Delaware | 20-5589597 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock $0.01 Par Value | KNX | New York Stock Exchange |
Large | ☒ | Accelerated | ☐ | |||||||||||||||||
☐ | Smaller | ☐ | ||||||||||||||||||
Emerging | ☐ |
TABLE OF CONTENTS | |||||
PAGE | |||||
GLOSSARY OF TERMS | ||||||||
The following glossary provides definitions for certain acronyms and terms used in this Annual Report on Form 10-K. These acronyms and terms are specific to our company, commonly used in our industry, or are otherwise frequently used throughout our document. | ||||||||
Term | Definition | |||||||
Knight-Swift/the Company/Management/We/Us/Our | Unless otherwise indicated or the context otherwise requires, these terms represent Knight-Swift Transportation Holdings Inc. and its subsidiaries. | |||||||
Annual Report | Annual Report on Form 10-K | |||||||
2012 ESPP | Employee Stock Purchase Plan, effective beginning in 2012, amended and restated in 2018 | |||||||
2014 Stock Plan | The Company's second amended and restated 2014 Omnibus Incentive Plan | |||||||
2017 Debt Agreement | The Company's unsecured credit agreement, entered into on September 29, 2017 and amended October 2, 2020, consisting of the 2017 Revolver and 2017 Term Loan, which are defined below. | |||||||
2017 Merger | The September 8, 2017 merger of Knight and Swift, pursuant to which we became Knight-Swift Transportation Holdings Inc. | |||||||
2017 Revolver | Revolving line of credit under the 2017 Debt Agreement | |||||||
2017 Term Loan | The Company's term loan under the 2017 Debt Agreement. | |||||||
2018 RSA | Fourth Amendment to the Amended and Restated Receivables Sales Agreement, entered into | |||||||
An unsecured credit agreement, entered into on September 3, 2021, maturing October 2023 through January 2028 | ||||||||
2021 Revolver | Revolving line of credit under the 2021 Debt Agreement | |||||||
2021 RSA | ||||||||
The Company's term loans under the 2021 Debt Agreement, collectively consisting of the 2021 Term Loan A-1, 2021 Term Loan A-2 and 2021 Term Loan A-3. | ||||||||
2021 Term Loan A-1 | The Company's | |||||||
2021 Term Loan A-2 | The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2024. | |||||||
2021 Term Loan A-3 | The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2026. | |||||||
July 2021 Term Loan | The Company's term loan entered into on | |||||||
Abilene Motor Express, Inc. and its related entities | ||||||||
ACT | AAA Cooper Transportation, and its affiliated entity. | |||||||
ACT Acquisition | ||||||||
ASC | Accounting Standards Codification Topic (or subtopic) | |||||||
ASU | Accounting Standards Update | |||||||
Board | Knight-Swift's Board of Directors | |||||||
BSBY | Bloomberg Short-Term Bank Yield Index | |||||||
COVID-19 | Viral strain of a coronavirus which led the World Health Organization to declare a global pandemic in | |||||||
C-TPAT | Customs-Trade Partnership Against Terrorism | |||||||
CSA | Compliance Safety Accountability | |||||||
DOT | United States Department of | |||||||
ELD | Electronic Logging Device | |||||||
Eleos | Eleos Technologies, LLC | |||||||
Embark | Embark Trucks Inc. and its related entities | |||||||
EPA | United States Environmental Protection Agency | |||||||
EPS | Earnings Per Share | |||||||
ERP | Enterprise Resource Planning system | |||||||
FASB | Financial Accounting Standards Board | |||||||
FLSA | Fair Labor Standards Act | |||||||
FMCSA | Federal Motor Carrier Safety Administration | |||||||
GAAP | United States Generally Accepted Accounting Principles | |||||||
2021 ANNUAL REPORT ON FORM 10-K | ||||||||||
GLOSSARY OF TERMS | ||||||||||
The following glossary provides definitions for certain acronyms and terms used in | ||||||||||
Gross Domestic Product | ||||||||||
LIBOR | London InterBank Offered Rate | |||||||||
Less-than-truckload | ||||||||||
Knight | Unless otherwise indicated or the context otherwise requires, this term represents Knight Transportation, Inc. and its subsidiaries | |||||||||
Mohave | Mohave Transportation Insurance Company, a Swift wholly-owned captive insurance subsidiary | |||||||||
RAC MME Holdings, LLC. and its subsidiaries, MME, Inc., Midwest Motor Express, Inc., and Midnite Express Inc. | ||||||||||
NASDAQ | National Association of Securities Dealers Automated Quotations | |||||||||
NLRB | National Labor Relations Board | |||||||||
NYSE | New York Stock Exchange | |||||||||
Red Rock | Red Rock Risk Retention Group, Inc., a Swift wholly-owned captive insurance subsidiary | |||||||||
SEC | Securities and Exchange Commission | |||||||||
Stock Purchase Agreement | ||||||||||
Swift | Unless otherwise indicated or the context otherwise requires, this term represents Swift Transportation Company and its subsidiaries | |||||||||
UTXL Enterprises, Inc. | ||||||||||
US | The United States of America | |||||||||
Warehousing Co. | Warehousing company, acquired by the Company on January 1, 2020 |
PART I |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |
ITEM 1. | BUSINESS |
Company Overview |
Business Combinations and Investments |
Industry and Competition |
Period | Economic Cycle | ||||
2017 — 2019 | strong cycle, driven by a record pricing climate through 2018. The industry experienced increased demand through 2018 for transportation services, including contract and non-contract market demand, partially due to a strong retail season. Capacity became tighter in the second half of 2017 and throughout 2018, due to increasing government regulation, the driver shortage, and severe storms interrupting business, among other factors. Capacity increased in the second half of 2018 leading to an oversupply during 2019, lower spot market rates, and downward pressure on contract rates. | ||||
2020 — 2021 | the COVID-19 pandemic led to a new source of volatility throughout the global market in 2020. Economic activities were significantly curtailed across the nation at the onset of 2020, but began to resume in the second half of the year. Accordingly, demand in the freight market was weak in the beginning of the year and gradually strengthened in the second half of the year. The 2020 freight environment was disrupted, with unpredictable shipping volumes, shifts in pricing, and continued challenges in driver sourcing throughout the year. The COVID-19 pandemic continued to be a source of volatility throughout the global market in 2021 creating supply chain disruptions, increased demand for many products, tight transportation capacity and congestion at ocean ports and rail terminals. |
