XML 30 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

ACQUISITION | 12 Months Ended
--- | ---
Dec. 31, 2021
ACQUISITION. |
ACQUISITION | NOTE D – ACQUISITION ​ On November 1, 2021 (the “acquisition date”), the Company acquired MoLo Solutions, LLC (“MoLo”), a Chicago-based truckload freight brokerage company, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated September 29, 2021. Terms of the transaction included initial consideration paid at closing of $239.4 million, including and subject to certain post-closing adjustments which were estimated at closing and will be finalized post-closing. The Company funded the initial purchase price with cash on hand. The Merger Agreement provides for certain additional cash consideration to be paid by the Company based on the achievement of certain 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. ​ The following table represents the components of the total purchase consideration for the acquisition of MoLo. The Company recorded the estimated fair value of contingent consideration at the acquisition date as a part of the purchase price consideration for the acquisition (see Note B). The purchase consideration is preliminary and is dependent on final post-closing adjustments and completion of a net working capital audit. ​
​ | ​ | ​ | ​ | ​
​ | ​ | Purchase | ​
​ | ​ | Consideration | ​
​ | ​ | (in thousands) | ​
Net cash consideration, including estimated post-closing adjustments | ​ | $ | 239,398 | ​
Contingent consideration | ​ | ​ | 93,700 | ​
Total purchase consideration | ​ | $ | 333,098 | ​
​ 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. ​ The following table summarizes the estimated fair values of the acquired assets and liabilities at the acquisition date. The Company is in the process of making a final determination of acquired assets and liabilities, with remaining matters primarily related to finalization of a net working capital audit, thus, the provisional measurements are subject to change. ​
​ | ​ | ​ | ​ | ​
​ | ​ | Purchase |
​ |  | Allocation |
​ | ​ | (in thousands) |
Accounts receivable, less allowances | ​ | $ | 136,522 | ​
Prepaid expenses | ​ |  | 766 | ​
Property and equipment, net | ​ |  | 2,309 | ​
Operating lease right-of-use assets | ​ |  | 844 | ​
Intangible assets | ​ |  | 76,900 | ​
Other assets | ​ |  | 323 | ​
Total identifiable assets acquired | ​ |  | 217,664 | ​
​ | ​ | ​ | ​ | ​
Accounts payable | ​ |  | 94,909 | ​
Accrued expenses and other current liabilities | ​ |  | 2,643 | ​
Operating lease liabilities | ​ |  | 983 | ​
Total liabilities | ​ |  | 98,535 | ​
​ | ​ | ​ | ​ | ​
Total identifiable net assets | ​ |  | 119,129 | ​
Goodwill | ​ |  | 213,969 | ​
Net assets acquired | ​ | $ | 333,098 | ​
​ 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. See Note E for further discussion of acquired goodwill and intangible assets. The estimated fair value of accounts receivable acquired was $136.5 million, having a gross contractual amount of $143.0 million as of November 1, 2021 and $6.5 million expected by the Company to be uncollectible. ​ 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: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31 |
​ | ​ | 2021 |  | 2020 |
​ | ​ | (Unaudited) | ​
​ | ​ | (in thousands, except per share data) |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenues |  | $ | 4,488,564 | ​ | $ | 3,213,722 | ​
Income before income taxes | ​ | $ | 266,866 | ​ | $ | 63,622 | ​
Net income | ​ | $ | 205,728 | ​ | $ | 48,290 | ​
Diluted EPS | ​ | $ | 7.68 | ​ | $ | 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.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration