EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

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

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:


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2018		2017		2018		2017		2018		2017
	(in thousands)
Change in benefit obligations
Benefit obligations at beginning of year	$	137,417	$	152,006	$	3,897	$	4,794	$	24,097	$	25,532
Service cost		—		—		—		—		366		489
Interest cost		4,269		4,514		108		102		837		1,060
Actuarial (gain) loss(1)		(3,685)		6,448		(57)		(10)		4,957		(2,251)
Benefits paid		(105,522)		(26,491)		—		(989)		(769)		(733)
Settlement loss		894		940		—		—		—		—
Benefit obligations at end of year		33,373		137,417		3,948		3,897		29,488		24,097
Change in plan assets
Fair value of plan assets at beginning of year		124,831		144,805		—		—		—		—
Actual return on plan assets		1,837		6,517		—		—		—		—
Employer contributions		5,500		—		—		989		769		733
Benefits paid		(105,522)		(26,491)		—		(989)		(769)		(733)
Fair value of plan assets at end of year		26,646		124,831		—		—		—		—
Funded status at period end	$	(6,727)	$	(12,586)	$	(3,948)	$	(3,897)	$	(29,488)	$	(24,097)

Accumulated benefit obligation	$	33,373	$	137,417	$	3,948	$	3,897	$	29,488	$	24,097

⁽¹⁾

The actuarial gain on the nonunion defined benefit pension plan for 2018, compared to the actuarial loss for 2017, was primarily due to an increase in the discount rate used to remeasure the plan obligation at December 31, 2018 versus December 31, 2017. The actuarial loss on the postretirement health benefit plan for 2018, versus the actuarial gain for 2017, was primarily related to changes in the medical trend rate assumption used to measure the plan obligation at each year-end measurement date.

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

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


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2018		2017		2018		2017		2018		2017
	(in thousands)
Current liabilities (included in current portion of pension and postretirement liabilities)	$	(6,727)	$	—	$	(937)	$	—	$	(995)	$	(753)
Noncurrent liabilities (included in pension and postretirement liabilities)		—		(12,586)		(3,011)		(3,897)		(28,493)		(23,344)
Liabilities recognized	$	(6,727)	$	(12,586)	$	(3,948)	$	(3,897)	$	(29,488)	$	(24,097)

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						Supplemental						Postretirement
	Benefit Pension Plan						Benefit Plan						Health Benefit Plan
	2018		2017		2016		2018		2017		2016		2018		2017		2016
	(in thousands)
Service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	366	$	489	$	429
Interest cost		4,269		4,514		4,572		108		102		130		837		1,060		1,017
Expected return on plan assets		(1,582)		(5,712)		(8,607)		—		—		—		—		—		—
Amortization of prior service credit		—		—		—		—		—		—		(93)		(190)		(190)
Pension settlement expense		12,925		4,156		3,023		—		—		206		—		—		—
Amortization of net actuarial loss(1)		2,583		3,132		4,087		81		82		152		304		694		705
Net periodic benefit cost	$	18,195	$	6,090	$	3,075	$	189	$	184	$	488	$	1,414	$	2,053	$	1,961

⁽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 pension settlement distributions and settlement expense

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


	Nonunion Defined						Supplemental
	Benefit Pension Plan						Benefit Plan
	2018(1)		2017(2)		2016(1)		2018		2017(3)		2016
	(in thousands, except per share data)
Pension settlement distributions	$	105,279	$	26,261	$	16,515	$	—	$	989	$	246
Pension settlement expense, pre-tax	$	12,925	$	4,156	$	3,023	$	—	$	—	$	206
Pension settlement expense per diluted share, net of taxes	$	0.36	$	0.10	$	0.07	$	—	$	—	$	0.01

⁽¹⁾

Pension settlement distributions represent lump‑sum benefit distributions, including participant-elected distributions associated with the plan’s termination for 2018.

⁽²⁾

Pension settlement distributions represent $18.7 million of lump‑sum benefit distributions and a $7.6 million nonparticipating annuity contract purchase.

⁽³⁾

The 2017 SBP distribution represents the portion of a benefit related to an officer retirement that occurred in 2016 which was delayed for six months after retirement in accordance with IRC Section 409A. The pension settlement expense related to this distribution was recognized in 2016.