Our Competitive Strengths |
Regional Truckload and LTL Presence | ||
We believe that regional truckload operations, which expanded with the • obtaining greater freight volumes, • achieving higher revenue per mile by focusing on high-density freight lanes to minimize non-revenue miles, • enhancing our ability to recruit and train qualified driving associates, • enhancing safety and driver development and retention, • enhancing our ability to provide a high level of service and consistent capacity to our customers, • enhancing accountability for performance and growth, • furthering our • expanding into the LTL space, • furthering our logistics capabilities to contract with more third-party capacity providers, and • extending our transportation infrastructure, knowledge and scale to strengthen our relationships with third party providers. | ||
Operating Efficiency and Cost Control | ||
We expect to increase operational efficiencies through the adoption of best practices and capabilities | ||
Customer Service | ||
We strive to provide superior, on-time service at a meaningful value to our customers and seek to establish ourselves as a preferred | ||
Using Technology that Enhances Our Business | ||
We purchase and deploy technology that we believe will allow us to operate more safely, securely, and efficiently. Substantially all of our company-owned tractors are equipped with in-cab communication devices that enable us to communicate with our driving associates, obtain load position updates, manage our fleets, and provide our customers with freight visibility, as well as with ELDs that automatically record our driving associates' hours-of-service. The majority of our trailers are equipped with trailer-tracking technology that allows us to better manage our trailers. We have purchased and developed software for our logistics businesses that provides greater visibility of the capacity of our third-party providers and enhances our ability to provide our customers with solutions that offer a superior level of service. We have automated many of our back-office functions, and we continue to invest in technology that we expect will allow us to better serve our customers and improve overall efficiency. | ||
Diverse Service Offerings with Multiple Transportation Solutions | ||
With the addition of LTL services in 2021, we have further expanded our service capabilities while diversifying our revenue streams. We believe our diversified mix and scope of full truckload, LTL, logistics and intermodal services, combined with our value-added service offerings, allows us to provide our customers with one source to meet their shipping and logistics needs, and represents a significant advantage over most of our competitors. We continue to invest considerable resources toward developing a range of solutions for our customers across multiple service offerings and transportation modes to continue to provide efficient and cost-effective solutions for our customers. |
Our Mission and Company Strategy |
Segment Operating Strategies | |||||
Our operating strategy for our | |||||
Logistics Segment | Our operating strategy for our Logistics segment is to match the shipping needs of our customers with the capacity provided by our network of third-party carriers and our rail providers. Our goal is to increase our market presence, both in existing operating regions and in other areas where we believe the freight environment meets our operating strategy, while seeking to achieve industry-leading operating margins and returns on investment. | ||||
LTL Segment | Our LTL segment was established in 2021 by the ACT and MME acquisitions. Our operating strategy for our LTL segment is to provide regional direct service and serve our customers' national transportation needs by utilizing key partner carriers for coverage areas outside of our network. Significant investment is needed to establish and maintain a network of LTL service centers. The substantial fixed costs and capital expenditures required for LTL carriers make it challenging for new entrants or small operators to effectively compete with established carriers. We plan to grow the LTL segment through organic growth and acquisitions and believe a national expansion effort will provide enhanced value to our customers. Our business strategy includes continued yield management evaluation of each customer's commodity mix and shipping volume their corresponding lanes. Additionally, a key component of our strategy is our focused effort with respect to improving utilization of our people, technology, and other resources to maximize operational efficiency while ensuring our customers' freight is delivered safely and timely. | ||||
Intermodal Segment | Our operating strategy for our Intermodal segment is to complement our regional operating model, allowing us to better serve customers in longer haul lanes, | ||||
Growth Strategies | |||||
We believe we have the terminal network, systems capability, and management capacity to support substantial growth. We have established a geographically diverse network that we believe can support a substantial increase in freight volumes, | |||||
Strengthening our customer relationships | We market our services to both existing and new customers who value our broad geographic coverage, suite of transportation and logistics services, and industry-leading full truckload and LTL capacity and freight lanes that complement our existing operations. We seek customers who will diversify our freight base. We market our Truckload and LTL dry van, refrigerated, drayage, brokerage, and intermodal services, including dedicated and cross-border services within those offerings, to logistics customers seeking a single-source provider of multiple services but do not currently take advantage of our array of full truckload and LTL solutions. | ||||
Improving asset productivity | We focus on improving the revenue generated from our tractors and trailers without compromising safety. We anticipate that we can accomplish this objective through increased miles driven and rate per | ||||
Acquiring and growing opportunistically | We regularly evaluate potential opportunities for mergers, acquisitions, and other development and growth opportunities. | ||||
Expanding existing Truckload terminals | Historically, a substantial portion of our Truckload revenue growth has been generated by our expansion into new geographic regions through the opening of additional terminals. Although we continue to seek opportunities to further increase our Truckload business in this manner, our primary focus is on developing and expanding our existing terminals by strengthening our customer relationships, recruiting qualified driving associates and non-driver employees, adding new customers, and expanding the range of transportation and logistics solutions offered from these terminals. | ||||
Diversifying our service offerings | We are committed to providing our customers a broad and growing range of full truckload, LTL, and logistics services and continue to invest considerable resources toward developing a range of solutions for our customers. We believe that these offerings contribute meaningfully to our results and reflect our strategy to bring complementary services to our customers to assist them with their supply chain needs. We plan to continue to leverage our nationwide footprint and expertise to add value to our customers through our diversified service offerings. |
Customers and Marketing |
Revenue Equipment |
Company driving associates (including driver trainees) | ||||||||
Technicians and other equipment maintenance personnel | ||||||||
Corporate and terminal leadership and support personnel | ||||||||
Total | ||||||||
Safety and Insurance |
Fuel |
Seasonality |
Environmental Regulation |
Industry Regulation |
Other Regulation |
Available Information |
ITEM 1A. | RISK FACTORS |
Our risks are grouped into the following risk categories: | ||||||||||||||||||||
Strategic | Operational | Compliance | Financial | |||||||||||||||||
*Industry and Competition | *Company Growth | *Trucking Industry Regulation | *Capital Requirements | |||||||||||||||||
*Market Changes | *Employees | *Environmental Regulation | *Debt | |||||||||||||||||
*Macroeconomic Changes | *Independent Contractors | *Insurance Regulation | *Investments | |||||||||||||||||
*Mergers and Acquisitions | *Vendors and Suppliers | *ESG | *Goodwill and Intangibles | |||||||||||||||||
*International Operations | *Customers | |||||||||||||||||||
*Information Systems | ||||||||||||||||||||
* |
Strategic Risk |
• |
Operational Risk |
Compliance Risk |
Financial Risk |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Owned/Leased | Brand | |||||||||||||
Location | Owned | Leased | Knight | Swift | Barr Nunn | Abilene | Total | |||||||
Arizona | 4 | 2 | 4 | 2 | 6 | |||||||||
Arkansas | 1 | 1 | 1 | |||||||||||
California | 8 | 2 | 3 | 7 | 10 | |||||||||
Colorado | 2 | 1 | 1 | 2 | ||||||||||
Florida | 2 | 1 | 1 | 2 | ||||||||||
Georgia | 2 | 2 | 1 | 3 | 4 | |||||||||
Idaho | 1 | 2 | 2 | 1 | 3 | |||||||||
Illinois | 1 | 1 | 1 | |||||||||||
Indiana | 2 | 1 | 1 | 2 | ||||||||||
Iowa | 2 | 2 | 2 | |||||||||||
Kansas | 2 | 1 | 1 | 2 | ||||||||||
Massachusetts | 1 | 1 | 1 | |||||||||||
Mexico | 4 | 6 | 10 | 10 | ||||||||||
Michigan | 1 | 1 | 1 | 1 | 2 | |||||||||
Minnesota | 1 | 1 | 1 | |||||||||||
Mississippi | 2 | 2 | 2 | |||||||||||
Missouri | 1 | 1 | 1 | |||||||||||
Nevada | 2 | 1 | 1 | 2 | ||||||||||
New Jersey | 1 | 1 | 1 | |||||||||||
New Mexico | 1 | 1 | 1 | |||||||||||
New York | 3 | 1 | 4 | 4 | ||||||||||
North Carolina | 2 | 1 | 1 | 1 | 1 | 3 | ||||||||
Ohio | 2 | 1 | 1 | 2 | ||||||||||
Oklahoma | 1 | 1 | 1 | |||||||||||
Oregon | 2 | 1 | 1 | 2 | ||||||||||
Pennsylvania | 2 | 4 | 1 | 4 | 1 | 6 | ||||||||
South Carolina | 2 | 2 | 2 | |||||||||||
South Dakota | 1 | 1 | 1 | |||||||||||
Tennessee | 3 | 1 | 2 | 3 | ||||||||||
Texas | 7 | 1 | 3 | 5 | 8 | |||||||||
Utah | 2 | 1 | 1 | 2 | ||||||||||
Virginia | 2 | 2 | 1 | 3 | 4 | |||||||||
Washington | 2 | 1 | 1 | 2 | ||||||||||
West Virginia | 1 | 1 | 1 | |||||||||||
Wisconsin | 1 | 1 | 1 | |||||||||||
Total Properties | 72 | 26 | 30 | 60 | 4 | 4 | 98 | |||||||
Brand | ||||||||
Knight | ||||||||
Swift | ||||||||
ACT | ||||||||
MME | ||||||||
Barr-Nunn Transportation LLC | ||||||||
Abilene Motor Express, LLC |
Owned/Leased | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location | Brand | Owned | Leased | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arizona | 10 | 4 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arkansas | 3 | 1 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
California | 9 | 2 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Colorado | 2 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Florida | 15 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 12 | 3 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Idaho | 2 | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Illinois | 6 | 2 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indiana | 2 | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Iowa | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kansas | 2 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kentucky | 2 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Louisiana | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Massachusetts | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mexico | 4 | 6 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michigan | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minnesota | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mississippi | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Missouri | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Montana | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nevada | 4 | 1 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Mexico | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New York | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North Carolina | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North Dakota | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 2 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oklahoma | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oregon | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pennsylvania | 2 | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 5 | 3 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
