools. Online functions tailored to the services requested by customers include bill 
of  lading  generation,  pickup  planning,  customer-specific  price  quotations,  proactive  tracking,  customized  email 
notification,  logistics  reporting,  dynamic  rerouting,  and  other  connectivity  tools.  This  technology  allows  customers  to 
incorporate  data  from  our  systems  directly  into  their  own  website,  transportation  management  systems,  or  other 
information systems using EDI standards and secure API. As a result, our customers can provide shipping information and 
support directly to their own customers. 

ArcBest has an Innovation Ambassador Program to encourage new, transformative ideas. This program includes a team 
of  employees  from  across  the  organization  who  work  closely  with  executive  leadership  to  identify  opportunities  for 
disruptive  innovation  within  our  company  and  to  evaluate  potential  external  innovation  partners.  Additionally,  during 
2022, ArcBest Technologies sponsored its third annual Imagine 2022 competition, which allows teams to collaborate and 

12 

 
 
 
work on innovative ideas related to both technology and business systems innovation. The 2022 competition asked teams 
of  employees  across  the  organization  to  present  ideas  and  solutions  focused  on  reducing  our  industry’s  impact  on  the 
environment.  

In May 2021, ArcBest announced a $1 million investment in the Peak Innovation Center, a state-of-the-art career and 
technical education center that is available to approximately 43,000 students from 22 regional school districts. The Peak 
Innovation Center opened in March 2022 and has created a pipeline of local talent to fill existing jobs and support further 
economic growth in the Fort Smith, Arkansas community. 

Insurance 

Generally, claims exposure in the freight transportation and logistics industry consists of workers’ compensation, third-
party  casualty  liability,  and  cargo  loss  and  damage.  We  are  effectively  self-insured  for  $1.0  million  of  each  workers’ 
compensation loss. For each third-party general liability loss, we are generally self-insured for $1.0 million. We are also 
self-insured for each cargo loss up to a $0.3 million deductible for our Asset-Based segment and a $0.1 million deductible 
for our ArcBest segment, with a $2.0 million retention limit for each auto accident or loss. We maintain insurance that we 
believe is adequate to cover losses in excess of such self-insured amounts or deductibles. However, we cannot provide 
assurance that our insurance coverage will provide adequate protection under all circumstances or against all potential 
losses. We have experienced situations where excess insurance carriers have become insolvent. We pay assessments and 
fees to state guaranty funds in states where we have workers’ compensation self-insurance authority. In some of these 
states, depending on the specific state’s rules, the guaranty funds may pay excess claims if the insurer cannot pay due to 
insolvency. However, there can be no certainty of the solvency of individual state guaranty funds.  

We have been able to obtain what we believe to be adequate insurance coverage for 2023 and are not aware of any matters 
which would significantly impair our ability to obtain adequate insurance coverage at market rates for our operations in 
the  foreseeable  future.  A  material  increase  in  the  frequency  or  severity  of  accidents,  cargo  claims,  or  workers’ 
compensation claims or the material unfavorable development of existing claims could have a material adverse effect on 
our cost of insurance and results of operations. 

We also maintain property and cyber insurance which would offset losses up to certain coverage limits in the event of a 
catastrophe or certain cyber incidents, including certain business interruption events related to these incidents; however, 
losses arising from a catastrophe or significant cyber incident may exceed our insurance coverage and could have a material 
adverse impact on our results of operations and financial condition. We do not have insurance coverage specific to losses 
resulting from a pandemic or geopolitical conflict. 

Environmental and Other Government Regulations 

Various international, federal, state and local agencies exercise broad regulatory powers over the transportation industry, 
generally governing such activities as operations of and authorization to engage in motor carrier freight transportation, 
operations  of  non-vessel-operating  common  carriers,  operations  of  ocean  freight  forwarders  and  ocean  transportation 
intermediaries,  indirect  air  carriage,  safety,  contract  compliance,  insurance  and  bonding  requirements,  tariff  and  trade 
policies,  customs,  import  and  export,  food  safety,  employment  practices,  licensing  and  registration,  taxation, 
environmental matters, data privacy and security, and financial reporting. Compliance with future modifications to the 
regulations  impacting  the  transportation  industry  may  impact  our  operating  practices  and  costs,  which  could  have  a 
material adverse impact on our financial condition, results of operations, and cash flows. Other carriers would be similarly 
affected by changes in industry regulations; therefore, the impact of such changes on our competitive position cannot be 
determined. 

Environmental Regulations 
We are subject to federal, state, and local environmental laws and regulations relating to, among other things: emissions 
control,  transportation  or  handling  of  hazardous  materials,  underground  and  aboveground  storage  tanks,  stormwater 
pollution prevention, contingency planning for spills of petroleum products, and disposal of waste oil. 

In  August  2016,  the  U.S.  Environmental  Protection  Agency  (the  “EPA”)  and  the  National  Highway  Traffic  Safety 
Administration  (the  “NHTSA”)  jointly  finalized  a  national  program  establishing  a  second  phase  of  greenhouse  gas 
(“GHG”) emissions (“EPA/NHTSA Phase 2”), through their authorities under the Clean Air Act, as amended, imposing 
new fuel efficiency standards for medium- and heavy-duty vehicles and engines, such as those operated by our Asset-

13 

 
 
 
 
 
 
 
 
 
Based segment, for model years 2021-2027 and also instituting fuel efficiency improvement technology requirements for 
trailer model years 2018-2027. In September 2020, the U.S. Court of Appeals for the District of Columbia stayed the 
portion of the EPA/NHTSA Phase 2 Final Rule regarding the trailer regulations, and the review of the Final Rule has an 
indefinite date of final ruling.  

In  September  2019,  the  state  of  California  signed  legislation  which  directs  the  California  Air  Resources  Board  (the 
“CARB”) and other state agencies to develop and implement a comprehensive inspection and maintenance program for 
heavy-duty vehicles. A number of states have individually enacted, and California and certain other states may continue 
to  enact,  legislation  relating  to  engine  emissions,  trailer  regulations,  fuel  economy,  and/or  fuel  formulation,  such  as 
regulations  enacted  by  the  CARB.  In  December  2021,  the  CARB  approved  plans  to  enforce  certain  provisions  of  the 
EPA/NHSTA Phase 2 Final Rule that would regulate glider kits and trailers with implementation to be phased in starting 
in January 2023. At the present time, management believes that these regulations will likely not result in significant net 
additional  overall  costs  should  the  technologies  developed  for  tractors,  as  required  in  the  EPA/NHTSA  Phase  2 
rulemaking, prove to be as cost-effective as forecasted by the EPA and the NHTSA.  

In  November  2018,  the  EPA  launched  the  “Cleaner  Trucks  Initiative”  (the  “CTI”)  which  includes  plans  for  future 
rulemaking to reduce nitrogen oxide emissions. In January 2020, the EPA published an Advanced Notice of Proposed 
Rulemaking to solicit pre-proposal comments on the CTI. One planned feature of the initiative is to coordinate emissions 
standards nationwide in an effort to make compliance easier for the industry by preventing a further patchwork of state 
and local emissions regulations. In August 2021, the EPA announced the “Clean Truck Plan,” a series of rulemakings over 
the next three years, the first of which was proposed in March 2022, to set new emissions standards to reduce nitrogen 
oxide emissions from heavy-duty vehicles beginning with model year 2027. The passage of the Inflation Reduction Act of 
2022 in August 2022 also seeks to update GHG standards. The EPA announced it will consider more stringent greenhouse 
gas standards for heavy-duty vehicles for model years 2027-2029.  

While fuel consumption and emissions may be reduced under the new standards, emission-related regulatory actions have 
historically  resulted  in  increased  costs  of  revenue  equipment,  diesel  fuel,  and  equipment  maintenance,  and  future 
legislation, if enacted, could result in increases in these and other costs for which the amounts cannot be determined at this 
time. The future of “cap and trade” programs or measures is unknown, and the potential costs of such programs or similar 
future legislative or regulatory measures are uncertain. We are unable to determine with any certainty the effects of any 
future  climate  change  legislation  beyond  the  currently  enacted  regulations,  and  there  can  be  no  assurance  that  more 
restrictive regulations than those previously described will not be enacted either federally or locally.  

At certain facilities of our Asset-Based operations, we store fuel and oil in underground and aboveground tanks for use in 
tractors and trucks. Maintenance of our tanks is regulated by the EPA and, in most cases, by state agencies. Management 
believes we are in substantial compliance with all such regulations. The underground storage tanks are required to have 
leak detection systems, and we are not aware of any leaks from such tanks that could reasonably be expected to have a 
material  adverse  effect  on  our  operating  results.  Notwithstanding  current  compliance,  we  are  subject  to  on-going 
environmental remediation obligations concerning historical underground storage tank releases, for which the resolutions 
are not expected to have a material adverse effect on our financial condition, results of operations, or cash flows. 

Certain of our Asset-Based service center facilities operate with no exposure certifications or stormwater permits under 
the federal Clean Water Act (the “CWA”), as amended. The no-exposure certification and stormwater permits may require 
periodic facility inspections and monitoring and reporting of stormwater sampling results. Management believes we are in 
substantial  compliance  with  all  such  regulations.  Notwithstanding  current  compliance,  we  previously  determined  that 
certain  procedures  regarding  sampling,  documentation,  and  reporting  were  not  appropriately  being  performed  in 
accordance with the CWA. As such, we self-reported the matter to the EPA. An estimated settlement expense for this 
matter is reserved within accrued expenses in the consolidated balance sheet as of December 31, 2022. Resolution of this 
matter is not expected to have a material adverse effect on our financial condition, results of operations, or cash flows. 

We have received notices from the EPA and others that we have been identified as a potentially responsible party under 
the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, or other federal or state 
environmental  statutes,  at  several  hazardous  waste  sites.  After  investigating  our  subsidiaries’  involvement  in  waste 
disposal  or  waste  generation  at  such  sites,  we  have  either  agreed  to  de  minimis  settlements  or  determined  that  our 
obligations, other than those specifically accrued with respect to such sites, would involve immaterial monetary liability, 
although there can be no assurance in this regard.  

14 

 
 
 
 
 
 
 
It  is  anticipated  that  the resolution  of  our  environmental matters  could take place over  several years. Our  reserves for 
environmental  compliance  matters  and  cleanup  costs  are  estimated  based  on  management’s  experience  with  similar 
environmental matters and testing performed at certain sites. 

Other Government Regulations 
We operate in the United States, and from the United States for international transportation, pursuant to federal operating 
authority granted by the U.S. Department of Transportation (the “DOT”) and the U.S. Federal Maritime Commission. Our 
operations are subject to cargo security and transportation regulations issued by the Transportation Security Administration 
and regulations issued by the U.S. Department of Homeland Security. 

We operate under the Occupational Safety and Health Act of 1970 (the “OSH Act”). Under the OSH Act, ArcBest has a 
responsibility to provide employees a safe workplace. This includes, but is not limited to: 

  Providing a workplace free from serious recognized hazards and complying with standards, rules, and regulations 

issued under the OSH Act; 

  Examining  workplace  conditions  to  make  sure  they  conform  to  applicable  Occupational  Safety  and  Health 

Administration Standards; and 

  Ensuring employees have and use safe tools and equipment and properly maintain this equipment. 

Our Asset-Based operations and our ArcBest segment’s network of third-party contract carriers must comply with industry 
regulations, including the ELD mandate of the Federal Motor Carrier Safety Administration (the “FMCSA”) for interstate 
commercial  trucks  and  hours  of  service,  safety  and  fitness,  and  other  regulations  of  the  DOT,  including  requirements 
related  to  drug  and  alcohol  testing.  We  are  subject  to  the  hazardous  materials  regulations  of  the  FMCSA  for  our 
transportation  and  arrangement  for  transportation  of  hazardous  materials  and  explosives,  as  well  as  our  disposal  of 
hazardous waste. 

We provide transportation and logistics services to and from a number of international locations and are, therefore, subject 
to a wide variety of domestic and international laws and regulations, including export and import laws. We are also subject 
to compliance with the Foreign Corrupt Practices Act of 1977, as amended and hold Customs-Trade Partnership Against 
Terrorism status for businesses within our Asset-Based and ArcBest segments. 

If  we  were  to  violate  the  government  regulations  under  which  we  operate,  we  may  be  subject  to  substantial  fines  or 
penalties  or  our  business  operations  could  be  restricted,  which  could  have  a  material  adverse  impact  on  our  financial 
condition, results of operations, and cash flows. 

Human Capital Resources 

Our  people  are  at  the  heart  of  our  success,  and  we  provide  a  workplace  that  respects  all  cultures,  perspectives,  and 
experiences, so that we can provide the best atmosphere for our employees and the best service to our customers. As of 
December 2022, we had approximately 15,700 employees, of which approximately 55% were members of labor unions. 
As previously described in the “Asset-Based Segment” within this Business section, as of December 2022, approximately 
82%  of  our  Asset-Based  segment’s  employees  were  covered  under  the  2018  ABF  NMFA,  the  collective  bargaining 
agreement with the IBT, which will remain in effect through June 30, 2023. 

Employee Attraction, Development, and Retention 
Our  business  results  and  future  growth  opportunities  depend  on  our  ability  to  successfully  manage  our  human  capital 
resources, including attracting, developing, retaining, and upskilling our personnel. We strive to recruit values-aligned 
people who are the right individuals for each position and maintain a culture of continuous growth and development of 
our employees. Our data-enriched, real-time linkage between forecasted demand and diverse talent pools, along with hiring 
for character, enable our unified recruiting team to attract and onboard the right candidates for the right roles faster than 
ever before. We then have intentional training and development plans throughout each stage of career progression that 
accelerate job mastery and development for future roles. Our comprehensive learning program offers classroom, virtual, 
and web-based training options. We also offer a tuition reimbursement program, and we partner with a private university 
to provide onsite and virtual classes for employees to further their education. 

We  utilize  a  customized  performance  management  system  that  incorporates  goals  and  development  planning  to  better 
position employees in their career paths. Employees participate in annual career conversations with their direct supervisor. 

15 

 
 
 
 
 
 
 
 
 
 
We also have a succession planning program to ensure continuity in critical roles, allowing leaders to identify and develop 
employees for specific career paths. We evaluate compensation to ensure it remains competitive, including insurance and 
retirement benefits, and we offer programs to support the four pillars of wellness for our employees – physical, financial, 
emotional/social, and developmental. We conduct an annual survey as well as pulse surveys to request employee feedback 
to help us assess and improve engagement and implement changes to enhance our work environment.  

Attracting, retaining, and upskilling qualified truck drivers is crucial to our business. To address the driver shortage that 
continues to impact the freight transportation industry, we have strong hiring partnerships with the IBT and the military 
that allow us to hire and train potential drivers before they leave military service. We also conduct an in-house training 
through our Driver Development Program and host frequent onsite hiring events at critical locations. 

Diversity, Equity, and Inclusion 
We embrace and encourage diverse experiences, needs, and perspectives which, in turn, help us create an environment 
where our employees feel welcome, safe, and valued. Such diversity helps us better serve our customers around the globe. 
We partnered with a consulting firm specializing in diversity, equity, and inclusion (“DEI”) to measure and develop these 
areas of human capital management in our organization. Our three-year DEI roadmap is divided into the following four 
main areas — workforce, workplace, community, and marketplace — each focusing on a different aspect of corporate 
diversity.  

We continue to invest in personnel to lead and execute ArcBest’s DEI strategy. We engage leaders in the organization to 
advance our people and community programs. In September 2022, we developed a framework to establish ArcBest’s first 
Employee Resource Groups (“ERGs”). ERGs are voluntary, employee-led groups that help create an open and welcoming 
space  to  foster  community  building  for  employees’  shared  identities,  experiences,  or  interest  in  supporting 
underrepresented talent.   

In October 2022, we announced our partnership with Integrate Autism Employment Advisors (“Integrate”), a non-profit 
organization that collaborates with companies to identify, recruit, and retain professionals on the autism spectrum, to foster 
a neuro-inclusive workforce and continue attracting the best talent with unique skill sets. Our partnership with Integrate 
demonstrates ArcBest's commitment to advancing DEI initiatives to create a workplace where we embrace and encourage 
diverse  experiences  and  perspectives.  We  are  intentional  in  our  efforts  to  attract,  hire,  retain,  and  upskill  diverse  and 
historically excluded talent. Our 2022 new hires represented a variety of backgrounds and experiences, with over 60% of 
them being diverse as categorized by gender, race, ethnicity, or military status.  

Our corporate Code of Conduct sets forth our general principles of business conduct and ethics. Our nonunion employees 
are  required  to  participate  in  annual  Code  of  Conduct  training,  which  also  covers  our  anti-discrimination  and  anti-
harassment policies to further educate our employees about prohibited behaviors that undermine diversity. Our new hires 
complete anti-harassment training, and our management employees are provided with DEI training. 

Health, Safety, and Security 
We are focused on the health and well-being of our employees, and we have numerous programs to support our people in 
embracing total health. In addition to health benefits and voluntary insurance options, we also offer a wellness program 
through which employees may receive reduced premiums, deductibles, and out-of-pocket expenses for their insurance by 
completing certain preventative health requirements. We offer a digital health platform and weight loss program, and we 
encourage  healthy  behaviors  throughout  the  year  through  regular  communications,  educational  sessions,  wellness 
challenges,  and  other  incentives.  We  added  life  coaching  services  in  2021  as  well-being  support  became  even  more 
important during the COVID-19 pandemic, and we continued offering these services during 2022. 

Safety is critical to our business. We have safety procedures and guidelines, as well as required training and certification 
programs,  for  our  drivers  and  freight-handling  personnel  to  promote  safety  on  and  off  the  road.  We  also  have  safety 
measures and policies that apply to all independent contractors, owner operators, and fleet owners in our Panther fleet, for 
whom we have provided safety programs to heighten awareness, promote safe driving behaviors, and reduce violations 
and accidents. Additionally, all of our company campuses, including corporate offices, are subject to safety and security 
policies and procedures to ensure the health, safety, and welfare of all employees. Based on employee feedback, several 
ArcBest teams collaborated to create new, more durable forklift attachments, designed to make freight handling safer and 

16 

 
 
 
 
 
 
 
easier and to reduce damage. During 2021, every service center received some or all of the attachments and completed 
training on the new equipment in 2022. 

We expect all employees to obey and respect human rights laws, and we will not tolerate conduct that violates these laws. 
We set the same expectations for our vendors, suppliers, and service providers through our Supplier Code of Conduct. 
Given the nature of our industry, we are in a critical position to help raise awareness of human trafficking to potentially 
disrupt these networks. Through partnerships with Truckers Against Trafficking® and Polaris, we educate our employees 
and drivers on the realities of modern-day slavery and how they can play a role in the fight against human trafficking. 

Reputation and Responsibility 

Our Company and our brands are consistently recognized for best-in-class performance.  

Brands 
The value of our brands is critical to our success. ArcBest is recognized as a leading integrated logistics company with 
creative problem solvers who deliver innovative logistics solutions. Beyond this fundamental marketplace recognition of 
our collective brand identity, our other key brands represent additional unique value in their target markets.  

We have registered or are pursuing registration of various marks or designs as trademarks in the United States, including, 
but  not  limited  to  “ArcBest,”  “ABF  Freight,”  “FleetNet  America,”  “Panther,”  “MoLo,”  “U-Pack,”  and  “More  Than 
Logistics.” For some marks, we also have registered or are pursuing registration in certain other countries. 

Other Intellectual Property 
Additionally, our business and operations utilize and depend upon both internally developed and purchased technology. 
We have obtained or are pursuing patent protection on internally developed and certain purchased technology, including 
equipment and process patents in connection with the previously disclosed pilot test program at ABF Freight.   

Commitment to Social and Environmental Responsibility 
We are focused on understanding the potential impact and related risks of ESG issues on our business and the impact of 
our  operations  on  the  environment.  In  recent  years,  we  have  invested  in  personnel  and  resources  to  develop  our  ESG 
program. We are integrating ESG factors into our strategy as we seek more sustainable approaches across our business 
and partner with customers to meet sustainability needs in their supply chains. Beginning with our 2019 report, we have 
voluntarily  published  an  annual  ESG  report  that  details  our  ESG  focal  points,  including  DEI  efforts,  sustainability 
approaches, investments in operational efficiencies and innovation, safety standards, and community-based partnerships. 
We have aligned our ESG framework with pertinent Sustainability Accounting Standards Board (SASB) standards, which 
connect  businesses  and  investors  to  the  financial  impacts  of  sustainability  and  identify  the  subset  of  ESG  issues  most 
relevant to financial performance. In 2022, we continued to collaborate with a third-party consultant to help identify and 
prioritize our ESG initiatives. As mentioned previously, we continue to develop our ESG dashboard, which is used to track 
quantitative metrics related to the environmental impact of our operations, including emissions. This dashboard will be 
utilized, along with qualitative analysis, to identify areas for improvement, track our Scope 1 (direct) and Scope 2 (indirect) 
GHG emissions and, in future phases of the ESG dashboard project, provide insights to our customers regarding their 
supply chains. Preliminary information regarding our Scope 1 and Scope 2 emissions based on this dashboard can be found 
on the Company’s website. 

We actively promote a cleaner environment by reducing both fuel consumption and emissions. In 2021, we established a 
GHG  emissions  measurement  task  force  to  better  understand  the  impact  of  our  business  on  the  environment  and 
opportunities for improvement. ABF Freight participates in the EPA’s SmartWay Transport Partnership, a collaboration 
between the EPA and the freight transportation industry that helps freight shippers, carriers, and logistics companies reduce 
GHGs  and  diesel  emissions.  ABF  Freight  has  also  participated  in  opportunities  to  address  environmental  issues  in 
association with the Sustainability Task Force of the American Trucking Associations. For many years, our Asset-Based 
segment has voluntarily limited the maximum speed of its trucks, thereby reducing fuel consumption and emissions and 
contributing  to  ABF  Freight’s  excellent  safety  record.  Our  Asset-Based  segment  utilizes  engine  idle  management 
programming  to  automatically  shut  down  engines  of  parked  tractors.  Fuel  consumption  and  emissions  have  also  been 
minimized through a strict equipment maintenance schedule. To further enhance fuel economy and reduce emissions, ABF 
Freight voluntarily installs aerodynamic aids on its fleet of over-the-road trailers. We continue to research and pursue more 
sustainable  equipment,  including  replacing  aging  equipment  models  with  clean,  fuel-efficient  equipment.  In  our  dock 
operations, we utilize forklifts with engines powered by liquefied petroleum gas (LPG), which is recognized by the EPA 

17 

 
 
 
 
 
 
 
 
as a clean, alternative fuel, and we have two electric forklifts in our Kansas City, Missouri pilot location. In 2022, we 
purchased  four  electric  yard  tractors  and  two  electric  Class  6  straight  trucks  to  replace  diesel-burning  equipment. 
Additionally, in 2022, our ArcBest segment began leasing an LEED Gold certified office facility in Chicago, which was 
constructed to include a green roof, smart lighting, and energy-efficient HVAC units, as well as additional environmentally 
preferred features. 

Contributions & Awards 
Our culture is focused on quality service and responsibility, and our employees are committed to the communities in which 
they live and work. We make financial contributions to a number of charitable organizations, many of which are supported 
by our employees. These employees volunteer their time and expertise, and many serve as officers or board members of 
various philanthropic organizations. In November 2022, to help guide our actions in our giving efforts, we announced our 
three philanthropic pillars — Community, Education and People.  In the local community of our corporate headquarters, 
we have been a long-time supporter of the United Way of Fort Smith Area and its partner organizations. In 2022, with 
employee support, we again earned the United Way’s coveted Pacesetter award by setting the standard for leadership and 
community support. ArcBest holds an A+ culture rating by employees via Comparably, and we support our employees as 
they  carry  out  our  wellness  value  by  participating  in  healthy  workplace  initiatives  and  representing  our  company  in 
wellness events in their local communities.  

In addition to the recognition noted above, ArcBest has been recognized with the following awards since 2021: 

 

 

 

 

“Training APEX Awards” (formerly “Training Top 100”) by Training magazine in 2022, marking the sixth year 
in a row for ArcBest to be honored, which was preceded by eight consecutive years of ABF Freight’s recognition 
on the list; 
Inbound  Logistics’  list  of  “Top  100  Truckers”  for  the  fifth  consecutive  year,  continuing  ABF  Freight’s 
recognition on the list for the previous four years; 
Inbound  Logistics’  2022  G75  Green  Supply  Chain  Partner  for  going  above  and  beyond  to  prioritize  green 
initiatives and help global supply chains become more sustainable; 
“FreightTech 100” by FreightWaves, Inc., as one of the most innovative and disruptive companies across the 
freight industry for the third consecutive year; 

 

  Comparably Awards for “Best Company Perks & Benefits” and “Best CEOs for Women” for 2022 and 2021; 
“Best Company Compensation” for 2022; and “Best CEO,” “Best Company for Women,” and “Best HR Team” 
for 2021, highlighting ArcBest’s commitment to providing a work environment where all employees can thrive; 
2022  Forrester  “Return  on  Integration  (ROI)  Honors  Winner,”  awarding  honoring  leading  organizations  that 
made bold decisions to transform their business by integrating marketing, sales and product functions to align 
business goals and drive growth; 
18th in The Commercial Carrier Journal’s 2022 list of “Top 250 For-Hire Carriers,” marking our seventh year of 
being listed; 

 

  Transport Topic’s 2022 list of “Top 100 For-Hire Carriers” for our ninth consecutive year; 
 

Inbound Logistics’ “Top 100 3PL Providers” list as one of the best of the best third-party logistics companies in 
2021; 

  Bronze medal sustainability rating from EcoVadis in 2021, achieving sustainability performance recognition in 

the top half of all companies and industries rated across the world; 

  Forbes as one of America’s “Best Large Employers” for 2021; Forbes’ Top 500 List of the “Best Employers for 

Diversity” in 2021, for the third consecutive year; and 

  Forbes as one of America’s “Best-In-State Employers” in Arkansas in 2021 for the second consecutive year. 

Our Chairman of the Board, President and CEO, Judy R. McReynolds, was named 2022 Arkansas Business Executive of 
the Year by Arkansas Business. She was also named to the Arkansas Business Hall of Fame class of 2023, included on the 
prestigious 2022 Forbes 50 over 50, recognized as a Power Player in leading top logistics companies for 2021 by Business 
Insider, named a Gartner CEO Talent Champion in 2022, and named to the following lists: the “2021 Best CEOs” by 
Comparably, and the “Arkansas 250” list of Arkansas’ most influential leaders by Arkansas Business in 2021 and 2022. 
During 2021, ArcBest was also recognized by 50/50 Women on Boards as a “3+” corporation for having three or more 
women on our Board of Directors. 

18 

 
 
 
 
Asset-Based Segment 
Our Asset-Based carrier ABF Freight has received the following awards since 2021: 

 

 

2022  SmartWay  High  Performer  by  the  EPA  for  the  second  consecutive  year  and  the  third  time  overall  in 
recognition of its leadership in the freight industry for producing more efficient and sustainable supply chain 
solutions; 
2021 Excellence in Cargo Claims & Loss Prevention Award from the American Trucking Associations, becoming 
the first nine-time winner of the award; 

  EPA SmartWay Transport Partner recognition since 2006; 
 

 

“Quest  for  Quality  Award”  in  the  National  LTL  Carriers  category  from  Logistics  Management  magazine  for 
2021, marking its sixth year overall to be recognized; and 
2021 SmartWay Excellence Award by the EPA’s SmartWay Transport Partnership for the fourth consecutive 
year and for the fifth time overall, for being a top freight carrier for outstanding environmental achievements and 
an industry leader for its actions to reduce freight emissions. SmartWay has postponed the 2022 award until 2023. 

Our Asset-Based segment is dedicated to safety and security in providing transportation and freight-handling services to 
its  customers.  ABF  Freight  is  a  ten-time  winner  of  the  Excellence  in  Security  Award  and  a  seven-time  winner  of  the 
President’s Trophy for Safety from the American Trucking Associations. In January 2022, two ABF Freight drivers were 
named  by  the American  Trucking  Associations  as  captains of  the 2022-2023 “America’s  Road Team,”  continuing  the 
long-time tradition of ABF Freight’s representation in this select program based on the drivers’ exceptional safety records 
and their strong commitment to safety and professionalism. 

ABF Freight also partners with the IBT and the U.S. Army in the Teamsters Military Assistance Program, a joint training 
program to help soldiers transition from military service to civilian careers as professional truck drivers. ABF Freight 
earned  the  designation  as  a  2021  Military  Friendly®  Employer  for  its  support  of  veterans  by  providing  training  and 
employment opportunities in the freight and logistics industry. ABF Freight has a partnership with the U.S. Military to 
train transitioning service members for our management roles through the Department of Defense SkillBridge program. 
ABF Freight also participates in the U.S. Army Partnership for Youth Success program. This initiative connects first-term 
regular Army and Army Reserve soldiers to the civilian workforce by providing two guaranteed job interviews and possible 
employment after their service in the Army. 

ArcBest Segment 
ArcBest received the following recognition for our Asset-Light operations since 2021: 

“2022 leading third-party logistics provider” by Global Trade Magazine in their Leading 3PLs List;  
“Top Freight Brokerage Firms” in Transport Topics for 2022, marking its eighth consecutive year to be listed;  

 
 
  MoLo was honored in January 2022, for the second consecutive year, as one of the “100 Best Large Companies 

to Work For in Chicago” as part of Built In’s “2021 Best Places to Work For” awards; 

2022 EPA SmartWay Transport Partners recognition for both MoLo and Panther; and 

  MoLo was named by Financial Times to the “America’s Fastest Growing Companies” list for 2022;  
 
  Two “Quest for Quality” awards by Logistics Magazine in the categories of Household Goods and High Value 
Goods  Carriers  and  Intermodal  Marketing  Companies  in  2021,  marking  the  seventh  time  Panther  has  been 
recognized and the third time U-Pack has been honored with the award. 

Available Information 

We file our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, amendments 
to those reports, proxy and information statements, and other information electronically with the SEC. All reports and 
financial information filed with, or furnished to, the SEC can be obtained, free of charge, through our website located at 
www.arcb.com or through the SEC’s website located at www.sec.gov as soon as reasonably practical after such material 
is electronically filed with, or furnished to, the SEC. The Annual Report on Form 10-K and other information may also be 
obtained without charge in writing to ArcBest Corporation, Attention: Investor Relations, 8401 McClure Drive, Fort Smith, 
AR 72916; or by telephone at 479-785-6000. The information contained on our website does not constitute part of this 
Annual Report on Form 10-K, nor shall it be deemed incorporated by reference into this Annual Report on Form 10-K. 

In addition to its reports filed or furnished with the SEC, the Company publicly discloses material information from time 
to  time  in  our  press  releases,  at  annual  meetings  of  shareholders,  in  publicly  accessible  conferences  and  investor 
presentations, and through our website (principally in its News and Events and Investor Relations pages). 

19 

 
 
 
 
 
 
 
ITEM 1A. 

RISK FACTORS 

Our business is subject to a variety of material risks about which we are aware. We could also be affected by additional 
risks and uncertainties not currently known to us or that we currently deem to be immaterial. This Risk Factors section 
discusses the material risks relating to our business activities, including business risks affecting the transportation industry 
and our Company that are largely out of our control. If any of these risks or circumstances actually occur, it could materially 
harm our business, results of operations, financial condition, and cash flows; impair our ability to implement business 
plans or complete development activities as scheduled; and/or result in a decline in the market price of our common stock. 

Risks Related to Union Relations 

If ABF Freight is unable to reach agreement on future collective bargaining agreements, we could be faced with 
labor inefficiencies, disruptions, or stoppages, or delayed growth, which could have a material adverse effect on 
our business, results of operations, financial condition, and cash flows. 

As of December 2022, approximately 82% of our Asset-Based segment’s employees were covered under the 2018 ABF 
NMFA,  the  collective  bargaining  agreement  with  the  IBT  that  will  remain  in  effect  through  June  30,  2023.  Contract 
negotiations for the period subsequent to June 30, 2023 are expected to begin in late first quarter or early second quarter 
2023. The negotiation of terms of the collective bargaining agreement is a very complex process. There can be no assurance 
that  our  future  collective  bargaining  agreements  will  be  renewed  on  terms  favorable  to  us.    The  terms  of  any  future 
collective bargaining agreements or the inability to agree on acceptable terms for the next contract period may also result 
in higher labor costs, insufficient operational flexibility, which may increase our operating costs, a work stoppage, the loss 
of customers, or other events that could have a material adverse effect on our business, results of operations, financial 
condition, and cash flows. We could also experience a loss of customers or a reduction in our potential share of business 
in the markets we serve if shippers limit their use of unionized freight transportation service providers because of the risk 
of work stoppages. 

Risks Related to Significant Unusual Events 

The  effects  of  a  widespread  outbreak  of  an  illness  or  disease,  including  the  COVID-19  pandemic,  or  any  other 
public health crisis, as well as regulatory measures implemented in response to such events, could negatively impact 
the  health  and  safety  of  our  employees  and/or  adversely  affect  our  business,  results  of  operations,  financial 
condition, and cash flows. 

Our business has been and, in the future, may be negatively impacted by the widespread outbreak of illness, disease, or 
emergence of another public health crisis, as we experienced with the COVID-19 pandemic. Measures intended to prevent 
the spread of a health epidemic, including regulatory measures and our efforts and costs incurred to comply with them, 
could negatively impact our operational efficiency and our customers’ demand for our services in the future and, therefore, 
have an adverse effect on our business. 

The COVID-19 pandemic has adversely impacted, and may continue to adversely impact, economic activity and conditions 
worldwide, creating significant volatility and disruption to financial markets. Efforts to control the spread of COVID-19 
led governments and other authorities to impose restrictions that have resulted in business closures and disrupted supply 
chains worldwide. Our operations and those of our customers and third-party capacity providers were subject to these 
supply  chain  disruptions  to  varying  degrees  due  to  pandemic-related  plant  and  port  shutdowns,  transportation  delays, 
government actions, and other factors. The global shortage of certain components, strains on production or extraction of 
raw materials, record cost inflation, and labor and equipment shortages could escalate in future periods. If a high number 
of  our  employees  were  to  contract  COVID-19  or  another  disease  or  illness  or  were  quarantined,  our  operations  and 
customer  service  levels,  and,  consequently,  our  results  of  operations,  could  be  adversely  impacted.  We  do  not  have 
insurance coverage specific to losses resulting from a pandemic. 

In the event of worsening conditions in the severity and spread of COVID-19 or another pandemic or other public health 
crisis that adversely affects the U.S. and global economies, our results of operations, financial condition, and cash flows 
could be adversely impacted, and many of the other risks discussed in this Risk Factors section may be heightened. 

20 

 
 
 
 
 
 
 
 
 
 
 
We, or the third parties who provide services for us, may be adversely affected by external events for which our 
business continuity plans may not adequately prepare us. 

The occurrence of severe weather, natural disasters, health epidemics, acts of war or terrorism, military conflicts (such as 
the war between Russia and Ukraine), and other adverse external events or conditions that impact us or the operations of 
third parties who provide services for us have the potential to significantly impact our ability to conduct business. Although 
we have business continuity plans in place, including an emergency succession plan, there is no guarantee that our plans 
have adequately addressed each risk and can be successfully implemented. Even if we were to successfully implement our 
continuity plans, we may incur substantial expenses and there is no guarantee that our business, financial condition, and 
results of operations will not be materially impacted. 

Risks Related to Cybersecurity, Data Privacy, and Information Technology  

We are dependent on our information technology systems, and a systems failure, perceived or actual data privacy 
breach, or cybersecurity incident could have a material adverse effect on our business, results of operations, and 
financial condition. 

We depend on the proper functioning, availability, and security of our information technology (“IT”) systems, including 
communications,  data  processing,  financial,  and  operating  systems,  as  well  as  proprietary  software  programs  that  are 
integral  to  the  efficient  operation  of  our  business.  Our  IT  systems  are  vulnerable  to  interruption  by  adverse  weather 
conditions  or  natural  disasters;  power  loss;  telecommunications  failures;  terrorist  attacks;  internet  failures  and  other 
disruptions  to  technology,  including  computer  viruses;  and  other  events  beyond  our  control,  including  cybersecurity 
attacks and other cyber incidents such as denial of service, system failure, security breach, intentional or inadvertent acts 
by employees or vendors with access to our systems or data, or disruption by malware. Any significant failure or other 
disruption in our critical IT systems that impacts the availability, reliability, speed, accuracy, or other proper functioning 
of these systems or that results in proprietary information or sensitive or confidential data, including personal information 
of customers, employees and others, being compromised could have a significant impact on our business, interrupt or 
delay our operations, damage our reputation, cause a loss of customers, cause errors or delays in financial reporting, result 
in violation of privacy laws, expose us to a risk of loss or litigation, and/or cause us to incur significant time and expense 
to remedy such an event, any of which could have a material adverse effect on our business, results of operations, and 
financial condition.  

New or enhanced technology that we develop and implement may also be subject to cybersecurity attacks and may be 
more prone to related incidents. We also utilize certain third-party software applications; provide underlying data to third 
parties; grant access to certain of our systems to third parties who provide certain services; and increasingly store and 
transmit data with our customers and third parties by means of connected IT systems, any of which may increase the risk 
of a data privacy breach or other cybersecurity incident. Any problems caused by or impacting these third parties, including 
cyberattacks and security breaches at a vendor, could result in claims, litigation, losses and/or liabilities and materially 
adversely affect our ability to provide service to our customers and otherwise conduct our business.  

A  significant  portion  of  our  employee  population  operates  under  remote  and  hybrid  work  arrangements,  which  may 
increase  demand  for  IT  resources  and  our  exposure  to  cybersecurity  risks,  including  an  increased  risk  of  phishing, 
unauthorized access to proprietary information or sensitive or confidential data, and other cybersecurity attacks. Although 
we have implemented measures to mitigate our exposure to the heightened risks associated with working remotely through 
our technology security programs, we cannot be certain that such measures will be effective to prevent a cybersecurity 
incident from materializing. While we maintain property and cyber insurance, losses arising from a significant disaster or 
cyber incident may exceed our insurance coverage and could have a material adverse impact on our results of operations 
and financial condition.  

We have experienced incidents involving attempted denial of service attacks, malware attacks, and other events intended 
to disrupt information systems, wrongfully obtain valuable information, or cause other types of malicious events that could 
have resulted in harm to our business. To our knowledge, the various protections we have employed have been effective 
to date in identifying these types of events at points when the impact on our business could be minimized. Despite our 
efforts to monitor and develop our IT networks and infrastructure, due to the increasing sophistication of cyber criminals 
and  the  development  of  new  techniques  for  attack,  we  may  be  unable  to  anticipate  or  promptly  detect,  or  implement 
adequate protective or remedial measures against, cybersecurity attacks. 

21 

 
 
 
 
 
 
 
 
 
We  engage  third  parties  to  provide  certain  information  technology  needs,  including  licensed  software,  and  the 
inability to maintain these third-party systems or licenses, or any interruptions or failures thereof, could adversely 
affect our business.  

Certain of our IT needs are provided or supported by third parties, and we have limited control over the operation, quality, 
or maintenance of services provided by our vendors or whether they will continue to provide services that are essential to 
our  business.  The  efficient  and  uninterrupted  operation  of  our  IT  systems  depends  upon  the  internet,  electric  utility 
providers,  and  telecommunications  providers.  The  IT  systems  of  our  third-party  service  providers  are  vulnerable  to 
interruption by adverse weather conditions or natural disasters, power loss, telecommunications failures, terrorist attacks, 
internet failures, computer viruses, and other events beyond our control. Disruptions or failures in the services upon which 
our IT platforms rely, or in other third-party services upon which we rely to operate our business and report financial 
results, may adversely affect our operations and the services we provide. Such disruptions or failures could increase our 
costs or result in a loss of customers that could have a material adverse effect on our results of operations and financial 
condition.  Additionally,  we  license  a  variety  of  software  that  provide  critical  support  for  our  operations.  There  is  no 
guarantee that we will be able to continue these licensing arrangements with the current licensors, or that we can replace 
the functions provided by these licenses, on commercially reasonable terms or at all. 

If we are unable to timely and effectively develop and implement new or enhanced technology or processes, or if 
we fail to realize the potential benefits thereof, including the pilot test program at ABF Freight and our investment 
in human-centered remote operation software, we may suffer competitive disadvantage, loss of customers, or other 
consequences that could negatively impact our business, results of operations and financial condition. 

The  industry  has  experienced,  and  will  likely  continue  to  experience,  rapid  changes  in  technology,  including  the 
development of new technology and enhancements in existing technology. As technology improves, our customers may 
find  alternatives  to  our  services  to  meet  their  freight  transportation  and  logistics  needs.  New  entrants  to  the  market, 
including start-ups and emerging business models which are often technology-centric or technology-enabled, have also 
expanded the field of competition and driven an increased pressure for innovation in the industry.   

Technology and new market entrants may also disrupt the way we, and our competitors, operate to provide freight logistics 
services. We expect our customers will continue to demand more sophisticated technology-driven solutions from their 
suppliers, including advancements in processes, equipment, and facilities to address concerns over business efficiency, 
supply chain effectiveness, and climate change. To improve efficiencies and meet our customers’ needs, we have made, 
and continue to make, significant investments in the enhancement of existing technology and in the development of new 
and  innovative  solutions,  such  as  software  and  physical  assets  that  are  in  various  stages  of  development  and 
implementation.  We  began  investing  in  human-centered  remote  operation  software  in  2021  as  further  described  in 
“Technology” within Part I, Item 1 (Business) of this Annual Report on Form 10-K. Our investments in technology also 
include a pilot test program we began in 2019 to improve freight handling at ABF Freight as further described in “Asset-
Based Segment” within Part I, Item 1 (Business) of this Annual Report on Form 10-K. A number of factors will be involved 
in  determining  proof  of  concept  for  the  pilot  test  program,  and  there  can  be  no  assurance  that  our  technology 
implementations, including the pilot and our remote operation software implementation, will be successful. 

Our  efforts  and  investments  in  technology  innovation  may  continue  to  require  significant  ongoing  research  and 
development costs and implementation costs and may involve new or unforeseen risks and challenges associated with the 
technology. The success of our approach to technology innovation is dependent upon market acceptance of our solutions 
and a number of other factors, including our ability to: 

 
 
 

 

 
 
 

deploy funds and resources for investment in technology and innovation;  
achieve the right balance of strategic investments in existing or developing technology and innovation; 
timely and effectively develop and implement new or enhanced technology, including integration into current 
operations and interaction with existing systems;  
train our employees to operate the technology and/or achieve appropriate customer, carrier or other desired user 
adoption of the technology;  
adequately anticipate challenges and respond to unforeseen challenges;  
detect and remedy defects in enhanced or new technology; and 
recover  costs  of  investment  through  increased  business  levels,  higher  prices,  improved  efficiencies  or  other 
means, such as licensing or disposing of the developed solution. 

22 

 
 
 
 
 
 
 
If we do not pursue technological advances or engage in innovation, if we fail to successfully or timely develop and deploy 
enhanced or new technology, or if any enhanced or new technology does not yield the results we expect, or is developed 
by others, we may be placed at a competitive disadvantage; lose customers; incur higher than anticipated costs, including 
the possible impact of asset impairment or the write-off of software development costs; or fail to meet the goals of our 
internal  growth  strategy,  any  one  of  which  could  materially  adversely  impact  our  financial  condition  and  results  of 
operations. 

Risks Related to Our Business 

The loss of or reduction in business from one or more large customers, or an overall reduction in our customer 
base, could have a material adverse effect on our business, results of operations, financial condition, and cash flows. 

Although we do not have a significant customer concentration, the growth of our business could be materially impacted, 
and our results of operations and cash flows would be adversely affected if we were to lose all or a portion of the business 
of some of our large customers. Such loss may occur if our customers choose to divert all or a portion of their business 
with us to one of our competitors; demand pricing concessions for our services; require us to provide enhanced services 
that increase our costs; or develop their own shipping and distribution capabilities. Our customer relationships are generally 
not subject to long-term contractual obligations or minimum volume commitments, and we cannot ensure that our current 
customer relationships will continue at the same business levels or at all. A reduction in our customer base or difficulty in 
collecting, or the inability to collect, payments from our customers due to changes in pricing, economic hardship or other 
factors could have a material adverse effect on our business, results of operations, financial condition, and cash flows. 

Our initiatives to grow our business operations or to manage our cost structure to business levels may take longer 
than anticipated or may not be successful. 

Developing our service offerings requires ongoing investment in personnel and infrastructure, including operating and 
management information systems. Depending upon the timing and level of revenues generated from our growth initiatives, 
including  the  acquired  operations  of  MoLo,  the  related  results  of  operations  and  cash  flows  we  anticipate  from  these 
initiatives and additional service offerings may not be achieved. If we are unable to manage our growth effectively, our 
business, results of operations, and financial condition may be adversely affected. 

Our growth plans place significant demands on our management and operating personnel, and we may not be able to hire, 
train, upskill, and retain the appropriate personnel to manage and grow these services. Hiring new employees has resulted 
in  an  increase  in  our  training  costs  and  caused  temporary  labor  inefficiencies,  which  may  continue  with  future  hiring 
initiatives.  We  have  incurred  increased  costs  associated  with  long-term  investment  in  the  development  of  our  owner 
operator fleet and contract carrier capacity for our ArcBest segment. As we focus on growing our ArcBest segment, we 
may also encounter difficulties in adapting our corporate structure or in developing and maintaining effective partnerships 
among our operating segments, which could hinder our operational, financial, and strategic objectives. Furthermore, we 
may invest significant resources to enter or expand our services in markets with established competitors and in which we 
will encounter new competitive challenges, and we may not be able to successfully gain market share, which could have 
an adverse effect on our operating results and financial condition. 

We also face challenges and risks in implementing initiatives to manage our cost structure to business levels or changing 
market demands, as portions of salaries, wages, and benefits are fixed in nature and the adjustments that would otherwise 
be necessary to align the labor cost structure to corresponding business levels are limited as we strive to maintain customer 
service. It is more difficult to match our staffing levels to our business needs in periods of rapid or unexpected change, 
such as those we experienced in 2022. Our Asset-Based segment has incurred higher purchased transportation costs and 
experienced labor inefficiencies due to labor shortages and the training of newly hired employees during 2021 and 2022. 
We may, in the future, incur additional costs related to purchased transportation and/or experience labor inefficiencies in 
training new employees who are hired in response to growth. If such additional costs are disproportionate to our business 
levels,  they  may  adversely  impact our  operating  results. A prolonged  labor  shortage or  significant  labor  inefficiencies 
could have a material adverse effect on our results of operations, financial condition, and cash flows as a result of lower 
levels  of  service,  including  timeliness,  productivity  and/or  quality  of  service.  We  regularly  evaluate  and  modify  the 
network  of  our  Asset-Based  operations  to  reflect  changes  in  customer  demands  and  to  reconcile  the  segment’s 
infrastructure with tonnage levels and the proximity of customer freight, and there can be no assurance that any given 
network change will result in a material improvement in our Asset-Based segment’s results of operations. 