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				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2018		2017		2018		2017		2018		2017
	(in thousands)
Unrecognized net actuarial loss	$	4,034	$	22,588	$	405	$	543	$	7,416	$	2,764
Unrecognized prior service credit		—		—		—		—		(34)		(127)
Total	$	4,034	$	22,588	$	405	$	543	$	7,382	$	2,637

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

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


	Nonunion Defined				Supplemental				Postretirement
	Benefit Pension Plan				Benefit Plan				Health Benefit Plan
	2018		2017		2018		2017		2018		2017
Discount rate	3.9	%	3.1	%	3.6	%	2.8	%	4.2	%	3.5	%

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						Supplemental						Postretirement
	Benefit Pension Plan						Benefit Plan						Health Benefit Plan
	2018(1)		2017(2)		2016(3)		2018		2017		2016		2018		2017		2016
Discount rate	3.1	%	3.4	%	3.5	%	2.8	%	2.7	%	2.6	%	3.5	%	4.0	%	4.2	%
Expected return on plan assets	1.4	%	6.5	%	6.5	%	N/A		N/A		N/A		N/A		N/A		N/A

⁽¹⁾

The discount rate presented was used to determine the first quarter 2018 credit, and the interim discount rate established upon each quarterly settlement in 2018 of 3.6%, 3.8%, and 3.6% was used to calculate the expense for the second, third, and fourth quarter of 2018, respectively.

⁽²⁾

The discount rate presented was used to determine the first quarter 2017 credit, and the interim discount rate established upon each quarterly settlement in 2017 of 3.4%, 3.2%, and 3.1% was used to calculate the expense/credit for the second, third, and fourth quarter of 2017, respectively. The expected return on plan assets presented was used to determine the pension credit for the first half of 2017, and a 2.5% expected return on plan assets was used to determine pension expense for the second half of 2017, as further discussed in the following Nonunion Defined Benefit Pension Plan Assets section within this Note.

⁽³⁾

The discount rate presented was used to determine the first quarter 2016 expense, and the interim discount rate established upon each quarterly settlement in 2016 of 3.0%, 2.7%, and 2.7% was used to calculate the expense/credit for the second, third, and fourth quarter of 2016, respectively.

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:


	2018		2017
			Pre-65		Post-65
Health care cost trend rate assumed for next year	8.0	%	8.3	%	5.5	%
Rate to which the cost trend rate is assumed to decline	5.0	%	4.0	%	4.0	%
Year that the rate reaches the cost trend assumed rate	2026		2035		2024

Schedule of estimated future benefit payments for nonunion defined benefit plans

Estimated future benefit payments from the Company’s nonunion defined benefit pension (paid from trust assets), SBP, and postretirement health benefit plans, which reflect expected future service as appropriate, as of December 31, 2018 are as follows:


	Nonunion		Supplemental		Postretirement
	Defined Benefit		Benefit		Health
	Pension Plan(1)		Plan		Benefit Plan
	(in thousands)
2019	$	33,373	$	938	$	995
2020	$	—	$	2,169	$	1,046
2021	$	—	$	—	$	1,092
2022	$	—	$	—	$	1,177
2023	$	—	$	—	$	1,316
2024-2028	$	—	$	1,142	$	7,031

⁽¹⁾

Estimated payments for 2019 represent the accumulated benefit obligation of the plan at December 31, 2018. The future benefit payments of the plan will depend on the amount of lump sum distributions and the cost to purchase nonparticipating annuity contracts to settle the remaining obligation for deferred benefits. The settlement of plan obligations is expected to be complete in first quarter 2019.

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 are summarized in the following table:


	2018
	Target		Acceptable					Weighted-Average Allocation
	Allocation		Range					2018		2017
Income Securities
Debt Instruments	70.0	%	20.0	%	-	100.0	%	—	%	73.6	%
Floating Rate Loan Fund	10.0		3.0	%	-	100.0	%	25.5		13.1

Cash Equivalents
Cash and Cash Equivalents	20.0		0.0	%	-	100.0	%	74.5		13.3
	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, 2018, 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
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Cash and Cash Equivalents(1)	$	19,856	$	19,856	$	—	$	—
Debt Instruments(2)		10		—		10		—
Floating Rate Loans(3)		6,780		6,780		—		—
	$	26,646	$	26,636	$	10	$	—

⁽¹⁾

Consists primarily of money market mutual funds.