South Dakota | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 18 | 11 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utah | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 2 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Washington | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
West Virginia | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wisconsin | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wyoming | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Properties | 164 | 54 | 218 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ITEM 3. | LEGAL PROCEEDINGS |
MINE SAFETY DISCLOSURES |
PART II |
ITEM 5. | MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Common Stock |
Dividend Policy |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value That May Yet be Purchased Under the Plans or Programs 1 | |||||||||||||||||||
October 1, 2021 to October 31, 2021 | 73,504 | $ | 47.80 | 73,504 | $ | 192,825,134 | |||||||||||||||||
November 1, 2121 to November 30, 2021 | — | $ | — | — | $ | 192,825,134 | |||||||||||||||||
December 1, 2021 to December 31, 2021 | — | $ | — | — | $ | 192,825,134 | |||||||||||||||||
Total | 73,504 | $ | 47.80 | 73,504 | $ | 192,825,134 | |||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value That May Yet be Purchased Under the Plans or Programs¹ | |||||||||
October 1, 2019 to October 31, 2019 | — | $ | — | — | $ | 233,607,968 | |||||||
November 1, 2019 to November 30, 2019 | — | $ | — | — | $ | 233,607,968 | |||||||
December 1, 2019 to December 31, 2019 | — | $ | — | — | $ | 233,607,968 | |||||||
Total | — | $ | — | — | $ | 233,607,968 | |||||||
Stockholders Return Performance Graph |
December 31, | |||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
Knight-Swift Transportation Holdings Inc. | $ | 100.00 | $ | 129.40 | $ | 74.67 | $ | 107.53 | $ | 126.49 | $ | 185.72 | |||||||||||||||||||||||
NYSE Composite | 100.00 | 118.73 | 108.10 | 135.68 | 145.16 | 175.18 | |||||||||||||||||||||||||||||
NASDAQ Trucking & Transportation | 100.00 | 123.35 | 110.84 | 133.75 | 137.58 | 165.72 |
ITEM 6. | RESERVED |
December 31, | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
Knight-Swift Transportation Holdings Inc. | $ | 100.00 | $ | 48.27 | $ | 85.09 | $ | 110.10 | $ | 63.53 | $ | 91.49 | |||||||||||
NYSE Composite | 100.00 | 95.91 | 107.36 | 127.46 | 116.06 | 145.66 | |||||||||||||||||
NASDAQ Trucking & Transportation | 100.00 | 86.61 | 104.22 | 128.89 | 117.83 | 137.84 |
Consolidated statement of comprehensive income GAAP data ¹: | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Total revenue | $ | 4,843,950 | $ | 5,344,066 | $ | 2,425,453 | $ | 1,118,034 | $ | 1,182,964 | |||||||||
Total operating expenses | 4,416,512 | 4,775,023 | 2,224,823 | 969,555 | 1,004,964 | ||||||||||||||
Operating income | 427,438 | 569,043 | 200,630 | 148,479 | 178,000 | ||||||||||||||
Interest income and other income | 15,971 | 13,165 | 1,765 | 5,248 | 9,502 | ||||||||||||||
Interest expense | (29,433 | ) | (30,170 | ) | (8,686 | ) | (897 | ) | (998 | ) | |||||||||
Income before income taxes | 413,976 | 552,038 | 193,709 | 152,830 | 186,504 | ||||||||||||||
Net income | 310,178 | 420,649 | 485,425 | 95,238 | 118,457 | ||||||||||||||
Net income attributable to Knight-Swift | 309,206 | 419,264 | 484,292 | 93,863 | 116,718 | ||||||||||||||
Basic earnings per share | 1.80 | 2.37 | 4.38 | 1.17 | 1.43 | ||||||||||||||
Earnings per diluted share | 1.80 | 2.36 | 4.34 | 1.16 | 1.42 | ||||||||||||||
Cash dividend per share of common stock | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | ||||||||||||||
Operating ratio ² | 91.2 | % | 89.4 | % | 91.7 | % | 86.7 | % | 85.0 | % |
December 31, | |||||||||||||||||||
Consolidated balance sheet GAAP data ¹: | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Working capital (deficit) surplus ³ | $ | (103,010 | ) | $ | 292,669 | $ | 313,657 | $ | 111,541 | $ | 164,090 | ||||||||
Total assets | 8,281,732 | 7,911,885 | 7,683,442 | 1,078,525 | 1,120,232 | ||||||||||||||
Total debt 4 | 918,796 | 929,116 | 970,905 | 18,000 | 112,000 | ||||||||||||||
Total Knight-Swift stockholders' equity | 5,666,215 | 5,460,949 | 5,237,732 | 786,473 | 738,398 |
Non-GAAP financial data (unaudited) ¹: | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Adjusted Net Income Attributable to Knight-Swift 5 | $ | 373,082 | $ | 456,070 | $ | 154,565 | $ | 95,373 | $ | 121,113 | |||||||||
Adjusted EPS 5 | 2.17 | 2.56 | 1.38 | 1.17 | 1.47 | ||||||||||||||
Adjusted Operating Ratio 5 (recast) | 88.4 | % | 87.2 | % | 88.4 | % | 85.3 | % | 82.6 | % |
Operating data (unaudited) 1 6: | 2019 | 2018 (recast) | 2017 (recast) | 2016 | 2015 | ||||||||||||||
Average revenue per tractor | $ | 185,628 | $ | 196,064 | $ | 184,907 | $ | 172,185 | $ | 173,329 | |||||||||
Average length of haul (miles) | 430 | 421 | 441 | 498 | 503 | ||||||||||||||
Non-paid empty miles percentage | 12.8 | % | 12.8 | % | 12.6 | % | 12.5 | % | 12.0 | % | |||||||||
Average tractors (Trucking segment only) | 18,877 | 19,155 | 20,138 | 4,706 | 4,793 | ||||||||||||||
Average trailers | 58,315 | 61,723 | 64,641 | 12,288 | 11,789 | ||||||||||||||
Average containers | 9,862 | 9,330 | 9,122 | — | — |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Executive Summary |
2019 | 2018 | 2017 | |||||||||
GAAP Financial data: | (Dollars in thousands, except per share data) | ||||||||||
Total revenue | $ | 4,843,950 | $ | 5,344,066 | $ | 2,425,453 | |||||
Revenue, excluding trucking fuel surcharge | $ | 4,395,332 | $ | 4,809,668 | $ | 2,199,483 | |||||
Net income attributable to Knight-Swift | $ | 309,206 | $ | 419,264 | $ | 484,292 | |||||
Diluted EPS | $ | 1.80 | $ | 2.36 | $ | 4.34 | |||||
Operating ratio | 91.2 | % | 89.4 | % | 91.7 | % | |||||
Non-GAAP financial data: | |||||||||||
Adjusted Net Income Attributable to Knight-Swift ¹ | $ | 373,082 | $ | 456,070 | $ | 154,565 | |||||
Adjusted EPS ¹ | $ | 2.17 | $ | 2.56 | $ | 1.38 | |||||
Adjusted Operating Ratio (2017 and 2018 Recast) ¹ | 88.4 | % | 87.2 | % | 88.4 | % | |||||
Revenue equipment: ² | |||||||||||
Average tractors (Trucking segment only) ³ | 18,877 | 19,155 | 20,138 | ||||||||
Average trailers 4 | 58,315 | 61,723 | 64,641 | ||||||||
Average containers | 9,862 | 9,330 | 9,122 |
2021 | 2020 | ||||||||||||||||
GAAP financial data: | (Dollars in thousands, except per share data) | ||||||||||||||||
Total revenue | $ | 5,998,019 | $ | 4,673,863 | |||||||||||||
Revenue, excluding truckload and LTL fuel surcharge | $ | 5,531,890 | $ | 4,369,207 | |||||||||||||
Net income attributable to Knight-Swift | $ | 743,388 | $ | 410,002 | |||||||||||||
Diluted EPS | $ | 4.45 | $ | 2.40 | |||||||||||||
Operating ratio | 83.9 | % | 87.9 | % | |||||||||||||
Non-GAAP financial data: | |||||||||||||||||
Adjusted Net Income Attributable to Knight-Swift 1 | $ | 788,181 | $ | 466,147 | |||||||||||||
Adjusted EPS 1 | $ | 4.72 | $ | 2.73 | |||||||||||||
Adjusted Operating Ratio 1 | 81.5 | % | 85.3 | % | |||||||||||||
Revenue equipment statistics by segment: 2 | |||||||||||||||||
Truckload | |||||||||||||||||
Average tractors 3 | 18,019 | 18,448 | |||||||||||||||
Average trailers 4 | 67,606 | 57,722 | |||||||||||||||
LTL | |||||||||||||||||
Average tractors 5 | 2,735 | N/A | |||||||||||||||
Average trailers 6 | 7,413 | N/A | |||||||||||||||
Intermodal | |||||||||||||||||
Average containers | 10,847 | 10,604 |
•Contributor — $205.9 million increase in operating income within our Truckload segment driven by a 21.1% increase in revenue per loaded mile, excluding fuel surcharge and intersegment transactions, partially offset by a 10.3% decrease in total miles per tractor. |
Results of Operations — Segment Review |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Revenue: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Truckload | $ | 4,098,005 | 68.3 | % | $ | 3,786,030 | 81.0 | % | |||||||||||||||||||||||||||
Logistics | $ | 817,003 | 13.6 | % | $ | 375,841 | 8.0 | % | |||||||||||||||||||||||||||
LTL | $ | 396,308 | 6.6 | % | $ | — | — | % | |||||||||||||||||||||||||||
Intermodal | $ | 458,867 | 7.7 | % | $ | 391,462 | 8.4 | % | |||||||||||||||||||||||||||
Subtotal | $ | 5,770,183 | 96.2 | % | $ | 4,553,333 | 97.4 | % | |||||||||||||||||||||||||||
Non-reportable segments | $ | 306,414 | 5.1 | % | $ | 188,882 | 4.0 | % | |||||||||||||||||||||||||||
Intersegment eliminations | $ | (78,578) | (1.3 | %) | $ | (68,352) | (1.4 | %) | |||||||||||||||||||||||||||
Total revenue | $ | 5,998,019 | 100.0 | % | $ | 4,673,863 | 100.0 | % | |||||||||||||||||||||||||||
2019 | 2018 (recast) | 2017 (recast) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trucking | $ | 3,952,866 | 81.6 | % | $ | 4,290,254 | 80.3 | % | $ | 1,970,326 | 81.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss): | Operating income (loss): | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Truckload | Truckload | $ | 784,436 | 81.2 | % | $ | 578,512 | 102.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Logistics | $ | 352,988 | 7.3 | % | $ | 436,044 | 8.2 | % | $ | 235,925 | 9.7 | % | Logistics | $ | 93,920 | 9.7 | % | $ | 20,245 | 3.6 | % | ||||||||||||||||||||||||||||||||||
LTL | LTL | $ | 31,169 | 3.2 | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
Intermodal | $ | 455,466 | 9.4 | % | $ | 498,821 | 9.3 | % | $ | 150,326 | 6.2 | % | Intermodal | $ | 42,060 | 4.4 | % | $ | (943) | (0.2 | %) | ||||||||||||||||||||||||||||||||||
Subtotal | $ | 4,761,320 | 98.3 | % | $ | 5,225,119 | 97.8 | % | $ | 2,356,577 | 97.1 | % | Subtotal | $ | 951,585 | 98.5 | % | $ | 597,814 | 105.9 | % | ||||||||||||||||||||||||||||||||||
Non-reportable segments | $ | 130,782 | 2.7 | % | $ | 184,140 | 3.4 | % | $ | 93,875 | 3.9 | % | Non-reportable segments | $ | 14,112 | 1.5 | % | $ | (33,376) | (5.9 | %) | ||||||||||||||||||||||||||||||||||
Intersegment eliminations | $ | (48,152 | ) | (1.0 | %) | $ | (65,193 | ) | (1.2 | %) | $ | (24,999 | ) | (1.0 | %) | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 4,843,950 | 100.0 | % | $ | 5,344,066 | 100.0 | % | $ | 2,425,453 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | $ | 965,697 | 100.0 | % | $ | 564,438 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 (recast) | 2017 (recast) | ||||||||||||||||||
Operating income (loss): | (Dollars in thousands) | |||||||||||||||||||
Trucking ¹ | $ | 468,749 | 109.7 | % | $ | 550,818 | 96.8 | % | $ | 203,258 | 101.3 | % | ||||||||
Logistics | $ | 21,869 | 5.1 | % | $ | 31,991 | 5.6 | % | $ | 15,168 | 7.6 | % | ||||||||
Intermodal | $ | 4,501 | 1.1 | % | $ | 31,272 | 5.5 | % | $ | 7,041 | 3.5 | % | ||||||||
Subtotal | $ | 495,119 | 115.9 | % | $ | 614,081 | 107.9 | % | $ | 225,467 | 112.4 | % | ||||||||
Non-reportable segments | $ | (67,681 | ) | (15.9 | %) | $ | (45,038 | ) | (7.9 | %) | $ | (24,837 | ) | (12.4 | %) | |||||
Operating income | $ | 427,438 | 100.0 | % | $ | 569,043 | 100.0 | % | $ | 200,630 | 100.0 | % | ||||||||
Operating Statistic | Relevant Segment(s) | Description | ||||||||||||
Average Revenue per Tractor | Measures productivity and represents revenue (excluding fuel surcharge and intersegment transactions) divided by average tractor count | |||||||||||||
Total Miles per Tractor | Total miles (including loaded and empty miles) a tractor travels on average | |||||||||||||
Average Length of Haul | Average | |||||||||||||
Non-paid Empty Miles Percentage | Percentage of miles without trailer cargo | |||||||||||||
Shipments per Day | LTL | Average number of shipments completed each business day | ||||||||||||
Weight per Shipment | LTL | Total weight (in pounds) divided by total shipments | ||||||||||||
Revenue per shipment | LTL | Total revenue divided by total shipments | ||||||||||||
Revenue xFSR per shipment | LTL | Total revenue, excluding fuel surcharge, divided by total shipments | ||||||||||||
Revenue per hundredweight | LTL | Measures yield and is calculated as total revenue divided by total weight (in pounds) times 100 | ||||||||||||
Revenue xFSR per hundredweight | LTL | Total revenue, excluding fuel surcharge, divided by total weight (in pounds) times 100 | ||||||||||||
Average Tractors | Average tractors in operation during the period, including company tractors and tractors provided by independent | |||||||||||||
Average Trailers | Average trailers in operation during the period | |||||||||||||
Average Revenue per Load | Logistics, Intermodal | Total revenue (excluding intersegment transactions) divided by load count | ||||||||||||
Gross Margin Percentage | Logistics | |||||||||||||
Average Containers | Intermodal | Average containers in operation during the period | ||||||||||||
GAAP Operating Ratio | Measures operating efficiency and is widely used in our industry as an assessment of management's effectiveness in controlling all categories of operating expenses. Calculated as operating expenses as a percentage of total revenue, or the inverse of operating | |||||||||||||
Non-GAAP: Adjusted Operating Ratio | Measures operating efficiency and is widely used in our industry as an assessment of management's effectiveness in controlling all categories of operating expenses. Consolidated and segment Adjusted Operating Ratios are reconciled to their corresponding GAAP operating ratios under "Non-GAAP Financial Measures," |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per tractor data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 4,098,005 | $ | 3,786,030 | 8.2 | % | |||||||||||||||||||||||
Revenue, excluding fuel surcharge and intersegment transactions | $ | 3,681,271 | $ | 3,480,621 | 5.8 | % | |||||||||||||||||||||||
GAAP: Operating income | $ | 784,436 | $ | 578,512 | 35.6 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 | $ | 785,772 | $ | 593,085 | 32.5 | % | |||||||||||||||||||||||
Average revenue per tractor 2 | $ | 204,299 | $ | 188,672 | 8.3 | % | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 80.9 | % | 84.7 | % | (380 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 78.7 | % | 83.0 | % | (430 | bps) | |||||||||||||||||||||||
Non-paid empty miles percentage 2 | 13.4 | % | 13.1 | % | 30 | bps | |||||||||||||||||||||||
Average length of haul (miles) 2 | 403 | 425 | (5.2 | %) | |||||||||||||||||||||||||
Total miles per tractor 2 | 81,629 | 90,993 | (10.3 | %) | |||||||||||||||||||||||||
Average tractors 2 3 | 18,019 | 18,448 | (2.3 | %) | |||||||||||||||||||||||||
Average trailers 2 4 | 67,606 | 57,722 | 17.1 | % |
2019 | 2018 (recast) | 2017 (recast) | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||
(Dollars in thousands, except per tractor data) | Increase (decrease) | ||||||||||||||||
Total revenue | $ | 3,952,866 | $ | 4,290,254 | $ | 1,970,326 | (7.9 | %) | 117.7 | % | |||||||
Revenue, excluding fuel surcharge and intersegment transactions | $ | 3,504,091 | $ | 3,755,614 | $ | 1,744,227 | (6.7 | %) | 115.3 | % | |||||||
GAAP: Operating income | $ | 468,749 | $ | 550,818 | $ | 203,258 | (14.9 | %) | 171.0 | % | |||||||
Non-GAAP: Adjusted Operating Income ¹ | $ | 472,537 | $ | 553,667 | $ | 228,270 | (14.7 | %) | 142.5 | % | |||||||
Average revenue per tractor ² | $ | 185,628 | $ | 196,064 | $ | 184,907 | (5.3 | %) | 6.0 | % | |||||||
GAAP: Operating ratio ² | 88.1 | % | 87.2 | % | 89.7 | % | 90 | bps | (250 | bps) | |||||||
Non-GAAP: Adjusted Operating Ratio ¹ ² | 86.5 | % | 85.3 | % | 86.9 | % | 120 | bps | (160 | bps) | |||||||
Non-paid empty miles percentage ² | 12.8 | % | 12.8 | % | 12.6 | % | — | 20 | bps | ||||||||
Average length of haul (miles) ² | 430 | 421 | 441 | 2.1 | % | (4.5 | %) | ||||||||||
Total miles per tractor ² | 92,363 | 98,448 | 100,731 | (6.2 | %) | (2.3 | %) | ||||||||||
Average tractors ² ³ | 18,877 | 19,155 | 20,138 | (1.5 | %) | (4.9 | %) | ||||||||||
Average trailers ² | 58,315 | 61,723 | 64,641 | (5.5 | %) | (4.5 | %) |
1Refer to "Non-GAAP Financial Measures" below. |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 817,003 | $ | 375,841 | 117.4 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 798,689 | $ | 365,099 | 118.8 | % | |||||||||||||||||||||||
GAAP: Operating income | $ | 93,920 | $ | 20,245 | 363.9 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 2 | $ | 94,685 | $ | 20,245 | 367.7 | % | |||||||||||||||||||||||
Revenue per load 2 | $ | 2,439 | $ | 1,689 | 44.4 | % | |||||||||||||||||||||||
Gross margin percentage 2 | 18.1 | % | 14.5 | % | 360 | bps | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 88.5 | % | 94.6 | % | (610 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.1 | % | 94.5 | % | (640 | bps) |
2019 | 2018 (recast) | 2017 (recast) | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||
Total revenue | $ | 352,988 | $ | 436,044 | $ | 235,925 | (19.0 | %) | 84.8 | % | |||||||
Revenue, excluding intersegment transactions | $ | 343,883 | $ | 426,670 | $ | 228,110 | (19.4 | %) | 87.0 | % | |||||||
GAAP: Operating income | $ | 21,869 | $ | 31,991 | $ | 15,168 | (31.6 | %) | 110.9 | % | |||||||
Non-GAAP: Adjusted Operating Income ¹ ² | $ | 22,490 | $ | 32,785 | $ | 15,168 | (31.4 | %) | 116.1 | % | |||||||
Revenue per load – Brokerage only ² | $ | 1,425 | $ | 1,578 | $ | 1,418 | (9.7 | %) | 11.3 | % | |||||||
Gross margin percentage – Brokerage only ² | 15.9 | % | 15.8 | % | 15.5 | % | 10 | bps | 30 | bps | |||||||
GAAP: Operating ratio ² | 93.8 | % | 92.7 | % | 93.6 | % | 110 | bps | (90 | bps) | |||||||
Non-GAAP: Adjusted Operating Ratio ¹ ² | 93.5 | % | 92.3 | % | 93.4 | % | 120 | bps | (110 | bps) |
2021 | |||||||||||||||||||||||
(Dollars in thousands, except per shipment and per hundredweight data) | |||||||||||||||||||||||
Total revenue | $ | 396,308 | |||||||||||||||||||||
Revenue, excluding fuel surcharge | $ | 345,785 | |||||||||||||||||||||
GAAP: Operating income | $ | 31,169 | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 | $ | 38,293 | |||||||||||||||||||||
GAAP: Operating ratio 2 | 92.1 | % | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.9 | % | |||||||||||||||||||||
Shipments per day 2 | 16,438 | ||||||||||||||||||||||
Weight per shipment 2 | 1,111 | ||||||||||||||||||||||
Average length of haul (miles) 2 | 518 | ||||||||||||||||||||||