23 

 
 
 
 
 
 
 
 
We may be unsuccessful in realizing all or any part of the anticipated benefits of any recent or future acquisitions 
within  the  expected  time  period  or  at  all.  The  cost,  integration,  and  performance  of  any  such  acquisition  may 
adversely affect our business, results of operations, financial condition, and cash flows. 

As part of our strategy to expand our revenue opportunities and achieve a more balanced business mix, we acquired MoLo 
on November 1, 2021. The acquired truckload brokerage operation of MoLo has been included in our ArcBest operating 
segment and resulted in growth of our Asset-Light operations. We may be unable to generate sufficient revenue or earnings 
from  the  operations  of  MoLo,  or  any  future  acquired  business,  to  offset  our  acquisition  or  investment  costs,  and  the 
acquired  business  may  otherwise  fail  to  meet  our  operational  or  strategic  expectations.  Difficulties  encountered  in 
combining operations, including underestimation of the resources required to support an acquisition, could prevent us from 
realizing  the  full  anticipated  benefits,  and  within  the  anticipated  timeframe,  and  could  adversely  impact  our  business, 
results of operations, and financial condition. If acquired operations fail to generate sufficient cash flows, we may incur 
impairments of goodwill, intangibles, and other assets in the future. 

The possible risks involved in recent or future acquisitions include, among others: 

 
 

 

 
 
 
 

 
 
 
 

potential loss of customers, key employees, and third-party service providers;  
difficulties synchronizing operations of the companies, including the integration of workforces, while continuing 
to provide consistent, high-quality service to customers;  
unanticipated issues in the assimilation and consolidation of IT, communications, and other systems, including 
additional systems training and other labor inefficiencies;  
potentially unacceptable qualification requirements for contract carriers or other third-party vendors; 
potentially unfavorable, or adverse changes to, pre-existing contractual relationships; 
delays in consolidation of corporate and administrative infrastructures;  
difficulties and costs of synchronizing our policies, procedures, business culture, and benefits and compensation 
programs;  
inability to apply and maintain our internal controls and compliance with regulatory requirements;  
difficulties related to additional or unanticipated regulatory and compliance issues;  
adverse tax consequences associated with the acquisition; and 
other unanticipated issues, expenses, and liabilities, including previously unknown liabilities, or legal proceedings 
which may arise, associated with the acquired business for which we have no, or are unable to secure, recourse 
under applicable indemnification or insurance provisions. 

We continue to evaluate acquisition candidates and may acquire assets and businesses that we believe complement our 
existing assets and business or enhance our service offerings. The complex and time-consuming processes of evaluating 
acquisitions and performing due diligence procedures include risks that may adversely impact the success of our selection 
of candidates, pricing of the transaction, and ability to integrate critical functional areas of the acquired business. Future 
acquisitions, if any, may require substantial capital or the incurrence of substantial indebtedness or may involve the dilutive 
issuance of equity securities, which may negatively impact our capitalization and financial position. Further, we may not 
be able to acquire any additional companies at all or on terms favorable to us, even though we may have incurred expenses 
in evaluating and pursuing strategic transactions. 

Damage to our corporate reputation may cause our business to suffer. 

Our business depends, in part, on our ability to maintain the image of our brands. Service, performance, and safety issues, 
whether actual or perceived and whether as a result of our actions or those of our third-party service providers, could 
adversely impact our customers’ image of our brands, including ArcBest, ABF Freight, FleetNet America, Panther, MoLo, 
and U-Pack, and result in the loss of business or impede our growth initiatives. Adverse publicity regarding labor relations, 
legal matters, cybersecurity and data privacy concerns, ESG issues, and similar matters, whether or not justified, could 
have a negative impact on our reputation and may result in the loss of customers and our inability to secure new customer 
relationships. Despite our efforts to adapt to and address these concerns, our efforts may be insufficient, and our industry 
may be generally disfavored by the investing community at large. Additionally, the implementation of initiatives, including 
our ESG initiatives, which are detailed on our website, may increase our costs. It is difficult to predict how our efforts with 
respect to social and sustainability matters will be evaluated by current and prospective investors or by our customers or 
business partners.  

24 

 
 
 
 
 
 
 
Our business, including the self-service moving offerings provided under our U-Pack brand, is increasingly dependent on 
the internet for attracting and securing customers, and the possibility that fraudulent behavior may confuse or deceive 
customers  heightens  the  risk  of  damage  to  our  reputation  and  increases  the  time  and  expense  required  to  protect  and 
maintain the integrity of our brands. With the increased use of social media outlets, adverse publicity, even when based 
upon incorrect information or false statements, can be disseminated quickly and broadly, making it increasingly difficult 
for us to effectively respond. Damage to our reputation and loss of brand equity could reduce demand for our services and, 
thus, have an adverse effect on our business, results of operations, and financial condition, as well as require additional 
resources to rebuild our reputation and restore the value of our brands. 

Our  corporate  reputation  and  business  depend  on  a  variety  of  intellectual  property  rights,  and  the  costs  and 
resources expended to enforce or protect our rights or to defend against infringement claims could adversely impact 
our business, results of operations, and financial condition. 

We have registered or are pursuing registration of various marks and designs as trademarks in the United States, including, 
but  not  limited  to,  “ArcBest,”  “ABF  Freight,”  “FleetNet  America,”  “Panther,”  “MoLo,”  “U-Pack,”  and  “More  Than 
Logistics.”  For  some  marks,  we  also  have  registered  or  are  pursuing  registration  in  certain  other  countries.  At  times, 
competitors may adopt service or trade names or logos or designs similar to ours, thereby impeding our ability to build 
brand identity and possibly leading to market confusion. We have obtained or are pursuing patent protection on internally 
developed and certain purchased technology, including equipment and process patents in connection with the previously 
disclosed pilot  test  program at  ABF  Freight.  Competitors  or other  third  parties  could attempt  to  reproduce  or reverse-
engineer our patented technologies, or we could be subject to third-party claims of infringement. Any of our intellectual 
property  rights  related  to  trademarks,  trade  secrets,  domain  names,  copyrights,  patents,  or  other  intellectual  property, 
whether owned or licensed, could be challenged or invalidated, or misappropriated or infringed upon, by third parties. Our 
efforts to obtain, enforce, or protect our proprietary rights, or to defend against third-party infringement claims, may be 
ineffective  and  could  result  in  substantial  costs  and  diversion  of  resources  and  could  adversely  impact  our  corporate 
reputation, business, results of operations, and financial condition.  

Risks Related to Our Industry 

A nationwide or global disruption in the supply chain could increase volatility in freight volumes and materially 
impact our business. 

Our business may be materially impacted by the cyclical nature of the supply chain industry which has been exacerbated 
due to an ongoing shortage of truck drivers, material scarcity, port and rail congestion, digital transformation, and changes 
in consumer spending due to record inflation and rising interest rates, among other challenges following the outbreak of 
the COVID-19 pandemic. We have experienced, and may continue to experience, an inability to obtain, or delays in the 
delivery  of,  equipment  necessary  for  operations,  including  tractors,  trailers,  and  other  equipment,  as  a  result  of 
manufacturing delays, supply chain disruptions, and parts shortages. The extent to which we are vulnerable to and may be 
negatively impacted by supply chain disruptions is uncertain and dependent upon the duration and severity of labor and 
supply  shortages  as  well  as  other  factors  beyond  our  control,  such  as  extreme  weather  events,  natural  disasters, 
cybersecurity breaches or government shutdowns. Supply chain disruptions have and may continue to have a significant 
impact on consumer prices, demand, and bottlenecks in production, which may negatively impact our freight volume, 
operating costs, and ability to serve our customers. 

We operate in a highly competitive and fragmented industry, and our business could suffer if we are unable to 
adequately  address  factors  that  could  affect  our  profitability,  growth  prospects,  and  ability  to  compete  in  the 
transportation and logistics market. 

We face significant competition in local, regional, national, and, to a lesser extent, international markets. We compete with 
LTL  carriers of varying  sizes,  including both union  and  nonunion LTL carriers  and,  to  a  lesser  extent, with  truckload 
carriers and railroads. We also compete with domestic and global logistics service providers, including asset-light logistics 
companies, integrated logistics companies, and third-party freight brokers that compete in one or more segments of the 
transportation industry. Numerous factors could adversely impact our ability to compete effectively in the transportation 
and logistics industry, retain our existing customers, or attract new customers, which could have a material adverse effect 
on our business, results of operations, financial condition, and cash flows. The competitive factors material to our business 
are the following: 

25 

 
 
 
 
 
 
 
 
  Our Asset-Based segment competes primarily with nonunion motor carriers who generally have a lower fringe 
benefit cost structure than union carriers for freight-handling and driving personnel and have greater operating 
flexibility because they are subject to less-stringent labor work rules. Wage and benefit concessions granted to 
certain union competitors have allowed for a lower cost structure than that of our Asset-Based segment. Under 
its current collective bargaining agreement, ABF Freight continues to pay some of the highest benefit contribution 
rates  in  the  industry,  which  continues  to  adversely  impact  the  operating  results  of  our  Asset-Based  segment 
relative to our competitors in the LTL industry. 

  Some of our competitors periodically reduce their prices to gain business, especially during times of reduced 
growth  rates  in  the  economy,  which  limits  our  ability  to  maintain  or  increase  prices.  If  customers  select 
transportation service providers based on price alone rather than the total value offered, we may be unable to 
maintain our operating margins or to maintain or grow tonnage levels. 

  Enhanced  visibility  of  capacity  options  in  the  marketplace  is  increasing  and  customers  may  seek  bids  from 
multiple carriers for their shipping needs, which may generally depress prices or result in the loss of some business 
to our competitors. 
In a tight capacity market, as experienced in the first half of 2022, customer demand may exceed available carrier 
capacity in the industry. When market capacity loosens, as occurred in the second half of 2022, we may be unable 
to maintain the favorable prices we obtained for our services in the tighter capacity environment, especially if 
there is a prolonged recessionary period. 

 

  Customers may reduce the number of carriers they use by selecting “core carriers” as approved transportation 

service providers, and in some instances, we may not be selected. 

  Customers  are  increasingly focused on  concerns related  to  climate  change and  they may select  transportation 
providers  that  are  able  to  reduce  emissions  through  efficiency  improvements  to  existing  and  emerging 
technologies, adoption of alternative fuels or through carbon offsetting mechanisms. 

  Our FleetNet operations also face challenges, and could suffer loss of business, due to companies that choose to 

insource their fleet repair and maintenance services. 

Additionally, as the retail industry continues its trend toward increases in e-commerce, the manner in which our customers 
source or utilize our services will continue to evolve. If we are unable to successfully adapt and implement appropriate 
measures in response to these changes, our operating results could be adversely affected. 

Increased  prices  for,  or  decreases  in  the  availability  of,  new  revenue  equipment,  as  well  as  higher  costs  of 
equipment-related operating expenses, could adversely affect our results of operations and cash flows. 

In recent years, manufacturers have raised the prices of new revenue equipment significantly due to inflation, increased 
demand for or decreased supply of such equipment, parts shortages, manufacturing disruptions, and increased costs of 
materials and labor. Manufacturers have also raised prices, in part, to offset their costs of compliance with new tractor 
engine and emissions system design requirements intended to reduce emissions, which have been mandated by the EPA, 
the NHTSA, and various state agencies such as those described in “Environmental and Other Government Regulations” 
within Part I, Item 1 (Business) of this Annual Report on Form 10-K. GHG emissions regulations are likely to continue to 
impact  the  design  and  cost  of  equipment  utilized  in  our  operations  as  well  as  fuel  costs.  Additional  state-mandated 
emission-control requirements could increase equipment and fuel costs for entire fleets that operate in interstate commerce. 
If  new  equipment  prices  increase  more  than  anticipated,  we  could  incur  higher  depreciation  and  rental  expenses  than 
anticipated. Our third-party capacity providers, including owner operators for portions of our ArcBest segment operations, 
are also subject to increased regulations and higher equipment and fuel prices, which will, in turn, increase our costs for 
utilizing their services or may cause certain providers to exit the industry, which could lead to or exacerbate a capacity 
shortage and further increase our costs of securing third-party services. If we are unable to fully offset any such increases 
in expenses with freight rate increases and/or improved fuel economy, our results of operations could be adversely affected.   

We depend on suppliers for equipment, parts, and services that are critical to our operations, which may be difficult to 
procure in the event of decreased supply or other supply chain disruptions. From time to time, some original equipment 
manufacturers (“OEMs”) of tractors and trailers may reduce their manufacturing output due to, for example, lower demand 
for  their  products  in  economic  downturns  or  a  shortage  of  component  parts.  For  example,  significant  shortages  of 
semiconductor  chips  and  other  component  parts  and  supplies,  including  steel,  have  forced  and  may  continue  to  force 
manufacturers to curtail or suspend their production, leading to a lower supply of tractors and trailers, higher prices, and 
lengthened trade cycles. Component suppliers may either reduce production or be unable to increase production to meet 
OEM demand, creating periodic difficulty for OEMs to react in a timely manner to increased demand for new equipment 
and/or increased demand for replacement components as economic conditions change. Our total capital expenditures for 

26 

 
 
 
 
2021 and, to a lesser extent, 2022 were reduced due to parts shortages and manufacturing disruptions of OEMs. As a result, 
a portion of our previously planned capital expenditures for 2021 and 2022 carried over into our 2022 and 2023 investment 
plans, respectively. When market forces result in demand outstripping supply, we have and may continue to face reduced 
supply levels and/or increased acquisition costs for new tractors or trailers, as well as related parts and services, for our 
Asset-Based  operations,  which  could  have  a  material  adverse  effect  on  our  business  and  growth  initiatives,  results  of 
operations, financial condition, and cash flows. 

Fuel shortages, changes in fuel prices, and the inability to collect fuel surcharges could have a material adverse 
effect on our business, results of operations, financial condition, and cash flows. 

The transportation industry is dependent upon the availability of adequate fuel supplies. A disruption in our fuel supply 
resulting from natural or man-made disasters; armed conflicts; terrorist attacks; actions by producers, including a decrease 
in drilling activity or the use of crude oil and oil reserves for purposes other than fuel production; legislation or regulations 
that require or result in new or alternate uses or other increases in the demand for fuel traditionally used by trucks; or other 
political, economic, and market factors that are beyond our control could have a material adverse effect on our business, 
results of operations, financial condition, and cash flows.  

Fuel represents a significant operating expense for us, and we do not have any long-term fuel purchase contracts or any 
hedging arrangements to protect against fuel price increases. Fuel prices fluctuate greatly due to factors beyond our control, 
such as global supply and demand for crude oil and diesel, political events, military conflicts, price and supply decisions 
by  oil  producing  countries  and  cartels,  terrorist  activities,  and  hurricanes  and  other  natural  or  man-made  disasters. 
Significant increases in fuel prices or fuel taxes resulting from these or other economic or regulatory changes that are not 
offset by base freight rate increases or fuel surcharges could have an adverse impact on our results of operations. 

Our Asset-Based segment and certain operations of our ArcBest segment assess a fuel surcharge based on an index of 
national diesel fuel prices. When fuel surcharges constitute a higher proportion of the total freight rate paid, our customers 
are  less  receptive  to  increases  in  base  freight  rates.  Prolonged  periods  of  inadequate  base  rate  improvements  could 
adversely impact operating results as elements of costs, including contractual wage rates, continue to increase. In periods 
of declining fuel prices, fuel surcharge percentages also decrease, which negatively impacts the total billed revenue per 
hundredweight  or  revenue  per  shipment  measure  and,  consequently,  our  revenues,  and  the  revenue  decline  may  be 
disproportionate to the corresponding decline in our fuel costs.  

Risks Related to Employees and Benefits 

If we have difficulty attracting, retaining and upskilling employees throughout the Company, we could be faced 
with labor inefficiencies or delayed growth, which could have a material adverse effect on our business, results of 
operations, financial condition, and cash flows. 

During recent years, we experienced, and continue to experience in certain markets, challenges with hiring an adequate 
number of qualified drivers, freight-handlers, and professional personnel to meet increases in demand due to numerous 
factors, including the continuing impact of the COVID-19 pandemic, prevailing wage rates, health and other insurance 
costs, and inflation. The available pool of drivers has been declining, which has caused and may continue to cause us more 
difficulty in retaining and hiring qualified drivers and other personnel. The expansion of flexible work options triggered 
by the COVID-19 pandemic has also provided more employment opportunities for those in professional roles, including 
our  IT  roles,  making  attraction  and  retention  more  complex.  Both  our  profitability  and  our  ability  to  grow  could  be 
adversely affected if we encounter difficulty in attracting, retaining, and upskilling employees, including qualified drivers, 
freight-handlers and professional personnel, if we become subject to contractually required increases in compensation or 
fringe benefit costs, or if wage inflation continues for noncontractual professional roles. Government regulations or the 
adverse impact of certain legislative actions that result in shortages of qualified drivers could also impact our ability to 
grow the Company. If we are unable to continue to attract, retain, and upskill qualified employees, including drivers, we 
could incur higher recruiting expenses or a loss of business.  

We could be obligated to make additional significant contributions to multiemployer pension plans. 

ABF Freight contributes to multiemployer pension and health and welfare plans to provide benefits for its contractual 
employees.  These  multiemployer  plans,  established  pursuant  to  the  Taft-Hartley  Act,  are  jointly-trusteed  and  cover 
collectively bargained employees of multiple unrelated employers. Due to the inherent nature of multiemployer pension 

27 

 
 
 
 
 
 
 
 
 
plans, there are risks associated with participation in these plans that differ from single-employer plans. Assets received 
by the plans are not segregated by employer, and contributions made by one employer can be and are used to provide 
benefits to current and former employees of other employers. If a participating employer in a multiemployer pension plan 
no  longer  contributes  to  the  plan,  the  unfunded  obligations  of  the  plan  may  be  borne  by  the  remaining  participating 
employers. If a participating employer in a multiemployer pension plan completely withdraws from the plan, it owes to 
the plan its proportionate share of the plan’s unfunded vested benefits, referred to as a withdrawal liability. A complete 
withdrawal  generally  occurs  when  the  employer  permanently  ceases  to  have  an  obligation  to  contribute  to  the  plan. 
Withdrawal liability is also owed in the event the employer withdraws from a plan in connection with a mass withdrawal, 
which generally occurs when all or substantially all employers withdraw from the plan in a relatively short period of time 
pursuant to an agreement. Were ABF Freight to completely withdraw from certain multiemployer pension plans, whether 
in connection with a mass withdrawal or otherwise, under current law, we would have material liabilities for our share of 
the unfunded vested liabilities of each such plan.  

The multiemployer pension plans to which ABF Freight contributes vary greatly in size and in funded status. Many of the 
multiemployer  pension  plans  to  which  ABF  Freight  contributes  are  underfunded  and,  in  some  cases,  significantly 
underfunded, as further discussed in Note J to our consolidated financial statements included in Part II, Item 8 of this 
Annual  Report  on  Form  10-K.  Such  underfunding  could  increase  the  size  of  our  potential  withdrawal  liability.  ABF 
Freight’s  obligations  to  these  plans  are  generally  specified  in  the  2018  ABF  NMFA  and  other  related  supplemental 
agreements.  These  pension  plans  provide  the  best  retirement  benefits  in  the  industry.  However,  when  compared  to 
competitors, ABF Freight pays some of the highest benefit contribution rates in the industry and continues to address the 
effect of the Asset-Based segment’s wage and benefit cost structure on its operating results in discussions with the IBT. 
Through  the  term  of  its  current  collective  bargaining  agreement,  ABF  Freight’s  multiemployer  pension  obligations 
generally will be satisfied by making the specified contributions when due. Future contribution rates will be determined 
through the negotiation process for contract periods following the term of the current collective bargaining agreement. 

Certain legislative actions which include provisions to improve funding for multiemployer pension plans became effective 
during 2021 and 2022, as further discussed in Note J to our consolidated financial statements included in Part II, Item 8 of 
this Annual Report on Form 10-K. However, despite such legislative actions, we may still trigger withdrawal liability 
through, among other things, mergers and other fundamental corporate transactions and, as a result of operational changes, 
site closures and job losses. We continue to monitor the impact these legislative actions have on the funding status of the 
multiemployer pension plans to which ABF Freight contributes; however, we cannot determine with any certainty the 
minimum contributions that will be required under future collective bargaining agreements or the impact they will have 
on our results of operations and financial condition.   

Risks Related to Third Parties 

We depend on services provided by third parties, and increased costs or disruption of these services, and claims 
arising from these services, could adversely affect our business, results of operations, financial condition, cash flows, 
and customer relationships. 

A reduction in the availability of rail services or services provided by third-party capacity providers to meet customer 
requirements, as well as higher utilization of third-party agents to maintain service levels in periods of tonnage growth or 
higher  shipment  levels,  could  increase  purchased  transportation  costs  which  we  may  be  unable  to  pass  along  to  our 
customers. If a disruption or reduction in transportation services from our rail or other third-party service providers were 
to occur, we could be faced with business interruptions that could cause us to fail to meet the needs of our customers. In 
addition, third-party providers can be expected to increase their prices based on market conditions or to cover increases in 
operating expenses. If we are unable to correspondingly increase the prices we charge to our customers, or if we are unable 
to secure sufficient third-party services to expand our capacity, add additional routes, or meet our commitments to our 
customers, there could be a material adverse impact on our operations, revenues, profitability and customer relationships. 

Our ability to secure the services of third-party service providers is affected by many risks beyond our control, including 
unfavorable  pricing  conditions;  the shortage  of quality  third-party providers,  including owner operators  and drivers of 
contracted carriers for our ArcBest segment; shortages in available cargo capacity of third parties; equipment shortages in 
the transportation industry, particularly among contracted truckload carriers; changes in government regulations affecting 
the transportation industry and their related impact on operations, such as hours-of-service rules and the ELD mandate; 
labor disputes; or a significant interruption in service or stoppage in third-party transportation services. Each of these risks 
could have a material adverse effect on the operating results of our ArcBest segment.  

28 

 
 
 
 
 
 
In addition, we may be subject to claims arising from services provided by third parties, particularly in connection with 
the operations of our ArcBest segment, which are dependent on third-party contract carriers. From time to time, the drivers 
who are owner operators, independent contractors, or employees working for third-party carriers that we contract with are 
involved in accidents or incidents that may result in cargo loss or damage, other property damage, or serious personal 
injuries including death. As a result, claims may be asserted against us for actions by such drivers or for our actions in 
contracting with them initially or retaining them over time. We or our subsidiaries could be held directly responsible for 
these third-party claims and, regardless of ultimate liability, may incur significant costs and expenses in defending these 
claims or through settlements, even in cases where we believe we have meritorious claims or defenses. We may also incur 
claims in connection with third-party vendors utilized in FleetNet’s operations. Our third-party contract carriers and other 
vendors may not agree to bear responsibility for such claims, or we may become responsible if they are unable to pay the 
claims, for example, due to bankruptcy proceedings, and such claims may exceed the amount of our insurance coverage 
or may not be covered by insurance at all. 

Our engagement of independent contractor drivers to provide a portion of the capacity for our ArcBest segment 
exposes us to different risks than we face with our employee drivers. If we have difficulty in securing independent 
owner operators, or if we incur increased costs to utilize independent owner operators, our financial condition, 
results of operations, and cash flows could be adversely affected. 

The driver fleet for portions of our ArcBest segment is made up of independent owner operators and individuals. We face 
intense competition in attracting and retaining qualified owner operators from the available pool of drivers and fleets, and 
we may be required to increase owner operator compensation or take other measures to remain an attractive option for 
owner  operators,  which  may  negatively  impact  our  results  of  operations.  If  we  are  not  able  to  maintain  our  delivery 
schedules due to a shortage of drivers or if we are required to increase our rates to offset increases in owner operator 
compensation, our services may be less competitive, which could have an adverse effect on our business. Furthermore, as 
these independent owner operators and individuals are third-party service providers, rather than our employees, they may 
decline loads of freight from time to time, which may impede our ability to deliver freight in a timely manner. If we fail 
to meet certain customer needs or incur increased expenses to do so, this could adversely affect the business, financial 
condition, and results of operations of our ArcBest segment. 

Additionally, we pay independent contractor drivers a fuel surcharge that increases with the increase in fuel prices. A 
significant increase or rapid fluctuation in fuel prices could cause the fuel surcharge we pay to independent contractors to 
be higher than the revenue we receive under our customer fuel surcharge programs, which could adversely impact the 
results of operations of our ArcBest segment. 

If the independent contractors with which we contract are deemed by regulators or judicial process to be employees, 
or  if  we  experience  operational  or  regulatory  issues  related  to  our  use  of  these  contract  drivers,  our  financial 
condition, results of operations, and cash flows could be adversely affected. 

Class actions and other lawsuits have arisen in the transportation and logistics industry seeking to reclassify independent 
contractor drivers as employees for a variety of purposes, including workers’ compensation, wage-and-hour, and health 
care coverage. Many states have enacted restrictive laws that make it difficult to successfully prove independent-contractor 
status, and all states have enforcement programs to evaluate the classification of independent contractors. In the event of 
such reclassification of our owner operators, we could be exposed to various liabilities and additional costs, for both future 
and prior periods, under federal, state, and local tax laws, and workers’ compensation, unemployment benefits, labor, and 
employment  laws,  as  well  as  potential  liability  for  penalties  and  interest  and  under vicarious  liability  principles. Such 
liabilities and costs, to the extent they arise, could have a material adverse effect on the results of operations and financial 
condition of our ArcBest segment. 

Risks Related to Legal and Regulatory Matters 

We are subject to litigation risks, and at times may need to initiate litigation, which could result in significant costs 
and have other material adverse effects on our business, results of operations, and financial condition. 

The nature of our business exposes us to the potential for various claims and litigation, including class-action litigation 
and other legal proceedings brought by customers, suppliers, employees, or other parties, related to labor and employment, 
competitive  matters,  personal  injury,  property  damage,  cargo  claims,  safety  and  contract  compliance,  environmental 

29 

 
 
 
 
 
 
 
 
 
liability, and other matters. We are subject to risk and uncertainties related to liabilities, including damages, fines, penalties, 
and substantial legal and related costs, that may result from these claims and litigation. Some or all of our expenditures to 
defend, settle, or litigate these matters may not be covered by insurance or could impact our cost of, and ability to obtain, 
insurance in the future. Also, litigation can be disruptive to normal business operations and could require a substantial 
amount of time and effort from our management team. Further, because of the potential risks, expenses, and uncertainties 
of litigation, we may, from time to time, settle disputes, even where we believe that we have meritorious claims or defenses. 
Any material litigation or a catastrophic accident or series of accidents could have a material adverse effect on our business, 
results of operations, and financial condition. Our business reputation and our relationship with our customers, suppliers, 
and employees may also be adversely impacted by our involvement in legal proceedings.  

We establish reserves based on our assessment of known legal matters and contingencies. New legal claims, or subsequent 
developments related to known legal claims, asserted against us may affect our assessment and estimates of our recorded 
legal reserves and may require us to make payments in excess of our reserves, which could have a material adverse effect 
on our financial condition or results of operations. Also see Item 3 (Legal Proceedings) included in Part I of this Annual 
Report on Form 10-K for disclosure of a legal matter for which we believe a loss, that could be material to our financial 
condition, results of operations, or cash flows, is reasonably possible. 

Our  business operations are  subject  to  numerous  governmental  regulations  in  the  transportation  industry, and 
costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse 
effect on our financial condition and results of operations.  

Various international, federal, state and local agencies exercise broad regulatory powers over the transportation industry, 
such as those described in “Environmental and Other Government Regulations” within Part I, Item 1 (Business) of this 
Annual Report on Form 10-K. We could become subject to new or more restrictive regulations, and the costs to comply 
with such regulations could increase our operating expenses or otherwise have a material adverse effect on the results of 
our operations. Such regulations could also influence the demand for transportation services. Failure to comply with laws 
and regulations can result in penalties, revocation of our permits or licenses, or both civil and criminal actions against us. 
In addition to the potential harm to our reputation and brands, the financial burdens resulting from such actions could have 
a material adverse effect on our financial condition and results of operations. 

Failures by us, or our contracted owner operators and third-party carriers, to comply with the various applicable federal 
safety laws and regulations, or downgrades in our safety rating, could have a material adverse impact on our operations or 
financial condition, and could cause us to lose customers, as well as the ability to self-insure. The loss of our ability to 
self-insure for any significant period of time could materially increase insurance costs, or we could experience difficulty 
in obtaining adequate levels of insurance coverage. 

Our  ArcBest  segment  utilizes  third-party  service  providers  who  are  subject  to  similar  regulatory  requirements.  If  the 
operations of these providers are impacted to the extent that a shortage of quality third-party service providers occurs, or 
if  we  experience  a  shortage  of  quality  third-party  vendors  utilized  in  FleetNet’s  operations,  there  could  be  a  material 
adverse effect on the business and results of operations of our ArcBest and FleetNet segments. Also, activities by these 
providers  that  violate  applicable  laws  or  regulations  could  result  in  governmental  or  third-party  actions  against  us. 
Although third-party service providers with whom we contract agree to comply with applicable laws and regulations, we 
may not be aware of, and may therefore be unable to address or remedy, violations by them. 

We are also subject to stringent and changing privacy laws, regulations and standards as well as policies, contracts and 
other obligations related to data privacy, including customer and employee data. As a provider of worldwide transportation 
and logistics services, we collect and process significant amounts of customer data on a daily basis. In recent years, there 
have been global efforts by governments and consumer groups for increased transparency in how customer data is utilized 
and how customers and employees can control the use and storage of their data. Complying with existing or new data 
protection laws and regulations may increase our compliance costs or require us to modify our data handling practices. 
Non-compliance could result in governmental or consumer actions against us and even perceived non-compliance may 
otherwise adversely impact our reputation, operating results and financial condition. The uncertainty of the interpretation 
and enforcement of these laws, and their increasing scope and complexity, create regulatory risks that will likely increase 
over  time.  Additionally,  if  third  parties  or  others  violate  obligations  and  restrictions  with  respect  to  data  privacy  and 
security, such violations may also put our customers’ or employees’ information at risk and could in turn have a material 
and adverse effect on our business. 

30 

 
 
 
 
 
 
 
Our operations are subject to various environmental laws and regulations, the violation of which could result in 
substantial fines or penalties. The costs of compliance with current and future environmental laws and regulations 
may be significant and could adversely impact our results of operations. 

We routinely transport or arrange for the transportation of hazardous materials and explosives, and, at certain facilities of 
our  Asset-Based  operations,  we  store  fuel  and  oil  in  underground  and  aboveground  tanks  and  other  containers.  In 
connection with these operations, we are subject to federal, state and local environmental laws and regulations relating to, 
among other areas: emission controls, transportation of hazardous materials, underground and aboveground storage tanks, 
stormwater pollution prevention, contingency planning for spills of petroleum products, and disposal of waste oil. We may 
be subject to substantial fines, civil penalties, or third-party initiated lawsuits if we fail to obtain proper certifications or 
permits  or  if  we  do  not  comply  with  required  environmental  inspections  and  testing  provisions.  Under  certain 
environmental laws, we could be subject to strict liability for any clean-up costs relating to contamination at our past or 
present facilities and at third-party waste disposal sites, as well as costs associated with the cleanup of accidents involving 
our vehicles. 

The transportation of hazardous materials or explosives also involves the risks of, among others, fuel spillage or leakage, 
environmental damage, a spill or accident involving hazardous substances, and hazardous waste disposal. In addition, if 
any damage or injury occurs as a result of these operations, we may be subject to claims from third parties and bear liability 
for such damage or injury. 

Although we have instituted programs to monitor and control environmental risks and promote and maintain compliance 
with applicable environmental laws and regulations, violations of applicable laws or regulations may subject us to clean-
up costs and liabilities not covered by insurance or in excess of our applicable insurance coverage, including substantial 
fines, civil penalties, or civil and criminal liability, as well as bans on making future shipments in particular geographic 
areas, any of which could adversely affect our business, results of operations, financial condition, and cash flows. 

Concern over climate change, including the impact of global warming, has led to significant legislative and regulatory 
efforts to limit carbon and other GHG emissions, and some form of federal, state, and/or regional climate change legislation 
is  possible  in  the  future.  Emission-related  regulatory  actions  have  historically  resulted  in  increased  costs  of  revenue 
equipment, diesel fuel, and equipment maintenance, and future legislation, if enacted, could impose substantial costs on 
us  that  may  adversely  impact  our  results  of  operations.  Such  regulatory  actions  may  require  changes  in  our  operating 
practices,  impair  equipment  productivity,  or  require  additional  reporting  disclosures.  Compliance  with  laws  and 
regulations  related  to  climate  risk  may  also  increase  our  exposure  to  litigation  or  governmental  investigations  or 
proceedings. We may also incur significant costs to comply with increased regulation regarding environmental monitoring 
and reporting requirements. We are subject to increasing investor and customer sensitivity to sustainability issues, and we 
may be subject to additional requirements related to shareholder proposals, customer-led initiatives, or our customers’ 
efforts to comply with environmental programs. Until the timing, scope, and extent of any future regulation or customer 
requirements become known, we cannot predict their effect on our cost structure, business, or results of operations. 

Risks Related to Financial Considerations 

We are subject to interest rate risk and certain covenants under our financing arrangements. A default under these 
financing  arrangements  or  changes  in  regulations  that  impact  the  availability  of  funds,  or  our  borrowing  costs 
could cause a material adverse effect on our liquidity, financial condition, and results of operations. 

We are affected by the instability in the financial and credit markets that from time to time has created volatility in various 
interest rates and returns on invested assets. We are subject to market risk due to variable interest rates on our borrowings 
on  the  accounts  receivable  securitization  program  (“A/R  Securitization”)  and  the  revolving  credit  facility  (“Credit 
Facility”) under our Fourth Amended and Restated Credit Agreement (the “Credit Agreement”). Although we have an 
interest  rate  swap  agreement  to  mitigate  a  portion  of  our  interest  rate  risk  by  effectively  converting  $50.0 million  of 
borrowings  under  our  Credit  Facility,  of  which  $50.0  million  remains  outstanding  at  the  end  of  February 2023,  from 
variable-rate interest to fixed-rate interest, changes in interest rates may increase our financing costs related to our Credit 
Facility, future borrowings against our A/R Securitization, new notes payable or finance lease arrangements, or additional 
sources  of  financing.  Interest  rates  are  highly  sensitive  to  many  factors,  including  inflation,  governmental  monetary 
policies, domestic and international economic and political conditions and other factors beyond our control. Furthermore, 
future financial market disruptions may adversely affect our ability to refinance, maintain our letter of credit arrangements 
or,  if  needed,  secure  alternative  sources  of  financing.  If  any  of  the  financial  institutions  that  have  extended  credit 

31 

 
 
 
  
 
 
 
commitments to us are adversely affected by economic conditions, disruption to the capital and credit markets, or increased 
regulation,  they  may  become  unable  to  fund  borrowings  under  their  credit  commitments  or  otherwise  fulfill  their 
obligations to us, which could have an adverse impact on our ability to borrow additional funds, and thus have an adverse 
effect on our operations and financial condition. See Note G to our consolidated financial statements included in Part II, 
Item 8 of this Annual Report on Form 10-K for further discussion of our financing arrangements. 

Our  Credit  Agreement  and  A/R  Securitization  contain  customary  financial  covenants  and  other  customary  restrictive 
covenants that may limit our future operations. Failing to achieve certain required financial ratios could adversely affect 
our ability to finance our operations, make strategic acquisitions or investments, or plan for or react to market conditions 
or otherwise execute our business strategies. 

If we default under the terms of the Credit Agreement or our A/R Securitization and fail to obtain appropriate amendments 
to  or  waivers  under  the  applicable  financing  arrangement,  our  borrowings  under  such  facilities  could  be  immediately 
declared due and payable. An event of default under either of these facilities could constitute automatic default on the 
other facility and could trigger cross-default provisions in our outstanding notes payable and other financing agreements, 
unless the lenders to these facilities choose not to exercise remedies or to otherwise allow us to cure the default. If we fail 
to pay the amount due under our Credit Facility or A/R Securitization, the lender of the A/R Securitization could proceed 
against the collateral by which that facility is secured, our borrowing capacity may be limited, or one or both of the facilities 
could be terminated. If acceleration of outstanding borrowings occurs or if one or both of the facilities is terminated, we 
may have difficulty borrowing additional funds sufficient to refinance the accelerated debt or entering into new credit or 
debt arrangements, and, if available, the terms of the financing may not be favorable or acceptable. A default under the 
Credit Agreement or A/R Securitization, changes in regulations that impact the availability of funds or our borrowing 
costs, or our inability to renew our financing arrangements with terms that are acceptable to us, could have a material 
adverse effect on our liquidity and financial condition. 

Our  business  is  capital  intensive.  If  we  are  unable  to  generate  sufficient  cash  from  operations,  our  growth  and 
profitability could be limited due to significant ongoing capital expenditure requirements. 

We depend on cash flows from operations, borrowings under our Credit Facility or our A/R Securitization, and operating 
and financing leases to fund our capital expenditures. We continue to invest significantly in our revenue equipment fleet, 
which helps us reduce our maintenance costs and has resulted in the Company having one of the newest fleets on the road. 
If  we  are  unable  to  generate  sufficient  cash  over  an  extended  period  of  time  from  operations  to  fund  our  capital 
requirements,  we  may  have  to  limit  our  growth,  including  our  ability  to  invest  in  technological  initiatives  that  drive 
business  efficiencies;  utilize  our  existing  liquidity  or  enter  into  additional  financing  arrangements,  including  leasing 
arrangements; or operate our revenue equipment for longer periods resulting in increased maintenance costs, any of which 
could negatively impact our financial condition and results of operations. 

Claims expenses or the cost of maintaining our insurance, including medical plans, could have a material adverse 
effect on our results of operations and financial condition. 

Claims may be asserted against us for cargo loss or damage, property damage, personal injury, and workers’ compensation 
related to accidents or events occurring in our operations. Claims may also be asserted against us for accidents involving 
the operations of third-party service providers that we utilize, for our actions in retaining their services, for loss or damage 
to our customers’ goods or other damages for which we are alleged or may be determined to be responsible. Such claims 
against us and associated costs and legal expenses may not be covered by insurance policies or may exceed the amount of 
insurance  coverage  or  our  established  reserves,  which  could  adversely  impact  our  results  of  operations  and  financial 
condition. If the frequency and/or severity of claims increase, our operating results could be adversely affected. The timing 
of the incurrence of these costs could significantly and adversely impact our operating results.  

We are primarily self-insured for workers’ compensation, third-party casualty loss, and cargo loss and damage claims for 
the operations of our Asset-Based segment and certain of our other subsidiaries. We also self-insure for medical benefits 
for our eligible nonunion personnel. Because we self-insure for a significant portion of our claims exposure and related 
expenses, our insurance and claims expense may be volatile. If we lose our ability to self-insure for any significant period 
of  time,  insurance  costs  could  materially  increase,  and  we  could  experience  difficulty  in  obtaining  adequate  levels  of 
insurance  coverage.  Our  self-insurance  program  for  third-party  casualty  claims  is  conducted  under  a  federal  program 
administered by a government agency. If the government were to terminate the program or if we were to be excluded from 
the program, our insurance costs could increase. Additionally, if our third-party insurance carriers or underwriters leave 

32 

 
 
 
 
 
 
 
the  trucking  sector,  our  insurance  costs  or  collateral  requirements  could  materially  increase,  or  we  could  experience 
difficulties in finding insurance in excess of our self-insured retention limits. In recent years, several insurance companies 
have completely stopped offering coverage to trucking companies or have significantly reduced the amount of coverage 
they offer or have significantly raised premiums as a result of increases in the severity of automobile liability claims and 
sharply higher costs of settlements and verdicts. Our insurance premiums or deductibles could increase in the future due 
to market conditions or if our claims experience worsens. The impact of climate change, including its effect on weather-
related events which may disrupt our operations or damage our property and equipment, may increase our claims liabilities 
and the cost to obtain adequate insurance coverage for our business. If our insurance or claims expense increases, or if we 
decide to increase our insurance coverage in the future, and we are unable to offset any increase in expense with higher 
revenues,  our  earnings  could  be  adversely  affected.  In  some  instances,  certain  insurance  could  become  unavailable  or 
available only for reduced amounts of coverage. If we were to incur a significant liability for which we were not fully 
insured, it could have a material adverse effect on our results of operations and financial condition. 

We have programs in place with multiple surety companies for the issuance of unsecured surety bonds in support of our 
self-insurance program for workers’ compensation and third-party casualty liability. Estimates made by the states and the 
surety companies of our future exposure for our self-insurance liabilities could influence the amount and cost of additional 
letters of credit and surety bonds required to support our self-insurance program, and we may be required to maintain 
secured surety bonds in the future, which could increase the amount of our cash equivalents and short-term investments 
restricted for use and unavailable for operational or capital requirements.  

Future impairment, if any, of our goodwill and intangibles could adversely affect our earnings. 

Our  goodwill  and  intangible  assets  are  primarily  associated  with  acquisitions  in  the  ArcBest  segment.  As  of 
December 31, 2022, we had recorded goodwill of $305.4 million and intangible assets, net of accumulated amortization, 
of $113.8 million. Our annual impairment evaluations for goodwill and indefinite-lived intangible assets in 2022, 2021, 
and 2020 produced no  indication of  impairment of  the recorded balances;  however,  there  can  be no assurance  that an 
impairment will not occur in the future. 

Given the uncertainties regarding the economic environment, there can be no assurance that our estimates and assumptions 
made for purposes of impairment evaluations and accounting estimates will prove to be accurate. Significant declines in 
business levels or other changes in cash flow assumptions, including insufficient cash flows from acquired operations, or 
other factors that negatively impact the fair value of the operations of our reporting units, could result in impairment and 
noncash write-off of a significant portion of our goodwill and intangible assets, which would have an adverse effect on 
our financial condition and results of operations. 

Risks Related to Other External Conditions  

We are subject to general economic factors and instability in financial and credit markets that are largely beyond 
our control, any of which could adversely affect our business, financial condition, and results of operations. 

Our business is cyclical in nature and tends to reflect general economic conditions, which can be impacted by government 
actions, including suspension of government operations and imposition of trade tariffs. Our performance is affected by 
recessionary economic cycles, inflation, labor and supply shortages, downturns in customers’ business cycles, and changes 
in  their  business  practices.  Our  tonnage  and  shipment  levels  are  directly  affected  by  industrial  production  and 
manufacturing, distribution, residential and commercial construction, and consumer spending, in each case primarily in 
the North American economy, and capacity in the trucking industry as well as our customers’ inventory levels and freight 
profile  characteristics.  We  are  also  subject  to  risks  related  to  disruption  of  world  markets  that  could  affect  shipments 
between countries and could adversely affect the volume of freight and related pricing in the markets we serve. Further 
changes  to  U.S.  or  international  trade  policy  or  other  global  trade  impacts  could  result  in  increased  cost  for  goods 
transported globally, which may lead to reduced consumer demand, or trading partners could limit trades with countries 
that  impose  anti-trade measures, which  may  lead  to  a  lower volume of global  economic  trading  activity.  International 
security  concerns,  including  the  war  in  Ukraine  and  other  geopolitical  tensions,  and  potential  actions  or  retaliatory 
measures taken in respect thereof, could continue to have a material adverse effect on global trade and economic activity. 

Recessionary  economic  conditions  may  result  in  a  general  decline  in  demand  for  freight  transportation  and  logistics 
services.  The  pricing  environment  generally  becomes  more  competitive  during  periods  of  slow  economic  growth  and 
economic recessions, which may adversely affect the profit margin for our services. Our operations and the rates we obtain 

33 

 
 
 
 
 
 
 
 
for our services may also be negatively impacted when economic conditions lead to a decrease in shipping demand, which 
in turn results in excess equipment capacity in the industry. In certain market conditions, we may have to accept more 
freight from freight brokers, where freight rates are typically lower, or we may be forced to incur more non-revenue miles 
to obtain loads. Conversely, during times of higher shipping demand, tight market capacity may negatively impact the 
service  levels  we  are  able  to  provide  to  our  customers.  Demand  for  our  roadside  assistance  and  fleet  maintenance 
management  services  may  also  decline  in  a  weaker  economic  environment  when  customers  of  our  FleetNet  segment 
experience declines in their equipment utilization or delay maintenance needs.   

Economic conditions could adversely affect our customers’ business levels, the amount of transportation services they 
require, and their ability to pay for our services, which could negatively impact our working capital and our ability to 
satisfy our financial obligations and covenants of our financing arrangements. Customers encountering adverse economic 
conditions or facing credit issues could experience cash flow difficulties and, thus, represent a greater potential for payment 
delays  or  uncollectible  accounts  receivable,  and,  as  a  result,  we  may  be  required  to  increase  our  allowances  for 
uncollectible accounts receivable. Our obligation to pay third-party service providers is not contingent upon payment from 
our  customers,  and  we  extend  unsecured  credit  to  these  customers,  which  increases  our  exposure  to  uncollectible 
receivables. 

Inflation and rising interest rates may adversely affect us by increasing costs beyond what we can recover through 
price increases. 

Inflation in the United States was at its highest level in 40 years by the end of June 2022 and although the inflation rate 
slowed slightly during the second half of 2022, it remains above market forecasts as of January 2023. Significant inflation 
can adversely impact our financial condition by increasing interest rates and the cost of equipment. Most of our operating 
expenses  are  sensitive  to  increases  in  inflation,  including  fuel,  insurance,  employee  wages  and  benefits,  purchased 
transportation,  and  depreciation  due  to  higher  equipment  prices.  Further,  inflation  may  generally  increase  costs  for 
materials, supplies, services, and capital. In a highly inflationary environment, we may be unable to secure adequate price 
increases for our services to offset the increases in our operating costs, which could reduce our operating margins. 

Our business and results of operations could be impacted by seasonal fluctuations, adverse weather conditions, 
natural disasters, and climate change. 

Our operations are, and may in the future be, impacted by seasonal fluctuations and, at times, inclement weather conditions 
that affect tonnage and shipment levels, service events, demand for our services, and operating costs, which in turn may 
impact our revenues and operating results, as further described in “Seasonality” within Part I, Item 1 (Business) of this 
Annual Report on Form 10-K. Climate change may have an influence on the severity of weather conditions. Severe weather 
events and natural disasters could disrupt our operations or the operations of our customers or third-party service providers, 
damage existing infrastructure, destroy our assets, affect regional economies, or disrupt fuel supplies or increase fuel costs, 
any of which could adversely affect our business levels and operating results. 