⁽²⁾

Includes a debt income security which was liquidated subsequent to December 31, 2018. The sale price of the security was used to determine the fair value at December 31, 2018..

⁽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, 2017, 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
			Quoted Prices		Significant		Significant
			In Active		Observable		Unobservable
			Markets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Cash and Cash Equivalents(1)	$	16,641	$	16,641	$	—	$	—
Debt Instruments(2)		91,778		10,087		81,691		—
Floating Rate Loans(3)		16,412		16,412		—		—
	$	124,831	$	43,140	$	81,691	$	—

⁽¹⁾

Consists primarily of money market mutual funds.

⁽²⁾

Includes corporate debt instruments (80%), asset-backed instruments (16%), mortgage‑backed instruments (4%). 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 multiemployer pension funds and key participation information


		Pension		FIP/RP
		Protection Act		Status	Contributions (d)
	EIN/Pension	Zone Status (b)		Pending/	(in thousands)						Surcharge
Legal Name of Plan	Plan Number (a)	2018	2017	Implemented (c)	2018		2017		2016		Imposed (e)
Central States, Southeast and Southwest Areas Pension Plan(1)(2)	36-6044243	Critical and Declining	Critical and Declining	Implemented(3)	$	74,177	$	78,230	$	77,891	No

Western Conference of Teamsters Pension Plan(2)	91-6145047	Green	Green	No		25,268		26,320		25,075	No

New England Teamsters Pension Fund(7)(8)	04-6372430	Critical and Declining(9)	Critical and Declining(9)	No		20,090		5,026		4,404	No

Central Pennsylvania Teamsters Defined Benefit Plan(1)(2)	23-6262789	Green	Green	No		13,393		13,391		13,381	No

I. B. of T. Union Local No. 710 Pension Fund(5)(6)	36-2377656	Green(4)	Green(4)	No		9,929		10,054		9,670	No

All other plans in the aggregate						24,392		25,395		23,718
Total multiemployer pension contributions paid(10)					$	167,249	$	158,416	$	154,139

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 2018 and 2017 is for the plan’s year‑end status at December 31, 2017 and 2016, respectively. The zone status is based on information received from the plan and was certified by the plan’s actuary. Green zone funds are those that are in neither endangered, critical, or critical and declining status and generally have a funded percentage of at least 80%.

^(c)

The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (FIP) or a rehabilitation plan (RP), if applicable, is pending or has been implemented.

^(d)

Amounts reflect contributions made in the respective year and differ from amounts expensed during the year.

^(e)

The surcharge column indicates if a surcharge was paid by ABF Freight to the plan.

⁽¹⁾

ABF Freight System, Inc. was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended December 31, 2017 and 2016.

⁽²⁾

Information for this fund was obtained from the annual funding notice, other notices received from the plan, and the Form 5500 filed for the plan years ended December 31, 2017 and 2016.

⁽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, 2017 – January 31, 2018 and February 1, 2016 – January 31, 2017.

⁽⁵⁾

The Company was listed by the plan as providing more than 5% of the total contributions to the plan for the plan years ended January 31, 2018 and 2017.

⁽⁶⁾

Information for this fund was obtained from the annual funding notice, other notices received from the plan, and the Form 5500 filed for the plan years ended January 31, 2018 and 2017.

⁽⁷⁾

Contributions for 2018 include $15.7 million related to the multiemployer pension fund withdrawal liability which is further discussed in this Note.

⁽⁸⁾

Information for this fund was obtained from the annual funding notice, other notices received from the plan, and the Form 5500 filed for the plan years ended September 30, 2017 and 2016.

⁽⁹⁾

PPA zone status relates to plan years October 1, 2017 – September 30, 2018 and October 1, 2016 – September 30, 2017.

⁽¹⁰⁾

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. The pension contribution rate for contractual employees increased an average of approximately 1.3% and 0.3% effective primarily on August 1, 2017 and 2016, respectively. The Supplemental Negotiating Committees for the Central States Pension Plan and the Western Conference of Teamsters Pension Plan approved no pension increase effective August 1, 2017 and 2016. The year‑over‑year changes in multiemployer pension plan contributions presented above were also influenced by the previously mentioned payments related to the New England Pension Fund and changes in Asset-Based business levels.