Revenue per shipment 2 | $ | 161.66 | |||||||||||||||||||||
Revenue xFSR per shipment 2 | $ | 141.57 | |||||||||||||||||||||
Revenue per hundredweight 2 | $ | 14.55 | |||||||||||||||||||||
Revenue xFSR per hundredweight 2 | $ | 12.75 | |||||||||||||||||||||
Average tractors 2 3 | 2,735 | ||||||||||||||||||||||
Average trailers 2 4 | 7,413 |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 458,867 | $ | 391,462 | 17.2 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 458,583 | $ | 391,098 | 17.3 | % | |||||||||||||||||||||||
GAAP: Operating income (loss) | $ | 42,060 | $ | (943) | 4,560.2 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income (Loss) 1 2 | $ | 42,060 | $ | (830) | 5,167.5 | % | |||||||||||||||||||||||
Average revenue per load 2 | $ | 2,852 | $ | 2,342 | 21.8 | % | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Load count | 160,774 | 166,977 | (3.7 | %) | |||||||||||||||||||||||||
Average tractors 2 3 | 597 | 577 | 3.5 | % | |||||||||||||||||||||||||
Average containers 2 | 10,847 | 10,604 | 2.3 | % |
2019 | 2018 (recast) | 2017 (recast) | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||
Total revenue | $ | 455,466 | $ | 498,821 | $ | 150,326 | (8.7 | %) | 231.8 | % | |||||||
Revenue, excluding intersegment transactions | $ | 453,978 | $ | 497,598 | $ | 149,906 | (8.8 | %) | 231.9 | % | |||||||
GAAP: Operating income | $ | 4,501 | $ | 31,272 | $ | 7,041 | (85.6 | %) | 344.1 | % | |||||||
Non-GAAP: Adjusted Operating Income ¹ ² | $ | 4,501 | $ | 31,317 | $ | 7,041 | (85.6 | %) | 344.8 | % | |||||||
Average revenue per load ² | $ | 2,426 | $ | 2,438 | $ | 2,158 | (0.5 | %) | 13.0 | % | |||||||
GAAP: Operating ratio ² | 99.0 | % | 93.7 | % | 95.3 | % | 530 | bps | (160 | bps) | |||||||
Non-GAAP: Adjusted Operating Ratio ¹ ² | 99.0 | % | 93.7 | % | 95.3 | % | 530 | bps | (160 | bps) | |||||||
Load count | 187,131 | 204,103 | 69,479 | (8.3 | %) | 193.8 | % | ||||||||||
Average tractors ² ³ | 643 | 640 | 531 | 0.5 | % | 20.5 | % | ||||||||||
Average containers ² | 9,862 | 9,330 | 9,122 | 5.7 | % | 2.3 | % |
1Refer to "Non-GAAP Financial Measures" below. |
2019 | 2018 (recast) | 2017 (recast) | 2019 vs. 2018 | 2018 vs. 2017 | ||||||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||||||||
Total revenue | $ | 130,782 | $ | 184,140 | $ | 93,875 | (29.0 | %) | 96.2 | |||||||
Operating loss | $ | (67,681 | ) | $ | (45,038 | ) | $ | (24,837 | ) | 50.3 | % | 81.3 |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Salaries, wages, and benefits | $ | 1,474,073 | $ | 1,495,126 | (1.4 | %) | ||||
% of total revenue | 30.4 | % | 28.0 | % | 240 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 33.5 | % | 31.1 | % | 240 | bps |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 817,003 | $ | 375,841 | 117.4 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 798,689 | $ | 365,099 | 118.8 | % | |||||||||||||||||||||||
GAAP: Operating income | $ | 93,920 | $ | 20,245 | 363.9 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 2 | $ | 94,685 | $ | 20,245 | 367.7 | % | |||||||||||||||||||||||
Revenue per load 2 | $ | 2,439 | $ | 1,689 | 44.4 | % | |||||||||||||||||||||||
Gross margin percentage 2 | 18.1 | % | 14.5 | % | 360 | bps | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 88.5 | % | 94.6 | % | (610 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.1 | % | 94.5 | % | (640 | bps) |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Fuel | $ | 583,123 | $ | 621,997 | (6.2 | %) | ||||
% of total revenue | 12.0 | % | 11.6 | % | 40 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 13.3 | % | 12.9 | % | 40 | bps |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Operations and maintenance | $ | 322,188 | $ | 340,627 | (5.4 | %) | ||||
% of total revenue | 6.7 | % | 6.4 | % | 30 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 7.3 | % | 7.1 | % | 20 | bps |
2021 | |||||||||||||||||||||||
(Dollars in thousands, except per shipment and per hundredweight data) | |||||||||||||||||||||||
Total revenue | $ | 396,308 | |||||||||||||||||||||
Revenue, excluding fuel surcharge | $ | 345,785 | |||||||||||||||||||||
GAAP: Operating income | $ | 31,169 | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 | $ | 38,293 | |||||||||||||||||||||
GAAP: Operating ratio 2 | 92.1 | % | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.9 | % | |||||||||||||||||||||
Shipments per day 2 | 16,438 | ||||||||||||||||||||||
Weight per shipment 2 | 1,111 | ||||||||||||||||||||||
Average length of haul (miles) 2 | 518 | ||||||||||||||||||||||
Revenue per shipment 2 | $ | 161.66 | |||||||||||||||||||||
Revenue xFSR per shipment 2 | $ | 141.57 | |||||||||||||||||||||
Revenue per hundredweight 2 | $ | 14.55 | |||||||||||||||||||||
Revenue xFSR per hundredweight 2 | $ | 12.75 | |||||||||||||||||||||
Average tractors 2 3 | 2,735 | ||||||||||||||||||||||
Average trailers 2 4 | 7,413 |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Insurance and claims | $ | 194,336 | $ | 215,362 | (9.8 | %) | ||||
% of total revenue | 4.0 | % | 4.0 | % | — | |||||
% of revenue, excluding trucking fuel surcharge | 4.4 | % | 4.5 | % | (10 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 458,867 | $ | 391,462 | 17.2 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 458,583 | $ | 391,098 | 17.3 | % | |||||||||||||||||||||||
GAAP: Operating income (loss) | $ | 42,060 | $ | (943) | 4,560.2 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income (Loss) 1 2 | $ | 42,060 | $ | (830) | 5,167.5 | % | |||||||||||||||||||||||
Average revenue per load 2 | $ | 2,852 | $ | 2,342 | 21.8 | % | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Load count | 160,774 | 166,977 | (3.7 | %) | |||||||||||||||||||||||||
Average tractors 2 3 | 597 | 577 | 3.5 | % | |||||||||||||||||||||||||
Average containers 2 | 10,847 | 10,604 | 2.3 | % |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Operating taxes and licenses | $ | 88,481 | $ | 90,778 | (2.5 | %) | ||||
% of total revenue | 1.8 | % | 1.7 | % | 10 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 2.0 | % | 1.9 | % | 10 | bps |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Communications | $ | 19,520 | $ | 20,911 | (6.7 | %) | ||||