ITEM 1B.  UNRESOLVED STAFF COMMENTS 

None. 

34 

 
 
 
 
 
 
 
 
 
ITEM 2. 

PROPERTIES 

The Company believes that its facilities, including owned and leased properties, are suitable and adequate and that the 
facilities have sufficient capacity to meet current business requirements. The Company owns an office facility in Fort 
Smith, Arkansas, which provides space for corporate and certain subsidiary functions. The Company also leases an office 
building in Fort Smith, Arkansas for certain subsidiary functions. 

Asset-Based Segment 

The Asset-Based segment operates out of its general office building located in Fort Smith, Arkansas and 239 revenue 
producing facilities, 10 of which also serve as distribution centers. The Company owns 110 of these Asset-Based segment 
facilities and leases the remainder from nonaffiliates. Asset-Based distribution centers are as follows: 

Owned: 

Dayton, Ohio 
Carlisle, Pennsylvania 
Winston-Salem, North Carolina 
Atlanta, Georgia 
South Chicago, Illinois 
North Little Rock, Arkansas 
Dallas, Texas 
Albuquerque, New Mexico 

Leased from nonaffiliate: 
Kansas City, Missouri 
Salt Lake City, Utah 

Asset-Light Operations 

     No. of Doors     

 330   
 333   
 150   
 226   
 274   
 196   
 196   
 85   

 81   
 89   

The ArcBest segment owns a general office building and service bay in Medina, Ohio and leases six additional office and 
warehouse locations, including an office and warehouse location in Sparks, Nevada and an office location in Chicago, 
Illinois. The FleetNet segment owns its office located in Cherryville, North Carolina. 

ITEM 3. 

LEGAL PROCEEDINGS 

Various legal actions, the majority of which arise in the normal course of business, are pending. The Company maintains 
liability insurance against certain risks arising out of the normal course of business, subject to certain self-insured retention 
limits. The Company has amounts accrued for certain legal, environmental, and self-insurance exposures. These exposures 
and  legal  actions  which  arise  in  the  normal  course  of  business  are  not  expected  to  have  a  material  adverse  effect, 
individually or in the aggregate, on the Company’s financial condition, results of operations, or cash flows.  

In January 2023, ArcBest Corporation and MoLo Solutions, LLC were added as defendants in five separate lawsuits all 
arising from a single multi-fatality auto accident involving one of MoLo’s contract carriers. The accident occurred in June 
2021 in Baxter County, Alabama, and the cases are pending in the state and federal courts therein situated. The accident 
occurred prior to the Company’s acquisition of MoLo. The lawsuits allege that MoLo was negligent in the selection of the 
motor carrier involved in the accident. The Company intends to vigorously defend against these lawsuits. Although a range 
of reasonably possible losses for this matter cannot be estimated at this time, it is reasonably possible that such amounts 
could be material to the Company’s financial condition, results of operations, or cash flows. The Company will pursue 
recovery for its losses, if any, against all available sources, including, but not limited to, insurance and any potentially 
responsible third parties. 

For  additional  information  related  to  our  environmental  and  legal  matters,  see  Note O  to  our  consolidated  financial 
statements included in Part II, Item 8 of this Annual Report on Form 10-K. 

ITEM 4.  MINE SAFETY DISCLOSURES 

Not applicable. 

35 

 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
PART II 

ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS 
AND ISSUER PURCHASES OF EQUITY SECURITIES 

Market Information, Dividends and Holders 

The common stock of ArcBest Corporation trades on the Nasdaq Global Select Market under the symbol “ARCB.” As of 
February 20, 2023,  there  were  24,258,338  shares  of  the  Company’s  common  stock  outstanding,  which  were  held  by 
182 stockholders of record. A substantially greater number of holders of ArcBest Corporation common stock are "street 
name" or beneficial holders, whose shares of record are held by banks, brokers, and other financial institutions. 

On January 30, 2023, the board of directors of the Company (the “Board of Directors”) declared a quarterly dividend of 
$0.12 per share to stockholders of record as of February 14, 2023. The Company expects to continue to pay quarterly 
dividends in the foreseeable future, although there can be no assurance in this regard since future dividends will be at the 
discretion  of  the  Board  of  Directors  and  will  depend  upon  the  Company’s  future  earnings,  capital  requirements,  and 
financial condition, contractual restrictions applying to the payment of dividends under the Company’s Fourth Amended 
and Restated Credit Agreement, and other factors.  

Issuer Purchases of Equity Securities 

The Company has a program to repurchase its common stock in the open market or in privately negotiated transactions. 
The program has no expiration date but may be terminated at any time at the Board of Directors’ discretion. In January 
2003, the Board of Directors authorized a $25.0 million common stock repurchase program and authorized extensions of 
the share repurchase program in 2005, 2015, and 2021. In April 2022, the Board of Directors increased the total amount 
available for purchases of the Company’s common stock under the share repurchase program to $75.0 million. 

On  November 1, 2021,  the  Board  of  Directors  authorized  the  Company  to  enter  into  an  accelerated  share  repurchase 
program (“ASR”). The fixed-dollar ASR, which was executed on November 2, 2021 with a third-party financial institution 
to effect an accelerated repurchase of $100.0 million of the Company’s common stock, was settled in January 2022.  

During 2022, the Company purchased 822,106 shares of its common stock for an aggregate cost of $65.0 million and 
purchased  214,763 shares  to  settle  the  remaining  $25.0 million  under  the  ASR.  During  the  three  months  ended 
December 31, 2022, the Company purchased 188,547 shares, leaving $26.5 million remaining under the Company’s share 
repurchase programs.  

of Shares 
     Purchased 

  Total Number    Average 
  Price Paid 
    Per Share(1)     
(in thousands, except share and per share data) 

Announced 
Program 

Maximum 

  Total Number of 
  Shares Purchased    Approximate Dollar   
  as Part of Publicly   Value of Shares that   
  May Yet Be Purchased  
     Under the Program   

10/1/2022-10/31/2022 
11/1/2022-11/30/2022 
12/1/2022-12/31/2022 

Total 

 —    $ 

 96,289  
 92,258  
 188,547    $ 

 —   
 79.48   
 78.39   
 79.00   

 —    $ 
 96,289    $ 
 92,258    $ 

 188,547  

 41,389  
 33,736  
 26,504  

(1)  Represents the weighted average price paid per common share including commission. 

ITEM 6. 

RESERVED 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
  
 
 
  
 
 
ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS 

ArcBest Corporation™ (together with its subsidiaries, the “Company,” “ArcBest®,” “we,” “us,” and “our”) is a multibillion-
dollar integrated logistics company that leverages technology and a full suite of shipping and logistics solutions to meet 
our customers’ supply chain needs. Our operations are conducted through three reportable operating segments:  

  Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries (“ABF Freight”);  
  ArcBest,  our  asset-light  logistics  operation,  including  MoLo  Solutions,  LLC  (“MoLo”),  Panther  Premium 

Logistics®, and certain other subsidiaries; and  

  FleetNet.  

The ArcBest and the FleetNet reportable segments combined represent our Asset-Light operations. For more information, 
see additional segment descriptions in Part I, Item 1 (Business) and in Note N to our consolidated financial statements 
included in Part II, Item 8 of this Annual Report on Form 10-K. References to the Company, including “we,” “us,” and 
“our,” in this Annual Report on Form 10-K, are primarily to the Company and its subsidiaries on a consolidated basis. 

ORGANIZATION OF INFORMATION 

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided to assist 
readers in understanding our financial performance during the periods presented and significant trends which may impact 
our future performance, including the principal factors affecting our results of operations, liquidity and capital resources, 
and critical accounting policies. MD&A includes additional information about significant accounting policies, practices, 
and the transactions that underlie our financial results. This discussion should be read in conjunction with our consolidated 
financial statements and the related notes thereto included in Part II, Item 8 of this Annual Report on Form 10-K. MD&A 
includes forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from 
the statements made in this section due to a number of factors that are discussed in Part I (Forward-Looking Statements) 
and Part I, Item 1A (Risk Factors) of this Annual Report on Form 10-K. MD&A is comprised of the following: 

  Results of Operations includes: 

 

 

 

 

an  overview  of  consolidated  results  with  2022  compared  to  2021,  and  a  consolidated  Adjusted  Earnings 
Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”) reconciliation to net income; 
a financial summary and analysis of our Asset-Based segment results of 2022 compared to 2021, including 
a discussion of key actions and events that impacted the results; 
a financial summary and analysis of the results of our Asset-Light operations for 2022 compared to 2021, 
including a discussion of key actions and events that impacted the results; and 
a discussion of other matters impacting operating results, including effects of inflation, current economic 
conditions, environmental and legal matters, and information technology and cybersecurity. 

  Liquidity and Capital Resources provides an analysis of key elements of the cash flow statements, borrowing 
capacity,  and  contractual  cash  obligations,  including  a  discussion  of  financing  arrangements  and  financial 
commitments. 

 

Income Taxes provides an analysis of the effective tax rates and deferred tax balances, including deferred tax 
asset valuation allowances. 

  Critical  Accounting  Policies  and  Estimates  discusses  those  accounting  policies  that  are  important  to 

understanding certain material judgments and assumptions incorporated in the reported financial results. 

  Recent Accounting Pronouncements discusses accounting standards that are not yet effective for our financial 
statements but are expected to have a material effect on our future results of operations or financial condition. 

RESULTS OF OPERATIONS 

This  Results  of  Operations  section  of  MD&A  generally  discusses  2022  and  2021  items  and  year-to-year  comparisons 
between 2022 and 2021. Discussions of 2020 items and year-to-year comparisons between 2021 and 2020 that are not 
included in this Form 10-K can be found in the Results of Operations section of MD&A in Part II, Item 7 of our Annual 
Report on Form 10-K for the fiscal year ended December 31, 2021. 

37 

 
 
 
 
 
 
 
 
Consolidated Results 

REVENUES 

Asset-Based 

ArcBest(1) 
FleetNet 

Total Asset-Light 

2022 

 Year Ended December 31 
2021 
(in thousands, except per share data) 

2020 

  $ 

 3,010,900   $ 

 2,573,773   $ 

 2,092,031  

 2,139,272  
 343,056  
 2,482,328  

 1,300,626  
 254,087  
 1,554,713  

 779,115  
 205,049  
 984,164  

Other and eliminations 

Total consolidated revenues 

  $ 

 (169,176) 
 5,324,052   $ 

 (148,419) 
 3,980,067   $ 

 (136,032) 
 2,940,163  

OPERATING INCOME 

Asset-Based 

ArcBest(1) 
FleetNet 

Total Asset-Light 

Other and eliminations 

Total consolidated operating income 

NET INCOME(1) 

DILUTED EARNINGS PER SHARE(1) 

  $ 

 381,133   $ 

 260,707   $ 

 98,865  

 52,725  
 5,825  
 58,550  

 46,397  
 4,544  
 50,941  

 9,655  
 3,367  
 13,022  

 (40,414) 
 399,269   $ 

 (30,662) 
 280,986   $ 

 (13,609) 
 98,278  

 298,209   $ 

 213,521   $ 

 71,100  

 11.69   $ 

 7.98   $ 

 2.69  

  $ 

  $ 

  $ 

(1) 

Includes the operations of MoLo® since the November 1, 2021 acquisition. The acquisition of MoLo is more fully described in the 
Asset-Light Overview section of Asset-Light Operations. 

Our consolidated revenues, which totaled $5.3 billion for 2022, increased 33.8% compared to 2021, reflecting increased 
customer demand and higher pricing for our broad service offerings, primarily during the first half of 2022, as well as 
revenues  from  the  acquired  operations  of  MoLo.  Our  annual  revenue  growth  was  partially  offset  by  the  impact  of 
weakening economic conditions during the second half of 2022, compared to the strong market environment in the same 
prior-year period. The year-over-year increase in consolidated revenues for 2022 reflects a 17.0% increase in our Asset-
Based revenues and a 59.7% increase in revenues of our Asset-Light operations. The increased elimination of revenues 
reported in the “Other and eliminations” line of consolidated revenues in 2022, compared to 2021, includes the impact of 
increased intersegment business levels among our operating segments, reflecting continued integration of our logistics 
services.  

Our  Asset-Based  revenue  improvement  reflects  a  14.5%  increase  in  billed  revenue  per  hundredweight,  including  fuel 
surcharges, a 1.6% increase in tonnage per day, and a 1.5% increase in shipments per day in 2022, compared to 2021, 
reflecting solid customer demand in a rational pricing environment. The increase in revenues of our Asset-Light operations 
for 2022, compared to 2021, reflects a 58.3% increase in shipments per day due to increased customer demand and the 
addition of MoLo and a 3.8% increase in revenue per shipment associated with higher market pricing in a tighter truckload 
capacity  environment  in  the  first  half  of  2022  (with  metrics  excluding  managed  transportation  shipments).  Increased 
market demand and improved pricing for managed transportation services within our ArcBest segment and increases in 
revenue per event and service event volume for our FleetNet segment also contributed to our revenue improvement for 
2022. Our 2022 revenue improvement was partially offset by the impact of a softening market environment in the second 
half of the year, including decelerating demand trends in our Asset-Based business and a slowdown in customer shipping 
volumes, combined with an increase in available truckload capacity which lowered market rates, in our ArcBest segment. 
Our Asset-Light operations, on a combined basis, generated approximately 45% and 38% of total revenues before other 
revenues and intercompany eliminations for 2022 and 2021, respectively, as we advanced toward our goal of achieving a 
more balanced revenue mix and ultimately toward a revenue mix that is more reflective of our customers’ needs for logistic 
services. 

Consolidated  operating  income  increased  $118.3 million  in  2022,  compared  to  2021,  primarily  due  to  the  improved 
operating results of our operating segments (further described within the Asset-Based Segment Results and the Asset-

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
     
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Light  Results sections).  The year-over-year  comparison  of  consolidated operating  income was  also  impacted by  items 
described in the following paragraphs, including costs related to investments in innovative technology, costs related to the 
MoLo acquisition, gains on the sale of a subsidiary, and costs associated with enhancements to our nonunion vacation 
policy. 

Innovative technology costs related to our freight handling pilot test program at ABF Freight are discussed in the Asset-
Based  Segment  Results  section.  Initiatives  to  optimize  our  performance  through  technological  innovation,  including 
certain costs related to the pilot program at ABF Freight and costs related to our investment in human-centered remote 
operation software, are reported in the “Other and eliminations” line of consolidated operating income. These combined 
costs impacted consolidated results by $40.8 million (pre-tax), or $30.8 million (after-tax) and $1.21 per diluted share, for 
2022, compared to $32.8 million (pre-tax), or $24.9 million (after-tax) and $0.93 per diluted share, for 2021.  

The MoLo acquisition impacted consolidated operating results in 2022 and 2021, including the change in the liability for 
contingent earnout consideration, the amortization of acquired intangible assets related to the acquisition, and, in 2021, 
transaction  costs  associated  with  the  acquisition.  The  liability  for  contingent  consideration  recorded  for  the  MoLo 
acquisition  is  remeasured  at  each  quarterly  reporting  date,  and  any  change  in  fair  value  as  a  result  of  the  recurring 
assessments is recognized in operating income. The quarterly remeasurement of the contingent consideration reduced the 
consolidated results for 2022, by a total of $18.3 million (pre-tax), or $13.6 million (after-tax) and $0.54 per diluted share. 
(The contingent earnout consideration is further discussed in Note D to our consolidated financial statements included in 
Part II, Item 8 of this Annual Report on Form 10-K.) Transaction costs associated with the MoLo acquisition impacted 
consolidated  results  by  $6.0 million  (pre-tax),  or  $4.4  million  (after-tax)  and  $0.16 per  diluted  share,  for  2021.  The 
amortization of acquired intangible assets related to the acquisition of MoLo and previously acquired businesses in the 
ArcBest segment impacted consolidated operating results for 2022 by $12.9 million (pre-tax), or $9.6 million (after-tax) 
and $0.38 per diluted share. For 2021, these costs impacted consolidated results by $5.3 million (pre-tax), or $3.9 million 
(after-tax) and $0.15 per diluted share. 

Consolidated  operating  results  benefited  from  the  sale  of  a  portion  of  our  ArcBest  segment’s  moving  labor  services 
business in second quarter 2021, for which a gain of $0.4 million (pre-tax), or $0.3 million (after-tax) and $0.01 per diluted 
share, was recognized for 2022 upon release of the funds related to the sale from escrow in second quarter 2022, compared 
to the gain of $6.9 million (pre-tax), or $5.4 million (after-tax) and $0.20 per diluted share, in 2021. Consolidated operating 
results for 2022 were also impacted by a one-time, noncash charge of $2.1 million (pre-tax), or $1.5 million (after-tax) 
and $0.06 per diluted share, for enhancements to our nonunion vacation policy which were effective in third quarter 2022. 

In addition to the above items, consolidated net income and earnings per share were impacted by changes in the cash 
surrender value of variable life insurance policies, tax benefits from the vesting of share-based compensation awards, tax 
credits, and other changes in the effective tax rate as described within the Income Taxes section of MD&A. A portion of 
our variable life insurance policies have investments, through separate accounts, in equity and fixed income securities and, 
therefore, are subject to market volatility. Changes in the cash surrender value of life insurance policies, which are reported 
below  the  operating  income  line  in  the  consolidated  statements  of  operations,  increased  consolidated  net  income  by 
$2.7 million and $0.11 per diluted share in 2022, and decreased consolidated net income by $4.1 million and $0.15 per 
diluted share in 2021.  

The vesting of restricted stock units resulted in a tax benefit of $8.1 million and $0.32 per diluted share for 2022, compared 
to a tax benefit of $7.6 million and $0.29 per diluted share in 2021. The year-over-year comparisons of consolidated net 
income and earnings per share for 2022 and 2021 were also impacted by tax benefits and credits, as well as other changes 
in the effective tax rates, which are further described within the Income Taxes section of MD&A and in Note F to our 
consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. 

39 

 
 
 
 
 
 
 
Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”) 
We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, 
management believes that certain non-GAAP performance measures and ratios, such as Adjusted EBITDA, utilized for 
internal  analysis  provide  analysts,  investors,  and  others  the  same  information  that  we  use  internally  for  purposes  of 
assessing our core operating performance and provides meaningful comparisons between current and prior period results, 
as  well  as  important  information  regarding  performance  trends.  Accordingly,  using  these  measures  improves 
comparability  in  analyzing  our  performance  because  it  removes  the  impact  of  items  from  operating  results  that,  in 
management’s  opinion,  do  not  reflect  our  core  operating  performance.  Management  uses  Adjusted  EBITDA  as  a  key 
measure of performance and for business planning. The measure is particularly meaningful for analysis of our operating 
performance, because it excludes amortization of acquired intangibles and software of the Asset-Light businesses, changes 
in  the  fair  value  of  contingent  earnout  consideration,  gain  on  sale  of  subsidiary,  and  transaction  costs,  which  are 
significant expenses or gains resulting from strategic decisions rather than core daily operations. Additionally, Adjusted 
EBITDA  is  a  primary  component  of  the  financial  covenants  contained  in  our  Fourth  Amended  and  Restated  Credit 
Agreement (see Note H to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 
10-K). Other companies may calculate Adjusted EBITDA differently; therefore, our calculation of Adjusted EBITDA may 
not be comparable to similarly titled measures of other companies. Non-GAAP financial measures should be viewed in 
addition to, and not as an alternative for, our reported results. Adjusted EBITDA should not be construed as a better 
measurement than operating income, operating cash flow, net income, or earnings per share, as determined under GAAP. 
The following table presents a reconciliation of Adjusted EBITDA to our net income, which is the most directly comparable 
GAAP measure for the periods presented. 

Net income 

Interest and other related financing costs 
Income tax provision 
Depreciation and amortization(1) 
Amortization of share-based compensation 
Change in fair value of contingent consideration(2) 
Gain on sale of subsidiary(3) 
Transaction costs(4) 

Consolidated Adjusted EBITDA 

2022 

2020 

 Year Ended December 31 
2021 
($ thousands) 
  $  298,209   $  213,521   $   71,100  
    11,697  
    21,396  
   118,391  
    10,478  
 —  
 —  
 —  
 $  420,751  $  233,062 

 7,701  
   94,946  
  140,039  
   12,775  
 18,300  
 (402) 
 —  
$  571,568 

 8,904  
   63,633  
  124,221  
   11,426  
 —  
 (6,923) 
 5,969  

Includes amortization of intangibles associated with acquired businesses. 

(1) 
(2)  Represents  increase  in  fair  value  of  the  contingent  earnout  consideration  recorded  for  the  MoLo  acquisition,  as  previously 

discussed. 

(3)  Gain relates to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021, including 
the  contingent  amount  recognized  in  second  quarter  2022  when  the  funds  were  released  from  escrow.  The  calculation  of 
consolidated Adjusted EBITDA was updated from the prior-year presentation to adjust for the gain on sale of subsidiary, consistent 
with management’s exclusion of this item when analyzing the Company’s core operating performance. 

(4)  Represents costs associated with the acquisition of MoLo. 

Asset-Based Operations 

Asset-Based Segment Overview 

The Asset-Based segment consists of ABF Freight System, Inc., a wholly owned subsidiary of ArcBest Corporation, and 
certain other subsidiaries. Our Asset-Based segment operates one of North America’s largest less-than-truckload (“LTL”) 
networks providing freight transportation services. Our customers trust the LTL solutions ABF Freight has provided for 
100  years  and  rely  on  us  to  solve  their  transportation  challenges.  We  are  strategically  investing  in  our  Asset-Based 
operations to utilize technology to improve freight handling processes and provide better experiences for our customers. 

Our Asset-Based operations are affected by general economic conditions, as well as a number of other competitive factors 
that are more fully described in Item 1 (Business) and in Item 1A (Risk Factors) of Part I of this Annual Report on Form 
10-K. See Note N to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K 
for a description of the Asset-Based segment and additional segment information, including revenues, operating expenses, 
and operating income for the years ended December 31, 2022, 2021, and 2020.   

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
    
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The key indicators necessary to understand the operating results of our Asset-Based segment are outlined below. These 
key  indicators  are  used  by  management  to  evaluate  segment  operating  performance  and  measure  the  effectiveness  of 
strategic  initiatives  in  the results  of our Asset-Based segment. We  quantify  certain  key  indicators using  key operating 
statistics, which are important measures in analyzing segment operating results from period to period. These statistics are 
defined  within  the  key  indicators  below  and  referred  to  throughout  the  discussion  of  the  results  of  our  Asset-Based 
segment: 

  Overall customer demand for Asset-Based transportation services, including the impact of economic factors. 

  Volume  of  transportation  services  provided  and  processed  through  our  network,  which  influences  operating 

leverage as the level of tonnage and number of shipments vary, primarily measured by: 

Pounds or Tonnage – total weight of shipments processed during the period in U.S. pounds or U.S. tons. 

Pounds per day or Tonnage per day (average daily shipment weight) – pounds or tonnage divided by the number 
of workdays in the period. 

Shipments per day – total number of shipments moving through the Asset-Based freight network during the period 
divided by the number of workdays in the period. 

Pounds per shipment (weight per shipment) – total pounds divided by the number of shipments during the period. 

Average  length  of  haul  (miles)  –  total  miles  between  origin  and  destination  service  centers  for  all  shipments 
(including  shipments  moved with  purchased  transportation) during  the period,  with miles  based on  the  size  of 
shipments. 

  Prices obtained for services, including fuel surcharges, primarily measured by: 

Billed revenue per hundredweight, including fuel surcharges (yield) – revenue per 100 pounds of shipment weight, 
including fuel surcharges, systematically calculated as shipments are processed in the Asset-Based freight network. 
Revenue  for  undelivered  freight  is  deferred  for  financial  statement  purposes  in  accordance  with  our  revenue 
recognition policy. Billed revenue used for calculating revenue per hundredweight measurements is not adjusted 
for the portion of revenue deferred for financial statement purposes. 

  Ability to manage cost structure, primarily in the area of salaries, wages, and benefits (“labor”), with the total cost 

structure primarily measured by: 

Operating ratio – the percent of operating expenses to revenue levels. 

We  also  quantify  certain  key  operating  statistics  which  are  used  by  management  to  evaluate  productivity  of 
operations  within  the  Asset-Based  freight  network  and  to  measure  the  effectiveness  of  strategic  initiatives  to 
manage the segment’s cost structure from period to period. These measures are defined below and further discussed 
in the Asset-Based Operating Expenses section within Asset-Based Segment Results: 

  Shipments per DSY hour – total shipments (including shipments handled by purchased transportation agents) 
divided  by  dock,  street,  and  yard  (“DSY”)  hours.  This  metric  is  used  to  measure  labor  efficiency  in  the 
segment’s local operations. The shipments per DSY hour metric will generally increase when more purchased 
transportation  is  used;  however,  the  labor  efficiency  may  be  offset  by  increased  purchased  transportation 
expense. 

  Pounds per mile – total pounds divided by total miles driven during the period (including pounds and miles 
moved with purchased transportation). This metric is used to measure labor efficiency of linehaul operations, 
although it is influenced by other factors including freight density, loading efficiency, average length of haul, 
and the degree to which purchased transportation (including rail service) is used. 

Other companies within our industry may present different key performance indicators or operating statistics, or they 
may calculate their measures differently; therefore, our key performance indicators or operating statistics may not 
be comparable to similarly titled measures of other companies. Key performance indicators or operating statistics 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
should be viewed in addition to, and not as an alternative for, our reported results. Our key performance indicators 
or operating statistics should not be construed as better measurements of our results than operating income, operating 
cash flow, net income, or earnings per share, as determined under GAAP. 

As of December 2022, approximately 82% of our Asset-Based segment’s employees were covered under the ABF National 
Master  Freight  Agreement  (the  “2018  ABF  NMFA”),  the  collective  bargaining  agreement  with  the  International 
Brotherhood of Teamsters (the “IBT”), which will remain in effect through June 30, 2023. Under the 2018 ABF NMFA, 
the  contractual  wage  and  benefits  costs,  including  the  ratification  bonuses  and  vacation  restoration,  are  estimated  to 
increase approximately 2.0% on a compounded annual basis through the end of the agreement. Profit-sharing bonuses 
based on the Asset-Based segment’s annual GAAP operating ratios for any full calendar year under the contract represent 
an additional increase in costs under the 2018 ABF NMFA. A profit-sharing bonus totaling $16.2 million and $15.1 million 
for  the  year  ended  December 31, 2022  and 2021, respectively,  was  earned by  qualifying  union-represented  employees 
under the 2018 ABF NMFA upon the Asset-Based segment achieving an annual GAAP operating ratio of 87.3% for 2022 
and 89.9% for 2021. 

The major economic provisions of the 2018 ABF NMFA include: 

 

restoration of one week of vacation that was previously reduced in the prior collective bargaining agreement, 
which  began  accruing  on  anniversary  dates  on  or  after  April  1,  2018,  with  the  new  vacation  eligibility 
schedule being the same as the applicable 2008 to 2013 supplemental agreements; 

  wage increases in each year of the contract, beginning July 1, 2018; 
 
 
 

ratification bonuses for qualifying employees; 
contributions to multiemployer pension plans at current rates for each fund; 
continuation  of  existing  health  coverage  and  annual  multiemployer  health  and  welfare  contribution  rate 
increases in accordance with the contract; 
changes to purchased transportation provisions with certain protections for road drivers as specified in the 
contract; and 
profit-sharing  bonuses  for  qualifying  contractual  employees  based  upon  the  Asset-Based  segment’s 
achievement of annual operating ratios of 96.0% or below for a full calendar year under the contract period. 

 

 

Tonnage 
The  level  of  freight  tonnage  managed  by  the  Asset-Based  segment  is  directly  affected  by  industrial  production  and 
manufacturing;  distribution;  residential  and  commercial  construction;  consumer  spending,  primarily  in  the  North 
American  economy;  and  capacity  in  the  trucking  industry.  Operating  results  are  affected  by  economic  cycles  and 
conditions, customers’ business cycles, and changes in customers’ business practices. The Asset-Based segment actively 
competes for freight business based primarily on price, service, and availability of flexible shipping options to customers. 
ArcBest seeks to offer value through identifying specific customer needs and providing operational flexibility and seamless 
access to the services of our Asset-Based segment and our Asset-Light operations in order to respond with customized 
solutions. 

Pricing 
The industry pricing environment, another key factor impacting our Asset-Based results, influences the ability to obtain 
appropriate  margins  and  price  increases  on  customer  accounts.  Generally,  freight  is  rated  by  a  class  system,  which  is 
established by the National Motor Freight Traffic Association, Inc. Light, bulky freight typically has a higher class and is 
priced at a higher revenue per hundredweight than dense, heavy freight. Changes in the rated class and packaging of the 
freight, along with changes in other freight profile factors, such as average shipment size; average length of haul; freight 
density; and customer and geographic mix, can affect the average billed revenue per hundredweight measure. 

Approximately 20% to 25% of our Asset-Based business is subject to base LTL tariffs, which are affected by general rate 
increases,  combined  with  individually  negotiated  discounts.  Rates  on  the  remaining  Asset-Based  business,  including 
business priced in the spot market, are subject to individual pricing arrangements negotiated at various times throughout 
the year. The majority of the business that is subject to negotiated pricing arrangements is associated with larger customer 
accounts with annually negotiated pricing arrangements. The remaining business is priced on an individual shipment basis 
considering each shipment’s unique profile, value provided to the customer, and current market conditions. Since pricing 
is established individually by account, the Asset-Based segment focuses on individual account profitability rather than a 
single measure of billed revenue per hundredweight when considering customer account or market evaluations. This is 

42 

 
 
 
 
 
due to the difficulty of quantifying, with sufficient accuracy, the impact of changes in freight profile characteristics, which 
is necessary in estimating true price changes. 

We allow shippers without negotiated published rates to instantly access competitive LTL rates through an online portal, 
matching their shipping needs with capacity available in the ABF Freight network at the time of the shipment. The market 
has been receptive to this dynamic pricing option for transactional LTL shipments, and this program has been beneficial 
in  optimizing  our  business  levels  by  improving  capacity  utilization  in  the  Asset-Based  network.  In  a  softer  market 
environment, such as the conditions we experienced in the second half of 2022, our dynamic pricing option allows us to 
strategically fill empty capacity, enabling us to avoid furloughs or layoffs and be better positioned for a market rebound 
of higher freight demand, as well as provide a more sustainable service offering by reducing “empty miles” (or the number 
of miles we move empty or near-empty equipment for repositioning purposes). 

We  also  utilize  a  space-based  pricing  approach  for  shipments  subject  to  LTL  tariffs  to  align  our  pricing  with  freight 
shipping  trends  in  the  industry,  including  the  overall  growth  and  ongoing  profile  shift  to  bulkier,  yet  often  lighter, 
shipments across the supply chain, the acceleration in e-commerce, and the unique requirements of many shipping and 
logistics solutions. Space-based pricing involves the use of freight dimensions (length, width, and height) to determine 
applicable cubic minimum charges (“CMC”) that supplement weight-based metrics when appropriate. Traditional LTL 
pricing is generally weight-based, while our linehaul costs are generally space-based (i.e., costs are impacted by the volume 
of space required for each shipment). We believe space-based pricing better aligns our pricing mechanisms with the metrics 
which affect our resources and, therefore, our costs to provide logistics services. We seek to provide logistics solutions to 
our  customers’  businesses  and  the unique  shipment  characteristics  of  their  various products  and  commodities,  and we 
believe that we are particularly experienced in handling complicated freight. The CMC is an additional pricing mechanism 
to better capture the value we provide in transporting these shipments.  

Fuel 
The transportation industry is dependent upon the availability of adequate fuel supplies. The Asset-Based segment assesses 
a  fuel  surcharge  based  on  the  index  of  national  on-highway  average  diesel  fuel  prices  published  weekly  by  the  U.S. 
Department of Energy. To better align fuel surcharges to fuel- and energy-related expenses and provide more stability to 
account profitability as fuel prices change, we may, from time to time, revise our standard fuel surcharge program, which 
impacts approximately one-third of Asset-Based shipments and primarily affects noncontractual customers. While fuel 
surcharge revenue generally more than offsets the increase in direct diesel fuel costs when applied, the total impact of 
energy  prices  on  other  nonfuel-related  expenses  is  difficult  to  ascertain.  Management  cannot  predict,  with  reasonable 
certainty, future fuel price fluctuations, the impact of energy prices on other cost elements, recoverability of fuel costs 
through fuel surcharges, and the effect of fuel surcharges on the overall rate structure or the total price that the segment 
will receive from its customers. While the fuel surcharge is one of several components in the overall rate structure, the 
actual rate paid by customers is governed by market forces and the overall value of services provided to the customer. 

During  periods  of  changing  diesel  fuel  prices,  the  fuel  surcharge  and  associated  direct  diesel  fuel  costs  also  vary  by 
different degrees. Depending upon the rates of these changes and the impact on costs in other fuel- and energy-related 
areas, operating margins could be impacted. Fuel prices have fluctuated significantly in recent years. Whether fuel prices 
fluctuate  or  remain  constant,  operating  results  may  be  adversely  affected  if  competitive  pressures  limit  our  ability  to 
recover fuel surcharges. Throughout 2022, the fuel surcharge mechanism generally continued to have market acceptance 
among  customers;  however,  certain  nonstandard  pricing  arrangements  have  limited  the  amount  of  fuel  surcharge 
recovered. The negative impact on operating margins of capped fuel surcharge revenue during periods of increasing fuel 
costs is more evident when fuel prices remain above the maximum levels recovered through the fuel surcharge mechanism 
on certain accounts. In periods of declining fuel prices, fuel surcharge percentages also decrease, which negatively impacts 
the  total  billed  revenue  per  hundredweight  measure  and,  consequently,  revenues.  The  revenue  decline  may  be 
disproportionate to our fuel costs. Asset-Based revenues for 2022, compared to 2021, were positively impacted by higher 
fuel surcharge revenue due to an increase in the nominal fuel surcharge rate, while total fuel costs also increased. The 
segment’s operating results will continue to be impacted by further changes in fuel prices and the related fuel surcharges. 

Labor Costs 
Our Asset-Based labor costs, including retirement and healthcare benefits for contractual employees that are provided by 
a number of multiemployer plans (see Note J to our consolidated financial statements included in Part II, Item 8 of this 
Annual Report on Form 10-K), are impacted by contractual obligations under the 2018 ABF NMFA and other related 
supplemental agreements. Total salaries, wages, and benefits, amounted to 43.0% and 46.6% of revenues for 2022 and 
2021, respectively. Changes in salaries, wages, and benefits expense and shared services expenses, which include labor 

43 

 
 
 
 
 
costs  related  to  ABF  Freight’s  portion  of  company-wide  functions,  as  a  percentage  of  revenues  are  discussed  in  the 
following Asset-Based Segment Results section. 

ABF  Freight  operates  in  a  highly  competitive  industry  comprised  primarily  of  nonunion  motor  carriers.  Nonunion 
competitors have a lower fringe benefit cost structure and less stringent labor work rules, and certain carriers also have 
lower wage rates for their freight-handling and driving personnel. Wage and benefit concessions granted to certain union 
competitors also allow for a lower cost structure. ABF Freight has continued to address with the IBT the effect of the 
segment’s wage and benefit cost structure on its operating results. Lower cost increases throughout the 2018 ABF NMFA 
contract  period  and  increased  flexibility  in  labor work  rules  are  essential factors  in  bringing ABF  Freight’s  labor  cost 
structure closer in line with that of its competitors. However, under its current labor agreement, ABF Freight continues to 
pay some of the highest benefit contribution rates in the industry. The terms of the 2018 ABF NMFA allowed the Asset-
Based segment to maintain low-cost inflation in the current tight labor market while providing some of the best wages and 
benefits in the industry to our employees. 

ABF Freight’s benefit contributions for its contractual employees include contributions to multiemployer plans, a portion 
of which are used to fund benefits for individuals who were never employed by ABF Freight. ABF Freight’s multiemployer 
pension contributions totaled $154.6 million and $146.9 million for 2022 and 2021, respectively. As previously outlined, 
the 2018 ABF NMFA provided for ABF Freight’s contributions to multiemployer pension plans to remain at the rates that 
were paid under the prior labor agreement with the IBT, while wage rates and health and welfare contribution rates for 
most plans increased annually in accordance with the terms of the 2018 ABF NMFA. The contractual wage rate increased 
1.9% and 1.7% effective July 1, 2022 and 2021, respectively. The average health, welfare, and pension benefit contribution 
rate increased approximately 2.5% and 2.4% effective primarily on August 1, 2022 and 2021, respectively. 

On March 11, 2021, H.R.1319, the American Rescue Plan Act of 2021 (the “American Rescue Plan Act”) was signed into 
law. The American Rescue Plan Act includes the Butch Lewis Emergency Pension Plan Relief Act of 2021 (the “Pension 
Relief Act”). The Pension Relief Act includes provisions to improve funding for multiemployer pension plans, including 
financial assistance provided through the Pension Benefit Guarantee Corporation (the “PBGC”) to qualifying underfunded 
plans to secure pension benefits for plan participants. Without the funding to be provided by the Pension Relief Act, many 
of the multiemployer pension funds to which we contribute could become insolvent in the near future.  

On July 9, 2021, the PBGC announced an interim final rule implementing a Special Financial Assistance Program (the 
“SFA Program”) to administer funds to severely underfunded eligible multiemployer pension plans under the Pension 
Relief Act. Certain multiemployer pension plans to which ABF Freight contributes have applied for or received funds 
under the SFA Program which will allow them to avoid insolvency and improve their funded status. Under the American 
Rescue Plan Act and in accordance with regulations of the PBGC, the plans receiving funding under the SFA Program are 
not permitted to reduce employer contributions to their funds. We will continue to evaluate the impact of the assistance 
provided by the SFA Program on ABF Freight’s multiemployer pension plan contributions. Through the term of the 2018 
ABF  NMFA,  which  extends  through  June 30,  2023,  ABF  Freight’s  multiemployer  pension  contribution  obligations 
generally will be satisfied by making the specified contributions when due. Future contribution rates will be determined 
through the negotiation process for contract periods following the term of the current collective bargaining agreement. 
While we cannot determine with any certainty the contributions that will be required under future collective bargaining 
agreements for ABF Freight’s contractual employees, our future contribution rates to multiemployer pension plans may 
be less likely to increase as a result of the provisions of the Pension Relief Act. If ABF Freight were to completely withdraw 
from certain multiemployer pension plans, under current law, ABF Freight would have material liabilities for its share of 
the unfunded vested liabilities of each such plan. Further, ABF Freight could also trigger complete or partial withdrawal 
liability from certain multiemployer pension plans through, among other things, mergers and other fundamental corporate 
transactions and as a result of operational changes, site closures and job losses, which could result in material liabilities. 

44 

 
 
 
 
Asset-Based Segment Results  

The following table sets forth a summary of operating expenses and operating income as a percentage of revenue for the 
Asset-Based segment: 

 Year Ended December 31 
   2020 

      2021 

  2022 

Asset-Based Operating Expenses (Operating Ratio) 

Salaries, wages, and benefits 
Fuel, supplies, and expenses 
Operating taxes and licenses 
Insurance 
Communications and utilities 
Depreciation and amortization 
Rents and purchased transportation 
Shared services 
Gain on sale of property and equipment 
Innovative technology costs(1) 
Other 

 43.0 %     46.6 %     52.4 %   
 12.6  
 1.7  
 1.6  
 0.6  
 3.2  
 14.6  
 9.4  
 (0.4) 
 0.9  
 0.1  

 10.3  
 1.9  
 1.5  
 0.7  
 3.6  
 14.2  
 10.2  
 (0.3) 
 1.1  
 0.1  
 87.3 %     89.9 %     95.3 %   

 10.0  
 2.4  
 1.6  
 0.8  
 4.5  
 12.0  
 10.4  
 (0.2)  
 1.1  
 0.3  

Asset-Based Operating Income 

 12.7 %     10.1 %   

 4.7 %   

(1)  Represents costs associated with the freight handling pilot test program at ABF Freight. 

The following table provides a comparison of key operating statistics for the Asset-Based segment, as previously defined 
in the Asset-Based Segment Overview: 

 Year Ended December 31 

2022 

2021 

    % Change   

Workdays(1) 
Billed revenue per hundredweight, including fuel surcharges 
Pounds 
Pounds per day 
Shipments per day 
Shipments per DSY hour 
Pounds per shipment 
Pounds per mile 
Average length of haul (miles) 

 252.0   
 45.45   $

  $
    6,608,704,806  
 26,225,019  
 19,895  
 0.428  
 1,318  
 18.71  
 1,090  

 252.0  
 39.70   
  6,507,706,432   
 25,824,232   
 19,610   
 0.447   
 1,317   
 18.79   
 1,097  

 14.5 %   
 1.6 %   
 1.6 %   
 1.5 %   
 (4.3)% 
 0.1 % 
 (0.4)% 
 (0.6)% 

(1)  Workdays represent the number of operating days during the period after adjusting for holidays and weekends.  

Asset-Based Revenues 
Asset-Based  segment  revenues  totaled  $3.0  billion  and  $2.6  billion  for  the  year  ended  December  31,  2022  and  2021, 
respectively. Billed revenue (as described in the Asset-Based Segment Overview) increased 16.2% on a per-day basis in 
2022 compared to 2021, primarily reflecting a 14.5% increase in total billed revenue per hundredweight, including fuel 
surcharges, and a 1.6% increase in tonnage per day.  

The 14.5% increase in total billed revenue per hundredweight for 2022, including fuel surcharges, compared to 2021, was 
primarily  due  to  a  solid  pricing  environment  and  changes  in  freight  profile  and  business  mix  to  optimize  revenue  on 
shipments in the Asset-Based network. Higher fuel surcharge revenues associated with increased fuel prices also positively 
impacted the total billed revenue per hundredweight measure in 2022, compared to 2021. The Asset-Based segment’s 
average nominal fuel surcharge rate for 2022 increased approximately 16 percentage points from 2021 levels. On-going 
yield management initiatives, including general rate increases, also contributed to the year-over-year improvement in billed 
revenue  per  hundredweight.  Excluding  the  impact  of  fuel  surcharges,  the  percentage  increase  in  billed  revenue  per 
hundredweight on our traditional core LTL-rated freight was in the low-double digits for 2022, compared to 2021. Prices 
on  accounts  subject  to  deferred  pricing  agreements  and  annually  negotiated  contracts  that  were  renewed  during  2022 
increased an average of 7.3%, compared to the prior year. Pricing on contractual business reflected the second highest 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
     
 
 
   
 
   
 
   
 
   
 
   
 
 
 
 
 
average increase we have secured in company history, following the highest average increase in 2021, primarily due to 
tight market  capacity  which continued  through  the first half of 2022.  The  Asset-Based segment  implemented nominal 
general  rate  increases  on  its  LTL  base  rate  tariffs  of  5.9%,  6.9%  and  5.95%  effective  on  November 7, 2022, 
November 15, 2021,  and  January 25, 2021,  respectively,  although  the  rate  changes  vary  by  lane  and  shipment 
characteristics.  

The 1.6% increase in tonnage per day for 2022, compared to 2021, reflects higher daily shipment levels due to customer 
demand. Total shipments increased 1.5% on a per-day basis, reflecting an increase in LTL-rated shipments, partially offset 
by a decrease in truckload-rated shipments. Year-over-year tonnage and shipment growth is attributable to an emphasis on 
allocating network resources to serving core LTL customers, from which we experienced solid demand in 2022, despite 
softening market conditions in the second half of 2022.  The reduction in truckload-rated shipments reflects the intentional 
moderation of spot-quoted truckload-rated shipments in order to better serve core LTL customers in 2022. We began to 
experience a deceleration in demand trends during third quarter 2022 which continued through the end of the year. In this 
softer market environment, our  dynamic  pricing option  for  LTL-rated  shipments  allowed us  to  strategically fill  empty 
network capacity, which contributed to the increase in LTL-rated shipments for 2022.  

Current  economic  conditions  and  the  Asset-Based  segment’s  pricing  approach,  as  previously  discussed  in  the  Pricing 
section of the Asset-Based Segment Overview within Results of Operations, will continue to impact the segment’s tonnage 
levels and the prices it receives for its services and, as such, there can be no assurance that our Asset-Based segment will 
maintain or achieve improvements in its current operating results. The marketplace pricing environment has been positive 
and rational in support of our efforts to secure needed price increases; however, the competitive environment could limit 
the Asset-Based segment from securing adequate increases in base LTL freight rates and could limit the amount of fuel 
surcharge revenue recovered in future periods. 

Asset-Based Operating Income 
The Asset-Based segment generated operating income of $381.1 million in 2022, compared to $260.7 million in 2021, 
with  an  operating  ratio  of  87.3%  and  89.9%,  respectively.  The  2.6 percentage  point  improvement  in  the  Asset-Based 
segment’s operating ratio for 2022, compared to 2021, primarily reflects the increased revenues and effective capacity 
utilization in the Asset-Based network. 

Innovative  technology  costs  related  to  the  freight  handling  pilot  test  program  (the  “pilot”)  at  ABF  Freight  impacted 
operating results of the Asset-Based segment by $27.2 million and $27.6 million for 2022 and 2021, respectively. The 
pilot test program, which began in 2019, is operating in various stages in a limited number of locations. While ArcBest 
believes the pilot has potential to provide safer and improved freight-handling, a number of factors will be involved in 
determining proof of concept and there can be no assurances that pilot testing will be successful. 

The  segment’s  operating  ratio  was  also  impacted  by  changes  in  operating  expenses  as  discussed  in  the  following 
paragraphs. 

Asset-Based Operating Expenses 
Labor costs, which are reported in operating expenses as salaries, wages, and benefits, amounted to 43.0% and 46.6% of 
Asset-Based  segment  revenues  for  2022  and  2021,  respectively.  The  decrease  in  salaries,  wages,  and  benefits  as  a 
percentage of revenue was partially offset by higher utilization of purchased transportation to meet customer demand for 
increased shipment levels. The improvement in salaries, wages, and benefits as a percentage of revenue was also influenced 
by the effect of higher revenues, including fuel surcharges, as a portion of operating costs are fixed in nature and decrease 
as a percent of revenue with increases in revenue levels. Salaries, wages, and benefits increased $95.2 million for 2022, 
compared to 2021, primarily reflecting higher headcount as additional drivers and service center personnel were hired to 
service increased business levels. The increase in labor costs also reflects year-over-year increases in contractual wage and 
benefit contribution rates under the 2018 ABF NMFA, as previously discussed in the Labor Costs section of the Asset-
Based Segment overview; higher expenses for certain performance-based incentive plans, including long-term nonunion 
incentive plans impacted by shareholder returns relative to peers; and higher workers’ compensation expense reflecting an 
increase in the average number of claims and the severity of claims experience. As a result of the Asset-Based segment 
operating ratio achieved for 2022, salaries, wages, and benefits included the accrual of a 3% union profit-sharing bonus, 
which is the maximum amount provided in the collective bargaining agreement. The union profit-sharing bonus, which 
was paid to qualifying union-represented employees in February 2023, represents the fourth year in a row ABF Freight 
paid the bonus under the 2018 ABF NMFA, the maximum number of years allowed by the current labor contract. 

