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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
INCOME TAXES |
Schedule of significant components of the provision or benefit for income taxes | Significant components of the provision or benefit for income taxes for the years ended December 31 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018(1) |  | 2017(1) |
​ | ​ | (in thousands, except percentages) |
Current provision (benefit): |  | ​ |  |  | ​ |  |  | ​ |  | ​
Federal | ​ | $ | 2,202 | ​ | $ | 9,750 | ​ | $ | (1,969) | ​
State | ​ |  | 1,813 | ​ |  | 3,264 | ​ |  | 3,701 | ​
Foreign | ​ |  | 2,060 | ​ |  | 2,238 | ​ |  | 331 | ​
​ | ​ |  | 6,075 | ​ |  | 15,252 | ​ |  | 2,063 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred provision (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 4,196 | ​ |  | 1,157 | ​ |  | (9,312) | ​
State | ​ |  | 1,221 | ​ |  | 737 | ​ |  | (867) | ​
Foreign | ​ |  | (6) | ​ |  | (22) | ​ |  | (34) | ​
​ | ​ |  | 5,411 | ​ |  | 1,872 | ​ |  | (10,213) | ​
Total provision (benefit) for income taxes | ​ | $ | 11,486 | ​ | $ | 17,124 | ​ | $ | (8,150) | ​
(1) | For 2018 and 2017, the income tax provision (benefit) reflects the impact of the Tax Reform Act, as previously disclosed in this Note. Deferred income tax liabilities were reduced by $3.8 million and $24.5 million for 2018 and 2017, respectively, as a result of the decrease in the U.S. corporate statutory tax rate from 35% to 21% effective January 1, 2018. Current tax expense was reduced by $0.1 million and $1.3 million for 2018 and 2017, respectively, as a result of the tax law change and the Company’s application of a blended rate due to the use of a fiscal year other than the calendar year for U.S. income tax filing purposes.
Schedule of components of the deferred tax provision or benefit | ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019(1) | ​ | 2018(1)(2) | ​ | 2017(1)(2) |
​ | ​ | (in thousands) |
Amortization, depreciation, and basis differences for property, plant and equipment and other long-lived assets |  | $ | 16,255 |  | $ | 23,153 |  | $ | 21,876 | ​
Amortization of intangibles and impairment | ​ |  | (6,933) | ​ |  | (763) | ​ |  | (1,030) | ​
Changes in reserves for workers’ compensation, third-party casualty, and cargo claims | ​ |  | (1,880) | ​ |  | 469 | ​ |  | (812) | ​
Revenue recognition | ​ |  | (1,437) | ​ |  | (2,524) | ​ |  | 332 | ​
Allowance for doubtful accounts | ​ |  | 541 | ​ |  | (115) | ​ |  | (719) | ​
Nonunion pension and other retirement plans | ​ |  | 564 | ​ |  | (2,810) | ​ |  | (1,977) | ​
Multiemployer pension fund withdrawal(3) | ​ | ​ | 150 | ​ | ​ | (5,818) | ​ | ​ | — | ​
Federal and state net operating loss carryforwards utilized | ​ |  | 59 | ​ |  | 746 | ​ |  | 257 | ​
State depreciation adjustments | ​ |  | (1,302) | ​ |  | (1,761) | ​ |  | (1,244) | ​
Share-based compensation | ​ |  | (709) | ​ |  | (529) | ​ |  | 352 | ​
Valuation allowance increase (decrease) | ​ |  | 383 | ​ |  | (744) | ​ |  | 401 | ​
Other accrued expenses | ​ |  | (699) | ​ |  | (4,881) | ​ |  | (852) | ​
Impact of the Tax Reform Act(2) | ​ | ​ | — | ​ | ​ | (3,772) | ​ | ​ | (24,542) | ​
Prepaid expenses(4) | ​ | ​ | 1,782 | ​ | ​ | 1,313 | ​ | ​ | (1,331) | ​
Operating lease right-of-use assets/liabilities – net(5) | ​ | ​ | (1,049) | ​ | ​ | — | ​ | ​ | — | ​
Other(4) | ​ |  | (314) | ​ |  | (92) | ​ |  | (924) | ​
Deferred tax provision (benefit) | ​ | $ | 5,411 | ​ | $ | 1,872 | ​ | $ | (10,213) | ​
(1) | The components of the deferred tax provision above reflect the statutory U.S. income tax rate in effect for the applicable year, which is 35% for 2017, a blended rate for 2018 (as previously discussed within this Note), and 21% for 2019.
(2) | For 2018 and 2017, the effect of the change in the U.S. corporate tax rate from 35% to 21% in accordance with the Tax Reform Act is reflected as a separate component of the deferred tax provision.
(3) | ABF Freight recorded a multiemployer pension fund withdrawal liability in 2018 resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note I).
(4) | Prepaid expenses are presented as a separate component of the deferred tax provision (benefit). Certain reclassifications have been made to the prior period components to conform to the current year presentation.
(5) | Net change in operating lease right-of-use deferred tax assets and liabilities recorded due to the adoption of ASC Topic 842 in 2019.
