EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2022

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


	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2022		2021		2022		2021

	(in thousands)
Change in benefit obligations
Benefit obligations, beginning of year	$	381	$	392	$	16,992	$	18,751
Service cost		—		—		156		192
Interest cost		7		4		441		427
Actuarial gain⁽¹⁾		(50)		(15)		(4,392)		(1,736)
Benefits paid		—		—		(663)		(642)
Benefit obligations, end of year		338		381		12,534		16,992
Change in plan assets
Fair value of plan asset, beginning of year		—		—		—		—
Employer contributions		—		—		663		642
Benefits paid		—		—		(663)		(642)
Fair value of plan assets, end of year		—		—		—		—
Funded status at period end	$	(338)	$	(381)	$	(12,534)	$	(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.

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


	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2022		2021		2022		2021

Current portion of pension and postretirement liabilities	$	—	$	—	$	(676)	$	(640)
Pension and postretirement liabilities, less current portion		(338)		(381)		(11,858)		(16,352)
Liabilities recognized	$	(338)	$	(381)	$	(12,534)	$	(16,992)

Summary of the components of net periodic benefit cost (credit)


	Supplemental						Postretirement
	Benefit Plan						Health Benefit Plan
	2022		2021		2020		2022		2021		2020

	(in thousands)
Service cost	$	—	$	—	$	—	$	156	$	192	$	187
Interest cost		7		4		9		441		427		576
Amortization of prior service credit		—		—		—		—		—		(1)
Pension settlement expense		—		—		89		—		—		—
Amortization of net actuarial (gain) loss⁽¹⁾		8		9		8		(765)		(548)		(597)
Net periodic benefit cost (credit)	$	15	$	13	$	106	$	(168)	$	71	$	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.

Summary of pension settlement distributions and settlement expense


	Supplemental
	Benefit Plan
	2022		2021		2020⁽¹⁾

Pension settlement distributions	$	—	$	—	$	2,887
Pension settlement expense, pre-tax	$	—	$	—	$	89
Pension settlement expense per diluted share, net of taxes	$	—	$	—	$	—

(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.

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

Supplemental

Postretirement

Benefit Plan

Health Benefit Plan

2022

2021

2022

2021

Unrecognized net actuarial (gain) loss

(18)

(9,269)

(5,642)

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


	Supplemental				Postretirement
	Benefit Plan				Health Benefit Plan
	2022		2021		2022		2021
Discount rate	4.6	%	1.8	%	5.0	%	2.7	%


	Supplemental						Postretirement
	Benefit Plan						Health Benefit Plan
	2022		2021		2020		2022		2021		2020
Discount rate	1.8	%	1.1	%	2.4	%	2.7	%	2.3	%	3.1	%

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


	2022		2021
Health care cost trend rate assumed for next year⁽¹⁾	7.0	%	7.0	%
Rate to which the cost trend rate is assumed to decline	4.5	%	4.5	%
Year that the rate reaches the cost trend assumed rate	2034		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.

Schedule of estimated future benefit payments for nonunion defined benefit plans


	Supplemental		Postretirement
	Benefit		Health
	Plan		Benefit Plan

2023	$	—	$	676
2024	$	—	$	676
2025	$	—	$	729
2026	$	—	$	734
2027	$	—	$	740
2028-2032	$	424	$	3,705

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)

2022

2021

Implemented ^(c)

2022

2021

2020

Imposed ^(e)

Central States, Southeast and Southwest Areas Pension Plan⁽¹⁾⁽²⁾

36-6044243

Critical and Declining

Implemented⁽³⁾

75,306

71,045

68,704

Western Conference of Teamsters Pension Plan⁽²⁾

91-6145047

Green

28,051

25,861

23,633

Central Pennsylvania Teamsters Defined Benefit Plan⁽¹⁾⁽²⁾

23-6262789

Green

14,421

13,931

13,485

I. B. of T. Union Local No. 710 Pension Fund⁽⁵⁾⁽⁶⁾

36-2377656

Green⁽⁴⁾

9,838

9,553

9,885

New England Teamsters Pension Fund⁽⁷⁾⁽⁸⁾

04-6372430

Critical and Declining⁽⁹⁾

Implemented⁽¹⁰⁾

4,449

4,357

4,464

All other plans in the aggregate

22,493

22,146

22,023

Total multiemployer pension contributions paid⁽¹¹⁾

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 ended December 31, 2021 and 2020.

(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, 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 January 31, 2020.

(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, 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

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.

(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, 2021 and 2020.

(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.