EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2013

Compensation And Employee Benefit Plans Excluding Share Based Compensation [Abstract]

Schedule of changes in funded status and accumulated benefit obligation of nonunion benefit plans

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



	Nonunion Defined Benefit Pension Plan						Supplemental Benefit Plan						Postretirement Health Benefit Plan
	2013			2012			2013			2012			2013			2012
	(in thousands)
Change in benefit obligations
Benefit obligations at beginning of year	$	260,950		$	244,402		$	7,213		$	7,620		$	18,308		$	17,553
Service cost	4,734			9,189			—			—			331			315
Interest cost	7,784			8,692			150			210			751			749
Actuarial (gain) loss	(10,797		)	15,893			(271		)	509			(2,484		)	277
Benefits paid	(22,486		)	(17,226		)	—			(1,126		)	(588		)	(586		)
Curtailment gain	(29,262		)	—			—			—			—			—
Settlement loss	737			—			—			—			—			—
Benefit obligations at end of year	211,660			260,950			7,092			7,213			16,318			18,308
Change in plan assets
Fair value of plan assets at beginning of year	181,225			161,249			—			—			—			—
Actual return on plan assets	31,074			19,202			—			—			—			—
Employer contributions	17,800			18,000			—			1,126			588			586
Benefits paid	(22,486		)	(17,226		)	—			(1,126		)	(588		)	(586		)
Fair value of plan assets at end of year	207,613			181,225			—			—			—			—
Funded status	$	(4,047	)	$	(79,725	)	$	(7,092	)	$	(7,213	)	$	(16,318	)	$	(18,308	)

Accumulated benefit obligation	$	211,660		$	230,305		$	7,092		$	7,213		$	16,318		$	18,308

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

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



	Nonunion Defined Benefit Pension Plan						Supplemental Benefit Plan						Postretirement Health Benefit Plan
	2013			2012			2013			2012			2013			2012
	(in thousands)
Current liabilities (included in accrued expenses)	$	—		$	—		$	—		$	—		$	(610	)	$	(573	)
Noncurrent liabilities (included in pension and postretirement liabilities)	(4,047		)	(79,725		)	(7,092		)	(7,213		)	(15,708		)	(17,735		)
Liabilities recognized	$	(4,047	)	$	(79,725	)	$	(7,092	)	$	(7,213	)	$	(16,318	)	$	(18,308	)

Summary of the components of net periodic benefit cost

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



	Nonunion Defined Benefit Pension Plan									Supplemental Benefit Plan						Postretirement Health Benefit Plan
	2013			2012			2011			2013		2012		2011		2013			2012			2011
	(in thousands)
Service cost	$	4,734		$	9,189		$	8,655		$	—	$	—	$	—	$	331		$	315		$	224
Interest cost	7,784			8,692			9,954			150		210		386		751			749			781
Expected return on plan assets	(13,313		)	(12,063		)	(12,584		)	—		—		—		—			—			—
Amortization of prior service credit	—			—			—			—		—		—		(190		)	(190		)	(190		)
Pension settlement expense	2,111			—			—			—		—		1,125		—			—			—
Amortization of net actuarial loss⁽¹⁾	7,140			10,767			6,921			260		202		328		535			416			112
Net periodic benefit cost	$	8,456		$	16,585		$	12,946		$	410	$	412	$	1,839	$	1,427		$	1,290		$	927


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

Summary of cash distributions and pension settlement expense related to SBP

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



	Nonunion Defined Benefit Pension Plan						Supplemental Benefit Plan
	2013⁽¹⁾		2012		2011		2013		2012⁽²⁾		2011
	(in thousands, except per share data)
Pension settlement distributions	$	20,104	$	—	$	—	$	—	$	1,126	$	2,526
Pension settlement expense, pre‑tax	$	2,111	$	—	$	—	$	—	$	—	$	1,125
Pension settlement expense per diluted share, net of taxes	$	0.05	—		—		—		—		$	0.03


(1)	Pension settlement distributions represent lump‑sum benefit distributions paid in 2013.


(2)	2012 SBP distribution related to an officer retirement that occurred in 2011. The benefit distribution amount was fixed at the retirement date, but IRC Section 409A requires that distributions to certain key employees under the SBP be delayed for six months after retirement. The pension settlement expense related to this distribution was recognized in 2011 and is included in this table for 2011.

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

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



	Nonunion Defined Benefit Pension Plan				Supplemental Benefit Plan				Postretirement Health Benefit Plan
	2013		2012		2013		2012		2013			2012
	(in thousands)
Unrecognized net actuarial loss	$	16,003	$	82,337	$	1,778	$	2,308	$	150		$	3,169
Unrecognized prior service credit	—		—		—		—		(887		)	(1,077		)
Total	$	16,003	$	82,337	$	1,778	$	2,308	$	(737	)	$	2,092

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

The following amounts, which are reported within accumulated other comprehensive loss, are expected to be recognized as components of net periodic benefit cost in 2014 on a pre‑tax basis. (Amounts exclude the effect of pension settlements, which are further discussed under Nonunion Defined Benefit Pension Plan Assets within this Note.)



	Nonunion Defined Benefit Pension Plan		Supplemental Benefit Plan		Postretirement Health Benefit Plan
			(in thousands)
Unrecognized net actuarial loss	$	2,008	$	226	$	17
Unrecognized prior service credit	—		—		(190		)
Total	$	2,008	$	226	$	(173	)

Weighted-average assumptions used to determine nonunion benefit obligations

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



	Nonunion Defined Benefit Pension Plan		Supplemental Benefit Plan		Postretirement Health Benefit Plan
	2013	2012	2013	2012	2013	2012
Discount rate⁽¹⁾	3.8%	3.1%	2.8%	2.1%	4.7%	3.8%
Rate of compensation increase⁽²⁾	N/A	3.3%	N/A	N/A	N/A	N/A


(1)	The discount rate was determined at December 31, 2013 and 2012, respectively. The discount rate used to remeasure the PBO of the nonunion defined benefit pension plan upon the June 30, 2013 remeasurement for curtailment and the September 30, 2013 remeasurement for settlement was 3.9% and 3.7%, respectively.


(2)	The compensation assumption was not applicable to the nonunion defined benefit pension plan obligation as of December 31, 2013 due to the 2013 plan amendment which froze the accrual of benefits as of July 1, 2013.

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

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



	Nonunion Defined Benefit Pension Plan			Supplemental Benefit Plan			Postretirement Health Benefit Plan
	2013	2012	2011	2013	2012	2011	2013	2012	2011
Discount rate⁽¹⁾	3.1%	3.7%	4.7%	2.1%	3.2%	4.1%	3.8%	4.3%	5.4%
Expected return on plan assets	7.5%	7.5%	7.5%	N/A	N/A	N/A	N/A	N/A	N/A
Rate of compensation increase⁽²⁾	3.3%	3.3%	3.2%	N/A	N/A	N/A	N/A	N/A	N/A


(1)	The discount rate was determined at December 31, 2012, 2011, and 2010 for the year 2013, 2012, and 2011, respectively.


(2)	The compensation assumption was no longer applicable for determining net periodic benefit cost of the nonunion defined benefit pension plan upon the June 30, 2013 remeasurement for plan curtailment due to the accrual of benefits being frozen as of July 1, 2013.

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

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



	2013				2012
	Pre‑65		Post‑65⁽¹⁾

Health care cost trend rate assumed for next year	8.0	%	5.0	%	8.5	%
Rate to which the cost trend rate is assumed to decline	5.0	%	5.0	%	5.0	%
Year that the rate reaches the cost trend assumed rate	2020		2020		2020


(1)	The post‑65 assumed health care cost trend rates were established separate from the pre‑65 trend rates as of December 31, 2013, reflecting lower medical cost trend rates for this age group as determined by actuarial analysis. The change in trend rates for 2013 contributed significantly to the net actuarial gain upon the December 31, 2013 plan remeasurement.