Schedule of significant components of deferred tax assets and liabilities | Significant components of the deferred tax assets and liabilities at December 31 were as follows: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 |
​ | ​ | (in thousands) |
Deferred tax assets: |  | ​ |  |  | ​ |  | ​
Accrued expenses | ​ | $ | 41,757 | ​ | $ | 39,885 | ​
Operating lease liabilities(1) | ​ | ​ | 19,726 | ​ | ​ | — | ​
Pension liabilities(2) | ​ |  | — | ​ |  | 1,721 | ​
Supplemental pension liabilities(2) | ​ | ​ | 1,091 | ​ | ​ | 1,033 | ​
Multiemployer pension fund withdrawal(3) | ​ | ​ | 5,546 | ​ | ​ | 5,710 | ​
Postretirement liabilities other than pensions | ​ |  | 5,359 | ​ |  | 7,660 | ​
Share-based compensation | ​ |  | 5,605 | ​ |  | 4,893 | ​
Federal and state net operating loss carryovers | ​ |  | 1,093 | ​ |  | 1,152 | ​
Other | ​ |  | 1,538 | ​ |  | 1,355 | ​
Total deferred tax assets | ​ |  | 81,715 | ​ |  | 63,409 | ​
Valuation allowance | ​ |  | (668) | ​ |  | (53) | ​
Total deferred tax assets, net of valuation allowance | ​ |  | 81,047 | ​ |  | 63,356 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amortization, depreciation, and basis differences for property, plant and equipment, and other long-lived assets | ​ |  | 107,835 | ​ |  | 93,525 | ​
Operating lease right-of-use assets(1) | ​ | ​ | 18,703 | ​ | ​ | — | ​
Intangibles | ​ |  | 7,373 | ​ |  | 14,066 | ​
Revenue recognition | ​ |  | 669 | ​ |  | 1,513 | ​
Prepaid expenses | ​ |  | 4,952 | ​ |  | 3,225 | ​
Total deferred tax liabilities | ​ |  | 139,532 | ​ |  | 112,329 | ​
Net deferred tax liabilities | ​ | $ | (58,485) | ​ | $ | (48,973) | ​
(1) | Operating lease right-of-use assets and liabilities were recorded in 2019 due to the adoption of ASC Topic 842.
(2) | Supplemental pension liabilities are presented as a separate component of deferred tax assets. Certain reclassifications have been made to the prior period components to conform to the current year presentation.
(3) | ABF Freight recorded a multiemployer pension fund withdrawal liability in 2018 resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note I).
​
Reconciliation between the effective income tax rate, as computed on income or loss before income taxes, and the statutory federal income tax rate | 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: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019(1) | ​ | 2018(1) | ​ | 2017(2) |
​ | ​ | (in thousands, except percentages) |
Income tax provision at the statutory federal rate |  | $ | 10,809 |  | $ | 17,721 |  | $ | 18,052 | ​
Federal income tax effects of: | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State income taxes | ​ |  | (637) | ​ |  | (840) | ​ |  | (992) | ​
Nondeductible expenses(3) | ​ |  | 1,344 | ​ |  | 1,682 | ​ |  | 1,551 | ​
Life insurance proceeds and changes in cash surrender value | ​ |  | (775) | ​ |  | 7 | ​ |  | (927) | ​
Alternative fuel credit | ​ |  | (2,340) | ​ |  | (1,203) | ​ |  | — | ​
Net increase (decrease) in valuation allowances | ​ |  | 382 | ​ |  | (891) | ​ |  | 401 | ​
Net increase (decrease) in uncertain tax positions | ​ | ​ | (20) | ​ | ​ | 933 | ​ | ​ | (720) | ​
Settlement of share-based compensation | ​ | ​ | 388 | ​ | ​ | (649) | ​ | ​ | (1,129) | ​
Impact of the Tax Reform Act on current tax(2) | ​ | ​ | — | ​ | ​ | (52) | ​ | ​ | (1,288) | ​
Impact of the Tax Reform Act on deferred tax(2) | ​ | ​ | — | ​ | ​ | (3,772) | ​ | ​ | (24,542) | ​
Nonunion pension termination expense | ​ | ​ | 1,040 | ​ | ​ | — | ​ | ​ | — | ​
Foreign tax credits generated(3) | ​ | ​ | (2,054) | ​ | ​ | (2,216) | ​ | ​ | (297) | ​
Federal research and development tax credits | ​ | ​ | (1,354) | ​ | ​ | — | ​ | ​ | — | ​
Other(3) | ​ |  | (385) | ​ |  | 187 | ​ |  | (1,390) | ​
Federal income tax provision (benefit) | ​ |  | 6,398 | ​ |  | 10,907 | ​ |  | (11,281) | ​
State income tax provision | ​ |  | 3,034 | ​ |  | 4,001 | ​ |  | 2,834 | ​
Foreign income tax provision | ​ |  | 2,054 | ​ |  | 2,216 | ​ |  | 297 | ​
Total provision (benefit) for income taxes | ​ | $ | 11,486 | ​ | $ | 17,124 | ​ | $ | (8,150) | ​
Effective tax (benefit) rate | ​ |  | 22.3 | % |  | 20.3 | % |  | (15.8) | %
(1) | Amounts in this reconciliation reflect the statutory U.S. income tax rate in effect for the applicable year after the enactment of the Tax Reform Act, which is 21%. The effect of applying a blended rate of 32.74% for the two months ended February 28, 2018, in accordance with the Tax Reform Act, is reflected in separate components of the reconciliation.
(2) | Amounts in this reconciliation reflect the statutory U.S. income tax rate in effect for the applicable year prior to the enactment of the Tax Reform Act, which is 35%. For 2017, the effect of the change in the U.S. corporate tax rate to 21% in accordance with the Tax Reform Act is reflected in separate components of the reconciliation.
(3) | Foreign tax credits generated are presented as a separate component of the federal income tax provision (benefit). Certain reclassifications, including the separate presentation of foreign tax credits, have been made to the prior period components to conform to the current year presentation.
​

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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