46 

 
 
 
 
 
 
 
The Asset-Based segment manages costs with shipment levels; however, a number of factors pressured the efficiency of 
DSY tasks during 2022. Shipments per DSY hour declined 4.3% for 2022, compared to 2021, primarily due to personnel 
inefficiencies, including training a record number of new hires, and the effect of freight profile and mix changes, which 
contributed to the improved revenue per shipment. While the Asset-Based segment has added employees to service the 
business  growth,  the  segment  had  to  supplement  resources  with  increased  utilization  of  higher-cost  purchased 
transportation in certain locations to manage service levels during 2022.  

Fuel,  supplies,  and  expenses  as  a  percentage  of  revenue  increased  2.3 percentage  points  in  2022,  for  a  $112.4 million 
increase, compared to 2021, primarily due to higher fuel costs and higher repairs and maintenance costs. The Asset-Based 
segment’s average fuel price per gallon (excluding taxes) increased approximately 68% during 2022, compared to 2021. 
More miles driven as a result of the increase in business levels from 2021 also contributed to the year-over-year increase 
in fuel, supplies, and expenses. The increase in repairs and maintenance costs reflects the impact of an increasing city fleet 
age due, in part, to delays in receiving new revenue equipment, combined with higher market-driven costs to repair and 
maintain revenue equipment units.  

Rents and purchased transportation as a percentage of revenue increased 0.4 percentage points in 2022, compared to 2021, 
primarily  due  to  higher  rates  and  increased  utilization  of  local  delivery  agents  and  linehaul  purchased  transportation 
necessary to serve the needs of our customers. The year-over-year increase in purchased transportation costs was also 
impacted by higher fuel surcharges related to these services due to higher fuel costs. Rail miles decreased approximately 
2% in 2022, compared to 2021, driven by the focused reduction of rail usage during the fourth quarter of 2022 as market 
conditions continued to soften. 

Shared services as a percentage of revenue decreased 0.8 percentage points in 2022, compared to 2021. The decrease in 
shared  services  as  a  percentage  of  revenue  was  influenced  by  the  effect  of  higher  revenues.  These  costs  increased 
$18.2 million in 2022, compared to the prior year, due to the impact of higher business levels and higher expense accruals 
for  certain  performance-based  incentive  plans,  including  long-term  incentive  plans  impacted  by  shareholder  returns 
relative to peers. 

Asset-Light Operations 

Asset-Light Overview 

The  ArcBest  and  FleetNet  reportable  segments,  combined,  represent  our  Asset-Light  operations.  Our  Asset-Light 
operations are a key component of our strategy to offer a single source of integrated logistics solutions, designed to satisfy 
customers’  complex  supply  chain  needs  and  unique  shipping  requirements.  We  are  focused  on  growing  and  making 
strategic  investments  in  our  Asset-Light  operations  that  enhance  our  service  offerings  and  strengthen  our  customer 
relationships. Our acquisition of MoLo, which was completed on November 1, 2021, demonstrates our commitment to 
grow our Asset-Light operations as we work to align our overall revenue mix with our customers’ transportation spend. 
Throughout  our  operations,  we  are  seeking  opportunities  to  expand  our  revenues  by  deepening  existing  customer 
relationships, securing new customers, and adding capacity options for our customers. In recent years, we have experienced 
significant  growth  in  shipment  levels  and  revenues  of  our  managed  transportation  solutions  reflecting  results  of  our 
strategic efforts to cross-sell our service offerings and the increasing demand for these services that include supply chain 
optimization. We expect to benefit from these and other strategic initiatives as we continue to deliver innovative solutions 
to customers. 

Our acquisition of MoLo accelerates the growth of our company by increasing the scale of truckload brokerage services 
offered  within  our  ArcBest  segment  and  by  advancing  our  position  in  the  large  and  growing  domestic  transportation 
management market. The addition of MoLo’s significant capabilities and talent to our truckload brokerage service offering 
allows us to better respond to the critical needs of our customers with comprehensive supply chain solutions, improves our 
ability  to  serve  larger  customers,  and  expands  our  access  to  truckload  capacity  partners.  Our  acquisition  of  MoLo, 
including detail regarding the initial consideration payment and provision for certain additional cash consideration based 
on the achievement of certain targets, is discussed further in Note D to our consolidated financial statements included in 
Part II, Item 8 of this Annual Report on Form 10-K. 

Our Asset-Light operations are affected by general economic conditions, as well as several other competitive factors that 
are  more  fully  described  in  Part  I,  Item  1  (Business)  and  in  Part  I,  Item  1A  (Risk  Factors)  of  this  Annual  Report  on 

47 

 
  
 
 
 
 
 
 
 
Form 10-K.  See  Note N  to  our  consolidated  financial  statements  included  in  Part  II,  Item  8  of  this  Annual  Report  on 
Form 10-K for descriptions of the ArcBest and FleetNet segments and additional segment information, including revenues, 
operating expenses, and operating income for the years ended December 31, 2022, 2021, and 2020.  

The key indicators necessary to understand our Asset-Light operating results are outlined below. These key indicators are 
used by management to evaluate segment operating performance and measure the effectiveness of strategic initiatives in 
the  results  of  our  Asset-Light  segments.  We  quantify  certain  key  indicators  using  key  operating  statistics  which  are 
important measures in analyzing segment operating results from period to period. These statistics are defined within the 
key indicators below and referred to throughout the discussion of the results of our Asset-Light operations: 

  Customer  demand  for  logistics  and  premium  transportation  services  combined  with  economic  factors  which 
influence  the  number  of  shipments  or  service  events  used  to  measure  changes  in  business  levels,  primarily 
measured by: 

Shipments per day – total shipments (excluding managed transportation solutions as discussed below) divided by 
the number of working days during the period, compared to the same prior-year period, for the ArcBest segment. 

Service events – roadside, preventative maintenance, or total service events during the period, compared to the 
same prior-year period, for the FleetNet segment. 

  Prices obtained for services, primarily measured by: 

Revenue per shipment or event – total segment revenue divided by total segment shipments or events during the 
period (excluding managed transportation solutions for the ArcBest segment as discussed below), compared to 
the same prior-year period. 

  Availability of market capacity and cost of purchased transportation to fulfill customer shipments of the ArcBest 

segment, with a measure of purchased transportation cost expressed as: 

Purchased transportation costs as a percentage of revenue – the expense incurred for third-party transportation 
providers to haul or deliver freight during the period, divided by segment revenues for the period, expressed as a 
percentage. 

  Management of operating costs, primarily in the area of purchased transportation, with the total cost structure 

primarily measured by: 

Operating ratio – the percent of operating expenses to revenue levels. 

Presentation  and  discussion  of  the  key  operating  statistics  of  revenue  per  shipment  and  shipments  per  day  for  the 
ArcBest  segment  exclude  statistical  data  of  our managed  transportation  solutions  transactions. Growth  in  managed 
transportation solutions has increased the number of shipments for these services to approximately 40% of the ArcBest 
segment’s total shipments, while the business represents approximately 15% of segment revenues for the year ended 
December 31, 2022. Due to the nature of our managed transportation solutions which typically involve a larger number 
of shipments at a significantly lower revenue per shipment level than the segment’s other service offerings, inclusion 
of the managed transportation solutions data would result in key operating statistics which are not representative of the 
operating  results  of  the  segment  as  a  whole.  As  such,  the  key  operating  statistics  management  uses  to  evaluate 
performance of the ArcBest segment exclude managed transportation services transactions. 

Other companies within our industry may present different key performance indicators or they may calculate their key 
performance indicators differently; therefore, our key performance indicators may not be comparable to similarly titled 
measures of other companies. Key performance indicators should be viewed in addition to, and not as an alternative 
for, our reported results. Our key performance indicators should not be construed as better measurements of our results 
than operating income, operating cash flow, net income, or earnings per share, as determined under GAAP. 

Asset-Light Results 

For the year ended December 31, 2022 and 2021, the combined revenues of our Asset-Light operations totaled $2.5 billion 
and $1.6 billion, respectively, accounting for approximately 45% and 38% of our total revenues before other revenues and 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
intercompany eliminations in 2022 and 2021, respectively. Our Asset-Light results for 2022, compared to 2021, reflect 
the acquired operations of MoLo combined with strong customer demand and higher market rates, primarily during the 
first  half  of  2022.  The  ArcBest  segment  has  been  impacted  by  market  softening  in  the  second  half  of  2022,  which, 
combined with changes in business mix, led to a decline in revenue per shipment in the fourth quarter of 2022 versus the 
same  prior-year  period.  Our  Asset-Light  combined  operating  income  improved  to  $58.6 million  in  2022,  compared  to 
$50.9 million in 2021, primarily reflecting revenue growth and changes in costs as described in the following paragraphs. 

ArcBest Segment 
The following table sets forth a summary of operating expenses and operating income as a percentage of revenue for the 
ArcBest segment: 

 Year Ended December 31 
   2020 

      2021 

  2022 

ArcBest Segment Operating Expenses (Operating Ratio) 

Purchased transportation 
Supplies and expenses 
Depreciation and amortization(1) 
Shared services 
Gain on sale of subsidiary(2) 
Other(3) 

ArcBest Segment Operating Income 

83.4  %    84.4  %   83.4  %  
0.8   
0.7   
0.9   
1.0   
10.1   
10.2   
 (0.5) 
 —  
 0.7  
2.2   

1.2   
1.3   
11.7   
 —  
1.2   

97.5  %    96.4  %   98.8  %  

2.5  %    3.6  %  

1.2  %  

Includes amortization of intangibles associated with acquired businesses. 

(1) 
(2)  The year ended December 31, 2021, represents a gain of $6.9 million related to the sale of the labor services portion of the ArcBest 

segment’s moving business in second quarter 2021. 

(3)  The  year  ended  December  31,  2022,  includes  the  $18.3 million  increase  in  fair  value  of  the  contingent  earnout  consideration 
recorded for the MoLo acquisition (see Note D to our consolidated financial statements included in Part II, Item 8 of this Annual 
Report on Form 10-K). 

A  comparison  of  key  operating  statistics  for  the  ArcBest  segment,  as  previously  defined  in  the  Asset-Light  Overview 
section, is presented in the following table:  

Revenue per shipment 

Shipments per day 

Year Over Year % Change 
Year Ended December 31 
2021 
2022 

3.8% 

58.3% 

31.0% 

30.6% 

ArcBest segment revenues totaled $2.1 billion and $1.3 billion in 2022 and 2021, respectively. The 64.5% increase in 2022 
revenues, compared to 2021, primarily reflects the addition of business from the MoLo acquisition and improved market 
demand for our managed transportation services. The acquired operations of MoLo drove the 58.3% increase in shipments 
per day (metric excludes managed transportation shipments). Revenue per shipment increased 3.8% due to higher market 
prices, including higher fuel, resulting from tighter market capacity experienced in the first half of 2022. Revenue growth 
moderated throughout the second half of 2022, as customer shipping volumes slowed, and market conditions softened.  

Third-party capacity, particularly for truckload services, has been relatively volatile in recent years. Following the negative 
impact of the COVID-19 pandemic on demand for transportation and logistics services during the second quarter of 2020, 
market pricing improvement began in the second half of 2020 and continued through the first half of 2022, due to the 
impact  of  capacity  constraints  in  the  industry.  However,  a  softer  economic  environment  and  an  increase  in  available 
truckload capacity during the second half of 2022 resulted in a year-over-year decline in market pricing and lower revenue 
per shipment (excluding managed transportation shipments) as compared to the last six months of 2021.  

49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income totaled $52.7 million and $46.4 million in 2022 and 2021, respectively, with the improvement primarily 
reflecting the increases in revenues, as previously described. Operating results for 2021 benefited from a $6.9 million gain 
on the sale of a subsidiary within the segment’s moving business in second quarter 2021, which improved the segment’s 
operating  ratio  for  2021  by  0.5 percentage  points,  compared  to  2022.  A  $0.4 million  gain  related  to  the  sale  of  this 
subsidiary was recognized upon release of the funds from escrow in second quarter 2022, benefiting operating results for 
2022. Operating results for 2022 were also impacted by the increase in fair value of the contingent earnout consideration 
related to the MoLo acquisition, which increased the “other” line of operating expenses by $18.3 million. The segment’s 
operating income was also impacted by changes in operating expenses as discussed in the following paragraphs.  

Purchased transportation costs as a percentage of revenue decreased by 1.0 percentage point for 2022, compared to 2021.  
Changes  in  market  capacity,  economic  conditions, freight  mix,  and  the prices we  charge  to  our  customers,  impact the 
percent of purchased transportation to revenue. During the first half of 2022, purchased transportation as a percentage of 
revenue benefited from higher contracted revenue rates, while costs of capacity declined. As the market continued to soften 
during  the  second  half  of  2022,  overall  customer  rates  decreased  at  a  more  rapid  pace  and  resulted  in  an  increase  in 
purchased transportation as a percentage of revenue. Significant changes in market capacity, such as those we experienced 
in recent years, impact the cost of sourcing such capacity, which may not correspond to the timing of revisions to customer 
pricing and our revenue per shipment. While the pricing environment remains disciplined, there can be no assurance that 
we will be able to secure prices from our customers that will allow us to maintain or improve the spread of revenue over 
the cost of sourcing carrier equipment capacity. 

Operating  expenses  for  2022  increased  due  to  the  MoLo  acquisition  and  growth  in  our  managed  logistics  solution. 
Additional personnel and other operating expenses associated with managing higher shipment volumes are reflected in the 
$86.0 million  increase  in  shared  service  costs  for  2022,  compared  to  2021.  The  increase  in  shared  services  was  also 
impacted by a noncash charge for enhancements to our nonunion vacation policy, which were effective in the third quarter 
of  2022.  As  a  percentage  of  revenue,  shared  service  costs  were  relatively  consistent  compared  to  2021,  due  to  the 
corresponding revenue growth in 2022. Although the ArcBest segment manages costs with shipment levels, portions of 
operating expenses are fixed in nature and cost reductions can be limited as the segment strives to enhance capacity sources 
and maintain customer service. 

Additional amortization of acquired intangibles due to the MoLo acquisition contributed to the increase in depreciation 
and amortization expense for 2022, compared to 2021, although these expenses were relatively consistent as a percentage 
of revenue. Operating expenses reported in the “other” line increased as a percentage of revenue by 1.5 percentage points 
for 2022, compared to 2021, primarily due to the previously discussed increase in fair value of contingent consideration, 
the addition of MoLo’s operations, higher accruals for cargo claims, and an increase in office rent expense.  

FleetNet Segment 
FleetNet  revenues  totaled  $343.1 million  and  $254.1 million  in  2022  and  2021,  respectively.  The  35.0%  increase  in 
revenues in 2022, compared to 2021, was driven by increases in revenue per event and higher event volumes for roadside 
and preventative maintenance services. The increase in service event volume was driven by increased business levels from 
new  and  existing  customers.  Roadside  service  event  growth  was  also  impacted  by  a  higher  number  of  events  from 
customers who experienced an increase in e-commerce business and the effect of multiple severe weather events during 
the first quarter of 2022. 

FleetNet’s operating income was $5.8 million and $4.5 million in 2022 and 2021, respectively. The increase in FleetNet’s 
operating income for 2022, compared to 2021, is primarily due to revenue growth. The operating income improvement 
was  partially  offset  by  higher  operating  expenses,  as  headcount  and  the  associated  wages  and  benefits  expenses  have 
increased due to growth in events and emphasis on customer service. Labor costs were also impacted by a noncash charge 
in the third quarter of 2022 for enhancements to our nonunion vacation policy. 

50 

 
 
 
 
  
 
Asset-Light Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”) 
We  report  our  financial  results  in  accordance  with  GAAP.  However,  management  believes  that  certain  non-GAAP 
performance measures and ratios, such as Adjusted EBITDA, which is utilized for internal analysis, provide analysts, 
investors, and others the same information that we use internally for purposes of assessing our core operating performance 
and  provides  meaningful  comparisons  between  current  and  prior  period  results,  as  well  as  important  information 
regarding  performance  trends.  The  use  of  certain  non-GAAP  measures  improves  comparability  in  analyzing  our 
performance because it removes the impact of items from operating results that, in management’s opinion, do not reflect 
our core operating performance. Management uses Adjusted EBITDA as a key measure of performance and for business 
planning.  This  measure  is  particularly  meaningful  for  analysis  of  our  Asset-Light  businesses,  because  it  excludes 
amortization of acquired intangibles and software, changes in the fair value of contingent earnout consideration, and gain 
on the sale of a subsidiary, which are significant expenses or gains resulting from strategic decisions rather than core 
daily  operations.  Management also believes  Adjusted EBITDA  to  be  relevant and  useful  information,  as EBITDA  is  a 
standard measure commonly reported and widely used by analysts, investors, and others to measure financial performance 
of asset-light businesses and the ability to service debt obligations. Other companies may calculate Adjusted EBITDA 
differently; therefore, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures of other 
companies. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported 
results. Adjusted EBITDA should not be construed as a better measurement than operating income, operating cash flow, 
net income, or earnings per share, as determined under GAAP. 

Asset-Light Adjusted EBITDA 

ArcBest Segment 

Operating Income(1) 

Depreciation and amortization(2) 
Change in fair value of contingent consideration(3) 
Gain on sale of subsidiary(4) 

Adjusted EBITDA 

FleetNet Segment 

Operating Income(1) 

Depreciation and amortization(2) 

Adjusted EBITDA 

Total Asset-Light 

Operating Income(1) 

Depreciation and amortization(2) 
Change in fair value of contingent consideration(3) 
Gain on sale of subsidiary(4) 

Adjusted EBITDA 

 Year Ended December 31 

2022 

2021 

     2020 

  $   52,725   $   46,397   $ 
 11,387    
 —    
 (6,923)   

 9,655  
 9,714  
 —  
 —  
  $   91,353   $   50,861   $   19,369  

 20,730 
 18,300 
 (402)

  $ 

  $ 

 5,825   $ 
 1,880 
 7,705   $ 

 4,544   $ 
 1,661    
 6,205   $ 

 3,367  
 1,622  
 4,989  

  $   58,550   $   50,941   $   13,022  
 11,336  
 —  
 —  
  $   99,058   $   57,066   $   24,358  

 13,048    
 —    
 (6,923)   

 22,610 
 18,300 
 (402)

(1)  The calculation of Adjusted EBITDA as presented in this table begins with operating income as the most directly comparable 
GAAP measure. Other income (costs), income taxes, and net income are reported at the consolidated level and not included in the 
operating segment financial information evaluated by management to make operating decisions. Consolidated Adjusted EBITDA 
is reconciled to consolidated net income in the Consolidated Results section of Results of Operations. 
Includes  amortization  of  intangibles  associated  with  acquired  businesses.  For  the  ArcBest  segment,  amortization  of  acquired 
intangibles totaled $12.9 million, $5.3 million, and $3.7 million for 2022, 2021, and 2020, respectively, and is expected to total 
approximately $13.0 million for 2023. 

(2) 

(3)  Represents the increase in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for 
contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring 
assessments is recognized in operating income. See Note D to our consolidated financial statements included in Part II, Item 8 of 
this Annual Report on Form 10-K. 

(4)  Gain relates to the sale of the labor services portion of the ArcBest segment's moving business in second quarter 2021, including 
the contingent amount recognized in second quarter 2022 when the funds were released from escrow. The calculation of Asset-
Light Adjusted EBITDA was updated from the prior-year presentation to adjust for the gain on sale of subsidiary, consistent with 
management’s exclusion of this item when analyzing the core operating performance of our Asset-Light operations. 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
Current Economic Conditions 

Economic conditions continue to be challenged by record inflation levels; rising interest rates; supply chain volatility; 
labor shortages; geopolitical conflicts, including the war in Ukraine; and, in certain areas, the COVID-19 pandemic. In an 
effort to curb the 40-year high inflation rate, the U.S. Federal Reserve implemented a tighter monetary policy, sharply 
increasing interest rates since March 2022. The U.S. Federal Reserve’s monetary policy will likely continue to tighten in 
the near-term. Recession risk remains elevated as manufacturing and home sales began to contract at the end of 2022. 
Recent economic measures continue to indicate slowing economic activity, which, combined with higher operating costs 
and  rising  consumer  prices,  has  created  additional  uncertainties  in  the  global  and  U.S.  economies  and  supply  chains. 
According to the second estimate released by the Bureau of Economic Analysis on February 23, 2023, the U.S. real gross 
domestic product increased at an annual rate of 2.7% for fourth quarter 2022. The Purchasing Managers’ Index (“PMI”), 
which is a leading indicator for demand in the freight transportation and logistics industry, was 47.4% in January 2023, 
compared to 57.6% in January 2022. The January 2023 PMI marks the third consecutive month of economic contraction 
in the manufacturing sector following the 29-month period of growth in factory activity since the COVID-19 pandemic-
related contractions in April and May 2020. The Industrial Production Index issued by the Federal Reserve decreased at 
an annual rate of 1.7% for fourth quarter 2022. Our business has been impacted by the economic conditions indicated by 
these  statistics,  as  we  experienced  a  softening  market  environment  in  the  second  half  of  the  year  which  resulted  in 
decelerating demand trends in our Asset-Based business and a slowdown in customer shipping volumes in our ArcBest 
segment.  There  can  be  no  assurance  that  the  economic  environment,  including  the  impact  of  rising  interest  rates  on 
consumer demand, will be favorable for our freight services in future periods. 

Given  the uncertainties  of  current  economic  conditions,  there  can  be  no  assurance  that  our  estimates and  assumptions 
regarding the pricing environment and economic conditions, which are made for purposes of impairment tests related to 
operating assets and deferred tax assets, will prove to be accurate. Extended periods of economic disruption and resulting 
declines  in  industrial  production  and  manufacturing  and  consumer  spending  could  negatively  impact  demand  for  our 
services and have an adverse effect on our results of operations, financial condition, and cash flows. A softer economic 
environment and an increase in available truckload capacity, which we experienced during the second half of 2022, resulted 
in a year-over-year decline in market pricing for many of our ArcBest Asset-Light services, as compared to the last six 
months of 2021. There can be no assurance that we will be able to secure adequate prices from our customers to maintain 
or improve our operating results. Significant declines in our business levels or other changes in cash flow assumptions or 
other factors that negatively impact the fair value of the operations of our reporting units could result in impairment and a 
resulting noncash write-off of a significant portion of the goodwill and intangible assets of our ArcBest segment, which 
would have an adverse effect on our financial condition and operating results. 

Effects of Inflation 

As  previously  discussed,  inflation  remains  at  record  high  levels.  Global  supply  chain  volatility  and  labor  and  energy 
shortages, in addition to the impact of federal programs and monetary policy, are pushing costs higher across a broad array 
of consumer goods. The consumer price index (CPI) declined 0.1% in January 2023 and has slowly been falling from the 
peak reached back in the second quarter of 2022. Inflation is impacted by the decline of energy prices, including petroleum 
products, and a moderating rise in food prices. Most of our expenses are affected by inflation, which generally results in 
increased operating costs. As such, there can be no assurances of the potential impact of inflationary conditions on our 
business. 

Generally, inflationary increases in labor and fuel costs as they relate to our Asset-Based operations have historically been 
mostly  offset  through  price  increases  and  fuel  surcharges.  In  periods  of  increasing  fuel  prices,  the  effect  of  higher 
associated fuel surcharges on the overall price to the customer influences our ability to obtain increases in base freight 
rates. In addition, certain nonstandard arrangements with some of our customers have limited the amount of fuel surcharge 
recovered. The timing and extent of base price increases on our Asset-Based revenues may not correspond with contractual 
increases  in  wage  rates  and  other  inflationary  increases  in  cost  elements  and,  as  a  result,  could  adversely  impact  our 
operating results. 

Generally, inflationary increases in labor and operating costs related to our Asset-Light operations have historically been 
offset through price increases. The pricing environment, however, generally becomes more competitive during economic 
downturns, which may, as it has in the past, affect the ability to obtain price increases from customers both during and 
following such periods. 

52 

 
 
 
 
 
 
 
The impact of supply chain disruptions and component shortages has limited the availability and production of certain 
revenue equipment and certain other equipment used in our business operations. Consequently, the prices for these items 
have also increased. Partly as a result of inflationary pressures, our revenue equipment (tractors and trailers) has been and 
will very likely continue to be replaced at higher per unit costs, which could result in higher depreciation charges on a per-
unit basis. We consider these costs in setting our pricing policies, although the overall freight rate structure is governed by 
market forces based on value provided to the customer. The Asset-Based segment’s ability to fully offset inflationary and 
contractual cost increases can be challenging during periods of recessionary and uncertain economic conditions. In addition 
to general effects of inflation, the motor carrier freight transportation industry faces rising costs related to compliance with 
government regulations on safety, equipment design and maintenance, driver utilization, emissions, and fuel economy. 

Environmental and Legal Matters 

We are subject to federal, state, and local environmental laws and regulations relating to, among other things: emissions 
control,  transportation  or  handling  of  hazardous  materials,  underground  and  aboveground  storage  tanks,  stormwater 
pollution prevention, contingency planning for spills of petroleum products, and disposal of waste oil. We may transport 
or arrange for the transportation of hazardous materials and explosives, and we operate in industrial areas where truck 
service  centers  and  other  industrial  activities  are  located  and  where  groundwater  or  other  forms  of  environmental 
contamination could occur. See Note O to our consolidated financial statements included in Part II, Item 8 of this Annual 
Report on Form 10-K for further discussion of the environmental matters to which we are subject. 

Concern over climate change has led to legislative and regulatory efforts to limit carbon and other greenhouse gas (“GHG”) 
emissions, and we may incur significant costs to comply with increased regulation related to climate change in the future. 
Customers are increasingly focused on concerns related to climate change and demand for our services may be adversely 
impacted if we are less effective than our competitors in reducing or offsetting our GHG emissions. In consideration of 
the environmental impact of emissions from our operations, we are seeking more sustainable options for our equipment. 
We purchased a small number of electric forklifts, electric yard tractors, and electric straight trucks during 2022. Electric 
tractors are significantly more expensive than new diesel tractors, and to comply with more stringent emissions standards, 
we expect the cost of our equipment, as well as our fuel and maintenance costs, will continue to increase in future periods. 
We are also investing in upgrades to our facilities, including energy efficient lighting, plumbing updates that lower our 
water usage, and other sustainability remodels and updates. Physical effects from climate change, including more severe 
weather events, have the potential to adversely impact our business levels, cause shipping delays or disrupt our operations, 
increase our operating costs, and cause damage to our property and equipment. Due to the uncertainty of these matters, we 
cannot estimate the impact of climate-related developments on our operations or financial condition at this time. These 
and other matters related to climate change and the related risks to our business are further discussed in Part I, Item 1 
(Business) and Part I, Item 1A (Risk Factors) of this Annual Report on Form 10-K. In addition to our focus on sustainability 
of our equipment and facilities, we continue our commitment to advance environmental, social and governance initiatives 
that are critical to our business and our customers’ businesses by investing in innovative technologies, developing our 
employees, and enhancing our capabilities and services for customers. 

We are involved in various legal actions, the majority of which arise in the ordinary course of business. We maintain 
liability insurance against certain risks arising out of the normal course of our business, subject to certain self-insured 
retention limits. We routinely establish and review the adequacy of reserves for estimated legal, environmental, and self-
insurance  exposures.  While  management  believes  that  amounts  accrued  in  the  consolidated  financial  statements  are 
adequate, estimates of these liabilities may change as circumstances develop. Considering amounts recorded, routine legal 
matters are not expected to have a material adverse effect on our financial condition, results of operations, or cash flows.  

In January 2023, we and MoLo were named as defendants in lawsuits related to an auto accident involving one of MoLo’s 
contract carriers, which occurred prior to our acquisition of MoLo. Although we cannot estimate a range of reasonably 
possible losses for this matter at this time, it is reasonably possible that such amounts could be material to our financial 
condition, results of operations, or cash flows. See Note O to our consolidated financial statements included in Part II, 
Item 8 of this Annual Report on Form 10-K for further discussion of the legal matters in which we are currently involved. 

Information Technology and Cybersecurity 

We depend on the proper functioning, availability, and security of our information systems, including communications, 
data processing, financial, and operating systems, as well as proprietary software programs that are integral to the efficient 
operation of our business. Any significant failure or other disruption in our critical information systems, including denial 

53 

 
 
 
 
 
 
 
of  service  ransomware,  and  other  cybersecurity  attacks  and  incidents  that  impact  the  availability,  reliability,  speed, 
accuracy, or other proper functioning of these systems or that result in proprietary information or sensitive or confidential 
data, including personal information of customers, employees and others, being compromised could have a significant 
impact  on  our  operations.  Any  new  or  enhanced  technology  that  we  develop  and  implement  may  also  be  subject  to 
cybersecurity attacks and may be more prone to related incidents. We also utilize certain software applications provided 
by third parties; provide underlying data to third parties; grant access to certain of our systems to third parties who provide 
certain outsourced administrative functions or other services; and increasingly store and transmit data with our customers 
and third parties by means of connected information technology systems, any of which may increase the risk of a data 
privacy breach or other cybersecurity incident. Although we strive to carefully select our third-party vendors, we do not 
control  their  actions  and  any  problems  caused by or  impacting  these  third parties,  including  cyberattacks  and  security 
breaches at a vendor, could result in claims, litigation, losses, and/or liabilities and materially adversely affect our ability 
to provide service to our customers and otherwise conduct our business.  

Our information technology systems are protected through physical and software safeguards as well as backup systems 
considered  appropriate  by  management.  However,  these  systems  are  vulnerable  to  interruption  by  adverse  weather 
conditions  or  natural  disasters;  power  loss;  telecommunications  failures;  terrorist  attacks;  internet  failures  and  other 
disruptions to technology, including computer viruses; and other events beyond our control. It is not practicable to fully 
protect  against  the  possibility  of  these  events  or  cybersecurity  attacks  and  other  cyber  events  in  every  potential 
circumstance  that  may  arise.  To  mitigate  the  potential  for  such  occurrences  at  our  primary  data  center,  we  have 
implemented various systems, including redundant telecommunication facilities; replication of critical data to an offsite 
location;  fire  suppression  systems  to  protect  our  on-site  data  centers;  and  electrical  power  protection  and  generation 
facilities. We also have a catastrophic disaster recovery plan and alternate processing capability available for our critical 
data processes in the event of a catastrophe that renders one of our data centers unusable. A significant portion of our 
office  personnel  work  remotely  through  hybrid  and  remote  work  arrangements,  which  may  increase  the  demand  for 
information  technology  resources  and  our  exposure  to  cybersecurity  risks,  including  increased  risks  of  phishing,  an 
increased risk of unauthorized access to proprietary information or sensitive or confidential data, and increased risks of 
other cybersecurity attacks. We continue to implement physical and cybersecurity measures in an attempt to safeguard our 
systems in order to serve our operational needs in a remote working environment and to provide uninterrupted service to 
our customers. As a component of our cyber risk management program, we periodically engage a third-party provider to 
assess our cyber posture and assist us in improving our security profile. 

Our property and cyber insurance would offset losses up to certain coverage limits in the event of a catastrophe or certain 
cyber incidents, including certain business interruption events related to these incidents; however, losses arising from a 
catastrophe or significant cyber incident may exceed our insurance coverage and could have a material adverse impact on 
our results of operations and financial condition. We do not have insurance coverage specific to losses resulting from a 
pandemic  or  geopolitical  conflict.  A  significant  disruption  in  our  information  technology  systems  or  a  significant 
cybersecurity  incident,  including  denial  of  service,  system  failure,  security  breach,  intentional  or  inadvertent  acts  by 
employees or vendors with access to our systems or data, disruption by malware, or other damage, could interrupt or delay 
our operations, damage our reputation, cause a loss of customers, cause errors or delays in financial reporting, result in 
violation of privacy laws, expose us to a risk of loss or litigation, and/or cause us to incur significant time and expense to 
remedy such an event. 

We have experienced incidents involving attempted denial of service attacks, malware attacks, and other events intended 
to disrupt information systems, wrongfully obtain valuable information, or cause other types of malicious events that could 
have resulted in harm to our business. To our knowledge, the various protections we have employed have been effective 
to date in identifying these types of events at a point when the impact on our business could be minimized. We must 
continuously monitor and develop our information technology networks and infrastructure to prevent, detect, address, and 
mitigate the risk of unauthorized access, misuse, computer viruses, and other events that could have a security impact. We 
have made and continue to make significant financial investments in technologies and processes to mitigate these risks. 
We also provide employee awareness training around phishing, malware, and other cyber risks. Despite our efforts, due 
to the increasing sophistication of cyber criminals and the development of new techniques for attack, we may be unable to 
anticipate or promptly detect, or implement adequate protective or remedial measures against, the activities of perpetrators 
of  cyberattacks.  Management  is  not  aware  of  any  current  cybersecurity  incident  that  has  had  a  material  effect  on  our 
operations, although there can be no assurances that a cyber incident that could have a material impact to our operations 
could not occur.  

54 

 
 
 
 
LIQUIDITY AND CAPITAL RESOURCES 

Our primary sources of liquidity are cash, cash equivalents, and short-term investments, cash generated by operations, and 
borrowing capacity under our revolving credit facility or our accounts receivable securitization program.  

This  Liquidity  and  Capital  Resources  section  of  MD&A  generally  discusses  2022  and  2021  items  and  year-to-year 
comparisons between 2022 and 2021. Discussions of 2020 items and year-to-year comparisons between 2021 and 2020 
that are not included in this Form 10-K can be found in the Liquidity and Capital Resources section of MD&A in Part II, 
Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. 

Cash Flow and Short-Term Investments 

Components of cash and cash equivalents and short-term investments, which are further described in Note C to our 
consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K, were as follows: 

Cash and cash equivalents 
Short-term investments 

Total 

2022 

 Year Ended December 31 
2021 
(in thousands) 
  $  158,372   $   76,620   $  303,954  
 65,408  
  $  326,034   $  124,959   $  369,362  

  167,662  

 48,339  

2020 

Cash, cash equivalents, and short-term investments increased $201.1 million from December 31, 2021 to December 31, 
2022 reflecting solid cashflow generated from operations. Cash provided by operating activities increased $147.3 million 
during 2022 to $470.8 million, compared to $323.5 million during 2021. Net income increased by $84.7 million in 2022, 
compared to 2021, primarily due to improved operating performance.  

Changes  in  operating  assets  and  liabilities,  excluding  income  taxes,  contributed  $36.2 million  to  cash  provided  by 
operating activities during 2022, while reducing cash provided by operating activities by $17.2 million during 2021. These 
changes reflect a lower increase in accounts receivable and an increase in other liabilities, partially offset by a decrease in 
accounts payable and a lower increase in accrued expenses at December 31, 2022 versus December 31, 2021, compared 
to the same prior-year periods. The lower year-over-year increase in accounts receivable and the decrease in accounts 
payable,  compared  to  the  prior-year  periods,  were  primarily  due  to  a  decrease  in  business  levels  in  December  2022, 
compared to December 2021, versus an increase in business levels in December 2021, compared to December 2020. The 
lower increase in accrued expenses at December 31, 2022 versus December 31, 2021, compared to the same prior-year 
periods, was primarily related to lower year-over-year increases in liabilities for certain union and nonunion performance-
based incentive plans earned for 2022, compared to 2021, and the timing of wage and vacation accruals. The increase in 
other liabilities at December 31, 2022 versus December 31, 2021 was primarily due to the increase in the fair value of the 
contingent  earnout  consideration recorded for  the MoLo  acquisition,  further  discussed  in Other Liquidity  and  Balance 
Sheet Changes below (also see Note D to our consolidated financial statements included in Part II, Item 8 of this Annual 
Report on Form 10-K). 

Our capital expenditures more than doubled in 2022, compared to 2021. We funded capital expenditures, net of proceeds 
from asset sales, of $128.5 million in 2022, including property purchases and the renovation of properties for our Asset-
Based network; financed an additional $82.4 million of revenue equipment for our Asset-Based operations; and invested 
$17.3  million  in  internally  developed  software.  See  Capital  Expenditures  below  for  annual  expenditure  amounts  and 
estimates for 2023. 

We have financed the purchase of certain revenue equipment, other equipment, and software through promissory note 
arrangements. Cash used to fund these promissory note payments for 2022 was $57.5 million. The obligation for notes 
payable recognized in our consolidated balance sheet totaled $214.6 million as of December 31, 2022, and we anticipate 
$72.3 million of payments related to these notes in 2023. During 2022, we repurchased 822,106 shares of our common 
stock under our share repurchase plan for an aggregate cost of $65.0 million, and we paid dividends on our common stock 
in each quarter of 2022 for an aggregate payment of $10.8 million. 

55 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
  
     
     
  
 
  
  
 
 
 
 
 
 
 
 
Financing Arrangements 

In October 2022, we amended and restated our revolving credit facility (the “Credit Facility”) under our Fourth Amended 
and Restated Credit Agreement (the “Credit Agreement”). The amendment, among other things, increased the aggregate 
amount  of  the  swing  line  facility  from  $25.0  million  to  $40.0  million;  extended  the  scheduled  maturity  date  to 
October 7, 2027;  replaced  interest  pricing  conventions based on  the  London Inter-Bank Offered  Rate  (“LIBOR”) with 
interest pricing based on the Secured Overnight Financing Rate (“SOFR”); released the liens on the assets of the Company 
and certain subsidiaries; and released pledges of equity interests in certain subsidiaries. During 2022, we borrowed and 
repaid $58.0 million under the Credit Facility, and our outstanding obligation under the facility as of December 31, 2022 
was $50.0 million. As of December 31, 2022, we had available borrowing capacity of $200.0 million under the initial 
maximum credit amount of our Credit Facility.  

We amended our accounts receivable securitization program in May 2022 to, among other things, increase certain ratios, 
including the delinquency, default, and accounts receivable turnover ratios; add language addressing the potential inclusion 
of receivables originated by MoLo; and replace LIBOR-based interest pricing conventions with interest pricing based on 
SOFR. The program ratios were adjusted to accommodate revenue growth and customer demand for integrated logistics 
solutions. Delivering these services, which was accelerated by the November 2021 acquisition of MoLo, has resulted in 
an increased proportion of total revenues generated by our Asset-Light operations and, as a result, longer collection periods 
on our accounts receivable, as are typical for Asset-Light businesses. As of December 31, 2022, we had $40.0 million 
available under our accounts receivable securitization program, as reduced for our standby letters of credit issued under 
the program. 

See Note H to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for 
further  discussion  of  our  financing  arrangements  and  presentation  of  the  scheduled  maturities  of  our  long-term  debt 
obligations. 

Contractual Obligations 

In the normal course of business, we enter into contracts and commitments that obligate us to make payments in the future. 
In  addition  to  the  obligations  discussed  within  the  preceding  Financing  Arrangements  section,  we  have  contractual 
obligations as described in the following paragraphs. Certain contractual obligations are also further disclosed in the notes 
to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. 

While we own the majority of our larger service centers, distribution centers, and administrative offices, we lease certain 
facilities and equipment. As of December 31, 2022, contractual obligations for operating lease liabilities, primarily related 
to our Asset-Based service centers, totaled $232.8 million, including imputed interest, for an increase of $24.7 million 
from December 31, 2021. Operating lease payments due within one year total $31.9 million. The scheduled maturities of 
our operating lease liabilities as of December 31, 2022 are disclosed in Note G to our consolidated financial statements 
included in Part II, Item 8 of this Annual Report on Form 10-K.  

We  sponsor  an  insured  postretirement  health  benefit  plan  that  provides  supplemental  medical  benefits  and  dental  and 
vision care to certain executive officers. As of December 31, 2022, estimated projected payments, net of retiree premiums, 
related to postretirement health benefits total $0.7 million for the next year and $7.3 million for the next 10 years. These 
projected  amounts  are  subject  to  change  based  upon  increases  and  other  changes  in  premiums  and  medical  costs  and 
continuation of the plan for current participants. The accumulated benefit obligation of the postretirement health benefit 
plan accrued in the consolidated balance sheet totaled $12.5 million as of December 31, 2022.  

We have purchase obligations, consisting of authorizations to purchase and binding agreements with vendors, relating to 
revenue equipment used in our Asset-Based and Asset-Light operations, other equipment, facility improvements, software, 
service  contracts,  and  other  items  for  which  amounts  were  not  accrued  in  the  consolidated  balance  sheet  as  of 
December 31, 2022.  These  purchase  obligations  totaled  $100.9  million  as  of  December  31,  2022,  with  $87.6  million 
expected  to  be  paid  within  the  next  year,  provided  that  vendors  complete  their  commitments  to  us.  As  of 
December 31, 2022,  the  amount  of  our  purchase  obligations  has  increased  $22.1 million  from  December  31,  2021, 
primarily related to real estate projects, certain equipment, software, and technology advancements, which are included in 
our 2023 capital expenditure plan. We have no investments, loans, or any other known contractual arrangements with 
unconsolidated special-purpose entities, variable interest entities, or financial partnerships and have no outstanding loans 
with our executive officers or directors. 

56 

 
 
 
 
 
 
 
 
ABF Freight has a withdrawal liability that was triggered when its multiemployer pension plan obligation with the New 
England  Teamsters  Trucking  Industry  Pension  Fund  was  restructured  under  a  transition  agreement  in  2018.  As  of 
December 31, 2022, payments due within one year under the withdrawal liability settlement total $1.6 million and total 
payments, which are due over the next 19 years, total $29.8 million. As of December 31, 2022, the outstanding withdrawal 
liability recognized in the consolidated balance sheet for this obligation totaled $20.1 million. ABF Freight contributes to 
other multiemployer health, welfare, and pension plans based generally on the time worked by their contractual employees, 
as specified in the collective bargaining agreement and other supporting supplemental agreements (see Multiemployer 
Plans  within  Note  J  to  our  consolidated  financial  statements  included  in  Part  II,  Item  8  of  this  Annual  Report  on 
Form 10-K). 

Capital Expenditures 

The following table sets forth our capital expenditures for the periods indicated below: 

Capital expenditures, gross including notes payable(1)  
Less financing from notes payable and finance lease obligations 
Capital expenditures, net of notes payable and finance leases 
Less proceeds from asset sales 

Total capital expenditures, net 

2022 

 Year Ended December 31 
2021 
(in thousands) 

2020 

  $ 

  $ 

 230,648   $ 
 82,425  
 148,223  
 19,691  
 128,532   $ 

 118,112   $ 
 59,700  
 58,412  
 13,815  
 44,597   $ 

 105,051  
 61,803  
 43,248  
 13,348  
 29,900  

(1)  Actual capital expenditures in 2022 and 2021 fell below our estimates due to delays in the original build schedules of our Asset-
Based and Asset-Light revenue equipment caused by parts shortages and manufacturing disruptions. Our actions during 2020 to 
preserve cash and lower costs to mitigate the financial impact of the COVID-19 pandemic on our business included a reduction of 
our 2020 capital expenditure plan by approximately 30%, including a reduction in revenue equipment purchases of $18.0 million.  

For  2023,  our  total  capital  expenditures,  including  amounts  financed,  are  estimated  to  range  from  $300.0  million  to 
$325.0 million, net of asset sales. These 2023 estimated net capital expenditures include revenue equipment purchases of 
$175.0 million, primarily for our Asset-Based operations, including approximately $60.0 million of previously planned 
2022 equipment purchases which were delayed due to supply chain-related manufacturing delays and cancellations and 
carried  over  to  our  2023  planned  expenditures.  The  remainder  of  our  2023  expected  capital  expenditures  includes 
investments in real estate and facility upgrades to support our growth plans, as well as technology investments across the 
enterprise and miscellaneous dock equipment upgrades and enhancements. We have the flexibility to adjust certain planned 
2023 capital expenditures as business levels dictate. Depreciation and amortization expense, excluding amortization of 
intangibles, is estimated to be approximately $130.0 million in 2023. The amortization of intangible assets is estimated to 
be approximately $13.0 million in 2023, primarily related to purchase accounting amortization associated with the MoLo 
acquisition. 

Other Liquidity Information 

General economic conditions, including the impact of the war in Ukraine and the effects of the COVID-19 pandemic in 
future periods, along with competitive market factors; record high inflation; rising interest rates as a result of monetary 
policy and volatile energy prices; and the related impact on our business, primarily tonnage and shipment levels and the 
pricing that we receive for our services in future periods, could affect our ability to generate cash from operating activities 
and  maintain  cash,  cash  equivalents,  and  short-term  investments  on  hand  as  operating  costs  increase.  Cash,  cash 
equivalents,  and  short-term  investments  totaled  $326.0  million  at  December  31,  2022.  We  generated  $470.8 million, 
$323.5 million, and $206.0 million of cash flow from operating activities during 2022, 2021, and 2020, respectively. Our 
Credit  Facility  and  our  accounts  receivable  securitization  program  provide  available  sources  of  liquidity  with  flexible 
borrowing  and  payment  options.  We  had  available  borrowing  capacity  under  our  Credit  Facility  and  our  accounts 
receivable securitization program of $200.0 million and $40.0 million, respectively, at December 31, 2022. We believe 
these agreements provide borrowing capacity necessary for growth of our businesses. During the next 12 months and for 
the foreseeable future, we believe existing cash, cash equivalents, short-term investments, cash generated by operating 
activities,  and  amounts  available  under  our  Credit  Facility  and  our  accounts  receivable  securitization  program  will  be 
sufficient to finance our operating expenses; fund our ongoing initiatives to grow our business, including investments in 
technology; repay amounts due under our financing arrangements; and pay contingent earnout consideration related to the 

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
    
    
    
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MoLo acquisition as it is earned. Notes payable, finance leases, and other secured financing may also be used to fund 
capital expenditures, provided that such arrangements are available, and the terms are acceptable to us. 

The Agreement and Plan of Merger (the “Merger Agreement”) for our acquisition of MoLo is subject to certain post-
closing adjustments which were estimated at closing and provides for additional cash consideration ranging from 44% to 
212% of the target payment relative to the achievement of incremental adjusted EBITDA targets of 80% to 300% for years 
2023 through 2025. The cumulative additional consideration through 2025 would be $215.0 million at 100% of the target, 
consisting of target earnout payments of $45.0 million, $70.0 million, and $100.0 million for the years ended December 31, 
2023, 2024, and 2025, respectively. 