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

A one‑percentage‑point change in assumed health care cost trend rates would have the following effects on the Company’s postretirement health benefit plan for the year ended December 31, 2013:



	One Percentage Point
	Increase		Decrease
	(in thousands)
Effect on total of service and interest cost components	$	220	$	(174	)
Effect on postretirement benefit obligation	$	2,854	$	(2,330	)

Schedule of estimated future benefit payments for nonunion benefit plans

Estimated future benefit payments from the Company’s nonunion defined benefit pension, SBP, and postretirement health benefit plans, which reflect expected future service as appropriate, as of December 31, 2013 are as follows:



	Nonunion Defined Benefit Pension Plan⁽¹⁾		Supplemental Benefit Plan		Postretirement Health Benefit Plan
			(in thousands)

2014	$	22,396	$	—	$	610
2015	$	20,628	$	—	$	666
2016	$	19,792	$	1,235	$	709
2017	$	18,785	$	—	$	759
2018	$	17,187	$	—	$	860
2018‑2022	$	73,713	$	7,042	$	4,620

(1)

Includes the amounts of future periodic benefit payments estimated as of December 31, 2013 for which the related pension obligation was settled with the purchase of a nonparticipating annuity contract purchase in January 2014 (as discussed in Nonunion Defined Benefit Pension Plan Assets within this section of the Note). The amount paid for the related contract premium is excluded from the 2014 payments presented.

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

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



	2013			Weighted‑Average Allocation
	Target Allocation		Acceptable Range	2013		2012
Equity Securities
Large Cap U.S. Equity	20.0	%	15.0% – 30.0%	23.8	%	32.1	%
Mid Cap U.S. Equity	10.0		8.0% – 12.0%	10.7		11.1
Small Cap U.S. Equity	10.0		8.0% – 12.0%	10.5		11.1
International Equity	15.0		11.0% – 19.0%	12.5		11.1
Emerging Market Equity	—		—	—		5.0

Income Securities
Debt Instruments	20.0		15.0% – 25.0%	17.6		22.4
Floating Rate Loan Fund	5.0		3.0% – 10.0%	3.6		4.0

Cash Equivalents
Cash and Cash Equivalents	20.0		10.0% – 25.0%	21.3		3.2
	100.0	%		100.0	%	100.0	%

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

The fair value of the Company’s nonunion defined benefit pension plan assets at December 31, 2013, by major asset category and fair value hierarchy level (see Fair Value Measurements accounting policy in Note B), were as follows:



			Fair Value Measurements Using
	Total		Quoted Prices In Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
					(in thousands)
Cash and Cash Equivalents⁽¹⁾	$	44,166	$	44,166	$	—	$	—
Debt Instruments⁽²⁾	36,517		—		36,517		—
Floating Rate Loans⁽³⁾	7,594		7,594		—		—
Large Cap U.S. Equity	49,281		49,281		—		—
Mid Cap U.S. Equity	22,181		22,181		—		—
Small Cap U.S. Equity	21,848		21,848		—		—
International Equity	26,026		26,026		—		—
	$	207,613	$	171,096	$	36,517	$	—


(1)	Consists primarily of money market mutual funds.


(2)	Includes corporate debt instruments (37%), treasury instruments (24%), mortgage‑backed instruments (27%), municipal debt instruments (5%), asset‑backed instruments (4%), and agency debt instruments (3%) which are priced using daily bid prices. The fair value measurements are provided by a pricing service which uses the market approach with inputs derived from observable market data.


(3)	Consists of a floating rate loan mutual fund.

The fair value of the Company’s nonunion defined benefit pension plan assets at December 31, 2012, by major asset category and fair value hierarchy level (see Fair Value Measurements accounting policy in Note B), were as follows:



			Fair Value Measurements Using
	Total		Quoted Prices In Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
					(in thousands)
Cash and Cash Equivalents⁽¹⁾	$	5,752	$	5,752	$	—	$	—
Debt Instruments⁽²⁾	40,556		—		40,556		—
Floating Rate Loans⁽³⁾	7,244		7,244		—		—
Large Cap U.S. Equity	58,210		58,210		—		—
Mid Cap U.S. Equity	20,226		20,226		—		—
Small Cap U.S. Equity	20,044		20,044		—		—
International Equity	20,046		20,046		—		—
Emerging Market Equity	9,147		9,147		—		—
	$	181,225	$	140,669	$	40,556	$	—


(1)	Consists primarily of money market mutual funds.


