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Acquisitions | 12 Months Ended
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Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Acquisitions Expedited Freight In May 2021, the Company acquired certain assets and liabilities of J&P Hall Express Delivery (“J&P”) for $7,670. J&P is headquartered in Atlanta, Georgia with a second terminal in Albany, Georgia. The acquisition of J&P supports the Company’s strategic growth plan by expanding pickup and delivery, less-than-truckload, truckload, less than container load, container freight station warehousing, and airport transfer services across the Southeastern United States. The acquisition was funded using cash flows from operations. The results of J&P have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Expedited Freight reportable segment. Intermodal In February 2021, the Company acquired certain assets and liabilities of Proficient Transport Incorporated and Proficient Trucking, Inc. (together “Proficient Transport”) for $16,339 and a potential earn-out up to $2,000. Proficient Transport is an intermodal drayage company headquartered in Chicago, Illinois. The acquisition of Proficient Transport supports the Company’s strategic growth plan by expanding the intermodal footprint in Georgia, Illinois, North Carolina, and Texas, and introduces a new location in Ohio. The acquisition was funded using cash flows from operations. The results of Proficient Transport have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Intermodal reportable segment. The purchase agreement for Proficient Transport included an earn-out up to $2,000 based on the achievement of certain revenue milestones over a one-year period, beginning March 1, 2021. The estimated fair value of the earn-out liability on the date of acquisition was $829. The fair value was based on the estimated one-year performance of the acquired customer revenue and was calculated using the option pricing method. The assumptions used to calculate the estimated fair value of the earn-out under the option pricing method were as follows:
| December 31, 2021 |  | February 28, 2021
Risk-free rate | 0.1% |  | 0.1%
Revenue discount rate | 9.8% |  | 8.3%
Revenue volatility | 24.2% |  | 27.3%
The fair value of the earn-out liability was adjusted at each reporting period based on changes in the expected cash flows and related assumptions used in the option pricing method. During the years ended December 31, 2022 and 2021, the fair value of the earn-out changed by ($294) and ($444), respectively, and the change in the fair value was recorded in “Other operating expenses” in the Consolidated Statements of Comprehensive Income. The one-year period ended in the first quarter of 2022 and the Company paid $91 in the second quarter of 2022 based on the terms of the purchase agreement. As of December 31, 2021, the fair value of the earn-out liabili ty was $385, which was reflected in “Other current liabilities” in the Consolidated Balance Sheets. In November 2021, the Company acquired certain assets and liabilities of BarOle Trucking, Inc. (“BarOle”) for $35,436. BarOle is an intermodal drayage company headquartered in Roseville, Minnesota. The acquisition of BarOle provides additional capacity and resources to meet customer demands in the intermodal market, and extends the service footprint to the Minneapolis-Saint Paul, Minnesota area. In addition, BarOle has a larger terminal location, which allows for further expansion in the future. The acquisition was funded using cash flows from operations. The results of BarOle have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Intermodal reportable segment. In May 2022, the Company acquired certain assets and liabilities of Edgmon Trucking, LLC (“Edgmon”) for $40,993 and a potential earn-out of up to $5,000, based on the achievement of certain profit contribution milestones over a nineteen month period, beginning May 31, 2022. The estimated fair value of the earn-out liability on the date of acquisition was immaterial. The fair value was based on the estimated certain profit contribution during the nineteen month period and was calculated using the option pricing method. Edgmon, headquartered in Kent, Washington, operates a terminal in Kent and a yard in Seattle, servicing both the Port of Seattle and the Port of Tacoma. The acquisition of Edgmon marks the Company’s first Intermodal location on the West Coast, a key area of expansion in the Intermodal strategic growth plan. The acquisition was funded using cash flows from operations. The results of Edgmon have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Intermodal reportable segment. Fair Value of Assets Acquired and Liabilities Assumed Assets acquired and liabilities assumed as of the acquisition date are presented in the following table:
|  |  |  |  |  |  |  |  |  | Proficient Transport |  | J&P |  | BarOle |  | Edgmon
|  |  |  |  |  |  |  |  |  | February 28, 2021 |  | May 30, 2021 |  | November 30, 2021 |  | May 31, 2022
Tangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accounts receivable |  |  |  |  |  |  |  |  |  | 4,171 |  |  | 1,940 |  |  | 2,657 |  |  | 4,963 |
Prepaid expenses and other current assets |  |  |  |  |  |  |  |  |  | — |  |  | 32 |  |  | — |  |  | — |
Property and equipment |  |  |  |  |  |  |  |  |  | 140 |  |  | 1,567 |  |  | 6,464 |  |  | 613 |
Other assets |  |  |  |  |  |  |  |  |  | 24 |  |  | 3 |  |  | — |  |  | — |
Operating lease right-of-use assets |  |  |  |  |  |  |  |  |  | — |  |  | 1,355 |  |  | — |  |  | — |
Total tangible assets |  |  |  |  |  |  |  |  |  | 4,335 |  |  | 4,897 |  |  | 9,121 |  |  | 5,576 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  |  |  |  |  |  |  |  |  | 6,060 |  |  | 620 |  |  | 11,120 |  |  | 13,051 |
Non-compete agreements |  |  |  |  |  |  |  |  |  | 18 |  |  | 120 |  |  | 221 |  |  | 172 |
Goodwill |  |  |  |  |  |  |  |  |  | 6,249 |  |  | 4,020 |  |  | 15,355 |  |  | 22,195 |
Total intangible assets |  |  |  |  |  |  |  |  |  | 12,327 |  |  | 4,760 |  |  | 26,696 |  |  | 35,418 |
Total assets acquired |  |  |  |  |  |  |  |  |  | 16,662 |  |  | 9,657 |  |  | 35,817 |  |  | 40,994 |
Liabilities assumed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  | 323 |  |  | 632 |  |  | 381 |  |  | 1 |
Other liabilities |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Finance lease obligations |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Operating lease liabilities |  |  |  |  |  |  |  |  |  | — |  |  | 1,355 |  |  | — |  |  | — |
Total liabilities assumed |  |  |  |  |  |  |  |  |  | 323 |  |  | 1,987 |  |  | 381 |  |  | 1 |
Net assets acquired |  |  |  |  |  |  |  |  |  | $ | 16,339 |  |  | $ | 7,670 |  |  | $ | 35,436 |  |  | $ | 40,993 |
The preliminary purchase price for Edgmon has been allocated to assets acquired and liabilities assumed based on the Company’s best estimates and assumptions using the information available as of the acquisition date through the date of this filing. The provisional measurements of identifiable assets and liabilities, and the resulting goodwill related to this acquisition, is subject to adjustments in subsequent periods as the Company finalizes its purchase price allocation, including third-party valuations. During the year ended December 31, 2022, the Company recorded measurement period adjustments to the provisional amounts initially recorded for acquired net working capital, acquired property and equipment and acquired customer relationships and non-compete agreements related to the BarOle acquisition. The measurement period adjustment resulted in a $63 increase to net working capital, a $1,113 increase to acquired property and equipment and a combined $5,854 decrease to acquired customer relationships and non-compete agreements, with a corresponding net increase to goodwill. The Company expects to finalize the Edgmon valuation as soon as practicable, but no later than one year from the acquisition date. The estimated useful life of acquired intangible assets as of the acquisition date are summarized in the following table:
|  |  |  |  |  |  |  |  |  | Estimated Useful Lives
|  |  |  |  |  |  |  |  |  | Proficient Transport |  | J&P |  | BarOle |  | Edgmon
Customer relationships |  |  |  |  |  |  |  |  |  | 8 years |  | 12 years |  | 9 years |  | 9 years
Non-compete agreements |  |  |  |  |  |  |  |  |  | 1 year |  | 5 years |  | 5 years |  | 5 years
In November 2022, the Company acquired certain assets and liabilities of Chickasaw Container Services, Inc. (“CCS”), a privately held intermodal drayage provider. The acquisition included two operating terminals in Mobile, Alabama and Memphis, Tennessee and will allow the company to expand intermodal drayage operations in the Mobile market while bolstering an already strong presence in the Memphis market. In addition to drayage services, CCS also provides container storage and sales. The Company paid $25,733 using cash on hand from operations. The preliminary purchase price was allocated based on the estimated fair values as of the acquisition date. The Company recorded $21,262 related to intangible assets and $4,471 related to tangible assets. The Company expects to finalize the valuations as soon as practicable, but no later than one year from the respective acquisition date. The results of CCS have been included in the Company's Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company's Intermodal reportable segment.

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- 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 https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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