We  continue  to  take  actions  to  enhance  shareholder  value  with  our  quarterly  dividend  payments  and  treasury  stock 
purchases.  With  the  dividend  declared  in  April  2022,  our  quarterly  dividend  rate  increased  $0.04 per  share  over  our 
previous $0.08 per share dividend. On January 30, 2023, our Board of Directors declared a dividend of $0.12 per share 
payable  to  stockholders  of  record  as  of  February 14, 2023.  We  expect  to  continue  to  pay  quarterly  dividends  on  our 
common stock in the foreseeable future, although there can be no assurance in this regard since future dividends will be at 
the discretion of the Board of Directors and are dependent upon our future earnings, capital requirements, and financial 
condition; contractual restrictions applying to the payment of dividends under our Credit Agreement; and other factors.  

During 2022, we purchased 822,106 shares of our common stock for an aggregate cost of $65.0 million and settled the 
remaining $25.0 million under our fixed dollar accelerated share repurchase program with the purchase of 214,763 shares 
in January 2022. In April 2022, our Board of Directors increased the total amount available for purchases of our common 
stock under our share repurchase program to $75.0 million. As of December 31, 2022, $26.5 million remained available 
for repurchase under the share repurchase program (see Note K to our consolidated financial statements included in Part II, 
Item 8 of this Annual Report on Form 10-K).  

Financial Instruments 

In October 2022, we amended our $50.0 million notional amount interest rate swap agreement to replace LIBOR-based 
interest pricing conventions with interest pricing based on SOFR. This amended interest rate swap agreement initially 
started on June 30, 2022 and matures on October 1, 2024. The amendment effectively converts the first $50.0 million 
borrowed under the Credit Facility to fixed-rate debt with a fixed per annum rate of 1.55% based on the margin of our 
Credit Facility as of December 31, 2022. 

Our interest rate swap agreement is further discussed in Note H to our consolidated financial statements included in Part II, 
Item  8  of  this  Annual  Report  on  Form  10-K.  As  of  December  31,  2022,  we  have  no  other  derivative  or  hedging 
arrangements outstanding. 

Balance Sheet Changes 

Operating Right of Use Assets and Operating Lease Liabilities 
The increase in operating right of use assets of $59.8 million and the increase in operating lease liabilities, including current 
portion, of $62.5 million from December 31, 2021 to December 31, 2022, were primarily due to new leases and lease 
renewals during 2022, including the new MoLo office lease in third quarter 2022. 

Accrued Expenses  
Accrued expenses increased $36.0 million from December 31, 2021 to December 31, 2022, primarily due to increases in 
accruals for certain performance-based incentive plans, including the union profit-sharing bonus and long-term nonunion 
incentive  plans  impacted  by  shareholder  returns  relative  to  peers;  higher  workers’  compensation  reserves,  due  to  an 
increase  in  claims  activity  and  higher  average  claims  cost;  and  higher  accruals  for  vacation,  due  to  timing  and 
enhancements to our nonunion vacation policy. 

Long-term Debt 
The $39.1 million increase in long-term debt, including current portion, from December 31, 2021 to December 31, 2022, 
is primarily due to equipment financed of $82.4 million and proceeds from other notes payable of $14.2 million, net of 
payments on notes payable of $57.5 million.  

58 

 
 
 
 
 
 
 
 
 
 
 
Other Long-term Liabilities 
Other long-term liabilities increased $19.2 million from December 31, 2021 to December 31, 2022, primarily due to an 
$18.3 million increase in fair value of the contingent earnout consideration recorded for the MoLo acquisition during 2022. 
The liability for contingent consideration recorded for the MoLo acquisition, as previously described within the Other 
Liquidity section above, is remeasured at each quarterly reporting date, and any change in fair value as a result of the 
recurring assessments is recognized in operating income. 

INCOME TAXES 

This Income Taxes section of MD&A generally discusses 2022 and 2021 items and year-to-year comparisons between 
2022 and 2021. Discussions of 2020 items and year-to-year comparisons between 2021 and 2020 that are not included in 
this Form 10-K can be found in the Income Taxes section of MD&A in Part II, Item 7 of our Annual Report on Form 10-K 
for the fiscal year ended December 31, 2021. 

Our effective tax rate was 24.1% and 23.0% of pre-tax income for 2022 and 2021, respectively. The rates for 2022 and 
2021  were  impacted  by  state  income  taxes,  the  effect  of  changes  in  the  cash  surrender  value  of  life  insurance,  non-
deductible  expenses,  adjustments  to  valuation  allowances  on  deferred  taxes,  federal  research  and  development  and 
employment tax credits, and the settlement of share-based payment awards. The settlement of share-based awards resulted 
in tax benefits of $6.9 million and $6.1 million in 2022 and 2021, respectively. The difference between our effective rate 
and the federal statutory rate for 2022 was also impacted by the extended alternative fuel tax credit that previously expired 
on December 31, 2020. As a result, we recognized alternative fuel tax credits of $2.4 million for 2022 and 2021 during 
2022. The 2021 rate was also impacted by life insurance proceeds and an increase in an uncertain tax position. 

For 2022, our U.S. statutory tax rate was 21.0%. Our average state tax rate, net of the associated federal deduction, was 
approximately 5%. However, various factors, including the amount of pre-tax income as well as benefits recognized in the 
income statement upon settlement of share-based payment awards, caused our full year 2022 effective tax rate to vary 
significantly from the statutory rate. Due to the impact of non-deductible expenses, lower levels of pre-tax income result 
in a higher tax rate on income and a lower benefit rate on losses. As pre-tax income or pre-tax losses increase, the impact 
of non-deductible expenses on the overall rate declines.  

We had net deferred tax liabilities after valuation allowances of $54.9 million and $59.4 million at December 31, 2022 
and 2021, respectively. Valuation allowances for deferred tax assets totaled $1.7 million and $2.2 million at December 31, 
2022 and 2021, respectively. As the Canadian tax rate is now higher than the U.S. tax rate, it is unlikely that foreign tax 
credit carryforwards will be useable, as U.S. taxes paid will be at a lower rate than the tax rates in Canada. Thus, the 
foreign tax credit carryforwards were fully reserved, resulting in valuation allowances of $1.0 million and $0.8 million at 
December 31, 2022 and 2021, respectively. At December 31, 2022, we had gross state net operating loss carryforwards of 
$9.9 million. These state net operating loss carryforwards were reserved by valuation allowances of $0.4 million, and there 
were additional valuation allowances of $0.2 million related to state research and development tax credits and less than 
$0.1 million related to state interest expense carryforwards at December 31, 2022. Due to taxable income, there is no need 
for  a  valuation  allowance  on  federal  net  operating  loss  carryforwards  at  December 31, 2022.  The  need  for  additional 
valuation allowances is continually monitored by management.   

At December 31, 2022 and 2021, there was a reserve for uncertain tax positions of $0.9 million related to credits taken on 
federal returns.  

Financial  reporting  income  differs  significantly  from  taxable  income  because  of  items  such  as  bonus  or  accelerated 
depreciation for tax purposes, and a significant number of liabilities such as vacation pay, workers’ compensation reserves, 
and  other  liabilities,  which,  for  tax  purposes,  are  generally  deductible  only  when  paid.  For  the  year  ended 
December 31, 2022,  financial  reporting  income  exceeded  taxable  income,  and  for  the  year  ended  December 31, 2021, 
taxable income exceeded financial reporting income.  

We made $148.7 million of federal, state, and foreign tax payments during the year ended December 31, 2022, and received 
refunds of $42.3 million of federal, state, and foreign taxes that were paid in prior years.  

Management expects the cash outlays for income taxes will be less than reported income tax expense in 2023 due primarily 
to the effect of 80% bonus depreciation on qualified depreciable assets in 2023 as allowed under the Tax Reform Act of 

59 

 
 
 
 
 
 
 
 
 
 
1986 (the “Tax Reform Act”), as amended. However, in the event we were to become unprofitable, net operating loss 
carrybacks allowed under the provisions of the Tax Reform Act could be limited in certain circumstances. 

CRITICAL ACCOUNTING POLICIES AND ESTIMATES 

The  preparation  of  financial  statements  in  conformity  with  GAAP  requires  management  to  make  estimates  and 
assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are based on 
prior experience and other assumptions that management considers reasonable in our circumstances. Actual results could 
differ from those estimates under different assumptions or conditions, which would affect the related amounts reported in 
the financial statements. 

The accounting policies and estimates that are “critical” to understanding our financial condition and results of operations 
and that require management to make the most difficult judgments are described as follows. 

Revenue Recognition 
Revenues are recognized when or as control of the promised services is transferred to our customers, in an amount that 
reflects  the  consideration  we  expect  to  be  entitled  to  in  exchange  for  those  services.  Our  performance  obligations  are 
primarily  satisfied  upon  final  delivery  of  the  freight  to  the  specified  destination.  Revenue  is  recognized  based  on  the 
relative transit time in each reporting period with expenses recognized as incurred using a bill-by-bill analysis or standard 
delivery  times  to  establish  estimates  of  revenue  in  transit  for  recognition  in  the  appropriate  period.  This  methodology 
utilizes  the  approximate  location  of  the  shipment  in  the  delivery  process  to  determine  the  revenue  to  recognize,  and 
management believes it to be a reliable method.  

Certain contracts may provide for volume-based or other discounts which are accounted for as variable consideration. We 
estimate  these  amounts  based  on  the  expected  discounts  earned  by  customers,  and  revenue  is  recognized  using  these 
estimates.  Revenue  adjustments  may  also  occur  due  to  rating  or  other  billing  adjustments.  We  estimate  revenue 
adjustments based on historical information, and revenue is recognized accordingly at the time of shipment. We believe 
that actual amounts will not vary significantly from estimates of variable consideration.  

Revenue,  purchased  transportation  expense,  and  third-party  service  expenses  are  reported  on  a  gross  basis  for  certain 
shipments and services where we utilize a third-party carrier for pickup, linehaul, delivery of freight, or performance of 
services, but we remain primarily responsible for fulfilling delivery to the customer and maintain discretion in setting the 
price for the services. Purchased transportation expense is recognized as incurred. 

For our FleetNet segment, service fee revenue is recognized upon response to the service event, and repair revenue is 
recognized upon completion of the service by third-party vendors. Revenue and expense from repair and maintenance 
services performed by third-party vendors are reported on a gross basis as FleetNet controls the services prior to transfer 
to the customer and remains primarily responsible to the customer for completion of the services. 

Payment  terms  with  customers  may  vary  depending  on  the  service  provided,  location  or  specific  agreement  with  the 
customer. The time between invoicing and when payment is due is not significant. For certain services, we require payment 
before the services are delivered to the customer. 

We expense sales commissions when incurred because the amortization period is one year or less. 

Impairment Assessment of Long-Lived Assets 
We review our long-lived assets, including property, plant and equipment and capitalized software, which are held and 
used in our operations, for impairment whenever events or changes in circumstances indicate that the carrying amount of 
the asset may not be recoverable. If such an event or change in circumstances is present, we will estimate the undiscounted 
future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the undiscounted 
future cash flows is less than the carrying amount of the related assets, we will determine the fair value of the assets and 
will recognize an impairment loss if the fair value of the assets is less than the recorded value. The evaluation of future 
cash flows requires management’s judgment and the use of estimates and assumptions. Assumptions require considerable 
judgment  because  changes  in  broad  economic  factors  and  industry  factors  can  result  in  variable  and  volatile  values. 
Economic factors and the industry environment were considered in assessing recoverability of long-lived assets, including 
revenue equipment (primarily tractors and trailers used in our Asset-Based operations and trailers used in our expedite and 

60 

 
 
 
 
 
 
 
 
 
 
 
dedicated operations). Our strict equipment maintenance schedules have served to mitigate declines in the value of revenue 
equipment.  

Contingent Consideration 
We record the estimated fair value of contingent earnout consideration at the acquisition date as part of the purchase price 
consideration. The fair value of the contingent earnout consideration liability for the MoLo acquisition was determined 
with the assistance of an independent third-party valuation firm who utilized a Monte Carlo simulation with Level 3 inputs 
including scenarios of estimated revenues and earnings before interest, taxes, depreciation and amortization to be achieved 
for the applicable performance periods, volatility factors applied to the simulations, and the discount rate applied, which 
was 14.0% and 9.0% as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the fair value of the 
outstanding contingent earnout consideration of $112.0 million related to the acquisition of MoLo was recorded in other 
long-term liabilities. A-100-basis point decrease in the discount rate would increase the liability by $3.0 million. 

The liability for contingent earnout consideration is remeasured at each quarterly reporting date, and any change in fair 
value as a result of the recurring assessments is recognized in operating income. We recognized $18.3 million in expenses 
related to fair value changes in the liability of contingent earnout consideration for the year ended December 31, 2022. 
Inputs  that  could  impact  the  measurement  of  contingent  earnout  consideration  include  revised  projections  of  earnings 
before interest, taxes, depreciation and amortization; changes in the discount rate due to changes in market interest rates, 
equity valuations and other factors; changes in volatility factors based on equity market conditions; and other relevant 
factors. 

Impairment of Goodwill and Intangible Assets 
Our  consolidated  goodwill  balance  of  $305.4  million  at  December  31,  2022  is  primarily  related  to  acquisitions  in  the 
ArcBest segment, including goodwill totaling $219.0 million related to the November 2021 MoLo acquisition. Goodwill 
is recorded as the excess of an acquired entity’s purchase price over the value of the amounts assigned to identifiable assets 
acquired  and  liabilities  assumed.  Goodwill  is  not  amortized,  but  rather  is  evaluated  for  impairment  annually  or  more 
frequently if indicators of impairment exist. The annual impairment testing on the goodwill balances was performed as of 
October 1, 2022. The evaluation includes an analysis of qualitative factors to determine if it is more likely than not the fair 
value of the reporting unit is less than its carrying value. If we determine it is more likely than not that the fair value of the 
reporting unit is less than its carrying value, a quantitative valuation of the reporting unit is performed and compared to 
the carrying value to determine if the reporting unit is impaired and to measure impairment loss, if any. For annual and 
interim impairment tests, we are required to record an impairment charge, if any, by the amount a reporting unit’s fair 
value is exceeded by the carrying value of the reporting unit, limited to the carrying value of goodwill included in the 
reporting unit.  

Our assessment of the qualitative factors as of October 1, 2022 determined it was not more likely than not that the fair 
values  of  the  reporting  units  were  less  than  the  carrying  value.  Key  qualitative  considerations  included  the  operating 
performance of the reporting units compared to prior periods and prior year forecast, macroeconomic conditions, industry 
considerations and the market capitalization of the Company.  

Our indefinite-lived intangible assets, which include the Panther Premium Logistics trade name, totaled $32.3 million as 
of December 31, 2022. Indefinite-lived intangible assets are not amortized but rather are evaluated for impairment annually 
or more frequently if indicators of impairment exist. If the carrying amount of the intangible asset exceeds its fair value, 
an impairment loss shall be recognized in an amount equal to that excess. We assessed impairment of the indefinite-lived 
intangible asset qualitatively as of October 1, 2022 and determined no indicators of impairment were present.  

Our finite-lived intangible assets consist primarily of customer relationship intangible assets and are amortized over their 
respective  estimated  useful  lives.  Finite-lived  intangible  assets  are  also  evaluated  for  impairment  whenever  events  or 
changes  in  circumstances  indicate  that  the  carrying  value  may  not  be  recoverable.  In  reviewing  finite-lived  intangible 
assets for impairment, the carrying amount of the asset or asset group is compared to the estimated undiscounted future 
cash flows expected from the use of the asset and its eventual disposition. If such cash flows are not sufficient to support 
the recorded value, an impairment loss to reduce the carrying value of the asset to its estimated fair value will be recognized 
in operating income.  

Insurance Reserves 
We are self-insured up to certain limits for workers’ compensation and certain third-party casualty claims. For 2022 and 
2021, our self-insurance limits are effectively $1.0 million for each workers’ compensation loss and generally $1.0 million 

61 

 
 
 
 
 
 
 
for  each  third-party  casualty  or  general  liability  loss.  For  third-party  casualty  claims  occurring  subsequent  to 
November 1, 2022, our self-insured limits are $2.0 million for  each auto accident or loss. Workers’ compensation and 
third-party casualty claims liabilities, which are reported in accrued expenses, totaled $122.8 million and $109.5 million 
at December 31, 2022 and 2021, respectively. We do not discount our claims liabilities. 

Liabilities  for  self-insured  workers’  compensation  and  third-party  casualty  claims  are  based  on  the  case-basis  reserve 
amounts plus an estimate of loss development and incurred but not reported (“IBNR”) claims, which is developed from 
an independent actuarial analysis. The process of determining reserve requirements utilizes historical trends and involves 
an evaluation of claim frequency and severity, claims management, and other factors. Case reserves established in prior 
years  are  evaluated  as  loss  experience  develops  and  new  information  becomes  available.  Adjustments  to  previously 
estimated case reserves are reflected in financial results in the periods in which they are made. Aggregate reserves represent 
the best estimate of the costs of claims incurred, and it is possible that the ultimate liability may differ significantly from 
such estimates, as a result of a number of factors, including increases in medical costs and other case-specific factors. A 
10% increase in the estimate of IBNR would increase the total 2022 expense for workers’ compensation and third-party 
casualty  claims  by  approximately  $5.7  million.  The  actual  claims  payments  are  charged  against  our  accrued  claims 
liabilities which have been reasonable with respect to the estimates of the related claims. 

RECENT ACCOUNTING PRONOUNCEMENTS 

New accounting rules and disclosure requirements can significantly impact our reported results and the comparability of 
financial statements. There are no accounting pronouncements which have been issued but are not yet effective that would 
have a material impact on our current financial statements. 

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

We  are  exposed  to  market  risk  from  changes  in  certain  interest  rates,  prices  of  diesel  fuel,  prices  of  equity  and  debt 
securities, and foreign currency exchange rates. These market risks arise in the normal course of business, as we do not 
engage in speculative trading activities. Further discussion of risks can be found in Item 1A (Risk Factors) included in 
Part I of this Annual Report on Form 10-K. 

Interest Rate Risk 

We have exposures to changes in interest rates as follows: 

Cash, cash equivalents, and short-term investments. At December 31, 2022 and 2021, cash, cash equivalents, and short-
term  investments  totaled  $326.0 million  and  $125.0 million,  respectively.  Substantially  all  cash  equivalents  were  in 
demand  accounts  with  financial  institutions.  Our  short-term  investments  were  principally  composed  of  certificates  of 
deposit and U.S. government securities. Although the fair values of these instruments can fluctuate, we believe that the 
short-term, liquid nature of these instruments and our ability to hold these instruments to maturity reduces our risk for 
potential material losses. 

Debt. Our debt portfolio includes notes payable to finance the purchase of certain revenue equipment, other equipment, 
and software with a fixed rate of interest, which mitigates the impact of fluctuations in interest rates. Future issuances of 
notes payable could be impacted by increases in interest rates, which could result in higher interest costs. Borrowings, if 
any, under our Credit Facility and accounts receivable securitization program are at a variable interest rate and expose us 
to the risk of increasing interest rates. We currently have an interest rate swap agreement, which mitigates the risk of 
interest changes on our outstanding Credit Facility borrowings. The interest rate swap effectively converts $50.0 million 
of borrowings under our Credit Facility from variable-rate interest to fixed-rate interest with a per annum rate of 1.55% 
based on the margin of our Credit Facility as of December 31, 2022. Amounts borrowed under our Credit Facility in excess 
of  the  $50.0 million  notional  amount,  if  any,  are  exposed  to  changes  in  market  interest  rates  as  defined  by  the  Credit 
Agreement.  Our  Credit  Facility,  accounts  receivable  securitization  program,  interest  rate  swap  agreement,  and  notes 
payable are further described in Note H to our consolidated financial statements included in Part II, Item 8 of this Annual 
Report on Form 10-K. 

We have finance lease arrangements to finance certain equipment as disclosed in Note G to our consolidated financial 
statements included in Part II, Item 8 of this Annual Report on Form 10-K. The monthly base rent for the lease terms is 

62 

 
 
 
 
 
 
 
 
 
  
 
specified in the lease agreements and is not subject to interest rate changes. We could enter into additional finance lease 
arrangements that will be subject to changes in interest rates. 

Liabilities associated with the supplemental benefit plan and the postretirement health benefit plan are remeasured on an 
annual basis (and upon curtailment or settlement, if applicable) using the applicable discount rates at the measurement 
date. The discount rates are determined by matching projected cash distributions from the plans with the appropriate high-
quality corporate bond yields in a yield curve analysis. Changes in high-quality corporate bond yields will impact interest 
expense associated with these benefit plans as well as the amount of liabilities recorded. 

Other Market Risks 

A portion of the cash surrender value of variable life insurance policies, which are intended to provide funding for long-
term nonunion benefit arrangements such as the supplemental benefit plan and certain deferred compensation plans, have 
investments,  through  separate  accounts,  in  equity  and  fixed  income  securities  and,  therefore,  are  subject  to  market 
volatility. The portion of cash surrender value of life insurance policies subject to market volatility was $23.0 million and 
$26.9 million at December 31, 2022 and 2021, respectively. A 10% change in market value of these investments would 
have a $2.3 million impact on income before income taxes. 

We are subject to market risk for increases in diesel fuel prices; however, this risk is mitigated somewhat by fuel surcharge 
revenues, which are charged based on an index of national diesel fuel prices. When fuel surcharges constitute a higher 
proportion of the total freight rate paid, customers are less receptive to increases in base freight rates. Prolonged periods 
of inadequate base rate improvements adversely impact operating results, as elements of costs, including contractual wage 
rates, continue to increase annually. We have not historically engaged in a program for fuel price hedging and did not have 
any fuel hedging agreements outstanding at December 31, 2022 and 2021. 

Operations outside of the United States are not significant to total revenues or assets, and, accordingly, we do not have a 
formal foreign currency risk management policy. Revenues from non-U.S. operations amounted to less than 4% and 5% 
of total consolidated revenues for 2022 and 2021, respectively. Foreign currency exchange rate fluctuations have not had 
a material impact on our consolidated financial statements, and they are not expected to in the foreseeable future. We have 
not entered into any foreign currency forward exchange contracts or other derivative financial instruments to hedge the 
effects of adverse fluctuations in foreign currency exchange rates. 

63 

 
 
 
 
 
 
 
 
 
ITEM 8. 

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 

The following information is included in this Item 8: 

Report of Independent Registered Public Accounting Firm (Ernst & Young LLP, Tulsa, Oklahoma, PCAOB ID 

42) 

Consolidated Balance Sheets as of December 31, 2022 and 2021 

Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020 

Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021, and 2020   

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2022, 2021, and 2020   

Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020   

Notes to Consolidated Financial Statements 

65

67

68

69

70

71

72

64 

 
 
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 

To the Stockholders and the Board of Directors of ArcBest Corporation 

Opinion on the Financial Statements 
We  have  audited  the  accompanying  consolidated  balance  sheets  of  ArcBest  Corporation  (the  Company)  as  of 
December 31,  2022  and  2021,  the  related  consolidated  statements  of  operations,  comprehensive  income,  stockholders' 
equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial 
statement  schedule  listed  in  Part  IV,  Index  at  Item  15(a)(2)  (collectively  referred  to  as  the  “consolidated  financial 
statements”).  In our opinion,  the  consolidated financial  statements present  fairly,  in  all  material  respects,  the  financial 
position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of 
the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles. 

We  also  have  audited,  in  accordance  with  the  standards  of  the  Public  Company  Accounting  Oversight  Board  (United 
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria 
established  in  Internal  Control-Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the 
Treadway  Commission  (2013  framework),  and  our  report  dated  February  24,  2023,  expressed  an  unqualified  opinion 
thereon. 

Basis for Opinion 
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion 
on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB 
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and 
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 

We  conducted  our  audits  in  accordance  with  the  standards  of  the  PCAOB.  Those  standards  require  that  we  plan  and 
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, 
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of 
the  financial  statements,  whether  due  to  error  or  fraud,  and  performing  procedures  that  respond  to  those  risks.  Such 
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well 
as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for 
our opinion. 

Critical Audit Matter 
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements 
that  was  communicated  or  required  to  be  communicated  to  the  audit  committee  and  that:  (1)  relates  to  accounts  or 
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective 
or  complex  judgments.  The  communication  of  the  critical  audit  matter  does  not  alter  in  any  way  our  opinion  on  the 
consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, 
providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 

Insurance reserves 

Description 
of the Matter 

At December 31, 2022, the Company’s aggregate insurance reserves accrual was $122.8 million, which 
is related to workers’ compensation and third-party casualty claims, inclusive of amounts expected to 
be paid by the Company’s insurers above its self- insured retention limits. As discussed in Note B of 
the  financial  statements,  liabilities  for  self-insured  workers’  compensation  and  third-party  casualty 
claims are based on the case-basis reserve amounts (recognized at the time of the incident based on the 
nature and severity of the claim) plus an estimate of loss development and incurred but not reported 
(IBNR) claims, which is developed with the assistance of a third-party actuarial specialist. 

Auditing  the  Company's  insurance  reserves  is  complex  as  it  includes  significant  measurement 
uncertainty associated with the estimate, involves the application of significant management judgment, 
and employs the use of various actuarial methods. In addition, the estimate for insurance reserves is 
sensitive to significant management assumptions, including the frequency and severity assumptions 
used to derive the computation of the IBNR reserve and loss development factors for reported claims. 

65 

 
 
 
 
 
 
 
 
 
How We 
Addressed the 
Matter in Our 
Audit 

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls 
over the insurance reserves process, including management’s assessment of the assumptions and data 
underlying the IBNR reserve estimate. 

To  evaluate  the  insurance  reserves,  our  audit  procedures  included,  among  others,  testing  the 
completeness and accuracy of the underlying claims data provided to management’s actuarial specialist 
by performing test of details over a representative sample. 

Furthermore,  we  involved  our  actuarial  specialist  to  assist  in  our  evaluation  of  the  methodologies 
applied  and  significant  assumptions  used  in  determining  the  estimated  reserve.  We  compared  the 
Company’s  reserve  amount  to  an  estimated  range  that  our  actuarial  specialist  developed  based  on 
independently selected assumptions. 

/s/ Ernst & Young LLP 

We have served as the Company’s auditor since 1972. 
Tulsa, Oklahoma 
February 24, 2023 

66 

 
  
 
 
 
 
 
 
 
 
 
 
December 31 

2022 

2021 

(in thousands, except share data) 

  $ 

$ 

 158,372 
 167,662 
 580,515 
 11,867 
 40,240 
 19,239 
 11,888 
 989,783 

 406,620 
   1,038,832 
 302,891 
 180,929 
 23,466 
   1,952,738 
   1,142,218 
 810,520 
 305,382 
 113,796 
 166,515 
 6,342 
 101,948 
  $   2,494,286 

  $ 

 317,541 
 16,630 
 341,822 
 66,252 
 26,225 
 768,470 
 198,371 
 147,828 
 12,196 
 154,745 
 61,275 

$ 

$ 

 76,620  
 48,339  
 582,344  
 13,094  
 40,104  
 9,654  
 5,898  
 776,053  

 350,694  
 980,283  
 251,085  
 175,989  
 16,931  
 1,774,982  
 1,079,061  
 695,921  
 300,337  
 126,580  
 106,686  
 5,470  
 101,629  
 2,112,676  

 311,401  
 12,087  
 305,851  
 50,615  
 22,740  
 702,694  
 174,917  
 88,835  
 16,733  
 135,537  
 64,893  

 298 
 339,582 
   1,088,693 
 (284,275) 
 7,103 
   1,151,401 
  $   2,494,286 

 294  
 318,033  
 801,314  
 (194,273) 
 3,699  
 929,067  
 2,112,676  

$ 

ARCBEST CORPORATION 
CONSOLIDATED BALANCE SHEETS 

ASSETS 
CURRENT ASSETS 

Cash and cash equivalents 
Short-term investments 
Accounts receivable, less allowances (2022 – $14,172; 2021 – $13,226) 
Other accounts receivable, less allowances (2022 – $713; 2021 – $690) 
Prepaid expenses 
Prepaid and refundable income taxes 
Other 

TOTAL CURRENT ASSETS 

PROPERTY, PLANT AND EQUIPMENT 

Land and structures 
Revenue equipment 
Service, office, and other equipment 
Software 
Leasehold improvements 

Less allowances for depreciation and amortization 

PROPERTY, PLANT AND EQUIPMENT, net 

GOODWILL 
INTANGIBLE ASSETS, net 
OPERATING RIGHT-OF-USE ASSETS 
DEFERRED INCOME TAXES 
OTHER LONG-TERM ASSETS 
TOTAL ASSETS 

LIABILITIES AND STOCKHOLDERS’ EQUITY 
CURRENT LIABILITIES 

Accounts payable 
Income taxes payable 
Accrued expenses 
Current portion of long-term debt 
Current portion of operating lease liabilities 
TOTAL CURRENT LIABILITIES 
LONG-TERM DEBT, less current portion 
OPERATING LEASE LIABILITIES, less current portion 
POSTRETIREMENT LIABILITIES, less current portion 
OTHER LONG-TERM LIABILITIES 
DEFERRED INCOME TAXES 
STOCKHOLDERS’ EQUITY 

Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2022: 29,758,716 shares,  
2021: 29,359,597 shares 
Additional paid-in capital 
Retained earnings 
Treasury stock, at cost, 2022: 5,529,383 shares; 2021: 4,492,514 shares 
Accumulated other comprehensive income 
TOTAL STOCKHOLDERS’ EQUITY 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 

The accompanying notes are an integral part of the consolidated financial statements. 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
  
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARCBEST CORPORATION 
CONSOLIDATED STATEMENTS OF OPERATIONS 

REVENUES 

OPERATING EXPENSES 

OPERATING INCOME 

OTHER INCOME (COSTS) 

Interest and dividend income 
Interest and other related financing costs 
Other, net 

Year Ended December 31 
2022 
2020 
2021 
(in thousands, except share and per share data) 
$  5,324,052  $  3,980,067  $  2,940,163  

 4,924,783  

 3,699,081  

 2,841,885  

 399,269 

 280,986 

 98,278  

 3,957 
 (7,701)
 (2,370)
 (6,114)

 1,275 
 (8,904)
 3,797 
 (3,832)

 3,616  
 (11,697) 
 2,299  
 (5,782) 

INCOME BEFORE INCOME TAXES 

 393,155 

 277,154 

 92,496  

INCOME TAX PROVISION 

NET INCOME 

EARNINGS PER COMMON SHARE 

Basic 
Diluted 

AVERAGE COMMON SHARES OUTSTANDING 

Basic 
Diluted 

 94,946 

 63,633 

 21,396  

$

 298,209  $

 213,521  $

 71,100  

$
$

 12.13  $
 11.69  $

 8.38  $
 7.98  $

 2.80  
 2.69  

  24,585,205 
  25,504,508 

  25,471,939 
  26,772,126 

  25,410,232  
  26,422,523  

The accompanying notes are an integral part of the consolidated financial statements. 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
    
    
  
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARCBEST CORPORATION 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

NET INCOME 

OTHER COMPREHENSIVE INCOME, net of tax 

2022 

Year Ended December 31 
2021 
(in thousands) 
$ 213,521 

$  298,209 

2020 

$   71,100   

Postretirement benefit plans: 
Net actuarial gain, net of tax of: (2022 – $1,144; 2021 – $451; 2020 – $513) 
Pension settlement expense, net of tax of: (2020 – $23) 
Amortization of unrecognized net periodic benefit credit, net of tax of: (2022 – $195; 
2021 – $139; 2020 – $152) 
Net actuarial gain 
Prior service credit 

 3,298 
 — 

 1,300 
 — 

 1,480  
 66  

 (562)
 — 

 (400)
 — 

 (437) 
 (1) 

Interest rate swap and foreign currency translation: 
Change in unrealized income (loss) on interest rate swap, net of tax of: (2022 – $812; 
2021 – $534; 2020 – $277) 
Change in foreign currency translation, net of tax of: (2022 – $576; 2021 – $36; 2020 – 
$232) 

OTHER COMPREHENSIVE INCOME, net of tax 

 2,295 

 1,507 

 (782) 

 (1,627)

 102 

 3,404 

 2,509 

 661  

 987  

TOTAL COMPREHENSIVE INCOME 

$   301,613  $  216,030  $ 

 72,087  

The accompanying notes are an integral part of the consolidated financial statements. 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
    
    
  
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
  
 
     
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
ARCBEST CORPORATION 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 

  Additional 

  Common Stock        Paid-In 
     Shares     Amount      Capital       Earnings      Shares      Amount      

  Treasury Stock 

  Retained 

   28,811 

$ 

 288 

 $ 333,943 

(in thousands) 
   3,405 

$  533,187 

$ (104,578)

$

 203 

 $  763,043  

  Accumulated   

Other 
    Comprehensive  
Income 

Total 
      Equity 

 (198) 
 762,845  
 71,100  
 987  

 —  

 (2,065) 
 10,478  
 (6,595) 
 (8,157) 
 828,593  
 213,521  
 2,509  

 —  

 (10,743) 
 11,426  
 (83,100) 

 (25,000) 
 (8,139) 
 929,067  
 298,209  
 3,404  

 —  

 (16,222) 
 12,775  
 (65,002) 

 —  
 (10,830) 
 $  1,151,401  

Balance at December 31, 2019 
Adjustments to beginning retained 
earnings for adoption of accounting 
standards 

 (198)

Balance at January 1, 2020 

  28,811 

 288 

   333,943 

 532,989 

 3,405 

 (104,578)

Net income 

Other comprehensive income, net of tax 
Issuance of common stock under share-
based compensation plans 
Shares withheld for employee tax 
remittance on share-based compensation 

Share-based compensation expense 

Purchase of treasury stock 

Dividends declared on common stock 

 71,100 

 234 

 2 

 (2)

 (2,065)

 10,478 

 252 

 (6,595)

 (8,157)

Balance at December 31, 2020 

   29,045 

 290 

   342,354 

 595,932 

   3,657 

 (111,173)

Net income 

Other comprehensive income, net of tax 
Issuance of common stock under share-
based compensation plans 
Shares withheld for employee tax 
remittance on share-based compensation 

Share-based compensation expense 

Purchase of treasury stock 
Forward contract for accelerated share 
repurchase 

Dividends declared on common stock 

 315 

 4 

 (4)

     (10,743)

 11,426 

 (25,000)

 213,521 

 (8,139)

 836 

 (83,100)

 203 

 987 

 1,190 

 2,509 

Balance at December 31, 2021 

   29,360 

 294 

 318,033 

 801,314 

  4,493 

   (194,273)

 3,699 

Net income 

Other comprehensive income, net of tax 
Issuance of common stock under share-
based compensation plans 
Shares withheld for employee tax 
remittance on share-based compensation 

Share-based compensation expense 

Purchase of treasury stock 
Forward contract for accelerated share 
repurchase 

Dividends declared on common stock 

 298,209 

 3,404 

 399 

 4 

 (4)

 (16,222)

 12,775 

 822 

 (65,002)

 25,000 

 214 

 (25,000)

 (10,830)

Balance at December 31, 2022 

   29,759 

$ 

 298 

 $  339,582 

$ 1,088,693 

  5,529 

$ (284,275) $ 

 7,103 

The accompanying notes are an integral part of the consolidated financial statements. 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
   
   
 
 
 
 
 
   
   
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
  
 
   
  
 
   
  
 
   
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
  
  
 
   
  
 
  
 
   
  
 
 
 
 
 
 
 
 
 
  
 
  
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARCBEST CORPORATION 
CONSOLIDATED STATEMENTS OF CASH FLOWS 

OPERATING ACTIVITIES 

Net income 
Adjustments to reconcile net income to net cash provided by operating 
activities: 

Depreciation and amortization 
Amortization of intangibles 
Pension settlement expense 
Share-based compensation expense 
Provision for losses on accounts receivable 
Change in deferred income taxes 
Gain on sale of property and equipment 
Gain on sale of subsidiary 
Changes in operating assets and liabilities: 

Receivables 
Prepaid expenses 
Other assets 
Income taxes 
Operating right-of-use assets and lease liabilities, net 
Accounts payable, accrued expenses, and other liabilities 
NET CASH PROVIDED BY OPERATING ACTIVITIES 

INVESTING ACTIVITIES 

Purchases of property, plant and equipment, net of financings 
Proceeds from sale of property and equipment 
Business acquisition, net of cash acquired 
Proceeds from sale of subsidiary 
Purchases of short-term investments 
Proceeds from sale of short-term investments 
Purchase of long-term investments 
Capitalization of internally developed software 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 

FINANCING ACTIVITIES 

Borrowings under credit facilities 
Borrowings under accounts receivable securitization program 
Proceeds from notes payable 
Payments on long-term debt 
Net change in book overdrafts 
Deferred financing costs 
Payment of common stock dividends 
Purchases of treasury stock 
Forward contract for accelerated share repurchase 
Payments for tax withheld on share-based compensation 

NET CASH USED IN FINANCING ACTIVITIES 

NET INCREASE IN CASH AND CASH EQUIVALENTS 

Cash and cash equivalents at beginning of period 

CASH AND CASH EQUIVALENTS AT END OF PERIOD 

NONCASH INVESTING ACTIVITIES 

Equipment financed 
Accruals for equipment received 
Lease liabilities arising from obtaining right-of-use assets 

2022 

Year Ended December 31 
2021 
(in thousands) 

2020 

$ 

 298,209  $ 

 213,521  $ 

 71,100  

 127,119 
 12,920 
 — 
 12,775 
 6,955 
 (6,250)
 (11,650)
 (402)

 (10,349)
 (410)
 (2,941)
 (5,041)
 2,952 
 46,932 
 470,819 

 (148,223)
 19,691 
 2,279 
 475 
 (182,352)
 64,329 
 — 
 (17,282)
 (261,083)

 58,000 
 — 
 14,206 
 (115,540)
 8,356 
 (952)
 (10,830)
 (65,002)
 — 
 (16,222)
 (127,984)

 118,864 
 5,357 
 — 
 11,426 
 1,466 
 (7,589)
 (8,520)
 (6,923)

 (122,782)
 (1,482)
 354 
 13,136 
 623 
 106,064 
 323,515 

 (58,412)
 13,815 
 (239,380)
 9,013 
 (56,011)
 73,182 
 (25,350)
 (20,061)
 (303,204)

 50,000 
 — 
 3,523 
 (171,915)
 (1,957)
 (314)
 (8,139)
 (83,100)
 (25,000)
 (10,743)
 (247,645)

 114,379  
 4,012  
 89  
 10,478  
 4,327  
 7,715  
 (2,376) 
 —  

 (38,129) 
 (7,966) 
 2,646  
 (1,712) 
 756  
 40,670  
 205,989  

 (43,248) 
 13,348  
 —  
 —  
 (165,133) 
 216,735  
 —  
 (14,241) 
 7,461  

 180,000  
 45,000  
 —  
 (326,098) 
 6,510  
 —  
 (8,157) 
 (6,595) 
 —  
 (2,065) 
 (111,405) 

 81,752 
 76,620 
 158,372  $ 

 (227,334)
 303,954 

 76,620  $ 

 102,045  
 201,909  
 303,954  

 82,425  $ 
 4,337  $ 
 87,294  $ 

 59,700  $ 
 1,704  $ 
 14,671  $ 

 61,803  
 1,667  
 67,819  

$ 

$ 
$ 
$ 

The accompanying notes are an integral part of the consolidated financial statements. 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
     
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARCBEST CORPORATION 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

NOTE A – ORGANIZATION AND DESCRIPTION OF THE BUSINESS AND FINANCIAL STATEMENT 
PRESENTATION 

Organization and Description of Business 

ArcBest Corporation™ (the “Company”) is a multibillion-dollar integrated logistics company that leverages technology 
and a full suite of shipping and logistics solutions to meet customers’ supply chain needs. The Company’s operations are 
conducted through its three reportable operating segments: Asset-Based, which consists of ABF Freight System, Inc. and 
certain  other  subsidiaries  (“ABF  Freight”);  ArcBest,  the  Company’s  asset-light  logistics  operation,  including  MoLo 
Solutions,  LLC  (“MoLo”),  Panther  Premium  Logistics®  (“Panther”),  and  certain  other  subsidiaries;  and  FleetNet. 
References to the Company in this Annual Report on Form 10-K are primarily to the Company and its subsidiaries on a 
consolidated basis. 

The Asset-Based segment represented approximately 55% of the Company’s 2022 total revenues before other revenues 
and intercompany eliminations. As of December 2022, approximately 82% of the Asset-Based segment’s employees were 
covered under a collective bargaining agreement, the ABF National Master Freight Agreement (the “2018 ABF NMFA”), 
with the International Brotherhood of Teamsters (the “IBT”), which will remain in effect through June 30, 2023. 

Financial Statement Presentation 

Consolidation:  The  consolidated  financial  statements  include  the  accounts  of  the  Company  and  its  subsidiaries.  All 
significant intercompany accounts and transactions are eliminated in consolidation. 

Segment  Information:  The  Company  uses  the  “management  approach”  for  determining  its  reportable  segment 
information. The management approach is based on the way management organizes the reportable segments within the 
Company  for  making  operating  decisions  and  assessing  performance.  See  Note  N  for  further  discussion  of  segment 
reporting. 

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in 
the  United  States  requires  management  to  make  estimates  and  assumptions  that  affect  the  amounts  reported  in  the 
consolidated financial statements and accompanying notes. Actual amounts may differ from those estimates. 

NOTE B – ACCOUNTING POLICIES 

Cash, Cash Equivalents, and Short-Term Investments: Short-term investments that have a maturity of ninety days or 
less when purchased are considered cash equivalents. Variable rate demand notes are classified as cash equivalents, as the 
investments may be redeemed on a daily basis with the original issuer. Short-term investments consist of FDIC-insured 
certificates  of  deposit  and  U.S.  Treasury  securities  with  original  maturities  greater  than  ninety  days  and  remaining 
maturities  less  than  one  year.  Interest  and  dividends  related  to  cash,  cash  equivalents,  and  short-term  investments  are 
included in interest and dividend income. 

Certificates  of  deposit  are  valued  at  cost  plus  accrued  interest,  which  approximates  fair  value.  Held-to-maturity  U.S. 
Treasury securities are recorded at amortized cost with interest and amortization of premiums and discounts included in 
interest income. Quarterly, the Company evaluates held-to-maturity securities for any other-than-temporary impairments 
related to any intention to sell or requirement to sell before its amortized costs are recovered. If a security is considered to 
be  other-than-temporarily  impaired,  the  difference  between  amortized  cost  and  the  amount  that  is  determined  to  be 
recoverable is recorded in earnings.  

Concentration of Credit Risk: The Company is potentially subject to concentrations of credit risk related to the portion 
of its cash, cash equivalents, and short-term investments, which is not federally insured, as further discussed in Note C. 

The Company’s services are provided primarily to customers throughout the United States and, to a lesser extent, Canada, 
Mexico, and other international locations. On a consolidated basis, the Company had no single customer representing more 

72 

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
than 3% of its revenues in 2022, 2021, or 2020 or more than 7% of its accounts receivable balance at December 31, 2022 
and 2021. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. 
Historically, credit losses have been within management’s expectations. 

Receivable  Allowances:  The  Company  maintains  allowances  for  credit  losses  and  revenue  adjustments  on  its  trade 
receivables. The Company estimates the allowance for credit losses based on historical write-offs, factors surrounding the 
credit risk of specific customers, and forecasts of future economic conditions. In order to gather information regarding 
these trends and factors, the Company performs ongoing credit evaluations of customers, an analysis of accounts receivable 
aging  by  business  segment,  and  an  analysis  of  future  economic  conditions  at  period  end.  The  allowance  for  revenue 
adjustments is an estimate based on historical revenue adjustments and current information regarding trends and business 
changes. Actual write-offs or adjustments could differ from the allowance estimates due to a number of factors, including 
future  changes  in  the  forecasted  economic  environment  or  new  factors  and  risks  surrounding  a  particular  customer. 
Accounts receivable are written off when the accounts are turned over to a collection agency or when the accounts are 
determined to be uncollectible. Actual write-offs and adjustments are charged against the allowances for credit losses and 
revenue adjustments. The allowance for credit losses on the Company’s trade accounts receivable totaled $9.4 million and 
$8.8 million  at  December 31, 2022  and  2021,  respectively.  During  2022,  the  allowance  for  credit  losses  increased 
$6.9 million and was reduced $6.3 million by write-offs, net of recoveries. 

Property, Plant and Equipment, Including Repairs and Maintenance: Purchases of property, plant and equipment are 
recorded  at  cost.  For  financial  reporting  purposes,  property,  plant  and  equipment  is  depreciated  principally  by  the 
straight-line  method,  using  the  following  useful  lives:  structures  –  primarily  15 to 60 years;  revenue  equipment  – 
3 to 22 years; and other equipment – 2 to 16 years. The Company utilizes tractors and trailers in its operations. Tractors 
and trailers are commonly referred to as “revenue equipment” in the transportation business. The Company periodically 
reviews and adjusts, as appropriate, the residual values and useful lives of revenue equipment and other equipment. For 
tax reporting purposes, accelerated depreciation or cost recovery methods are used. Gains and losses on asset sales are 
reflected in the year of disposal. Exchanges of nonmonetary assets that have commercial substance are measured based on 
the fair value of the assets exchanged. Tires purchased with revenue equipment are capitalized as a part of the cost of such 
equipment, with replacement tires being expensed when placed in service. Repair and maintenance costs associated with 
property, plant and equipment are expensed as incurred if the costs do not extend the useful life of the asset. If such costs 
do extend the useful life of the asset, the costs are capitalized and depreciated over the appropriate remaining useful life. 

Computer Software for Internal Use, Including Web Site Development and Cloud Computing Costs: The Company 
capitalizes the costs of software acquired from third parties and qualifying internal computer software costs incurred during 
the application development stage, or during the implementation stage for cloud computing or hosting arrangements. Costs 
incurred in the preliminary project stage and postimplementation-operation stage, which includes maintenance and training 
costs,  are  expensed  as  incurred.  For  financial  reporting  purposes,  capitalized  software  costs  are  amortized  by  the 
straight-line method generally over 2 to 7 years. Capitalized costs related to cloud computing and hosting arrangements 
are presented within prepaid expenses in the accompanying consolidated balance sheets. The amount of costs capitalized 
within any period is dependent on the nature of software development activities and projects in each period. 

Impairment Assessment of Long-Lived Assets: The Company reviews its long-lived assets, including property, plant 
and equipment, capitalized software, finite-lived intangible assets and right of use assets held under operating leases, which 
are held and used in its operations, for impairment whenever events or changes in circumstances indicate that the carrying 
amount of the asset may not be recoverable. If such an event or change in circumstances is present, the Company will 
estimate the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the 
sum of the undiscounted future cash flows is less than the carrying amount of the related asset, the Company will record 
the asset at the lesser of its carrying amount or fair value and recognize an impairment loss, if any, in operating income. 
At  December  31,  2022  and  2021,  management  was  not  aware  of  events  or  circumstances  indicating  the  Company’s 
long-lived assets would not be recoverable.  