(2)	Includes mortgage‑backed instruments (34%), corporate debt instruments (33%), treasury instruments (23%), municipal debt instruments (5%), and asset‑backed instruments (5%) which are priced using daily bid prices. The fair value measurements are provided by a pricing service which uses the market approach with inputs derived from observable market data.


(3)	Consists of a floating rate loan mutual fund.

Schedule of ABF Freight's participation in multiemployer pension plans

Significant multiemployer pension plans and key participation information were as follows:



		Pension		FIP/RP
	EIN/Pension	Protection Act Zone Status (b)		Status Pending/	Contributions (d) (in thousands)						Surcharge Imposed
Legal Name of Plan	Plan Number (a)	2013	2012	Implemented (c)	2013		2012		2011		(e)
Central States, Southeast and Southwest Areas Pension Plan⁽¹⁾⁽²⁾	36‑6044243	Red	Red	Implemented⁽³⁾	$	70,020	$	68,683	$	70,579	No

Western Conference of Teamsters Pension Plan⁽²⁾	91‑6145047	Green	Green	No⁽⁴⁾	20,601		20,774		20,807		No

Central Pennsylvania Teamsters Defined Benefit Plan⁽¹⁾⁽²⁾	23‑6262789	Green⁽⁵⁾	Yellow⁽⁵⁾	Implemented⁽⁵⁾	12,143		11,170		12,022		No

I. B. of T. Union Local No. 710 Pension Fund⁽⁷⁾⁽⁸⁾	36‑2377656	Green⁽⁶⁾	Green⁽⁶⁾	No	10,001		9,567		9,265		No

All other plans in the aggregate					23,468		21,701		20,168
Total multiemployer pension contributions paid⁽⁹⁾					$	136,233	$	131,895	$	132,841

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 2013 and 2012 is for the plan’s year‑end status at December 31, 2012 and 2011, respectively. The zone status is based on information ABF Freight received from the plan and was certified by the plan’s actuary.


(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 by ABF Freight in the respective year and differ from amounts expensed during the year.


(e)	The surcharge column indicates if a surcharge was paid by the employer to the plan.


(1)	ABF Freight was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended December 31, 2012 and 2011.


(2)	Information for this plan was obtained from the annual funding notice, other notices received from the plan, and the Forms 5500 filed for the plan years ended December 31, 2012 and 2011.


(3)	Adopted a rehabilitation plan effective March 25, 2008, as updated. Utilized amortization extension effective December 31, 2003.


(4)	Utilized funding relief elections under the Pension Relief Act to determine the zone status beginning with the January 1, 2011 actuarial valuation.


(5)	Certified as “neither endangered nor critical” status for the plan year beginning January 1, 2013. The plan was certified as “endangered” for the plan year beginning January 1, 2012, and a funding improvement plan was adopted in December 2012.


(6)	PPA zone status relates to plan years February 1, 2012 – January 31, 2013 and February 1, 2011 – January 31, 2012.


(7)	ABF Freight was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended January 31, 2013 and 2012.


(8)	Information for this plan was obtained from the annual funding notice, other notices received from the plan, and the Forms 5500 filed for the plan years ended January 31, 2013 and 2012.

(9)

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 plans. The pension contribution rate for contractual employees increased an average of 2.0%, 2.3%, and 3.6% effective primarily on August 1, 2013, 2012, and 2011, respectively. The Supplemental Negotiating Committee for the Central States Pension Plan approved no pension contribution increase effective August 1, 2013, 2012, and 2011. The Supplemental Negotiating Committee for the Western Conference of Teamsters Pension Plan approved no pension contribution increase effective August 1, 2013 and 2012. The year‑over‑year changes in multiemployer pension plan contributions presented above were also influenced by changes in ABF Freight’s business levels.