Assets to be disposed of are reclassified as assets held for sale at the lower of their carrying amount or fair value less cost 
to sell. Assets held for sale primarily represent Asset-Based segment nonoperating properties, older revenue equipment, 
and other equipment. Adjustments to write down assets to fair value less the amount of costs to sell are reported in operating 
income. Assets held for sale are expected to be disposed of by selling the assets within the next 12 months. Gains and 
losses on property and equipment are reported in operating income. Assets held for sale of $0.8 million and $0.6 million 
are reported within other noncurrent assets as of December 31, 2022 and 2021, respectively.  

73 

 
 
 
 
 
 
Business  Combinations:  The  Company  uses  the  acquisition  method  of  accounting  for  business  combinations,  which 
generally requires that the assets acquired, and liabilities assumed be recorded at their respective fair values at the date of 
acquisition. The excess, if any of the fair value of the consideration transferred by the acquirer and the fair value of any 
non-controlling interest remaining in the acquiree over the fair value of the identifiable net assets acquired are recorded as 
goodwill. The acquisition date fair value of acquired assets and liabilities are subject to revision during the remeasurement 
period if information becomes available that warrants further adjustments (see Note D). Changes to the acquisition date 
fair value prior to the remeasurement period are recorded as adjustments to goodwill. Acquisition-related expenses are 
expensed as incurred.  

Contingent  Consideration:  The  Company  records  the  estimated  fair  value  of  contingent  earnout  consideration  at  the 
acquisition date as part of the purchase price consideration for an acquisition. The fair value of the contingent earnout 
consideration  liability  is  determined  using  a  Monte  Carlo  simulation  with  Level  3  inputs  including  volatility  factors, 
projected earnings before interest, taxes, depreciation, and amortization, and the discount rate. The fair value of outstanding 
contingent earnout consideration is recorded in other long-term liabilities (see Note D). The liability for contingent earnout 
consideration  is  remeasured  at  each  quarterly  reporting  date  and  any  change  in  fair  value  as  a  result  of  the  recurring 
assessments is recognized in operating income. 

Goodwill and Intangible Assets: Goodwill represents the excess of the purchase price in a business combination over the 
fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is evaluated for impairment 
annually or more frequently if indicators of impairment exist. The Company performs its annual assessment of goodwill 
impairment as of October 1 (see Note E). The Company assesses qualitative factors to determine whether it is more likely 
than not that the fair value of the reporting unit is less than its carrying amount. If the Company determines it is more 
likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative valuation of the reporting 
unit is prepared to measure the amount of goodwill impairment, if any.  

Indefinite-lived  intangible  assets  are  also  not  amortized  but  rather  are  evaluated  for  impairment  annually  or  more 
frequently  if  indicators  of  impairment  exist.  Consistent  with  goodwill,  the  Company  assesses  qualitative  factors  to 
determine if it is more likely than not that the fair value of indefinite-lived intangible assets is less than its carrying value 
and performs a quantitative analysis if it is determined it is more likely than not the indefinite-lived intangible is impaired. 

The Company amortizes finite-lived intangible assets over their respective estimated useful lives. 

Income Taxes: The Company accounts for income taxes under the asset and liability method. Under this method, deferred 
tax  assets  and  liabilities,  which  are  recorded  as  noncurrent  by  jurisdiction,  are  recognized  based  on  the  temporary 
differences between the book value and the tax basis of certain assets and liabilities and the tax effect of operating loss 
and tax credit carryforwards. Deferred income taxes relate principally to asset and liability basis differences resulting from 
the timing of depreciation deductions and to temporary differences in the recognition of certain revenues and expenses. 
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in 
which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities 
of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Company 
classifies any interest and penalty amounts related to income tax matters as operating expenses. 

Management applies considerable judgment in determining the consolidated income tax provision, including valuation 
allowances on deferred tax assets. The valuation allowance for deferred tax assets is determined by evaluating whether it 
is more likely than not that the benefits of deferred tax assets will be realized through future reversal of existing taxable 
temporary differences, taxable income in carryback years in jurisdictions in which they are allowable, projected future 
taxable income, or tax-planning strategies. Uncertain tax positions, which also require significant judgment, are measured 
to determine the amounts to be recognized in the financial statements. The income tax provision and valuation allowances 
are complicated by complex and frequently changing rules administered in multiple jurisdictions, including U.S. federal, 
state, and foreign governments. 

Long-Term Investments: The Company’s long-term investments are recorded in other long-term assets and represent 
equity investments in private entities without readily determinable fair values. The investments are recorded using the 
measurement alternative in which the Company’s equity interests are recorded at cost and are adjusted for any impairments 
or  for  observable  price  changes  identified  in  orderly  transactions  of  similar  investments  of  the  same  issuers.  As  of 
December 31, 2022 and 2021, the carrying amount of these investments totaled $25.0 million. 

74 

 
 
 
 
 
 
 
 
Book Overdrafts: Issued checks that have not cleared the bank as of December 31 result in book overdraft balances for 
accounting purposes which are classified within accounts payable in the accompanying consolidated balance sheets. Book 
overdrafts amounted to $31.0 million and $22.6 million at December 31, 2022 and 2021, respectively. The change in book 
overdrafts is reported as a component of financing activities within the statement of cash flows. 

Insurance  Reserves:  The  Company  is  self-insured  up  to  certain  limits  for  workers’  compensation,  certain  third-party 
casualty claims, and cargo loss and damage claims. Amounts in excess of the self-insured limits are fully insured to levels 
which management considers appropriate for the Company’s operations. The Company’s claims liabilities have not been 
discounted. 

Liabilities for self-insured workers’ compensation and third-party casualty claims are based on the case reserve amounts 
plus  an  estimate  of  loss  development  and  incurred  but  not  reported  (“IBNR”)  claims,  which  is  developed  from  an 
independent actuarial analysis. The process of determining reserve requirements utilizes historical trends and involves an 
evaluation of claim frequency and severity, claims management, and other factors. Case reserves are evaluated as loss 
experience develops and new information becomes available. Adjustments to previously estimated aggregate reserves are 
reflected in financial results in the periods in which they are made. Aggregate reserves represent an estimate of the costs 
of claims incurred, and it is possible that the ultimate liability may differ significantly from such estimates. 

The Company develops an estimate of self-insured cargo loss and damage claims liabilities based on historical trends and 
certain  event-specific  information.  Claims  liabilities  are  recorded  in  accrued  expenses  and  are  not  offset  by  insurance 
receivables which are reported in other accounts receivable. 

Loss  Contingencies:  The  Company  is  involved  in  various  legal  actions  arising  in  the  ordinary  course  of  business.  In 
assessing loss contingencies, the Company uses significant judgments and assumptions to estimate the likelihood of loss 
or the incurrence of a liability, and to reasonably estimate the amount of loss. The Company records a liability and expense 
for  loss  contingencies  when  it  is  both  probable  that  a  liability  has  been  incurred  and  the  amount  of  the  loss  can  be 
reasonably estimated. The Company’s legal matters are discussed in Note O. 

Long-Term Debt: Long-term debt consists of borrowings outstanding under the Company’s revolving credit facility (the 
“Credit  Facility”)  under  our  Fourth  Amended  and  Restated  Credit  Agreement  (“Credit  Agreement”)  and  accounts 
receivable securitization program; notes payable for the financing of revenue equipment, other equipment, and software; 
and finance lease obligations. The Company’s long-term debt and financing arrangements are further described in Note H. 

Interest Rate Swap Derivative Instruments: The Company accounts for its derivative instruments as either assets or 
liabilities and carries them at fair value. The Company has interest rate swap agreements designated as cash flow hedges. 
The effective portion of the gain or loss on the interest rate swap instruments is reported as unrealized gain or loss as a 
component of accumulated other comprehensive income or loss, net of tax, in stockholders’ equity and the change in the 
unrealized gain or loss on the interest rate swaps is reported in other comprehensive income or loss, net of tax, in the 
consolidated statements of comprehensive income. The unrealized gain or loss is reclassified out of accumulated other 
comprehensive loss into income in the same period or periods during which the hedged transaction affects earnings. To 
receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future 
cash flows on hedged transactions.  

Leases: The Company leases, primarily under operating lease arrangements, certain facilities used primarily in the Asset-
Based segment service center operations, certain facilities and revenue equipment used in the ArcBest segment operations, 
and certain other office equipment. Finance leases are not material to the consolidated financial statements. The Company 
also  has  a  small  number  of  subleases  and  income  leases  on  owned  properties  that  are  immaterial  to  the  consolidated 
financial statements. Right-of-use assets and lease liabilities for operating leases are recorded on the balance sheet and the 
related  lease  expense  is  recorded  on  a  straight-line  basis  over  the  lease  term  in  operating  expenses.  Included  in  lease 
expense are any variable lease payments incurred in the period that were not included in the initial lease liability. For 
financial reporting purposes, right-of-use assets held under finance leases are amortized over their estimated useful lives 
on the same basis as owned assets, and leasehold improvements associated with assets utilized under finance or operating 
leases are amortized by the straight-line method over the shorter of the remaining lease term or the asset’s useful life. 
Amortization  of  assets  under  finance  leases  is  included  in  depreciation  expense.  Obligations  under  the  finance  lease 
arrangements are included in long-term debt. 

75 

 
 
 
 
 
 
 
 
The Company elected the short-term lease exemption for all classes of assets to include real property, revenue equipment, 
and service, office, and other equipment. The Company adopted the policy election as a lessee for all classes of assets to 
account for each lease component and its related non-lease component(s) as a single lease component. In determining the 
discount rate, the Company uses ArcBest Corporation’s incremental borrowing rate unless the rate implicit in the lease is 
readily determinable when entering into a lease as a lessee. The incremental borrowing rate is determined by the price of 
a fully collateralized loan with similar terms based on current market rates. 

An assessment is made on or after the effective date of newly signed contracts as to whether the contract is, or contains, a 
lease at the inception of a contract. The assessment is based on: (1) whether the contract involves the use of a distinct 
identified asset; (2) whether the Company obtains the right to substantially all the economic benefit from the use of the 
asset throughout the period; and (3) whether the Company has the right to direct the use of the asset. The operating right-
of-use asset is measured as the initial amount of the operating lease liability, plus any initial direct costs incurred, less any 
prepayments prior to commencement or lease incentives received. The operating lease liability is initially measured at the 
present value of the lease payments, discounted using the Company’s secured incremental borrowing rate for the same 
term as the underlying lease unless the interest rate implicit in the lease is readily determined, then the implicit rate will 
be used. Lease payments included in the measurement of the lease liability are comprised of the following: (1) the fixed 
noncancelable lease payments, (2) payments for optional renewal periods where it is reasonably certain the renewal period 
will  be  exercised,  and  (3)  payments  for  early  termination  options  unless  it  is  reasonably  certain  the  lease  will  not  be 
terminated early. Variable lease payments based on an index or rate are initially measured using the index or rate in effect 
at lease commencement and included in the measurement of the initial lease liability. Additional payments based on the 
change in an index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement 
of the lease liability. 

Supplemental  Benefit  and Postretirement  Health  Benefit  Plans:  The  Company  recognizes  the  funded status of the 
supplemental  benefit  plan  (the  “SBP”)  and  postretirement  health  benefit  plan  in  the  consolidated  balance  sheet  and 
recognizes changes in the funded status, net of tax, in the year in which they occur as a component of other comprehensive 
income or loss. The benefit obligations of the SBP and postretirement health benefit plan represent the funded status, as 
these plans do not have plan assets. Amounts recognized in other comprehensive income or loss are subsequently expensed 
as components of net periodic benefit cost by amortizing unrecognized net actuarial losses over the average remaining 
active service period of the plan participants and amortizing unrecognized prior service credits over the remaining years 
of service until full eligibility of the active participants at the time of the plan amendment which created the prior service 
credit. A corridor approach is not used for determining the amounts of net actuarial losses to be amortized. 

The Company has not incurred service cost under the SBP since the accrual of benefits under the plan was frozen on 
December  31,  2009,  however,  the  Company  incurs  service  cost  under  the  postretirement  health  benefit  plan  which  is 
reported within operating expenses in the consolidated statements of operations. The other components of net periodic 
benefit  cost  (credit) of  the  SBP  (including pension  settlement  expense),  and  the postretirement health benefit  plan are 
reported within the other line item of other income (costs).  

The  expense  and  liability  related  to  the  postretirement  health  benefit  plan  are  measured  based  upon  a  number  of 
assumptions and using the services of a third-party actuary. Assumptions are made regarding the discount rate, expected 
retirement age, mortality, employee turnover, and future increases in health care costs. The discount rates used to discount 
the SBP and postretirement health benefit plan obligations are determined by matching projected cash distributions with 
appropriate high-quality corporate bond yields in a yield curve analysis. The assumptions used directly impact the net 
periodic benefit cost (credit) for a particular year. An actuarial gain or loss results when actual experience varies from the 
assumptions or when there are changes in actuarial assumptions. Actuarial gains and losses are not included in net periodic 
benefit cost (credit) in the period when they arise but are recognized as a component of other comprehensive income or 
loss and subsequently amortized as a component of net periodic benefit cost (credit). 

The  Company  uses  December 31  as  the  measurement  date  for  the  SBP  and  postretirement  health  benefit  plan.  Plan 
obligations are also remeasured upon curtailment and upon settlement. Benefit distributions under the SBP individually 
exceed the annual interest cost of the plan, and the Company records the related settlement expense when the amount of 
the benefit to be distributed is fixed, which is generally upon an employee’s termination of employment. Pension settlement 
expense for the SBP is presented in Note J. 

Revenue Recognition: Revenues are recognized when or as control of the promised services is transferred to the customer, 
in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenue 

76 

 
 
 
 
 
 
adjustments occur due to rating or other billing adjustments. The Company also estimates revenue adjustments based on 
historical information and current trends, and revenue is recognized accordingly. 

Asset-Based Segment 
Asset-Based  segment  revenues  consist  primarily  of  less-than-truckload  freight  delivery.  Performance  obligations  are 
satisfied upon final delivery of the freight to the specified destination. Revenue is recognized based on the relative transit 
time in each reporting period with expenses recognized as incurred. A bill-by-bill analysis is used to establish estimates of 
revenue in transit for recognition in the appropriate period. Because the bill-by-bill methodology utilizes the approximate 
location of the shipment in the delivery process to determine the revenue to recognize, management believes it to be a 
reliable method.  

Certain contracts may provide for volume-based or other discounts which are accounted for as variable consideration. The 
Company estimates these amounts based on a historical expectation of discounts to be earned by customers, and revenue 
is recognized based on the estimates. Management believes that actual amounts will not vary significantly from estimates 
of variable consideration.  

Revenue,  purchased  transportation  expense,  and  third-party  service  expenses  are  reported  on  a  gross  basis  for  certain 
shipments  and  services  where  the  Company  utilizes  a  third-party  carrier  for  pickup,  linehaul,  delivery  of  freight,  or 
performance of services but remains primarily responsible for fulfilling delivery to the customer and maintains discretion 
in setting the price for the services. 

ArcBest Segment 
ArcBest  segment  revenues  consist  primarily  of  asset-light  logistics  services  using  third-party  vendors  to  provide 
transportation  services.  ArcBest  segment  revenue  is  generally  recognized  based  on  the  relative  transit  time  in  each 
reporting period using estimated standard delivery times for freight in transit at the end of the reporting period. Purchased 
transportation expense is recognized as incurred consistent with the recognition of revenue. 

Revenue and purchased transportation expense are reported on a gross basis for shipments and services where the Company 
utilizes a third-party carrier for pickup and delivery but remains primarily responsible to the customer for delivery and 
maintains discretion in setting the price for the service. 

FleetNet Segment 
FleetNet  segment  revenues  consist  of  service  fee  revenue,  roadside  repair  revenue  and  routine  maintenance  services 
revenue. Service fee revenue for the FleetNet segment is recognized upon response to the service event. Repair and routine 
maintenance service revenue for the FleetNet segment is recognized upon completion of the service by third-party vendors. 
Revenue and expense from repair and maintenance services performed by third-party vendors are reported on a gross basis 
as FleetNet controls the services prior to transfer to the customer and remains primarily responsible to the customer for 
completion of the services. 

Other Recognition and Disclosure 
Payment  terms  with  customers  may  vary  depending  on  the  service  provided,  location  or  specific  agreement  with  the 
customer. The term between invoicing and when payment is due is not significant. For certain services, payment is required 
before the services are provided to the customer. 

The Company expenses sales commissions when incurred because the amortization period is one year or less. 

The Company has elected not to disclose the value of unsatisfied performance obligations for contracts with an original 
length of one year or less or contracts for which revenue is recognized at the amount to which the Company has the right 
to invoice for services performed. 

Comprehensive Income or Loss: Comprehensive income or loss consists of net income and other comprehensive income 
or loss, net of tax. Other comprehensive income or loss refers to revenues, expenses, gains, and losses that are not included 
in net income, but rather are recorded directly to stockholders’ equity. The Company reports the components of other 
comprehensive income or loss, net of tax, by their nature and discloses the tax effect allocated to each component in the 
consolidated statements of comprehensive income. The accumulated balance of other comprehensive income or loss is 
displayed separately in the consolidated statements of stockholders’ equity and the components of the balance are reported 

77 

 
 
 
 
 
 
 
 
 
 
in Note K. The changes in accumulated other comprehensive income or loss, net of tax, and the significant reclassifications 
out of accumulated other comprehensive income or loss are disclosed, by component, in Note K.  

Accelerated  Share  Repurchase:  On  November 2, 2021,  the  Company  entered  into  a  fixed  dollar  accelerated  share 
repurchase program (“ASR”) with a third-party financial institution to repurchase the Company’s common stock pursuant 
to Rule 10b5-1 of the Securities Exchange Act of 1934. Under the ASR, the Company paid $100.0 million and received 
an initial delivery of 709,287 shares valued at $75.0 million based on the closing price of the Company’s common stock 
on November 2, 2021. The initial repurchase of shares resulted in an immediate reduction of the outstanding shares used 
to calculate the weighted-average common shares outstanding for basic and diluted earnings per share on the effective date 
of the ASR. The remaining balance of $25.0 million, funded in November 2021, was recorded as a forward equity contract 
indexed to the Company’s common stock and classified within stockholders’ equity as additional paid-in capital as of 
December 31, 2021. The balance of the forward equity contract was settled in January 2022 with the delivery of 214,763 
shares. The total amount of shares repurchased under the forward equity contract was based on the daily volume-weighted 
average share price of the Company’s common stock during the term of the ASR, less a negotiated discount. The ASR 
met all of the applicable criteria for equity classification and, as a result, was not accounted for as a derivative instrument. 

Earnings Per Share: Basic earnings per share is calculated by dividing net income by the daily weighted number of shares 
of the Company’s common stock outstanding for the period. Diluted earnings per share is calculated using the treasury 
stock method. Under this method, the denominator used in calculating diluted earnings per share includes the impact of 
unvested restricted equity awards. 

Share-Based Compensation: The fair value of restricted stock awards is determined based upon the closing market price 
of the Company’s common stock on the date of grant, adjusted for the present value of dividends which are not payable 
with respect to unvested restricted stock units (“RSUs”). The RSUs generally vest over a specified time beginning on the 
grant date. RSUs granted in 2022 follow a three-year ratable vesting schedule with one-third of the grants vesting each 
year. RSUs awarded in 2021 vest at the end of a three-year period following the date of grant. RSUs awarded in 2018 
through 2020 vest at the end of a four-year period following the date of grant and RSUs awarded prior to 2018 vest at the 
end of a five-year period following the date of the grant. Awards granted to non-employee directors typically vest at the 
end of a one-year period, subject to accelerated vesting due to death, disability, retirement, or change-in-control provisions. 
When RSUs become vested, the Company issues new shares in settlement of the RSU award. The Company recognizes 
the income tax benefits of dividends on share-based payment awards as income tax expense or benefit in the consolidated 
statements of operations when awards vest or are settled. 

Share-based awards are amortized to compensation expense on a straight-line basis over the vesting period of awards or 
over the period to which the recipient first becomes eligible for retirement, whichever is shorter, with vesting accelerated 
upon death or disability. The Company recognizes forfeitures as they occur, and the income tax effects of awards are 
recognized in the statement of operations when awards vest or are settled.  

Fair Value Measurements: The Company discloses the fair value measurements of its financial assets and liabilities. Fair 
value measurements are disclosed in accordance with the following hierarchy of valuation approaches based on whether 
the inputs of market data and market assumptions used to measure fair value are observable or unobservable: 

  Level 1 – Quoted prices for identical assets and liabilities in active markets. 
  Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar 
assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by 
observable market data. 

  Level 3 – Unobservable inputs (Company’s market assumptions) that are significant to the valuation model.  

Environmental Matters: The Company expenses environmental costs related to existing conditions resulting from past 
or current operations and from which no current or future benefit is discernible. Expenditures which extend the life of the 
related  property  or  mitigate  or  prevent  future  environmental  contamination  are  capitalized.  Amounts  accrued  reflect 
management’s  best  estimate  of  the  future  undiscounted  exposure  related  to  identified  properties  based  on  current 
environmental regulations, management’s experience with similar environmental matters, and testing performed at certain 
sites. The estimated liability is not reduced for possible recoveries from insurance carriers or other third parties. 

Exit or Disposal Activities: The Company recognizes liabilities for costs associated with exit or disposal activities when 
the liability is incurred. 

78 

 
 
 
 
 
 
 
 
Accounting Pronouncements Not Yet Adopted 

Management believes there is no new accounting guidance issued but not yet effective that would have a material impact 
to the Company’s current financial statements. 

NOTE C – FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS 

Financial Instruments 

The following table presents the components of cash and cash equivalents and short-term investments: 

Cash and cash equivalents 

Cash deposits(1) 
Variable rate demand notes(1)(2) 
Money market funds(3) 

Total cash and cash equivalents 

Short-term investments 

Certificates of deposit(1) 
U.S. Treasury securities(4) 
Total short-term investments 

     December 31 

     December 31 

2022 

2021 

(in thousands) 

$ 

$ 

$ 

$ 

 137,355  $ 
 9,285 
 11,732 
 158,372  $ 

 72,790  
 230  
 3,600  
 76,620  

 88,851  $ 
 78,811 
 167,662  $ 

 48,339  
 —  
 48,339  

(1)  Recorded at cost plus accrued interest, which approximates fair value. 
(2)  Amounts may be redeemed on a daily basis with the original issuer. 
(3)  Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets and liabilities 

measured at fair value within this Note). 

(4)  Recorded at amortized cost plus accrued interest, which approximates fair value. U.S. Treasury securities included in short-term 

investments are held-to-maturity investments with maturity dates of less than one year.  

The Company’s long-term financial instruments are presented in the table of financial assets and liabilities measured at 
fair value within this Note. 

Concentrations of Credit Risk of Financial Instruments 
The Company is potentially subject to concentrations of credit risk related to its cash, cash equivalents, and short-term 
investments. The Company reduces credit risk by maintaining its cash deposits and short-term investments in accounts 
and certificates of deposit which are primarily FDIC-insured, or in direct obligations of the U.S. government. However, 
certain cash deposits and certificates of deposit may exceed federally insured limits. At December 31, 2022 and 2021, 
cash,  cash  equivalents,  and short-term  investments  totaling $99.4 million  and $42.6 million, respectively, were  neither 
FDIC insured nor direct obligations of the U.S. government. 

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value and carrying value disclosures of financial instruments as of December 31 are presented in the following table: 

Credit Facility(1) 
Notes payable(2) 
New England Pension Fund withdrawal liability(3) 

2022 

2021 

(in thousands) 

  Carrying       
  Value 

Fair 
     Value 

  $  50,000    $  50,000 
  207,778 
 18,911 
  $ 284,723  $ 276,689 

  214,623 
 20,100 

       Carrying       
     Value 
  $  50,000 
   175,530 
 20,769 

Fair 
     Value 
  $  50,000  
  175,937  
 23,521  
 $ 246,299  $ 249,458  

(1)  The  revolving  credit  facility  (the  “Credit  Facility”)  carries  a  variable  interest  rate  based  on  London  Inter-Bank  Offered  Rate 
(“LIBOR”), plus a margin, for the year ended December 31, 2021 through October 7, 2022, and effective October 7, 2022, Secured 
Overnight Financing Rate (“SOFR”), plus a margin, is considered to be priced at market for debt instruments having similar terms 
and collateral requirements (Level 2 of the fair value hierarchy). 

(2)  Fair value of the notes payable was determined using a present value income approach based on quoted interest rates from lending 

institutions with which the Company would enter into similar transactions (Level 2 of the fair value hierarchy).  

(3)  ABF Freight’s multiemployer pension plan obligation with the New England Teamsters and Trucking Industry Pension Fund (the 
“New England Pension Fund”) was restructured under a transition agreement effective on August 1, 2018, which resulted in a 
related  withdrawal  liability.  The  fair  value  of  the  outstanding  withdrawal  liability  is  equal  to  the  present  value  of  the  future 
withdrawal  liability  payments,  discounted  at  an  interest  rate  of  5.3%  and  3.1%  at  December 31, 2022  and  2021,  respectively, 
determined using the 20-year U.S. Treasury rate plus a spread (Level 2 of the fair value hierarchy).  As of December 31, 2022, the 
outstanding withdrawal liability totaled $20.1 million, of which $0.7 million and $19.4 million were recorded in accrued expenses 
and other long-term liabilities, respectively.  

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis 

The following table presents the assets and liabilities that are measured at fair value on a recurring basis: 

Assets: 
Money market funds(1) 
Equity, bond, and money market mutual funds held in trust related to the Voluntary 
Savings Plan(2) 
Interest rate swap(3) 

Liabilities: 
Contingent consideration(4) 

December 31, 2022 
Fair Value Measurements Using 

  Quoted Prices      Significant      Significant 

In Active 
  Markets 
(Level 1) 

  Observable    Unobservable  

Inputs 
      (Level 2)      

Inputs 
(Level 3) 

Total 

(in thousands) 

  $

 11,732 

$ 

 11,732 

$ 

 — 

$ 

 3,982 
 3,526 
 19,240 

  $

 112,000 
  $  112,000 

$ 

$ 

 3,982 
 — 
 15,714 

 — 
 — 

$ 

$ 

 — 
 3,526 
 3,526 

 — 
 — 

$ 

$ 

 —   

 —  
 —  
 —  

 112,000   
 112,000   

December 31, 2021 
Fair Value Measurements Using 
  Quoted Prices      Significant       Significant   
  Observable    Unobservable 

In Active 
  Markets 
(Level 1) 

Total 

Inputs 
      (Level 2)       

Inputs 
(Level 3) 

Assets: 
Money market funds(1) 
Equity, bond, and money market mutual funds held in trust related to the Voluntary 
Savings Plan(2) 
Interest rate swap(3) 

Liabilities: 
Interest rate swap(3) 
Contingent consideration(4) 

(in thousands) 

  $

 3,600 

 $ 

 3,600 

$ 

 — 

$ 

 3,848 
 874 
 8,322 

 455 
 93,700 
 94,155 

 $ 

 $ 

 $ 

  $

  $

  $

 3,848 
 — 
 7,448 

 — 
 — 
 — 

$ 

$ 

$ 

 — 
 874 
 874 

 455 
 — 
 455 

$ 

$ 

$ 

 —   

 —   
 —   
 —   

 —   
 93,700   
 93,700   

(3) 

Included in cash and cash equivalents. 

(1) 
(2)  Nonqualified  deferred  compensation  plan  investments  consist  of  U.S.  and  international  equity  mutual  funds,  government  and 
corporate bond mutual funds, and money market funds which are held in a trust with a third-party brokerage firm. Included in other 
long-term assets, with a corresponding liability reported within other long-term liabilities. 
Included  in  other  long-term  assets  or  other  long-term  liabilities. The  fair  values of  the  interest  rate  swaps  were  determined by 
discounting future cash flows and receipts based on expected interest rates observed in market interest rate curves adjusted for 
estimated credit valuation considerations reflecting nonperformance risk of the Company and the counterparty, which are generally 
considered to be in Level 3 of the fair value hierarchy. However, the Company assessed Level 3 inputs as insignificant to the 
valuation at December 31, 2022 and 2021, and considers the interest rate swap valuations in Level 2 of the fair value hierarchy. 
Included  in  other  long-term  liabilities,  based  on  when  expected  payouts  become  due.  The  estimated  fair  value  of  contingent 
consideration for the earnout agreement related to the November 2021 acquisition of MoLo was determined by assessing Level 3 
inputs.  The  Level  3  assessments  utilize  a  Monte  Carlo  simulation  with  inputs  including  scenarios  of  estimated  revenues  and 
earnings  before  interest,  taxes,  depreciation  and  amortization  to  be  achieved  for  the  applicable  performance  periods,  volatility 
factors  applied  to  the  simulations,  and  the  discount  rate  applied,  which  was  14.0%  and  9.0%  as  of  December  2022  and  2021, 
respectively. Changes in the significant unobservable inputs might result in a significantly higher or lower fair value at the reporting 
date.  

(4) 

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The following table provides the changes in fair value of the liabilities measured at fair value using inputs categorized in 
Level 3 of the fair value hierarchy: 

Balances at December 31, 2021 
Change in fair value included in operating income 
Balances at December 31, 2022 

Assets Measured at Fair Value on a Nonrecurring Basis 

There were no assets remeasured on a nonrecurring basis at December 31, 2022 or 2021.  

   Contingent Consideration  
(in thousands) 

  $ 

  $ 

 93,700 
 18,300 
 112,000 

NOTE D – ACQUISITION 

On November 1, 2021 (the “acquisition date”), the Company acquired MoLo, a Chicago-based truckload freight brokerage 
company, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated September 29, 2021. Net cash 
consideration related to the transaction totaled $237.1 million, adjusted for certain post-closing adjustments. The Company 
funded the initial purchase price with cash on hand and subsequently received $2.3 million from escrow related to certain 
post-closing adjustments during the year ended December 31, 2022, which is reported in the accompanying consolidated 
statements  of  cash  flows  as  business  acquisition,  net  of  cash  acquired.  The  Merger  Agreement  provides  for  certain 
additional  cash  consideration  to  be  paid  by  the  Company  based  on  the  achievement  of  certain  incremental  targets  of 
adjusted earnings before interest, taxes, depreciation and amortization for each of the years ended December 31, 2023, 
2024, and 2025. At 100% of the target, the cumulative additional consideration for years 2023 through 2025 would be 
$215.0 million, with the possible undiscounted cash consideration due ranging from a total of $95.0 million at 80% of 
target to $455.0 million at 300% of target, as outlined in the Merger Agreement. See Note C for change in fair value of 
the contingent earnout consideration. 

The  following  table  represents  the  components  of  the  total  purchase  consideration  for  the  acquisition  of  MoLo.  The 
Company recorded the estimated fair value of the contingent earnout consideration at the acquisition date as a part of the 
purchase price consideration for the acquisition (see Note B). 

Net cash consideration, including post-closing adjustments 
Contingent consideration 

Total purchase consideration 

Purchase 

  Consideration 

(in thousands) 

  $ 

  $ 

 237,101  
 93,700  
 330,801  

The results of MoLo’s operations subsequent to the acquisition date have been included in the accompanying consolidated 
financial  statements,  with  the  acquired  operations  included  within  the  ArcBest  operating  segment  (see  Note  N).  The 
acquisition of MoLo enhances the scale of the Company’s truckload brokerage services by providing additional truckload 
capacity, support, and expertise in the Company’s Asset-Light operations and increasing cross-selling potential.  

82 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table summarizes the estimated fair values of the acquired assets and liabilities assumed at the acquisition 
date, including measurement period adjustments related to working capital.  

Accounts receivable 
Prepaid expenses 
Property and equipment 
Operating lease right-of-use assets 
Intangible assets 
Other assets 

Total identifiable assets acquired 

Accounts payable 
Accrued expenses and other current liabilities 
Operating lease liabilities 

Total liabilities 

Total identifiable net assets 
Goodwill 

Net assets acquired 

Purchase 
Allocation 
(in thousands) 

 131,378  
 468  
 1,533  
 844  
 76,900  
 170  
 211,293  

 94,053  
 4,470  
 983  
 99,506  

 111,787  
 219,014  
 330,801  

  $ 

  $ 

The MoLo acquisition has been accounted for as a business combination using the acquisition method of accounting (see 
Note B). The total purchase consideration to acquire MoLo has been allocated to the assets acquired and liabilities assumed 
as of November 1, 2021, with the excess purchase price recorded as goodwill. During the measurement period, the net 
working capital decreased based on the actual versus estimated fair value of net working capital as of the transaction date. 
These measurement period adjustments resulted in a $5.0 million increase in goodwill related to the MoLo acquisition. 
See Note E for further discussion of acquired goodwill and intangible assets.  

Operating revenues of $120.3 million and operating loss of $1.2 million, including intangible asset amortization expense, 
related to MoLo from the acquisition date through December 31, 2021 were included in the accompanying consolidated 
statements of operations. The Company recognized $6.0 million of acquisition related costs in operating expenses in 2021. 
For segment reporting purposes, these transaction costs have been reported in “Other and eliminations” (see Note N). 

The following unaudited pro forma supplemental information presents the Company’s consolidated results of operations 
as if the MoLo acquisition had occurred on January 1, 2020: 

Revenues 
Income before income taxes 
Net income 
Diluted EPS 

Year Ended December 31 

2021 

2020 

(Unaudited) 
(in thousands, except per share data) 

     $ 
  $ 
  $ 
  $ 

 4,488,564   $ 
 266,866   $ 
 205,728   $ 
 7.68   $ 

 3,213,722  
 63,622  
 48,290  
 1.83  

The pro forma results of operations are based on historical information adjusted to include the pro forma effect of applying 
the Company’s accounting policies; adjusting interest expense and interest income for the initial cash consideration and 
elimination  of  MoLo  debt;  recording  amortization  expense  related  to  the  estimated  fair  value  of  intangibles  acquired; 
eliminating  the  gain  on  debt  forgiveness  related  to  MoLo’s  Payment  Protection  Program  loan;  eliminating  transaction 
expenses related to the acquisition; and recording the related tax effects of these adjustments. The pro forma information 
is presented for illustrative purposes only and does not reflect either the realization of potential cost savings or any related 
integration costs. Certain business synergies and cost savings may result from the MoLo acquisition, although there can 
be no assurance these will be achieved. The pro forma information does not purport to be indicative of the results that 
would  have  actually  been  obtained  if  the  acquisition  had  occurred  as  of  the  date  indicated,  nor  does  the  pro  forma 
information intend to be a projection of results that may be obtained in the future.  

83 

 
 
 
 
 
 
 
 
  
 
     
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
 
 
 
 
 
  
 
 
 
NOTE E – GOODWILL AND INTANGIBLE ASSETS 

Goodwill by reportable operating segment consisted of the following: 

Balances at December 31, 2020 

Goodwill acquired(1) 
Goodwill divested(2) 

Balances at December 31, 2021 

Purchase accounting adjustments(3) 

Balances at December 31, 2022 

     Total 

      ArcBest      FleetNet      

(in thousands) 

   213,969  
 (1,952) 

   213,969  
 (1,952) 

  $  88,320   $  87,690   $   630  
 —  
 —  
  $ 300,337   $ 299,707   $   630  
 —  
  $ 305,382   $ 304,752   $   630  

 5,045  

 5,045  

Accumulated impairment at December 31, 2022 and 2021 

  $  (20,000)  $  (20,000)  $ 

 —  

(1)  Goodwill acquired relates to the acquisition of MoLo (see Note D). 
(2)  Goodwill divested due to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021 

was determined based on the relative fair value of the business sold to the total fair value of the reporting unit. 

(3)  As noted in Note D, purchase accounting adjustments related to the MoLo acquisition represent adjustments to the acquired balance 

of working capital, and goodwill related to the November 1, 2021 acquisition of MoLo. 

The Company performs the annual impairment evaluation of the goodwill balance of its reporting units, each October 1. 
As of October 1, 2022, the Company’s assessment of qualitative factors, including performance of the reporting units 
compared to prior periods, macroeconomic factors, industry considerations, and the Company’s market capitalization, led 
to  a  conclusion  that  goodwill  was  not  impaired.  As  of  October  1,  2022  and  2021,  the  annual  impairment  evaluation 
determined there was no impairment of the goodwill balance.  

Intangible assets consisted of the following as of December 31: 

Finite-lived intangible assets 
Customer relationships 
Other 

Indefinite-lived intangible assets 

Trade name 

  Weighted-Average 
    Amortization Period      Cost 

2022 
  Accumulated   
    Amortization      Value 

Net 

       Cost 

(in years) 

(in thousands) 

2021 
  Accumulated   
    Amortization      Value 

Net 

(in thousands) 

 12 
 8 
 11 

 $ 100,321 
 30,471 
   130,792 

$ 

 43,627 
 5,669 
 49,296 

$  56,694 
 24,802 
 81,496 

 $ 100,321 
 30,335 
   130,656 

$ 

 35,072 
 1,304 
 36,376 

$  65,249  
 29,031  
 94,280  

N/A 

    32,300 

N/A 

 32,300 

 32,300 

N/A 

 32,300  

Total intangible assets 

N/A 

 $ 163,092 

$ 

 49,296 

$ 113,796 

 $ 162,956 

$ 

 36,376 

$  126,580  

The annual impairment evaluation of indefinite-lived intangible assets was performed as of October 1, 2022 and 2021, and 
it was determined that there was no impairment of the recorded balances. 

As of December 31, 2022, the future amortization for intangible assets acquired through business acquisitions were as 
follows: 

2023 
2024 
2025 
2026 
2027 
Thereafter 
Total amortization 

84 

      Amortization of 
  Intangible Assets 
(in thousands) 

  $ 

  $ 

 12,826 
 12,793 
 12,778 
 8,671 
 7,247 
 27,181 
 81,496 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
   
 
 
 
 
   
 
   
 
 
 
 
   
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
     
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE F – INCOME TAXES 

Significant components of the provision or benefit for income taxes for the years ended December 31 were as follows: 

Current provision: 

Federal 
State 
Foreign 

Deferred provision (benefit): 

Federal 
State 
Foreign 

Total provision for income taxes 

2022 

2021 
(in thousands) 

2020 

  $ 

$ 

 80,378 
 19,949 
 869 
 101,196 

$ 

 56,451 
 14,430 
 341 
 71,222 

 10,001  
 3,267  
 413  
 13,681  

 (5,477)
 (753)
 (20)
 (6,250)
 94,946 

$ 

 (6,098)
 (1,554)
 63 
 (7,589)
 63,633 

$ 

 5,948  
 1,789  
 (22) 
 7,715  
 21,396  

  $ 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and 
liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of the deferred tax 
provision or benefit for the years ended December 31 were as follows: 

Amortization, depreciation, and basis differences for property, plant and equipment 
and other long-lived assets(1) 
Amortization of intangibles 
Changes in reserves for workers’ compensation, third-party casualty, and cargo 
claims 
Revenue recognition 
Allowance for credit losses 
Nonunion pension and other retirement plans 
Multiemployer pension fund withdrawal 
Federal and state net operating loss carryforwards utilized (generated) 
State depreciation adjustments 
Share-based compensation 
Valuation allowance increase (decrease) 
Other accrued expenses 
Prepaid expenses 
Operating lease right-of-use assets/liabilities – net 
Other 
Deferred tax provision (benefit) 

2022 

2021 
(in thousands)  

2020 

     $ 

 4,186      $ 
 (2,973)

 1,451      $ 
 (536)

 4,975  
 183  

 (3,713)
 13 
 (391)
 (4)
 172 
 899 
 (915)
 749 
 (489)
 (3,104)
 (18)
 (651)
 (11)
 (6,250)

$ 

 (3,294)
 (1,445)
 156 
 (3)
 164 
 (300)
 598 
 (984)
 911 
 (4,097)
 (788)
 (228)
 806 
 (7,589)

$ 

 (182) 
 (1,481) 
 (652) 
 957  
 157  
 (259) 
 343  
 (195) 
 617  
 1,663  
 1,207  
 (13) 
 395  
 7,715  

  $ 

(1)  The Tax Cuts and Jobs Act, enacted in December 2017, allowed first year bonus depreciation at 100% for assets placed into service 
between September 27, 2017 and January 1, 2023. Due to a decrease in the purchase of assets eligible for 100% depreciation, the 
deferred tax expense related to the tax depreciation expense in excess of book depreciation decreased over the two-year period 
from 2020 through 2021 but increased in 2022. 

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
   
 
 
  
            
            
            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant components of the deferred tax assets and liabilities at December 31 were as follows: 

Deferred tax assets: 
Accrued expenses 
Operating lease right-of-use liabilities 
Supplemental pension liabilities 
Multiemployer pension fund withdrawal 
Postretirement liabilities other than pensions 
Share-based compensation 
Federal and state net operating loss carryovers 
Receivable allowances 
Other 

Total deferred tax assets 
Valuation allowance 

Total deferred tax assets, net of valuation allowance 

Deferred tax liabilities: 

Amortization, depreciation, and basis differences for property, plant and equipment, and other 
long-lived assets 
Operating lease right-of-use assets 
Intangibles 
Prepaid expenses 

Total deferred tax liabilities 

Net deferred tax liabilities 

  $ 

2022 

2021 

(in thousands) 

$ 

 53,997 
 46,056 
 81 
 5,063 
 3,137 
 5,794 
 753 
 3,052 
 417 
 118,350 
 (1,707)
 116,643 

 47,683  
 30,590  
 97  
 5,247  
 4,441  
 6,755  
 1,652  
 2,778  
 266  
 99,509  
 (2,196) 
 97,313  

 117,586 
 44,170 
 4,396 
 5,424 
 171,576 
 (54,933)

$ 

 114,999  
 29,403  
 6,966  
 5,368  
 156,736  
 (59,423) 

  $ 

Reconciliation between the effective income tax rate, as computed on income before income taxes, and the statutory federal 
income tax rate for the years ended December 31 is presented in the following table: 

2022 

2021 
(in thousands, except percentages) 

2020 

Income tax provision at the statutory federal rate of 21.0% 
Federal income tax effects of: 

State income taxes 
Nondeductible expenses 
Life insurance proceeds and changes in cash surrender value 
Alternative fuel credit 
Net increase (decrease) in valuation allowances 
Net increase (decrease) in uncertain tax positions 
Settlement of share-based compensation 
Foreign tax credits generated 
Federal research and development tax credits 
Other 

Federal income tax provision  
State income tax provision 
Foreign income tax provision 
Total provision for income taxes 
Effective tax rate 

    $

 82,562 

    $

 58,202      $

 19,424 

 (4,031)
 5,607 
 575 
 (2,449)
 (464)
 — 
 (6,852)
 (849)
 278 
 524 
 74,901 
 19,196 
 849 
 94,946 

$
 24.1 %    

 (2,704)
 3,596 
 (866)
 — 
 887 
 854 
 (6,140)
 (404)
 (2,044)
 (1,028)
 50,353 
 12,876 
 404 
 63,633 

$
 23.0 %    

 (1,062)
 1,395 
 (488)
 (1,261)
 617 
 (933)
 420 
 (391)
 (2,078)
 306 
 15,949 
 5,056 
 391 
 21,396 

 23.1 %  

  $

Income taxes paid, excluding income tax refunds, totaled $148.7 million, $77.5 million, and $28.6 million in 2022, 2021, 
and 2020, respectively. Income tax refunds totaled $42.3 million, $19.4 million, and $13.3 million in 2022, 2021, and 
2020, respectively. 

Under Accounting Standards Codification Topic 718, Compensation – Stock Compensation, the Company may experience 
volatility in its income tax provision as a result of recording all excess tax benefits and tax deficiencies in the income 
statement upon settlement of awards, which occurs primarily during the second quarter of each year. The 2022 and 2021 
tax  rates  reflect  a  tax  benefit  of  2.1%  and  2.8%,  respectively,  and  the  2020  tax  rate  reflects  tax  expense  of  0.5%,  for 
settlement of stock awards. The tax benefit of dividends on share-based payment awards was less than $0.1 million for 
each of the years 2022, 2021, and 2020.  

86 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
            
            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2022, the Company had gross federal net operating loss carryforwards of $0.8 million. Due to taxable 
income,  there  is  no  need  for  a  valuation  allowance  on  these  amounts  at  December 31, 2022  or  2021,  and  the  related 
valuation allowance of $0.1 million was removed at December 31, 2021. At December 31, 2022, the Company had total 
gross state net operating losses of $9.9 million. Gross state net operating losses of $1.0 million are from the acquisition of 
Panther and relate to periods ending on or prior to June 15, 2012. State carryforward periods for the remaining Panther net 
operating losses vary from 10 to 15 years. Gross state net operating losses of $7.3 million are for subsidiaries that have 
had taxable losses for three or more prior tax years or have other nexus issues that reduce the likelihood of the utilization 
of the losses. These net operating loss carryforwards have been fully reserved with valuation allowances of $0.4 million 
and $1.1 million at December 31, 2022 and 2021, respectively. Additional valuation allowances of $0.2 million related to 
state  research  and  development  tax  credits  were  reserved  at  December 31, 2022  and  2021,  and  less  than  $0.1 million 
related to state interest expense carryforwards was reserved at December 31, 2022 and 2021.  

As the Canadian tax rate is now higher than the U.S. tax rate, it is unlikely that foreign tax credit carryforwards will be 
useable, as U.S. taxes will be paid at a lower rate than the tax rates in Canada. Thus, the foreign tax credit carryover is 
fully  reserved,  resulting  in  valuation  allowances  of  $1.0  million  and  $0.8  million  at  December  31,  2022  and  2021, 
respectively. 

Consolidated federal income tax returns filed for tax years through 2018 are closed by the applicable statute of limitations. 
The Company is not under examination by any federal or foreign taxing authorities at December 31, 2022. The Company 
is under examination by one state taxing authority at December 31, 2022. 

At December 31, 2022 and 2021, there was a reserve for uncertain tax positions of $0.9 million related to credits taken on 
federal returns.  

For 2022, 2021, and 2020, interest paid or accrued related to foreign and state income taxes was immaterial. 

NOTE G – LEASES 

The Company leases, under finance and operating lease arrangements, certain facilities used primarily in the Asset-Based 
segment service center operations, certain revenue equipment used in the ArcBest segment operations, and certain other 
office equipment. Current operating leases have remaining terms of less than 11.3 years, some of which include one or 
more  options  to  renew,  with  renewal  option  terms  up  to  five  years.  There  are  no  available  termination  options  as  of 
December 31, 2022. The right-of-use assets and lease liabilities as of December 31, 2022 and 2021, do not assume the 
option to early terminate any of the Company’s leases, and all renewal options that have been exercised or are reasonably 
certain to be exercised as of December 31, 2022 and 2021, are included in the right-of-use assets and lease liabilities. 
Variable lease cost for operating leases consists of subsequent changes in the consumer price index, rent payments that are 
based on usage, and other lease related payments which are subject to change and not considered fixed payments. All fixed 
lease and non-lease component payments are combined in determining the right-of-use asset and lease liability. 

The components of operating lease expense were as follows: 

Operating lease expense 
Variable lease expense 
Sublease income 

Total operating lease expense(1) 

2022 

Year Ended December 31 
2021 
(in thousands) 

2020 

  $ 

  $ 

 31,790 
 4,188 
 (391)
 35,587 

 $ 

 $ 

 26,552  $ 

 4,128 
 (626)
 30,054  $ 

 24,559 
 3,152 
 (398)
 27,313 

(1)  Operating lease expense excludes short-term leases with a term of 12 months or less.  

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
     
    
 
 
 
 
 
 
 
 
The operating cash flows from operating lease activity were as follows: 

Noncash change in operating right-of-use assets 
Change in operating lease liabilities 
Operating right-of-use-assets and lease liabilities, net 

Year Ended December 31 
2020 
2021 
2022 
(in thousands, except share and per share data) 
 27,465   $ 
 (24,513)  

 24,023   $ 
 (23,400) 

  $ 

  $ 

 2,952   $ 

 623   $ 

 21,184  
 (20,428) 
 756  

Cash paid for amounts included in the measurement of operating lease liabilities 

  $ 

 (28,830)   $ 

 (25,909)  $ 

 (23,810) 

Supplemental balance sheet information related to operating leases was as follows: 

Operating right-of-use assets (long-term) 

Operating lease liabilities (current) 
Operating lease liabilities (long-term) 

Total operating lease liabilities 

December 31, 2022 
(in thousands, except lease term and discount rate) 
  Equipment 
  and Others 
 693 

  Land and 
  Structures 

 165,822  $ 

  Total 

  $  166,515  $ 

  $   26,225  $ 
  147,828 
  $  174,053  $ 

 25,824  $ 

 147,534 
 173,358  $ 

 401 
 294 
 695 

Weighted-average remaining lease term (in years) 
Weighted-average discount rate 

 7.6 
3.58%  

Operating right-of-use assets (long-term) 

Operating lease liabilities (current) 
Operating lease liabilities (long-term) 

Total operating lease liabilities 

December 31, 2021 
(in thousands, except lease term and discount rate)   
  Equipment   
  and Others   
 292  

Land and 
  Structures 

Total 
  $  106,686  $ 

 106,394  $ 

  $   22,740  $ 
 88,835 
  $  111,575  $ 

 22,477  $ 
 88,810 
 111,287  $ 

 263  
 25  
 288  

Weighted-average remaining lease term (in years) 
Weighted-average discount rate 

 6.9 
2.88%  

Maturities of operating lease liabilities at December 31, 2022 were as follows: 

2023 
2024 
2025 
2026 
2027 
Thereafter 
Total lease payments 
Less imputed interest 
Total   

  Equipment   
and 
  Land and 
     Structures(1)       Other 

Total 

(in thousands) 

  $ 

 31,868  $ 
 30,762 
 26,889 
 24,442 
 19,349 
 67,474 
 200,784 
 (26,731)
  $   174,053  $ 

 31,446  $ 
 30,464 
 26,889 
 24,442 
 19,349 
 67,474 
 200,064 
 (26,706)
 173,358  $ 

 422  
 298  
 —  
 —  
 —  
 —  
 720  
 (25) 
 695  

(1)  Excludes future minimum lease payments for leases which were executed but had not yet commenced as of December 31, 2022, 

of $32.0 million which will be paid over approximately 10 years. 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
    
  
 
 
 
   
 
 
 
   
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE H – LONG-TERM DEBT AND FINANCING ARRANGEMENTS 

Long-Term Debt Obligations 

Long-term  debt  consisted  of  borrowings  outstanding  under  the  Company’s  revolving  credit  facility,  which  is  further 
described in Financing Arrangements within this Note, notes payable and finance lease obligations related to the financing 
of revenue equipment (tractors and trailers used primarily in Asset-Based segment operations), certain other equipment, 
and software as follows: 

Credit Facility (interest rate of 5.5%(1) at December 31, 2022) 
Notes payable (weighted-average interest rate of 3.3% at December 31, 2022) 
Finance lease obligations 

Less current portion 
Long-term debt, less current portion 

  December 31   December 31   

2022 

2021 

(in thousands) 

  $ 

 50,000  $ 

 214,623 
 — 
 264,623 
 66,252 
 198,371  $ 

  $ 

 50,000  
 175,530  
 2  
 225,532  
 50,615  
 174,917  

(1)  The interest rate swap mitigates interest rate risk by effectively converting the $50.0 million of borrowings under the Credit Facility 
from  variable-rate interest  to  fixed-rate interest with  a  per annum  rate  of  1.55%  and  3.12%  based  on  the  margin  of the  Credit 
Facility as of December 31, 2022 and 2021, respectively. 

Scheduled maturities of long-term debt obligations as of December 31, 2022 were as follows: 

2023 
2024 
2025 
2026 
2027 
Thereafter 
Total payments 
Less amounts representing interest 
Long-term debt 

Total 

 75,381 
 67,456 
 93,653 
 31,798 
 15,773 
 186 
 284,247 
 19,624  
 264,623 

  $ 

  $ 

      Credit 

Facility(1) 
(in thousands) 
 $ 

Notes  
Payable 

 72,336 
 3,045  $ 
 65,448 
 2,008 
 43,653 
 50,000 
 31,798 
 — 
 15,773 
 — 
 186 
 — 
 229,194 
 55,053 
 5,053  
 14,571 
 50,000  $   214,623 

 $ 

(1)  The future interest payments included in the scheduled maturities due are calculated using variable interest rates based on the SOFR 

swap curve, plus the anticipated applicable margin, exclusive of payments on the interest rate swap. 

Assets securing notes payable or held under finance leases at December 31 were included in property, plant and equipment 
as follows: 

Revenue equipment 
Service, office, and other equipment  
Total assets securing notes payable or held under finance leases 
Less accumulated depreciation and amortization(1) 
Net assets securing notes payable or held under finance leases  

  December 31  December 31 

2022 

2021 

(in thousands) 

   $   294,700 
 41,522 
   336,222 
   119,244 

 $   241,892 
 29,773 
   271,665 
    88,696 
  $   216,978  $   182,969 

(1)  Amortization of assets held under finance leases and depreciation of assets securing notes payable are included in depreciation 

expense. 

The Company’s long-term debt obligations have a weighted-average interest rate of 3.0% at December 31, 2022. The 
Company  paid  interest  of  $7.1 million,  $8.7 million,  and  $11.3 million  in  2022,  2021,  and  2020,  respectively,  net  of 
capitalized interest which totaled $0.3 million, $0.5 million, and $0.3 million for 2022, 2021, and 2020, respectively. 

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
    
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
        
 
    
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
    
  
 
 
  
 
 
 
 
 
 
 
 
Financing Arrangements 

Credit Facility 
The  Company  has  a  revolving  credit  facility  (the  “Credit  Facility”)  under  its  Fourth Amended  and  Restated  Credit 
Agreement (the “Credit Agreement”), which was amended and restated in October 2022. The amendment, among other 
things,  increased  the  aggregate  amount  of  the  swing  line  facility  from  $25.0 million  to  $40.0 million,  extended  the 
scheduled  maturity  date  from  October 1, 2024  to  October 7, 2027,  replaced  LIBOR-based  interest  pricing  conventions 
with interest pricing based on the SOFR, released the liens on the assets of the Company and certain subsidiaries, and 
released pledges of equity interests in certain subsidiaries. As a result of the amendment, the Credit Facility is now an 
unsecured facility. However, the indebtedness under the Credit Agreement and certain other obligations owed to lenders 
or their affiliates are cross-guaranteed by the Company and certain subsidiaries. 

The Credit Facility has an initial maximum credit amount of $250.0 million, including a swing line facility in an aggregate 
amount of up to $40.0 million and a letter of credit sub-facility providing for the issuance of letters of credit up to an 
aggregate amount of $20.0 million. The Company may request additional revolving commitments or incremental term 
loans  thereunder  up  to  an  aggregate  amount  of  up  to  $125.0 million,  subject  to  the  satisfaction  of  certain  additional 
conditions as provided in the Credit Agreement. The Company borrowed and repaid $58.0 million under the Credit Facility 
during 2022. As of December 31, 2022, the Company had available borrowing capacity of $200.0 million under the initial 
maximum credit amount of the Credit Facility. 

Principal payments under the Credit Facility are due upon maturity of the facility on October 7, 2027; however, borrowings 
may be repaid, at the Company’s discretion, in whole or in part at any time, without penalty, subject to required notice 
periods and compliance with minimum prepayment amounts. Borrowings under the Credit Agreement can either be, at the 
Company’s election: (i) at an Alternate Base Rate (as defined in the Credit Agreement) plus a spread ranging from 0.125% 
to 1.00%, and SOFR adjustment of 0.10% per annum; or (ii) the Adjusted Term SOFR Screen Rate (as defined in the 
Credit Agreement) plus a spread ranging from 1.125% to 2.00%. The applicable spread is dependent upon the Company’s 
Adjusted Leverage Ratio (as defined in the Credit Agreement). In addition, the Credit Facility requires the Company to 
pay a fee on unused commitments. The Credit Agreement contains conditions, representations and warranties, events of 
default,  and  indemnification  provisions  that  are  customary  for  financings  of  this  type,  including,  but  not  limited  to,  a 
minimum interest coverage ratio, a maximum adjusted leverage ratio, and limitations on incurrence of debt, investments, 
liens on assets, certain sale and leaseback transactions, transactions with affiliates, mergers, consolidations, and sales of 
assets. The Company was in compliance with the covenants under the Credit Agreement at December 31, 2022. 

Interest Rate Swaps 
The Company has a $50.0 million notional amount interest rate swap agreement, which started on June 30, 2022 and will 
end on October 1, 2024. The interest rate swap agreement was amended in October 2022 to replace LIBOR-based interest 
pricing  conventions  with  interest  pricing  based  on  the  SOFR.  Under  the  amended  interest  rate  swap  agreement,  the 
Company  will  receive  floating-rate  interest  amounts  based  on  one-month  SOFR  in  exchange  for  fixed-rate  interest 
payments  of  0.33%  throughout  the  remaining  term  of  the  agreement.  The  amended  interest  rate  swap  agreement  will 
effectively convert $50.0 million of borrowings under the Credit Facility from variable-rate interest to fixed-rate interest 
with a per annum rate of 1.55% based on the margin of the Credit Facility as of December 31, 2022. The fair value of the 
interest rate swap of $3.5 million and $0.9 million was recorded in other long-term assets at December 31, 2022 and 2021, 
respectively. The interest rate swap continues to qualify for cash flow hedge accounting through application of expedients 
provided for contracts affected by reference rate reform. Remeasurement at the modification date or reassessment from 
the previous accounting determination was not required.   

The  Company  also  had  an  interest  rate  swap  agreement  with  a  $50.0 million  notional  amount  which  started  on 
January 2, 2020 and matured on June 30, 2022. The fair value of the interest rate swap of $0.5 million was recorded in 
other long-term liabilities at December 31, 2021. 

The unrealized  gain or  loss  on  the  interest  rate  swap  instruments  in  effect  at  the balance  sheet date was reported  as a 
component of accumulated other comprehensive income, net of tax, in stockholders’ equity at December 31, 2022 and 
2021, and the change in the unrealized gain or loss on the interest rate swaps for the years ended December 31, 2022 and 
2021  was  reported  in other  comprehensive income  (loss), net  of  tax,  in  the  consolidated  statements of  comprehensive 
income. The interest rate swaps are subject to certain customary provisions that could allow the counterparty to request 
immediate settlement of the fair value liability or asset upon violation of any or all of the provisions. The Company was 
in compliance with all provisions of the interest rate swap agreement at December 31, 2022. 

90 

 
 
 
 
 
 
Accounts Receivable Securitization Program 
The  Company’s  accounts  receivable  securitization  program,  which  matures  on  July 1, 2024,  provides  available  cash 
proceeds of $50.0 million to be provided under the program and has an accordion feature allowing the Company to request 
additional borrowings up to $100.0 million, subject to certain conditions. In May 2022, the Company amended its accounts 
receivable securitization program to, among other things, increase certain ratios, including the delinquency, default, and 
accounts  receivable  turnover  ratios,  as  defined  in  the  agreement;  add  language  addressing  the  potential  inclusion  of 
receivables originated by MoLo; and replace LIBOR-based interest pricing conventions with interest pricing based on the 
SOFR. The program ratios were adjusted to accommodate revenue growth and customer demand for integrated logistics 
solutions,  which  has  resulted  in  an  increased  proportion  of  total  revenues  generated  by  the  Company’s  Asset-Light 
operations and, as a result, longer collection periods on the Company’s accounts receivable, as are typical for Asset-Light 
businesses. 

Under this program, certain subsidiaries of the Company continuously sell a designated pool of trade accounts receivables 
to a wholly owned subsidiary which, in turn, may borrow funds on a revolving basis. This wholly owned consolidated 
subsidiary is a separate bankruptcy-remote entity, and its assets would be available only to satisfy the claims related to the 
lender’s  interest  in  the  trade  accounts  receivables.  Borrowings  under  the  amended  accounts  receivable  securitization 
program bear interest based upon SOFR, plus a margin, and an annual facility fee. The securitization agreement contains 
representations and warranties, affirmative and negative covenants, and events of default that are customary for financings 
of this type, including a maximum adjusted leverage ratio covenant. The Company was in compliance with the covenants 
under the accounts receivable securitization program at December 31, 2022.  

The accounts receivable securitization program includes a provision under which the Company may request and the letter 
of credit issuer may issue standby letters of credit, primarily in support of workers’ compensation and third-party casualty 
claims liabilities in various states in which the Company is self-insured. The outstanding standby letters of credit reduce 
the availability of borrowings under the program. As of December 31, 2022, standby letters of credit of $10.0 million have 
been issued under the program, which reduced the available borrowing capacity to $40.0 million. 

Letter of Credit Agreements and Surety Bond Programs 
As  of  both  December  31,  2022  and  2021,  the  Company  had  letters  of  credit  outstanding  of  $10.6 million  (including 
$10.0 million  issued  under  the accounts  receivable  securitization  program).  The  Company has programs  in  place with 
multiple surety companies for the issuance of surety bonds in support of its self-insurance program. As of December 31, 
2022 and 2021, surety bonds outstanding related to the self-insurance program totaled $62.6 million and $50.9 million, 
respectively. 

Notes Payable 
The Company has financed the purchase of certain revenue equipment, other equipment, and software through promissory 
note  arrangements.  During  the  year  ended  December  31,  2022  and  2021,  the  Company  entered  into  notes  payable 
arrangements, primarily for revenue equipment, of $82.4 million and $59.7 million, respectively. 

NOTE I – ACCRUED EXPENSES 

Workers’ compensation, third-party casualty, and loss and damage claims reserves 
Accrued vacation pay 
Accrued compensation, including retirement benefits 
Taxes other than income 
Other 
  Total accrued expenses 

December 31 

2022 

2021 

(in thousands) 

$   133,128 
 58,874 
 122,057 
 12,443 
 15,320 
$   341,822 

 $ 

 $ 

 116,535  
 52,746  
 110,755  
 10,225  
 15,590  
 305,851  

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NOTE J – EMPLOYEE BENEFIT PLANS 

Supplemental Benefit and Postretirement Health Benefit Plans 

The Company has an unfunded supplemental benefit plan (the “SBP”) which was designed to supplement benefits under 
the Company’s legacy nonunion defined benefit pension plan (for which plan termination and liquidation was completed 
in 2019) for designated executive officers. The SBP was closed to new entrants, and a cap was placed on the maximum 
payment  per  participant  in  the  SBP  effective  January 1, 2006.  In  place  of  the  SBP,  eligible  officers  of  the  Company 
appointed after 2005 participate in a long-term cash incentive plan (see Cash Long-Term Incentive Compensation Plan 
section within this Note). Effective December 31, 2009, the accrual of benefits for remaining participants under the SBP 
was  frozen.  With  the  exception  of  early  retirement  penalties  that  may  apply  in  certain  cases,  the  valuation  inputs  for 
calculating the frozen SBP benefits to be paid to participants, including final average salary and the interest rate, were 
frozen at December 31, 2009. As presented in the tables within this Note, pension settlement expense and a corresponding 
reduction in the net actuarial loss was recorded in 2020 related to lump-sum SBP benefit distributions. The SBP did not 
incur pension settlement expense in 2022 or 2021.   

The  Company  sponsors  an  insured postretirement  health benefit  plan  that  provides supplemental  medical  benefits and 
dental and vision benefits primarily to certain officers of the Company and certain subsidiaries. Effective January 1, 2011, 
retirees began paying a portion of the premiums under the plan according to age and coverage levels. The amendment to 
the plan to implement retiree premiums resulted in an unrecognized prior service credit which was recorded in accumulated 
other comprehensive loss and was amortized over approximately nine years. The prior service credit was fully amortized 
as of December 31, 2020. 

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: 

Change in benefit obligations 
Benefit obligations, beginning of year 
Service cost 
Interest cost 
Actuarial gain(1) 
Benefits paid 
Benefit obligations, end of year 
Change in plan assets 
Fair value of plan asset, beginning of year 
Employer contributions 
Benefits paid 
Fair value of plan assets, end of year 
Funded status at period end 

Supplemental 
Benefit Plan 

      2022 

2021 

Postretirement 

  Health Benefit Plan 
2021 

2022 

(in thousands) 

  $

 381  $
 — 
 7 
 (50)
 — 
 338 

 392  $  16,992 
 156 
 — 
 441 
 4 
   (4,392)
 (15)
 (663)
 — 
   12,534 
 381 

 $  18,751 
 192 
 427 
 (1,736)
 (642)
    16,992 

 — 
 — 
 — 
 — 
 (338) $

 — 
 — 
 — 
 — 

 — 
 663 
 (663)
 — 
 (381) $ (12,534)

 — 
 642 
 (642)
 — 
 $ (16,992)

  $

Accumulated benefit obligation 

 $

 338  $

 381  $  12,534 

 $  16,992 

(1)  The increases in the actuarial gain on the postretirement health benefit plan for 2022 and 2021 are primarily related to increases in 
the  discount  rate  used  to  remeasure  the  plan  obligation  at  December 31, 2022  and  2021  versus  December 31, 2021  and  2020, 
respectively. For 2021, the increase in the actuarial gain was also impacted by lower actual healthcare premium costs than the 
assumed trend rates. 

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

Supplemental 
Benefit Plan 

2022 

2021 

Postretirement 
Health Benefit Plan 
2021 
2022 

Current portion of pension and postretirement liabilities 
Pension and postretirement liabilities, less current portion 
Liabilities recognized 

  $

  $

 —  $

 (338)
 (338) $

 —  $

 (676)  $

 (640)
 (381) 
 (16,352)
 (381)  $  (12,534)  $  (16,992)

 (11,858) 

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: 

Service cost 
Interest cost 
Amortization of prior service credit 
Pension settlement expense 
Amortization of net actuarial (gain) loss(1) 
Net periodic benefit cost (credit) 

Supplemental 
Benefit Plan 
2021 

2022 

2020 

2022 

Postretirement 
Health Benefit Plan 
2021 

2020 

$ 

$ 

—  $ 
 7 
 — 
 — 
 8 
 15  $ 

 —  $ 
 4 
 — 
 — 
 9 
 13  $ 

(in thousands) 
—  $ 
 9 
 — 
 89 
 8 
 106  $ 

 156  $ 
 441 
 — 
 — 
 (765)
 (168) $ 

 192  $ 
 427 
 — 
 — 
 (548)

 71  $ 

 187  
 576  
 (1) 
 —  
 (597) 
 165  

(1)  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. 

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

Pension settlement distributions 
Pension settlement expense, pre-tax 
Pension settlement expense per diluted share, net of taxes 

Supplemental 
Benefit Plan 
2021 

2020(1) 

2022 

$ 
$ 
$ 

 — 
 — 
 — 

 $ 
 $ 
 $ 

 —  $ 
 —  $ 
 —  $ 

 2,887 
 89 
 — 

(1)  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. 

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: 

Supplemental 
Benefit Plan 

2022 

2021 

Postretirement 
Health Benefit Plan 
2021 
2022 

Unrecognized net actuarial (gain) loss 

  $

 (18) $

 40  $

 (9,269)  $

 (5,642)

The discount rate is determined by matching projected cash distributions with appropriate high-quality corporate bond 
yields  in  a  yield  curve  analysis.  Weighted-average  assumptions  used  to  determine  nonunion  benefit  obligations  at 
December 31 were as follows: 

Discount rate 

Supplemental 
Benefit Plan 

      2022 

      2021 

Postretirement 
  Health Benefit Plan    
      2022 

      2021 

4.6 % 

 1.8 % 

5.0 % 

 2.7 % 

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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: 

Supplemental 
Benefit Plan 

Postretirement 
Health Benefit Plan 

Discount rate 

     2022        2021        2020        2022        2021        2020      
 3.1 % 

 1.8 %   1.1  % 

 2.7 % 

 2.4 % 

 2.3 % 

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

Health care cost trend rate assumed for next year(1) 
Rate to which the cost trend rate is assumed to decline 
Year that the rate reaches the cost trend assumed rate 

2022 

2021 

 7.0 % 
 4.5 % 

2034 

 7.0 % 
 4.5 % 
2033 

(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, 2022 and 2021 are for 2024 and 2023, respectively. 

Estimated  future  benefit  payments  from  the  Company’s  SBP  and  postretirement  health  benefit  plans,  which  reflect 
expected future service as appropriate, as of December 31, 2022 are as follows: 

2023 
2024 
2025 
2026 
2027 
2028-2032 

Deferred Compensation Plans 

      Supplemental       Postretirement    

Benefit 
Plan 

Health 

  Benefit Plan 

 $ 
 $ 
 $ 
 $ 
 $ 
 $ 

 —  $ 
 —  $ 
 —  $ 
 —  $ 
 —  $ 
 424  $ 

 676 
 676 
 729 
 734 
 740 
 3,705 

The Company has deferred salary agreements with certain executives for which liabilities of $1.3 million and $1.5 million 
were recorded as of December 31, 2022 and 2021, respectively. The deferred salary agreements include a provision that 
immediately vests all benefits and provides for a lump-sum payment upon a change in control of the Company that is 
followed by a termination of the executive. The deferred salary agreement program was closed to new entrants effective 
January 1,  2006.  In  place  of  the  deferred  salary  agreement  program,  officers  appointed  after  2005  participate  in  the 
Long-Term Incentive Plan (see Long-Term Incentive Compensation Plan section within this Note). 

The Company maintains a Voluntary Savings Plan (“VSP”), a nonqualified deferred compensation program for the benefit 
of certain executives of the Company and certain subsidiaries. Eligible employees may defer receipt of a portion of their 
salary and incentive compensation into the VSP by making an election prior to the beginning of the year in which the 
salary compensation is payable and, for incentive compensation, by making an election at least six months prior to the end 
of the performance period to which the incentive relates. The Company credits participants’ accounts with applicable rates 
of return based on a portfolio selected by the participants from the investments available in the plan. The Company match 
related to the VSP was suspended beginning January 1, 2010. All deferrals, Company match, and investment earnings are 
considered part of the general assets of the Company until paid. Accordingly, the consolidated balance sheets reflect the 
fair value of the aggregate participant balances, based on quoted prices of the mutual fund investments, as both an asset 
and  a  liability  of  the  Company.  As  of  December  31,  2022  and  2021,  VSP  balances  of  $4.0 million  and  $3.8 million, 
respectively, were included in other long-term assets with a corresponding amount recorded in other long-term liabilities. 

Defined Contribution Plans 

The Company and its subsidiaries have defined contribution 401(k) plans that cover substantially all nonunion employees. 
The plans permit participants to defer a portion of their salary up to a maximum of 69% as determined under Section 
401(k) of the IRC. For certain participating subsidiaries, the Company matches 50% of nonunion participant contributions 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
     
     
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
up  to  the  first  6%  of  annual  compensation.  The  Company’s  matching  expense  for  the  nonunion  401(k)  plans  totaled 
$9.4 million, $7.7 million, and $4.6 million for 2022, 2021, and 2020, respectively. The Company’s matching expense for 
2020 was impacted by the cost reduction actions implemented in April 2020 in response to the COVID-19 pandemic, 
which included suspension of the employer match on the nonunion 401(k) plans for the second quarter of 2020. The plans 
also allow for discretionary 401(k) Company contributions determined annually. The Company recognized expense of 
$19.1 million,  $16.8  million,  and  $12.6 million  in  2022,  2021,  and  2020,  respectively,  related  to  its  discretionary 
contributions  to  the  nonunion  defined  contribution  401(k)  plans.  Participants  are  fully  vested  in  the  Company’s 
contributions under the defined contribution 401(k) plans after three years of service. 

Long-Term Incentive Compensation Plan 

The Company maintains a performance-based Long-Term Incentive Compensation Plan (“LTIP”) for certain officers of 
the  Company  or  its  subsidiaries.  The  LTIP  incentive,  which  is  earned  over  three  years,  is  based,  in  part,  upon  a 
proportionate weighting of return on capital employed and shareholder returns compared to a peer group, as specifically 
defined in the plan document. As of December 31, 2022, 2021, and 2020, $29.5 million, $28.3 million, $14.2 million, 
respectively, were accrued for future payments under the plans.  

Other Plans 

Other long-term assets include $54.7 million and $57.2 million at December 31, 2022 and 2021, respectively, in the cash 
surrender value of life insurance policies. These policies are intended to provide funding for certain of the Company’s 
long-term nonunion benefit plans. A portion of the Company’s cash surrender value of variable life insurance policies 
have investments, through separate accounts, in equity and fixed income securities and, therefore, are subject to market 
volatility. The Company recognized a loss of $2.7 million for 2022, and a gain of $4.1 million and $2.3 million for 2021 
and 2020, respectively, associated with changes in the cash surrender value and proceeds from life insurance policies. 

Multiemployer Plans 

ABF Freight System, Inc. and certain other subsidiaries reported in the Company’s Asset-Based operating segment (“ABF 
Freight”) contribute to multiemployer pension and health and welfare plans, which have been established pursuant to the 
Labor Management Relations Act of 1947 (the “Taft-Hartley Act”), to provide benefits for its contractual employees. ABF 
Freight’s contributions generally are based on the time worked by its contractual employees, in accordance with the 2018 
ABF NMFA and other related supplemental agreements. ABF Freight recognizes as expense the contractually required 
contributions for each period and recognizes as a liability any contributions due and unpaid.  

The multiemployer plans to which ABF Freight primarily contributes are jointly-trusteed (half of the trustees of each plan 
are  selected by  the participating  employers,  the  other half  by  the IBT) and  cover  collectively  bargained  employees  of 
multiple  unrelated  employers.  Due  to  the  inherent  nature  of  multiemployer  plans,  there  are  risks  associated  with 
participation  in  these  plans  that differ  from  single-employer plans.  Assets  received by  the plans  are  not  segregated by 
employer,  and  contributions  made  by  one  employer  can  be  and  are  used  to  provide  benefits  to  current  and  former 
employees of other employers. If a participating employer in a multiemployer pension plan no longer contributes to the 
plan,  the  unfunded  obligations  of  the  plan  may  be  borne  by  the  remaining  participating  employers.  If  a  participating 
employer in a multiemployer pension plan completely withdraws from the plan, it owes to the plan its proportionate share 
of the plan’s unfunded vested benefits, referred to as a withdrawal liability. A complete withdrawal generally occurs when 
the employer permanently ceases to have an obligation to contribute to the plan. Withdrawal liability is also owed in the 
event the employer withdraws from a plan in connection with a mass withdrawal, which generally occurs when all or 
substantially all employers withdraw from the plan pursuant to an agreement in a relatively short period of time. Were 
ABF  Freight  to  completely  withdraw  from  certain  multiemployer  pension  plans,  whether  in  connection  with  a  mass 
withdrawal  or otherwise,  under  current  law,  ABF Freight would  have material  liabilities  for  its  share  of  the unfunded 
vested liabilities of each such plan.  

Pension Plans 
The  25  multiemployer  pension  plans  to  which  ABF  Freight  contributes  vary  greatly  in  size  and  in  funded  status. 
Contributions to these plans are based generally on the time worked by ABF Freight’s contractual employees, at rates 
specified in the 2018 ABF NMFA, which will remain in effect through June 30, 2023. The funding obligations to the 
pension plans are intended to satisfy the requirements imposed by the Pension Protection Act of 2006 (the “PPA”), which 
was  permanently  extended  by  the  Multiemployer  Pension  Reform  Act  of  2014  (the  “Reform  Act”)  included  in  the 

95 

 
 
 
 
 
 
 
 
Consolidated and Further Continuing Appropriations Act of 2015. Through the term of its current collective bargaining 
agreement, ABF Freight’s contribution obligations generally will be satisfied by making the specified contributions when 
due.  However,  the  Company  cannot  determine  with  any  certainty  the  contributions  that  will  be  required  under  future 
collective bargaining agreements for ABF Freight’s contractual employees.  

The PPA requires that “endangered” (generally less than 80% funded and commonly called “yellow zone”) plans adopt 
“funding improvement plans” and that “critical” (generally less than 65% funded and commonly called “red zone”) plans 
adopt “rehabilitation plans” that are intended to improve the plan’s funded status over time. The Reform Act includes 
provisions to address the funding of multiemployer pension plans in “critical and declining” status, including certain of 
those in which ABF Freight participates. Critical and declining status is applicable to critical status plans that are projected 
to become insolvent anytime within the next 14 plan years, or if the plan is projected to become insolvent within the next 
19 plan years and either the plan’s ratio of inactive participants to active participants exceeds two to one or the plan’s 
funded percentage is less than 80%. Provisions of the Reform Act include, among others, providing qualifying plans the 
ability  to  self-correct  funding  issues,  subject  to  various  requirements  and  restrictions,  including  applying  to  the  U.S. 
Department of Treasury (the “Treasury Department”) for the reduction of certain accrued benefits. 

On March 11, 2021, H.R.1319, the American Rescue Plan Act of 2021 (the “American Rescue Plan Act”) was signed into 
law. The American Rescue Plan Act includes the Butch Lewis Emergency Pension Plan Relief Act of 2021 (the “Pension 
Relief Act”). The Pension Relief Act includes provisions to improve funding for multiemployer pension plans, including 
financial assistance provided through the Pension Benefit Guarantee Corporation (the “PBGC”) to qualifying underfunded 
plans to secure pension benefits for plan participants. Without the funding to be provided by the Pension Relief Act, many 
of the multiemployer pension funds to which ABF Freight contributes could become insolvent in the near future; however, 
ABF Freight would continue to be obligated to make contributions to those funds under the terms of the 2018 ABF NMFA. 

On July 9, 2021, the PBGC announced an interim final rule implementing a Special Financial Assistance Program (the 
“SFA Program”) to administer funds to severely underfunded eligible multiemployer pension plans under the Pension 
Relief Act. Certain multiemployer pension plans to which ABF Freight contributes, including the Central States, Southeast 
and Southwest Areas Pension Plan (the “Central States Pension Plan”), have applied for or received funds under the SFA 
Program which could allow them to avoid insolvency and improve their funded status. Under the American Rescue Plan 
Act and in accordance with regulations of the PBGC, the plans receiving funding under the SFA Program are not permitted 
to  reduce  employer  contributions  to  their  funds.  The  Company  will  continue  to  evaluate  the  impact  of  the  assistance 
provided by the SFA Program on ABF Freight’s multiemployer pension plan contributions. Through the term of the 2018 
ABF NMFA, ABF Freight’s multiemployer pension contribution obligations generally will be satisfied by making the 
specified contributions when due. Future contribution rates will be determined through the negotiation process for contract 
periods following the term of the current collective bargaining agreement. While the Company cannot determine with any 
certainty  the  contributions  that  will  be  required  under  future  collective  bargaining  agreements  for  ABF  Freight’s 
contractual employees, management believes future contribution rates to multiemployer pension plans may be less likely 
to increase as a result of the provisions of the Pension Relief Act.  

Based  on  the  most  recent  annual  funding  notices  the  Company  has  received,  most  of  which  are  for  plan  year  ended 
December 31,  2021  and  prior  to  financial  assistance  from  the  SFA  Program,  approximately  56%  of  ABF  Freight’s 
multiemployer pension plan contributions for the year ended December 31, 2022 were made to plans that are in “critical 
and declining status,” including the Central States Pension Plan discussed below; approximately 4% were made to plans 
that are in “critical status” but not “critical and declining status;” and approximately 4% were made to plans that are in 
“endangered  status,”  each  as  defined  by  the  PPA.  ABF  Freight’s  participation  in  multiemployer  pension  plans  is 
summarized in the table below. The multiemployer pension plans listed separately in the table represent plans that are 
individually significant to the Asset-Based segment based on the amount of plan contributions. The Central States Pension 
Plan  is  the  only  fund  individually  listed  in  the  table  which  received  financial  assistance  from  the  SFA  Program.  The 
severity  of  a  plan’s  underfunded  status  considered  in  the  analysis  of  individually  significant  funds  to  be  separately 
disclosed was prior to financial assistance from the SFA Program. 

96 

 
 
 
 
 
Significant multiemployer pension funds and key participation information were as follows: 

  EIN/Pension 

Legal Name of Plan    Plan Number (a)    
Central States, 
Southeast and 
Southwest Areas 
Pension Plan(1)(2) 

36-6044243 

Pension 
Protection Act 
Zone Status (b) 

2022 

2021 

FIP/RP 
Status 
Pending/ 
    Implemented (c)    

Contributions (d) 
(in thousands) 

2022 

2021 

2020 

  Surcharge 
   Imposed (e)

Critical and 
Declining    

Critical and 
Declining     Implemented(3)   $  75,306 

$  71,045 

$  68,704   

No 

Western 
Conference of 
Teamsters Pension 
Plan(2) 

Central 
Pennsylvania 
Teamsters Defined 
Benefit Plan(1)(2) 

I. B. of T. Union 
Local No. 710 
Pension Fund(5)(6) 

New England 
Teamsters Pension 
Fund(7)(8) 

All other plans in 
the aggregate 
Total 
multiemployer 
pension 
contributions 
paid(11) 

91-6145047 

  Green 

   Green 

No 

   28,051 

   25,861 

   23,633   

No 

23-6262789 

  Green 

   Green 

No 

   14,421 

   13,931 

   13,485   

No 

36-2377656 

  Green(4) 

   Green(4) 

No 

 9,838 

 9,553 

 9,885   

No 

04-6372430 

Critical and 
Declining(9)   

Critical and 
Declining(9)   Implemented(10) 

 4,449 

 4,357 

 4,464  

No 

   22,493 

   22,146 

   22,023  

  $ 154,558 

$ 146,893 

$ 142,194  

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  2022  and  2021  is  for  the  plan’s  year-end  status  at 
December 31, 2021 and 2020, 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. 

Table Footnotes 
(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 

(2) 

ended December 31, 2021 and 2020. 
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, 2021 and 2020. 

(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, 2021 – January 31, 2022 and February 1, 2020 – January 31, 2021. 
(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 

(6) 

January 31, 2020. 
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, 2022 and 2021. 

(7)  Contributions include  $1.6 million  each  year  for  2022,  2021,  and  2020,  related to  the multiemployer  pension  fund  withdrawal 
liability. ABF Freight’s multiemployer pension plan obligation with the New England Teamsters and Trucking Industry Pension 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
   
    
    
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 remaining period of 19 years. 
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, 2021 and 2020. 

(8) 

(9)  PPA zone status relates to plan years October 1, 2021 – September 30, 2022 and October 1, 2020 – September 30, 2021. 
(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.  An  increase  in  hours  worked  by  ABF  Freight’s  contractual  employees  and  additional 
contractual  employees  hired  in  2022  to  service  higher  shipment  levels  resulted  in  an  increase  in  multiemployer  pension 
contributions for 2022, compared to 2021. 

For 2022, 2021, and 2020, approximately one half of ABF Freight’s multiemployer pension contributions were made to 
the Central States Pension Plan. The funded percentages of the Central States Pension Plan, as set forth in information 
provided by the Central States Pension Plan, were 17.1%, and 19.5% as of January 1, 2021 and 2020, respectively. ABF 
Freight received a Notice of Critical and Declining Status for the Central States Pension Plan dated March 30, 2022, in 
which the plan’s actuary certified that, as of January 1, 2022, the plan is in critical and declining status, as defined by the 
Reform  Act.  The  Central  States  Pension  Plan  was  approved  for  assistance  under  the  SFA  Program  during  2022  and 
received the funding in January 2023. The plan announced that the SFA Program funding will allow the Central States 
Pension Plan to avoid insolvency in 2025 and to reach full funding over time.  

Prior to 2020, the Company received notices that a reduction of benefits was authorized by the Treasury Department for 
the Western Pennsylvania Teamsters and Employers Pension Fund and the New York State Teamsters Conference Pension 
and Retirement Fund. The Company also previously received notice that the PBGC will provide financial assistance (by 
paying retiree benefits not to exceed the PBGC guarantee limits) to the Road Carriers Local 707 Pension Fund, which was 
declared  insolvent. Approximately 1%  of ABF Freight’s  total  multiemployer pension  contributions for  the year  ended 
December 31, 2022 were made to each of these funds. During 2020, the Company received a notice of insolvency for the 
Trucking Employees of North Jersey Welfare Fund, Inc. – Pension Fund (the “North Jersey Welfare Fund”), to which the 
PBGC will provide financial assistance by paying retiree benefits not to exceed the PBGC guarantee limits for insolvent 
multiemployer plans. Approximately 2% of ABF Freight’s total multiemployer pension contributions for the year ended 
December 31, 2022, were made to the North Jersey Welfare Fund. Each of these funds was approved for and received 
funding from the SFA Program during 2022 or in January 2023, which could significantly improve the funded status of 
each of these plans. 

ABF  Freight  has  not  received  any  other  notification  of  plan  reorganization  or  plan  insolvency  with  respect  to  any 
multiemployer pension plan to which it contributes. 

Health and Welfare Plans 
ABF  Freight  contributes  to  38  multiemployer  health  and  welfare  plans  which  provide  health  care  benefits  for  active 
employees and retirees covered under labor agreements. Contributions to multiemployer health and welfare plans totaled 
$194.4 million, $176.2 million, and $163.8 million, for the year ended December 31, 2022, 2021, and 2020, respectively. 
The benefit contribution rate for health and welfare benefits increased by an average of approximately 4.3% primarily on 
both August 1, 2022 and 2021, and approximately 4.0% primarily on August 1, 2020, under the ABF Freight’s collective 
bargaining agreement with the IBT.  

In  2022,  more  hours  worked  by  ABF  Freight’s  contractual  employees,  as  well  as  the  hiring  of  additional  contractual 
employees to service higher shipment levels resulted in an increase in contributions to multiemployer health and welfare 
plans in 2022, compared to 2021. Other than changes to benefit contribution rates and variances in rates and time worked, 
there  have  been  no  other  significant  items  that  affect  the  comparability  of  the  Company’s  2022,  2021,  and  2020 
multiemployer health and welfare plan contributions. 

98 

 
 
 
 
 
 
 
NOTE K – STOCKHOLDERS’ EQUITY 

Accumulated Other Comprehensive Income 

Components of accumulated other comprehensive income were as follows at December 31: 

Pre-tax amounts: 

Unrecognized net periodic benefit credit 
Interest rate swap 
Foreign currency translation 

Total 

After-tax amounts: 

Unrecognized net periodic benefit credit 
Interest rate swap 
Foreign currency translation 

Total 

2022 

2021 
(in thousands) 

2020 

$ 

 9,287 
 3,526 
 (3,247)

 $ 

 5,602 
 419 
 (1,044)

 $ 

 4,390 
 (1,622)
 (1,182)

$ 

 9,566 

 $ 

 4,977 

 $ 

 1,586 

 $ 

$ 

 6,896 
 2,604 
 (2,397)

 4,160 
 309 
 (770)

 $ 

 3,260 
 (1,198)
 (872)

$ 

 7,103 

 $ 

 3,699 

 $ 

 1,190 

The following is a summary of the changes in accumulated other comprehensive income, net of tax, by component: 

Balances at December 31, 2020 

  Unrecognized   
  Net Periodic 
      Benefit Credit        Swap      Translation  

  Interest      Foreign 
  Currency 
  Rate 

   Total 

$   1,190 

 $ 

 3,260 

 $   (1,198) $ 

 (872) 

(in thousands) 

Other comprehensive income before reclassifications 
Amounts reclassified from accumulated other comprehensive income 
Net current-period other comprehensive income  

   2,909 
 (400)
   2,509 

 1,300 
 (400)
 900 

 1,507 
 — 
 1,507 

 102  
 —  
 102  

Balances at December 31, 2021 

$   3,699 

 $ 

 4,160 

 $ 

 309  $ 

 (770) 

Other comprehensive income (loss) before reclassifications 
Amounts reclassified from accumulated other comprehensive income 
Net current-period other comprehensive income (loss) 

     3,966 

 (562)  

     3,404 

 3,298 
 (562)  
 2,736 

 2,295 
 — 
 2,295 

 (1,627)  
 —   
 (1,627)  

Balances at December 31, 2022 

  $   7,103   $ 

 6,896   $ 

 2,604   $ 

 (2,397) 

The  following  is  a  summary  of  the  significant  reclassifications  out  of  accumulated  other  comprehensive  income  by 
component for the years ended December 31: 

Amortization of net actuarial gain, pre-tax 
Tax expense 

Total, net of tax 

Unrecognized Net Periodic 
Benefit Credit(1)(2) 

2022 

2021 

  $ 

  $ 

(in thousands) 
 757   $ 
 (195) 
 562   $ 

 539 
 (139)
 400 

(1)  Amounts in parentheses indicate increases in expense or loss. 
(2)  These components of accumulated other comprehensive income are included in the computation of net periodic benefit cost (credit) 

(see Note J). 

99 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
     
  
 
 
  
 
 
 
  
  
 
   
   
 
 
 
 
 
  
  
 
 
 
  
  
 
   
   
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
     
 
   
 
 
 
 
 
 
 
   
 
 
 
   
 
 
   
 
 
 
     
 
   
 
 
 
 
 
 
 
 
     
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
     
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
    
     
  
 
 
  
 
 
 
 
 
Dividends on Common Stock 

The following table is a summary of dividends declared during the applicable quarter: 

First quarter 
Second quarter 
Third quarter 
Fourth quarter 

2022 

2021 

     Per Share        Amount 

      Per Share       Amount 

  $ 
  $ 
  $ 
  $ 

0.08  
0.12  
0.12  
0.12  

(in thousands, except per share data) 
 0.08  $
 $ 
 $
 0.08  $
 $ 
 $
 0.08  $
 $ 
 $
 0.08  $
 $ 
 $

1,978  
2,949  
2,965  
2,938  

 2,037 
 2,058 
 2,050 
 1,994 

On January 30, 2023, the Company’s Board of Directors declared a dividend of $0.12 per share to stockholders of record 
as of February 14, 2023. 

Treasury Stock 

The Company has a program to repurchase its common stock in the open market or in privately negotiated transactions 
(the “share repurchase program”). The share repurchase program has no expiration date but may be terminated at any time 
at the Board of Directors’ discretion. Repurchases may be made using the Company’s cash reserves or other available 
sources.  

On November 2, 2021, the Company entered into a fixed dollar accelerated share repurchase program (“ASR”) with a 
third-party financial institution to effect an accelerated repurchase of $100.0 million of the Company’s common stock, of 
which $75.0 million was repurchased during 2021. The remaining $25.0 million available under the ASR was recorded as 
an unsettled forward contract within stockholders’ equity as additional paid-in capital as of December 31, 2021.  

During 2022, the Company purchased 822,106 shares of its common stock for an aggregate cost of $65.0 million and 
purchased  214,763  shares  to  settle  the  remaining  $25.0 million  under  the  ASR.  In  April  2022,  the  Board  of  Directors 
reauthorized  the  share  repurchase  program  and  increased  the  total  amount  available  for  purchases  of  the  Company’s 
common stock under the program to $75.0 million. The Company had $26.5 million remaining under its share repurchase 
program as of December 31, 2022. Treasury shares totaled 5,529,383 and 4,492,514 as of December 31, 2022 and 2021, 
respectively. 

NOTE L – SHARE-BASED COMPENSATION 

Stock Awards 

The Company had outstanding RSUs granted under the ArcBest Corporation Ownership Incentive Plan (the “Ownership 
Incentive Plan”) as of December 31, 2022 and 2021. The Ownership Incentive Plan provides for the granting of 4.9 million 
shares,  which may be  awarded  as  incentive  and nonqualified  stock options,  stock  appreciation  rights,  restricted  stock, 
RSUs, or performance award units.  

Restricted Stock Units 

A summary of the Company’s RSU award program is presented below: 

Outstanding – January 1, 2022 
Granted 
Vested 
Forfeited(1) 
Outstanding – December 31, 2022 

(1)  Forfeitures are recognized as they occur. 

100 

  Weighted-Average 

Units 

 1,482,399   $ 
 164,739   $ 
 (601,441)  $ 
 (22,446)  $ 
 1,023,251  $ 

Grant Date 
Fair Value 

 29.25  
 78.57  
 26.08  
 39.74  
 38.83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
  
 
 
 
 
 
 
 
The Compensation Committee of the Company’s Board of Directors granted RSUs during the years ended December 31 
as follows: 

k 

2022 
2021 
2020 

  Weighted-Average   
Grant Date 
Fair Value 

Units 
 164,739   $ 
 136,295   $ 
 579,660   $ 

 78.57 
 86.96 
 19.22 

The  fair  value  of  restricted  stock  awards  that  vested  in  2022,  2021,  and  2020  was  $48.1 million,  $36.4 million,  and 
$7.8 million,  respectively.  Unrecognized  compensation  cost  related  to  restricted  stock  awards  outstanding  as  of 
December 31, 2022  was  $16.2 million,  which  is  expected  to  be  recognized  over  a  weighted-average  period  of 
approximately 1.2 years. 

NOTE M – EARNINGS PER SHARE 

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: 

Basic 
Numerator: 

Net income 
Denominator: 

Weighted-average shares 
Earnings per common share 

Diluted 
Numerator: 

Net income 
Denominator: 

Weighted-average shares 
Effect of dilutive securities 
Adjusted weighted-average shares and assumed conversions 

Earnings per common share 

NOTE N – OPERATING SEGMENT DATA 

2022 
2020 
2021 
(in thousands, except share and per share data) 

$

 298,209  $

 213,521  $

 71,100 

  24,585,205 
$

12.13  $

  25,471,939 

  25,410,232 
 2.80 

 8.38  $

$

 298,209  $

 213,521  $

 71,100 

  24,585,205 
 919,303 
  25,504,508 
$

  25,471,939 
 1,300,187 
  26,772,126 

  25,410,232 
 1,012,291 
  26,422,523 
 2.69 

11.69  $

 7.98  $

The Company uses the “management approach” to determine its reportable operating segments, as well as to determine 
the basis of reporting the operating segment information. The management approach focuses on financial information that 
the Company’s management uses to make operating decisions. Management uses revenues, operating expense categories, 
operating  ratios,  operating  income,  and  key  operating  statistics  to  evaluate  performance  and  allocate  resources  to  the 
Company’s operations. 

The Company’s reportable operating segments are as follows: 

  The  Asset-Based  segment  includes  the  results  of  operations  of  ABF  Freight  System,  Inc.  and  certain  other 
subsidiaries.  The  segment  operations  include  national,  inter-regional,  and  regional  transportation  of  general 
commodities  through  standard,  expedited,  and  guaranteed  LTL  services.  The  Asset-Based  segment  provides 
services to the ArcBest segment, including freight transportation related to certain consumer household goods 
self-move services. 

  The ArcBest segment includes the results of operations of the Company’s service offerings in ground expedite, 
truckload,  dedicated,  intermodal,  household  goods  moving,  managed  transportation,  warehousing  and 
distribution, and international freight transportation for air, ocean, and ground. The ArcBest segment provides 
services to the Asset-Based segment. 

101 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
    
     
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
    
 
 
 
  
 
    
 
   
 
   
 
 
 
 
 
 
 
 
 
 
  FleetNet includes the results of operations of FleetNet America, Inc. and certain other subsidiaries that provide 
roadside assistance and maintenance management services for commercial vehicles through a network of third-
party service providers. FleetNet provides services to the Asset-Based and ArcBest segments. 

The Company’s other business activities and operations that are not reportable segments include ArcBest Corporation (the 
parent  holding  company)  and  certain  subsidiaries.  Certain  costs  incurred  by  the  parent  holding  company  and  the 
Company’s shared services subsidiary are allocated to the reporting segments. The Company  eliminates intercompany 
transactions in consolidation. However, the information used by the Company’s management with respect to its reportable 
operating segments is before intersegment eliminations of revenues and expenses. 

Shared services represent costs incurred to support all segments, including sales, pricing, customer service, marketing, 
capacity  sourcing  functions,  human  resources,  financial  services,  information  technology,  and  other  company-wide 
services. Certain overhead costs are not attributable to any segment and remain unallocated in “Other and eliminations.” 
Included  in  unallocated  costs  are  expenses  related  to  investor  relations,  legal,  the  Company’s  Board  of  Directors,  and 
certain technology investments. Shared services costs attributable to the reportable operating segments are predominantly 
allocated based upon estimated and planned resource utilization-related metrics such as estimated shipment levels, number 
of  pricing  proposals,  or  number  of  personnel  supported.  The  bases  for  such  charges  are  modified  and  adjusted  by 
management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the 
reportable operating segments. Management believes the methods used to allocate expenses are reasonable. 

Further classifications of operations or revenues by geographic location are impracticable and, therefore, are not provided. 
The Company’s foreign operations are not significant. 

102 

 
 
 
 
 
 
 
 
The following table reflects reportable operating segment information for the years ended December 31: 

REVENUES 
Asset-Based  
ArcBest(1) 
FleetNet 
Other and eliminations 

Total consolidated revenues 
OPERATING EXPENSES 
Asset-Based  

Salaries, wages, and benefits 
Fuel, supplies, and expenses 
Operating taxes and licenses 
Insurance 
Communications and utilities 
Depreciation and amortization 
Rents and purchased transportation 
Shared services 
Gain on sale of property and equipment(2) 
Innovative technology costs(3) 
Other 

Total Asset-Based 

ArcBest(1) 

Purchased transportation 
Supplies and expenses 
Depreciation and amortization(4) 
Shared services 
Gain on sale of subsidiary(5) 
Other(6) 

Total ArcBest 

FleetNet 
Other and eliminations 

Total consolidated operating expenses 

OPERATING INCOME 
Asset-Based  
ArcBest(1) 
FleetNet 
Other and eliminations 

Total consolidated operating income 

OTHER INCOME (COSTS) 

Interest and dividend income 
Interest and other related financing costs 
Other, net(7) 

Total other costs 

INCOME BEFORE INCOME TAXES 

2022 

2021 
(in thousands) 

2020 

  $ 3,010,900 
  2,139,272 
 343,056 
   (169,176)
  $ 5,324,052 

 $ 2,573,773  $ 2,092,031 
 779,115 
   1,300,626 
 205,049 
 254,087 
    (148,419)
   (136,032)
 $ 3,980,067  $ 2,940,163 

  $ 1,293,487 
 378,558 
 52,290 
 47,382 
 18,949 
 97,322 
 441,167 
 281,698 
 (12,468)
 27,207 
 4,175 
  2,629,767 

  1,784,668 
 15,815 
 20,730 
 218,133 
 (402)
 47,603 
  2,086,547 
 337,231 
   (128,762)
  $ 4,924,783 

 $ 1,198,253  $ 1,095,694 
 209,095 
 49,300 
 33,568 
 17,916 
 94,326 
 250,159 
 217,258 
 (3,309)
 22,458 
 6,701 
  1,993,166 

 266,139 
 49,461 
 37,800 
 18,773 
 93,799 
 364,345 
 263,532 
 (8,676)
 27,631 
 2,009 
   2,313,066 

 649,933 
   1,097,332 
 9,627 
 10,531 
 9,714 
 11,387 
 90,983 
 132,137 
 — 
 (6,923)
 9,203 
 9,765 
 769,460 
   1,254,229 
 201,682 
 249,543 
    (117,757)
   (122,423)
 $ 3,699,081  $ 2,841,885 

  $  381,133 
 52,725 
 5,825 
 (40,414)
  $  399,269 

 $  260,707  $
 46,397 
 4,544 
 (30,662)
 $  280,986  $

 98,865 
 9,655 
 3,367 
 (13,609)
 98,278 

  $

 3,957 
 (7,701)
 (2,370)
 (6,114)
  $  393,155 

 $

 1,275  $
 (8,904)
 3,797 
 (3,832)
 $  277,154  $

 3,616 
 (11,697)
 2,299 
 (5,782)
 92,496 

(1)  For 2022 and 2021, includes the operations of MoLo since the November 1, 2021 acquisition (see Note D). 
(2)  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. 

(3)  Represents costs associated with the freight handling pilot test program at ABF Freight. 
(4)  Depreciation and amortization includes amortization of intangibles associated with acquired businesses. 
(5)  Gain recognized relates to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021, 

including the contingent amount recognized in second quarter 2022 when the funds were released from escrow. 

(6)  For  2022,  includes  the  increase  in  fair  value  of  the  contingent  earnout  consideration  of  $18.3  million  recorded  for  the  MoLo 

(7) 

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

103 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
    
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The following table reflects information about revenues from customers and intersegment revenues: 

2022 

2021 
(in thousands) 

2020 

Revenues from customers 

Asset-Based  
ArcBest 
FleetNet 
Other 

Total consolidated revenues 

Intersegment revenues 

Asset-Based  
ArcBest 
FleetNet 
Other and eliminations 

Total intersegment revenues 

Total segment revenues 

Asset-Based  
ArcBest(1) 
FleetNet 
Other and eliminations 

Total consolidated revenues(1) 

  $ 2,896,284  $ 2,470,529  $  1,998,549 
 770,560 
 166,654 
 4,400 
  $ 5,324,052  $ 3,980,067  $  2,940,163 

  1,291,679 
 213,882 
 3,977 

  2,128,394 
 295,043 
 4,331 

  $  114,616  $  103,244  $

 10,878 
 48,013 
 (173,507)

 8,947 
 40,205 
 (152,396)

  $

 —  $

 —  $

 93,482 
 8,555 
 38,395 
 (140,432)
 — 

  $ 3,010,900 
 2,139,272 
 343,056 
 (169,176)

   2,573,773  $  2,092,031  
 779,115 
 205,049 
 (136,032)
  $ 5,324,052  $ 3,980,067  $  2,940,163  

 1,300,626 
 254,087 
 (148,419)

(1)  For 2022 and 2021, includes the operations of MoLo since the November 1, 2021 acquisition (see Note D). 

104 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
    
    
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table provides capital expenditure and depreciation and amortization information by reportable operating 
segment:   

 For the year ended December 31 
2020 
2021 
2022 
(in thousands) 

CAPITAL EXPENDITURES, GROSS 

Asset-Based(1) 
ArcBest 
FleetNet 
Other and eliminations(2)(3) 

  $   137,117 
 14,372 
 1,439 
 77,720 
  $   230,648 

 $ 

 96,180  $ 
 9,565 
 1,174 
 11,193 

 85,135  
 1,258  
 675  
 17,983  
 $   118,112  $   105,051  

 For the year ended December 31 
2020 
2021 
2022 
(in thousands) 

DEPRECIATION AND AMORTIZATION EXPENSE(2) 

Asset-Based 
ArcBest(4) 
FleetNet(5) 
Other and eliminations(2) 

  $ 

 97,322 
 20,730 
 1,880 
 20,107 
  $   140,039 

 $ 

 93,799  $ 
 11,387 
 1,661 
 17,374 

 94,326  
 9,714  
 1,622  
 12,729  
 $   124,221  $   118,391  

(1) 

Includes  assets  acquired  through  notes  payable  of  $79.0  million,  $59.7  million,  and  $61.8 million  in  2022,  2021,  and  2020, 
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. 
Includes assets acquired through notes payable of $3.4 million in 2022. 
Includes amortization of intangibles of $12.9 million, $5.3 million, and $3.7 million in 2022, 2021, and 2020, respectively.  
Includes amortization of intangibles which totaled less than $0.1 million in both 2022 and 2021, and $0.2 million in 2020. 

(3) 
(4) 
(5) 

A table of assets by reportable operating segment has not been presented as segment assets are not included in reports 
regularly  provided  to  management  nor  does  management  consider  segment  assets  for  assessing  segment  operating 
performance or allocating resources. 

The  Company  incurred  research  and  development  costs  of  $40.8  million  and  $32.8  million  for  the  year  ended 
December 31, 2022 and 2021, respectively, related to innovative technology initiatives.  

The following table presents operating expenses by category on a consolidated basis: 

2022(1) 

For the year ended December 31 
2021(1) 
(in thousands) 

2020 

OPERATING EXPENSES 

Salaries, wages, and benefits 
Rents, purchased transportation, and other costs of services  
Fuel, supplies, and expenses 
Depreciation and amortization(2) 
Other(3) 

 $ 1,755,947   $ 1,550,859   $  1,368,588  
 974,835  
   1,570,050  
    2,404,701  
 250,221  
 324,380  
 444,776  
 118,391  
 124,221  
 140,039  
 129,850  
 129,571  
 179,320  
 $ 4,924,783   $ 3,699,081   $  2,841,885  

Includes amortization of intangibles assets.  

(1)  For 2022 and 2021, includes the operations of MoLo since the November 1, 2021 acquisition (see Note D). 
(2) 
(3)  For 2022, includes the increase in fair value of the contingent earnout consideration of $18.3 million recorded by the ArcBest 
segment for the MoLo acquisition (see Note D). For 2021, includes a $6.9 million gain related to the sale of a subsidiary within 
the ArcBest segment and an $8.6 million gain related to the sale of an unutilized service center property within the Asset-Based 
segment. 

105 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
    
 
 
 
 
 
 
  
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
    
 
 
 
 
 
 
  
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
    
    
 
 
 
 
    
 
   
 
   
 
  
   
  
  
   
  
  
   
  
  
 
 
    
NOTE O – LEGAL PROCEEDINGS, ENVIRONMENTAL MATTERS, AND OTHER EVENTS 

The Company is involved in various legal actions arising in the ordinary course of business. The Company maintains 
liability  insurance  against  certain  risks  arising  out  of  the  normal  course  of  its  business,  subject  to  certain  self-insured 
retention  limits.  The  Company  routinely  establishes  and  reviews  the  adequacy  of  reserves  for  estimated  legal, 
environmental,  and  self-insurance  exposures.  While  management  believes  that  amounts  accrued  in  the  consolidated 
financial statements are adequate, estimates of these liabilities may change as circumstances develop. Considering amounts 
recorded, routine legal matters are not expected to have a material adverse effect on the Company’s financial condition, 
results of operations, or cash flows. 

Legal Proceedings 

In January 2023, the Company and MoLo were named as defendants in lawsuits related to an auto accident which involved 
a MoLo contract carrier. The accident occurred prior to the Company’s acquisition of MoLo on November 1, 2021. The 
Company intends to vigorously defend against these lawsuits. The Company believes that a loss related to this matter is 
reasonably possible. The Company cannot estimate the amount or a range of reasonably possible losses for this matter, if 
any,  at  this  time;  however,  it  is  reasonably  possible  that  such  amounts  could  be  material  to  the  Company’s  financial 
condition, results of operations, or cash flows. The Company will pursue recovery for its losses, if any, against all available 
sources, including, but not limited to, insurance and any potentially responsible third parties. 

Environmental Matters 

The Company’s subsidiaries store fuel for use in tractors and trucks in underground tanks at certain facilities. Maintenance 
of  such  tanks  is  regulated  at  the  federal  and,  in  most  cases,  state  levels.  The  Company  believes  it  is  in  substantial 
compliance  with  all  such  regulations.  The  Company’s  underground  storage  tanks  are  required  to  have  leak  detection 
systems. The Company is not aware of any leaks from such tanks that could reasonably be expected to have a material 
adverse effect on the Company. 

The Company has received notices from the Environmental Protection Agency (the “EPA”) and others that it has been 
identified  as  a  potentially  responsible  party  under  the  Comprehensive  Environmental  Response  Compensation  and 
Liability Act of 1980, as amended, or other federal or state environmental statutes, at several hazardous waste sites. After 
investigating the Company’s involvement in waste disposal or waste generation at such sites, the Company has either 
agreed to de minimis settlements or determined that its obligations, other than those specifically accrued with respect to 
such sites, would involve immaterial monetary liability, although there can be no assurances in this regard. The Company 
maintains  a  reserve  within  accrued  expenses  for  estimated  environmental  cleanup  costs  of  properties  currently  or 
previously operated by the Company. Amounts accrued reflect management’s best estimate of the future undiscounted 
exposure  related  to  identified  properties  based  on  current  environmental  regulations,  management’s  experience  with 
similar environmental matters, and testing performed at certain sites. 

Certain  Asset-Based  service  center  facilities  operate  with  no  exposure  certifications  or  stormwater  permits  under  the 
federal Clean Water Act (the “CWA”). The no exposure certification and stormwater permits may require periodic facility 
inspections and monitoring and reporting of stormwater sampling results. The Company determined that certain procedures 
regarding sampling, documentation, and reporting were not appropriately being performed in accordance with the CWA. 
As such, the Company self-reported the matter to the EPA. An estimated settlement expense for this matter is reserved 
within accrued expenses in the consolidated balance sheet as of December 31, 2022 and 2021. Resolution of this matter is 
not expected to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. 

Other Events 

In February 2021, the Company received a Notice of Assessment from a state pertaining to uncollected sales and use tax, 
including interest and penalties, for the period September 1, 2016 to November 30, 2018. The Company does not agree 
with the basis of the assessment and filed an appeal in May 2021. The Company has previously accrued an amount related 
to this assessment consistent with applicable accounting guidance, but if the state prevails in its position, the Company 
may owe additional tax. Management does not believe the resolution of this matter will have a material adverse effect on 
the Company’s financial condition, results of operations, or cash flows. 

106 

 
 
 
 
 
 
 
 
 
 
 
 
ITEM 9. 
FINANCIAL DISCLOSURE 

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND 

None. 

ITEM 9A.  CONTROLS AND PROCEDURES 

An evaluation was performed by the Company’s management, under the supervision and with the participation of the 
Company’s Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation 
of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the 
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of December 31, 2022. The Company’s disclosure 
controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by the 
Company in reports that the Company files under the Exchange Act is accumulated and communicated to the Company’s 
management,  including  the  Company’s  Principal  Executive  Officer  and  Principal  Financial  Officer,  as  appropriate,  to 
allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time 
periods  specified  in  the  rules  and  forms  of  the  Securities  and  Exchange  Commission.  Based  on  such  evaluation,  the 
Company’s Principal Executive Officer and Principal Financial Officer have concluded that the Company’s disclosure 
controls and procedures were effective as of December 31, 2022 at the reasonable assurance level. 

There have been no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 
13a-15(f)  and  15d-15(f)  under  the  Exchange  Act)  during  the  quarter  ended  December  31,  2022  that  have  materially 
affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. 

Management’s assessment of internal control over financial reporting and the report of the independent registered public 
accounting firm appear on the following pages. 

107 

 
 
 
 
 
 
 
MANAGEMENT’S ASSESSMENT OF INTERNAL CONTROL 
OVER FINANCIAL REPORTING 

Management  of  the  Company  is  responsible  for  establishing  and  maintaining  adequate  internal  control  over  financial 
reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Company’s internal 
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting 
and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  generally  accepted  accounting 
principles. The Company’s internal control over financial reporting includes those policies and procedures that: 

(i)  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the Company; 

(ii)  provide  reasonable  assurance  that  transactions  are  recorded  as  necessary  to  permit  preparation  of  financial
statements in accordance with generally accepted accounting principles and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and the Board of Directors of the
Company; and 

(iii)  provide  reasonable  assurance  regarding  prevention  or  timely  detection  of  unauthorized  acquisition,  use  or

disposition of the Company’s assets that could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate 
because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. 

Management  conducted  its  evaluation  of  the  effectiveness  of  internal  control  over  financial  reporting  based  on  the 
framework  in Internal  Control  —  Integrated  Framework  issued  by  the Committee  of Sponsoring  Organizations of the 
Treadway Commission (2013 framework). This evaluation included review of the documentation of controls, evaluation 
of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. 
Although there are inherent limitations in the effectiveness of any system of internal control over financial reporting, based 
on our evaluation, we have concluded that the Company’s internal control over financial reporting was effective as of 
December 31, 2022.  

The Company’s independent registered public accounting firm Ernst & Young LLP, who has also audited the Company’s 
consolidated financial statements, has issued a report on the Company’s internal control over financial reporting. This 
report appears on the following page. 

108 

 
 
 
 
 
 
   
 
   
 
 
 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 

To the Stockholders and the Board of Directors of ArcBest Corporation 

Opinion on Internal Control over Financial Reporting 
We have audited ArcBest Corporation’s internal control over financial reporting as of December 31, 2022, based on criteria 
established  in  Internal  Control—  Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the 
Treadway  Commission  (2013  framework)  (the  COSO  criteria).  In  our  opinion,  ArcBest  Corporation  (the  Company) 
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on 
the COSO criteria. 

We  also  have  audited,  in  accordance  with  the  standards  of  the  Public  Company  Accounting  Oversight  Board  (United 
States)  (PCAOB),  the  accompanying  consolidated  balance  sheets  of  ArcBest  Corporation  (the  Company)  as  of 
December 31,  2022  and  2021,  the  related  consolidated  statements  of  operations,  comprehensive  income,  stockholders' 
equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial 
statement  schedule  listed  in  Part  IV,  Index  at  Item  15(a)(2)  and  our  report  dated  February  24,  2023,  expressed  an 
unqualified opinion thereon. 

Basis for Opinion 
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its 
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s 
Assessment of Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s 
internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB 
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and 
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform 
the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained 
in all material respects. 

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material 
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed 
risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit 
provides a reasonable basis for our opinion. 

Definition and Limitations of Internal Control Over Financial Reporting 
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the 
reliability  of  financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with 
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies 
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the 
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded 
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, 
and that receipts and expenditures of the company are being made only in accordance with authorizations of management 
and  directors  of  the  company;  and  (3)  provide  reasonable  assurance  regarding  prevention  or  timely  detection  of 
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial 
statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate 
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ Ernst & Young LLP 

Tulsa, Oklahoma 
February 24, 2023 

109 

 
 
 
 
 
 
 
  
 
 
ITEM 9B.  OTHER INFORMATION 

None. 

ITEM 9C.  DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 

Not applicable. 

PART III 

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 

The sections entitled “Proposal I. Election of Directors,” “Governance of the Company,” and “Executive Officers of the 
Company” contained in the Company’s Definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange 
Act in connection with the Company’s Annual Stockholders’ Meeting to be held April 26, 2023, are incorporated herein 
by reference. 

ITEM 11.  EXECUTIVE COMPENSATION 

The sections entitled “Director Compensation” and “Executive Compensation” contained in the Company’s Definitive 
Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act in connection with the Company’s Annual 
Stockholders’ Meeting to be held April 26, 2023, are incorporated herein by reference. 

ITEM 12. 
RELATED STOCKHOLDER MATTERS 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND 

The sections entitled “Principal Stockholders and Management Ownership” and “Executive Compensation” contained in 
the Company’s Definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act in connection with 
the Company’s Annual Stockholders’ Meeting to be held April 26, 2023, are incorporated herein by reference. 

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR 
INDEPENDENCE 

The section entitled “Governance of the Company” contained in the Company’s Definitive Proxy Statement to be filed 
pursuant to Regulation 14A of the Exchange Act in connection with the Company’s Annual Stockholders’ Meeting to be 
held April 26, 2023, is incorporated herein by reference. 

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES 

The  section  entitled  “Proposal  IV.  Ratification  of  Appointment  of  Independent  Registered  Public  Accounting  Firm” 
contained in the Company’s Definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act in 
connection  with  the  Company’s  Annual  Stockholders’  Meeting  to  be  held  April 26, 2023,  is  incorporated  herein  by 
reference. 

110 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES  

(a)(1) 

Financial Statements 

PART IV 

A list of the financial statements filed as a part of this Annual Report on Form 10-K is set forth in Part II, Item 8 of this 
Annual Report on Form 10-K and is incorporated by reference. 

(a)(2)  

Financial Statement Schedules 

SCHEDULE II 
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES 
ARCBEST CORPORATION 

Description 

Year Ended December 31, 2022 
Deducted from asset accounts: 

Allowance for credit losses and revenue 
adjustments 
Allowance for other accounts receivable 
Allowance for deferred tax assets 

Year Ended December 31, 2021 
Deducted from asset accounts: 

Allowance for credit losses and revenue 
adjustments 
Allowance for other accounts receivable 
Allowance for deferred tax assets 

Year Ended December 31, 2020 
Deducted from asset accounts: 

Allowance for credit losses and revenue 
adjustments 
Allowance for other accounts receivable 
Allowance for deferred tax assets 

  Balances at 
  Beginning of    Charged to Costs    Charged to 
      Period 

     and Expenses 

  Balances at  
  End of 
     Other Accounts      Deductions       Period 
(in thousands) 

Additions 

  $ 
  $ 
  $ 

 13,226   $ 
 690  $ 
 2,196  $ 

 6,955 

 $ 
 23  (c) $ 
 $ 
 — 

 2,837  (a)  $ 
 —   
$ 
$ 
 —  

 8,846  (b) $   14,172 
 713 
 1,707 

 —    $ 
 489  (d) $ 

  $ 
  $ 
  $ 

 7,851  $ 
 660  $ 
 1,284  $ 

 1,466 

 $ 
 30  (c) $ 
 $ 
 — 

 7,788  (a)(e) $ 
 —  
$ 
$ 
 —  

 3,879  (b) $   13,226 
 690 
 2,196 

 —    $ 
 (912)(d) $ 

  $ 
  $ 
  $ 

 5,448  $ 
 476  $ 
 668  $ 

 4,327 

 $ 
 (14)(c) $ 
 $ 
 — 

 1,887  (a)  $ 
 198  (f)  $ 
$ 
 —  

 3,811  (b) $ 
 —    $ 
 (616)(d) $ 

 7,851 
 660 
 1,284 

(a)  Change in allowance due to recoveries of amounts previously written off and revenue adjustments. 
(b)  Includes uncollectible accounts written off and revenue adjustments. 
(c)  Charged (credited) to workers’ compensation expense. 
(d)  Change in allowance due to changes in expectations of realization of certain federal and state net operating losses and 

federal and state deferred tax assets. 

(e)  Includes allowance assumed in the acquisition of MoLo Solutions, LLC. (See Note D to the Company’s consolidated 

financial statements included in Part II, Item 8 of the Annual Report on Form 10-K).  

(f)  Charged  to  retained  earnings  as  of  January  1,  2020  due  to  the  adoption  of  Accounting  Standards  Codification 

Topic  326, Financial Instruments – Credit Losses. 

111 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)(3)  

Exhibits 

Exhibit 
No. 

2.1 

2.2 

2.3 

2.4 

3.1 

3.2 

3.3 

3.4 

4.1 

10.1 

10.2 

10.3 

10.4# 

10.5# 

Agreement and Plan of Merger, dated September 29, 2021, by and among the Company, Simba Sub, LLC,
MoLo Solutions, LLC and Andrew Silver and Matt Vogrich, in their capacity as Sellers’ Representatives
(previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the Securities
and Exchange Commission (the “SEC”) on September 29, 2021, File No. 000-19969, and incorporated
herein by reference). 

Consent and Amendment to the Agreement and Plan of Merger, dated October 25, 2021, by and among the
Company, Simba Sub, LLC, MoLo Solutions, LLC and Andrew Silver and Matt Vogrich, in their capacity
as Sellers’ Representatives. (previously filed as Exhibit 2.2 to the Company’s Annual Report on Form 10-
K, filed with the SEC on February 25, 2022, File No. 000-19969, and incorporated herein by reference). 

Second Amendment to Agreement and Plan of Merger, dated March 31, 2022, by and among the Company
on behalf of itself and MoLo Solutions, LLC, and Andrew Silver and Matt Vogrich, in their capacity as
Sellers’ Representatives (previously filed as Exhibit 2.3 to the Company’s Quarterly Report on form 10-Q,
filed with the SEC on May 6, 2022, File No. 000-19969, and incorporated herein by reference). 

Third Amendment to Agreement and Plan of Merger, dated May 6, 2022, by and among the Company on
behalf of itself and MoLo Solutions, LLC, and Andrew Silver and Matt Vogrich, in their capacity as Sellers’
Representatives (previously filed as Exhibit 2.4 to the Company’s Quarterly Report on form 10-Q, filed
with the SEC on August 5, 2022, File No. 000-19969, and incorporated herein by reference). 

Restated Certificate of Incorporation of the Company (previously filed as Exhibit 3.1 to the Company’s
annual  Report  on  Form  10-K,  filed  with  the  SEC  on  February  28,  2019,  File  No. 000-19969,  and
incorporated herein by reference). 

Certificate of Amendment to the Restated Certificate of Incorporation of the Company (previously filed as
Exhibit 3.1  to the  Company’s  Current  Report on Form 8-K, filed  with  the  SEC on  April 24, 2009,  File
No. 000-19969, and incorporated herein by reference). 

Certificate of Ownership and Merger, effective May 1, 2014, as filed on April 29, 2014 with the Secretary
of  State  of  the  State  of  Delaware  (previously  filed  as  Exhibit 3.1  to  the  Company’s  Current  Report  on
Form 8-K,  filed  with  the  SEC  on  April 30,  2014,  File  No. 000-19969,  and  incorporated  herein  by
reference). 

Sixth Amended and Restated Bylaws of The Company, dated as of October 27, 2022 (previously filed as
Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on November 2, 2022, File
No. 000-19969, and incorporated herein by reference).  

Description of Common Stock (previously filed as Exhibit 4.1 to the Company’s Annual Report on Form
10-K, filed with the SEC on February 28, 2020, File No. 000-19969, and incorporated herein by reference).

ABF National Master Freight Agreement, implemented on July 29, 2018 and effective through June 30,
2023, among the International Brotherhood of Teamsters and ABF Freight System, Inc. (previously filed
as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on November 8,
2018, File No. 000-19969, and incorporated herein by reference). 

Withdrawal Agreement, executed on or about July 31, 2018, among ABF Freight System, Inc., Teamsters
Locals  170,  191,  251,  340,  404,  443,  493,  597,  633,  653,  671  and  677  affiliated  with  the  International
Brotherhood of Teamsters, and the Trustees of the New England Teamsters and Trucking Industry Pension
Fund (previously filed as Exhibit 10.3 to the Company’s Annual Report on Form 10-K, filed with the SEC
on February 28, 2019, File No. 000-19969, and incorporated herein by reference). 

Reentry Agreement, effective as of August 1, 2018, among ABF Freight System, Inc., Teamsters Locals
170, 191, 251, 340, 404, 443, 493, 597, 633, 653, 671 and 677 affiliated with the International Brotherhood
of  Teamsters,  and  the  Trustees  of  the  New  England  Teamsters  and  Trucking  Industry  Pension  Fund
(previously filed as Exhibit 10.4 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 28, 2019, File No 000-19969, and incorporated herein by reference). 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature) (for
awards after 2015) (previously filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q,
filed with the SEC on May 9, 2016, File No. 000-19969, and incorporated herein by reference). 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature (for
2019 awards) (previously filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q, filed
with the SEC on May 9, 2019, File No. 000-19969, and incorporated herein by reference). 

112 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.6# 

10.7# 

10.8# 

10.9#* 

10.10# 

10.11# 

10.12# 

10.13# 

10.14# 

10.15# 

10.16# 

10.17# 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature) (for
2020 awards) (previously filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q, filed
with the SEC on May 11, 2020, File No. 000-19969, and incorporated herein by reference). 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature) (for
2021 awards) (previously filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q, filed
with the SEC on May 7, 2021, File No. 000-19969, and incorporated herein by reference). 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature) (for
2022 awards) (previously filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed
with the SEC on August 5, 2022, File No. 000-19969, and incorporated herein by reference). 

Form of Restricted Stock Unit Award Agreement (Non-Employee Directors – with deferral feature) (for
2023 awards). 

Form of Restricted Stock Unit Award Agreement (Employees) (for awards prior to 2018) (previously filed
as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 7, 2015,
File No. 000-19969, and incorporated herein by reference). 

Form  of  Restricted  Stock  Unit  Award  Agreement  (Employees)  (for  2018  awards)  (previously  filed  as
Exhibit 10.8 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 28, 2019 File
No. 000-19969, and incorporated herein by reference). 

Form  of  Restricted  Stock  Unit  Award  Agreement  (Employees)  (for  2019  awards)  (previously  filed  as
Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 9, 2019, File
No. 000-19969, and incorporated herein by reference). 

Form  of  Restricted  Stock  Unit  Award  Agreement  (Employees)  (for  2020  awards)  (previously  filed  as
Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 11, 2020, File
No. 000-19969, and incorporated herein by reference). 

Form  of  Restricted  Stock  Unit  Award  Agreement  (Employees)  (for  2021  awards)  (previously  filed  as
Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 7, 2021, File
No. 000-19969, and incorporated herein by reference). 

Form  of  Restricted  Stock  Unit  Award  Agreement  (Employees)  (for  2022  awards)  (previously  filed  as
Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2022, File
No. 000-19969, and incorporated herein by reference). 

Form of Indemnification Agreement by and between Arkansas Best Corporation and each of the members
of the Company’s Board of Directors (previously filed as Exhibit 10.3 to the Company’s Annual Report on
Form 10-K, filed with the SEC on February 24, 2010, File No. 000-19969, and incorporated herein by
reference). 

ArcBest Corporation Amended and Restated 2012 Change in Control Plan. (previously filed as Exhibit
10.15 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 25, 2022, File No.
000-19969, and incorporated herein by reference). 

10.18#* 

First Amendment to the ArcBest Corporation Amended and Restated 2012 Change in Control Plan. 

10.19# 

10.20# 

10.21# 

10.22# 

10.23# 

Arkansas Best Corporation Supplemental Benefit Plan, Amended and Restated, effective August 1, 2009
(previously filed as Exhibit 10.17 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 24, 2010, File No. 000-19969, and incorporated herein by reference). 

Amendment  One 
the  Arkansas  Best  Corporation  Supplemental  Benefit  Plan,  effective
December 31, 2009 (previously filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K,
filed with the SEC on February 24, 2010, File No. 000-19969, and incorporated herein by reference). 

to 

Form  of  Amended  and  Restated  Deferred  Salary  Agreement  (previously  filed  as  Exhibit  10.19  to  the
Company’s Annual Report on Form 10-K, filed with the SEC on February 24, 2010, File No. 000-19969,
and incorporated herein by reference). 

ArcBest  Corporation  Voluntary  Savings  Plan,  Amended  and  Restated  Effective  as  of  January  1,  2017
(previously filed as Exhibit 10.15 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 28, 2017, File No. 000-19969, and incorporated herein by reference). 

First Amendment to the ArcBest Corporation Voluntary Savings Plan, Amended and Restated effective as
of January 1, 2017 (previously filed as Exhibit 10.17 to the Company’s Annual Report on Form 10-K, filed
with the SEC on February 28, 2019, File No. 000-19969, and incorporated herein by reference). 

113 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.24# 

10.25# 

10.26# 

10.27# 

10.28# 

10.29# 

10.30# 

10.31# 

10.32# 

10.33# 

10.34# 

10.35# 

10.36# 

10.37# 

10.38# 

10.39# 

10.40 

Arkansas  Best  Corporation  2005  Ownership  Incentive  Plan  (previously  filed  as  Exhibit  10.4  to  the
Company’s Annual Report on Form 10-K, filed with the SEC on February 23, 2011, File No. 000-19969,
and incorporated herein by reference). 

First Amendment to the Arkansas Best Corporation 2005 Ownership Incentive Plan (previously filed as
Exhibit 10.5 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 23, 2011,
File No. 000-19969, and incorporated herein by reference). 

Second Amendment to the Arkansas Best Corporation 2005 Ownership Incentive Plan (previously filed as
Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 9, 2014, File
No. 000-19969, and incorporated herein by reference). 

Third Amendment to the Arkansas Best Corporation 2005 Ownership Incentive Plan (previously filed as
Exhibit 10.19 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 28, 2017,
File No. 000-19969, and incorporated herein by reference). 

Fourth  Amendment  to  the  ArcBest  Corporation  2005  Ownership  Incentive  Plan  (previously  filed  as
Exhibit 10.22 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 28, 2019,
File No. 000-19969, and incorporated herein by reference). 

ArcBest Corporation Ownership Incentive Plan (previously filed as Exhibit 10.1 to the Company’s Current
Report on Form 8-K, filed with the SEC on May 6, 2019, File No. 000-19969, and incorporated herein by
reference). 

First Amendment to the ArcBest Corporation Ownership Incentive Plan (previously filed as Exhibit 10.1
to the Company’s Current Report on Form 8-K, filed with the SEC on May 7, 2020, File No. 000-19969,
and incorporated herein by reference). 

Second Amendment to the ArcBest Corporation Ownership Incentive Plan (previously filed as Exhibit 10.1
to the Company’s Current Report on Form 8-K, filed with the SEC on May 5, 2021, File No. 000-19969,
and incorporated herein by reference). 

Arkansas Best Corporation Executive Officer Annual Incentive Compensation Plan (previously filed as
Exhibit 10.6 to the Company’s Annual Report on Form 10-K, filed with the SEC on February 23, 2011,
File No. 000-19969, and incorporated herein by reference). 

First  Amendment  to  the  ArcBest  Corporation  Executive  Officer  Annual  Incentive  Compensation  Plan
(previously filed as Exhibit 10.7 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 23, 2011, File No. 000-19969, and incorporated herein by reference). 

Second Amendment to the ArcBest Corporation Executive Officer Annual Incentive Compensation Plan
(previously filed as Exhibit 10.17 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 26, 2016, File No. 000-19969, and incorporated herein by reference). 

Third Amendment to the ArcBest Corporation Executive Officer Incentive Compensation Plan (previously
filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 9, 2016,
File No. 000-19969, and incorporated herein by reference). 

The ArcBest Long-Term (3-Year) Incentive Compensation Plan and form of award (previously filed as
Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 11, 2020, File
No. 000-19969, and incorporated herein by reference). 

The ArcBest Long-Term (3-Year) Incentive Compensation Plan and form of award (previously filed as
Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 7, 2021, File
No. 000-19969, and incorporated herein by reference). 

The ArcBest 16b Annual Incentive Compensation Plan and form of award (previously filed as Exhibit 10.1
to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 6, 2022, File No. 000-19969,
and incorporated herein by reference). 

The ArcBest Long-Term (3-Year) Incentive Compensation Plan and form of award (previously filed as
Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 6, 2022, File
No. 000-19969, and incorporated herein by reference). 

Third  Amended  and  Restated  Receivables  Loan  Agreement,  dated  as  of  June  9,  2021,  by  and  among
ArcBest Funding LLC, as Borrower, ArcBest II, Inc., as Servicer, the financial institutions party thereto
from time to time, as Lenders, the financial institutions party thereto from time to time, as Facility Agents,
and The Toronto-Dominion Bank, as LC Issuer and Administrative Agent (previously filed as Exhibit 10.1
to the Company’s Current Report on Form 8-K, filed with the SEC on June 15, 2021, File No. 000-19969,
and incorporated herein by reference). 

114 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.41 

10.42 

10.43 

10.44 

21* 

23* 

31.1* 

31.2* 

First Amendment to Third Amended and Restated Receivables Loan Agreement, dated as of December 2,
2021,  by  and  among  ArcBest  Funding  LLC,  as  Borrower,  ArcBest  II,  Inc.,  as  Servicer,  the  financial
institutions party thereto from time to time, as Lenders, the financial institutions party thereto from time to
time,  as  Facility  Agents,  and  The  Toronto-Dominion  Bank,  as  LC  Issuer  and  Administrative  Agent
(previously filed as Exhibit 10.39 to the Company’s Annual Report on Form 10-K, filed with the SEC on
February 25, 2022, File No. 000-19969, and incorporated herein by reference). 

Second  Amendment  to  Third  Amended  and  Restated  Receivables  Loan  Agreement,  dated  as  of
May 13, 2022,  by  and  among  ArcBest  Funding  LLC,  as  Borrower,  ArcBest  II,  Inc.,  as  Servicer,  the
financial institutions party thereto from time to time, as Lenders, the financial institutions party thereto
from time to time, as Facility Agents, and The Toronto-Dominion Bank, as LC Issuer and Administrative
Agent (previously filed as Exhibit 10.1 to the Company’s current Report on Form 8-K, filed with the SEC
on May 17, 2022, File No. 000-19969, and incorporated herein by reference). 

Fourth Amended and Restated Credit Agreement, dated as of October 7, 2022, among ArcBest Corporation
and  certain  of  its  subsidiaries  party  thereto  from  time  to  time,  as  borrowers,  U.S.  Bank  National
Association, as a LC issuer, swing line lender and Administrative Agent, and the lenders and issuing banks
party thereto (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with
the SEC on October 11, 2022, File No. 000-19969, and incorporated herein by reference). 

  Fixed Dollar Accelerated Share Repurchase Transaction Letter Agreement, dated as of November 2, 2021
by and between Morgan Stanley & Co. LLC and ArcBest Corporation (previously filed as Exhibit 10.42 to
the Company’s Annual Report on Form 10-K, filed with the SEC on February 25, 2022, File No. 000-
19969, and incorporated herein by reference). 

List of Subsidiary Corporations. 

Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm. 

Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities
Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 

Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities
Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 

32** 

Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 

101.INS* 

XBRL Instance Document – the instance document does not appear in the Interactive Data Files because its XBRL
tags are embedded within the Inline XBRL document. 

101.SCH* 

Inline XBRL Taxonomy Extension Schema Document 

101.CAL* 

Inline XBRL Taxonomy Extension Calculation Linkbase Document 

101.DEF* 

Inline XBRL Taxonomy Extension Definition Linkbase Document 

101.LAB* 

Inline XBRL Taxonomy Extension Labels Linkbase Document 

101.PRE* 

Inline XBRL Taxonomy Extension Presentation Linkbase Document 

104* 

The Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. 

# 
* 
** 

(b)  

Designates a compensation plan or arrangement for directors or executive officers. 
Filed herewith. 
Furnished herewith. 

Exhibits 

See Item 15(a)(3) above. 

ITEM 16.  FORM 10-K SUMMARY 

None. 

115 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused 
this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

SIGNATURES 

Date:  February 24, 2023 

ARCBEST CORPORATION 

By:  /s/ Judy R. McReynolds 
Judy R. McReynolds 
Chairman, President and Chief Executive Officer 
and Principal Executive Officer 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following 
persons on behalf of the registrant and in the capacities and on the dates indicated. 

Signature 

Title 

Date 

/s/ Judy R. McReynolds 
Judy R. McReynolds 

  Chairman, President and Chief Executive Officer 

February 24, 2023 

and Principal Executive Officer 

/s/ David R. Cobb 
David R. Cobb 

  Vice President – Chief Financial Officer 

and Principal Financial Officer 

/s/ Traci L. Sowersby 
Traci L. Sowersby 

  Vice President – Controller 

and Principal Accounting Officer 

/s/ Salvatore A. Abbate 
Salvatore A. Abbate 

/s/ Eduardo F. Conrado 
Eduardo F. Conrado 

/s/ Fredrik J. Eliasson 
Fredrik J. Eliasson 

/s/ Michael P. Hogan 
Michael P. Hogan 

  Director 

  Director 

  Director 

  Director 

/s/ Kathleen D. McElligott 
Kathleen D. McElligott 

  Director 

/s/ Craig E. Philip 
Craig E. Philip 

/s/ Steven L. Spinner 
Steven L. Spinner 

/s/ Janice E. Stipp 
Janice E. Stipp 

  Director 

  Director 

  Director 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

February 24, 2023 

116 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ArcBest Executive Officers

ArcBest Board of Directors

Shareholder Information

Judy R. McReynolds
Chairman, President & Chief Executive 
Officer

Judy R. McReynolds
Chairman, President & Chief Executive 
Officer

Dennis L. Anderson II
Chief Strategy Officer

David R. Cobb
Chief Financial Officer

Erin K. Gattis
Chief Human Resources Officer

Michael R. Johns
Chief Legal Officer and Corporate 
Secretary

Steven Leonard
Chief Commercial Officer 
President – Asset-Light Logistics

Daniel E. Loe
Chief Yield Officer

Michael E. Newcity
Senior Vice President
Chief Innovation Officer
President – ArcBest Technologies, Inc.

Seth Runser
President
ABF Freight

Jason Parks
Vice President – Controller and Chief 
Accounting Officer (Effective March 1, 2023)

Salvatore A. Abbate 2,3

Eduardo F. Conrado 2,3-Chair

Fredrik J. Eliasson 1

Michael P. Hogan 1 

Kathleen D. McElligott 2-Chair,3

Dr. Craig E. Philip 2,3

Steven L. Spinner 1
Lead Independent Director - ArcBest

Janice E. Stipp 1-Chair 

ArcBest Board Committees 
1  Audit Committee 
2 Compensation Committee 
3 Nominating/Corporate Governance  
   Committee 

For biographies of ArcBest’s executive officers 
and directors, which include information 
regarding their principal occupation, see the 
“Executive Officers of the Company” and 
“Election of Directors” sections of the 2023 Proxy 
Statement & Notice of Annual Meeting.

Corporate Headquarters
ArcBest
8401 McClure Drive
Fort Smith, AR 72916
(479) 785-6000

arcb.com
info@arcb.com

Annual Meeting
The Annual Meeting of Stockholders will be held at
8:00 a.m. CDT on Wednesday, April 26, 2023. The 
Annual Meeting will be held in-person at ArcBest’s 
Corporate Headquarters. 

Stock Listing
The Nasdaq Global Select Market
Symbol: ARCB

Transfer Agent and Registrar
Equiniti Trust Company
Shareowner Services
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120-4100
(800) 468-9716
shareowneronline.com

Independent Registered Public 
Accounting Firm
Ernst & Young LLP
1700 One Williams Center
Tulsa, OK 74172-0117 

ArcBest Corporation - Consolidated

                 ($ thousands, except per share data)

  2022                                 2021

Reconciliation of GAAP to Non-GAAP Financial Measures 

Operating Income   

Amounts on GAAP basis 
Innovative technology costs, pre-tax (1) 
Purchase accounting amortization, pre-tax (2) 
Change in fair value of contingent earnout consideration, pre-tax (3) 
Gain on sale of subsidiary, pre-tax (4) 
Nonunion vacation policy enhancement, pre-tax (5) 
Transaction costs, pre-tax (6)  
Non-GAAP amounts 

       $  280,986 
        $   399,269 
            32,845
 40,796 
  12,853 
 5,266 
 18,300                                —    
                                                                                                                   (402)                            (6,923)

                                         2,080                                —
    — 

                          5,969
                     $   472,896                       $    318,143 

Diluted Earnings Per Share   

Amounts on GAAP basis 
Innovative technology costs, after-tax (1) (includes related financing costs)        
Purchase accounting amortization, after-tax (2)   
Change in fair value of contingent earnout consideration, after-tax (3) 
Gain on sale of subsidiary, after-tax (4)  
Nonunion vacation policy enhancement, after-tax (5) 
Transaction costs, after-tax (6) 
Life insurance proceeds and changes in cash surrender value 
Tax benefit from vested RSUs (7) 
Tax credits (8) 
Non-GAAP amounts (9) 

        $       11.69 
      1. 21 
    0. 38 
     0.54 
                             ( 0.01) 

                             ( 0.32)   

     0.1 1 

    0.01 
   13.66 

        $ 

       $        7.98 
   0.93
               0. 1 5 
                —
              ( 0.20) 

               (0.15 ) 
              (0.29)
  (0.06) 
   8. 52 

       $ 

                                           0.06                                —

                              —                                   0.16

1) Represents costs associated with the freight handling pilot test program at ABF Freight and initiatives to optimize our performance through technological innovation,  
    including costs related to our investment in human-centered remote operation software. 

2) Represents the amortization of acquired intangible assets related to the November 1, 2021 acquisition of MoLo Solutions, LLC (MoLo) and previously acquired businesses in the    
    ArcBest segment. 

3) Represents increase in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each    
    quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income. The contingent consideration for the MoLo    
    acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant  
    to the merger agreement, for years 2023 through 2025.  

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

5) Represents a one-time, noncash charge for enhancements to our nonunion vacation policy which were effective third quarter 2022.   

6) Represents costs associated with the acquisition of MoLo. 

7) Represents recognition of the tax impact for the vesting of share-based compensation. 

8) The year ended December 31, 2022 includes the amount recognized in the tax provision during fourth quarter 2022 to adjust estimated amounts recognized during 2022 for the       
    research and development tax credit related to the tax year ended February 28, 2022. It also includes amounts related to the alternative fuel tax credit for the year ended 
    December 31, 2021 which were recorded in third quarter 2022. The 2021 amount represents a research and development tax credit recognized in the tax provision during fourth  
    quarter 2021 which relates to the tax year ended February 28, 2021.  

9) Non-GAAP amounts are calculated in total and may not foot due to rounding.