% of total revenue | 0.4 | % | 0.4 | % | — | |||||
% of revenue, excluding trucking fuel surcharge | 0.4 | % | 0.4 | % | — |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Depreciation and amortization of property and equipment | $ | 420,082 | $ | 387,505 | 8.4 | % | ||||
% of total revenue | 8.7 | % | 7.3 | % | 140 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 9.6 | % | 8.1 | % | 150 | bps |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Amortization of intangibles | $ | 42,876 | $ | 42,584 | 0.7 | % | ||||
% of total revenue | 0.9 | % | 0.8 | % | 10 | bps | ||||
% of revenue, excluding trucking fuel surcharge | 1.0 | % | 0.9 | % | 10 | bps |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Rental expense | $ | 122,738 | $ | 177,406 | (30.8 | %) | ||||
% of total revenue | 2.5 | % | 3.3 | % | (80 | bps) | ||||
% of revenue, excluding trucking fuel surcharge | 2.8 | % | 3.7 | % | (90 | bps) |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Purchased transportation | $ | 1,035,969 | $ | 1,318,303 | (21.4 | %) | ||||
% of total revenue | 21.4 | % | 24.7 | % | (330 | bps) | ||||
% of revenue, excluding trucking fuel surcharge | 23.6 | % | 27.4 | % | (380 | bps) |
2019 | 2018 | 2019 vs. 2018 | |||||||
(Dollars in thousands) | Increase (decrease) | ||||||||
Impairments | $ | 3,486 | $ | 2,798 | 24.6 |
2019 | 2018 | 2019 vs. 2018 | |||||||
(Dollars in thousands) | Increase (decrease) | ||||||||
Miscellaneous operating expenses | $ | 109,640 | $ | 61,626 | 77.9 |
2019 | 2018 | 2019 vs. 2018 | ||||||||
(Dollars in thousands) | Increase (decrease) | |||||||||
Interest income | $ | (3,834 | ) | $ | (3,200 | ) | 19.8 | % | ||
Interest expense | $ | 29,433 | $ | 30,170 | (2.4 | %) | ||||
Other income, net | $ | (12,137 | ) | $ | (9,965 | ) | 21.8 | % | ||
Income tax expense | $ | 103,798 | $ | 131,389 | (21.0 | %) |
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
GAAP: Net income attributable to Knight-Swift | $ | 309,206 | $ | 419,264 | $ | 484,292 | $ | 93,863 | $ | 116,718 | |||||||||
Adjusted for: | |||||||||||||||||||
Income tax expense (benefit) attributable to Knight-Swift | 103,798 | 131,389 | (291,716 | ) | 57,592 | 68,047 | |||||||||||||
Income before income taxes attributable to Knight-Swift | 413,004 | 550,653 | 192,576 | 151,455 | 184,765 | ||||||||||||||
Amortization of intangibles ¹ | 42,876 | 42,584 | 12,872 | — | — | ||||||||||||||
Impairments ² | 3,486 | 2,798 | 16,844 | — | — | ||||||||||||||
Legal accruals ³ | 35,840 | 1,000 | 1,900 | 2,450 | 7,163 | ||||||||||||||
Other merger-related operating expenses 4 | — | — | 6,596 | — | — | ||||||||||||||
Merger-related costs 5 | — | — | 16,516 | — | — | ||||||||||||||
Severance expense 6 | — | 1,958 | — | — | — | ||||||||||||||
Adjusted income before income taxes | 495,206 | 598,993 | 247,304 | 153,905 | 191,928 | ||||||||||||||
Provision for income tax expense at effective rate 7 | (122,124 | ) | (142,923 | ) | (92,739 | ) | (58,532 | ) | (70,815 | ) | |||||||||
Non-GAAP: Adjusted Net Income Attributable to Knight-Swift | $ | 373,082 | $ | 456,070 | $ | 154,565 | $ | 95,373 | $ | 121,113 | |||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
GAAP: Earnings per diluted share | $ | 1.80 | $ | 2.36 | $ | 4.34 | $ | 1.16 | $ | 1.42 | |||||||||
Adjusted for: | |||||||||||||||||||
Income tax expense (benefit) attributable to Knight-Swift | 0.60 | 0.74 | (2.61 | ) | 0.71 | 0.83 | |||||||||||||
Income before income taxes attributable to Knight-Swift | 2.40 | 3.09 | 1.72 | 1.86 | 2.24 | ||||||||||||||
Amortization of intangibles ¹ | 0.25 | 0.24 | 0.12 | — | — | ||||||||||||||
Impairments ² | 0.02 | 0.02 | 0.15 | — | — | ||||||||||||||
Legal accruals ³ | 0.21 | 0.01 | 0.02 | 0.03 | 0.09 | ||||||||||||||
Other merger-related operating expenses 4 | — | — | 0.06 | — | — | ||||||||||||||
Merger-related costs 5 | — | — | 0.15 | — | — | ||||||||||||||
Severance expense 6 | — | 0.01 | — | — | — | ||||||||||||||
Adjusted income before income taxes | 2.88 | 3.37 | 2.21 | 1.89 | 2.33 | ||||||||||||||
Provision for income tax expense at effective rate 7 | (0.71 | ) | (0.80 | ) | (0.83 | ) | (0.72 | ) | (0.86 | ) | |||||||||
Non-GAAP: Adjusted EPS | $ | 2.17 | $ | 2.56 | $ | 1.38 | $ | 1.17 | $ | 1.47 | |||||||||
2019 | 2018 (recast) | 2017 (recast) | 2016 | 2015 | |||||||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||||||||||
Total revenue | $ | 4,843,950 | $ | 5,344,066 | $ | 2,425,453 | $ | 1,118,034 | $ | 1,182,964 | |||||||||
Total operating expenses | (4,416,512 | ) | (4,775,023 | ) | (2,224,823 | ) | (969,555 | ) | (1,004,964 | ) | |||||||||
Operating income | $ | 427,438 | $ | 569,043 | $ | 200,630 | $ | 148,479 | $ | 178,000 | |||||||||
Operating ratio | 91.2 | % | 89.4 | % | 91.7 | % | 86.7 | % | 85.0 | % | |||||||||
Non-GAAP Presentation | |||||||||||||||||||
Total revenue | $ | 4,843,950 | $ | 5,344,066 | $ | 2,425,453 | $ | 1,118,034 | $ | 1,182,964 | |||||||||
Trucking fuel surcharge | (448,618 | ) | (534,398 | ) | (225,970 | ) | (89,886 | ) | (121,225 | ) | |||||||||
Revenue, excluding trucking fuel surcharge | 4,395,332 | 4,809,668 | 2,199,483 | 1,028,148 | 1,061,739 | ||||||||||||||
Total operating expenses | 4,416,512 | 4,775,023 | 2,224,823 | 969,555 | 1,004,964 | ||||||||||||||
Adjusted for: | |||||||||||||||||||
Trucking fuel surcharge | (448,618 | ) | (534,398 | ) | (225,970 | ) | (89,886 | ) | (121,225 | ) | |||||||||
Amortization of intangibles ¹ | (42,876 | ) | (42,584 | ) | (12,872 | ) | — | — | |||||||||||
Impairments ² | (3,486 | ) | (2,798 | ) | (16,844 | ) | — | — | |||||||||||
Legal accruals ³ | (35,840 | ) | (1,000 | ) | (1,900 | ) | (2,450 | ) | (7,163 | ) | |||||||||
Other merger-related operating expenses 4 | — | — | (6,596 | ) | — | — | |||||||||||||
Merger-related costs 5 | — | — | (16,516 | ) | — | — | |||||||||||||
Severance expense 6 | — | (1,958 | ) | — | — | — | |||||||||||||
Adjusted Operating Expenses | 3,885,692 | 4,192,285 | 1,944,125 | 877,219 | 876,576 | ||||||||||||||
Adjusted Operating Income | $ | 509,640 | $ | 617,383 | $ | 255,358 | $ | 150,929 | $ | 185,163 | |||||||||
Adjusted Operating Ratio | 88.4 | % | 87.2 | % | 88.4 | % | 85.3 | % | 82.6 | % |
2019 | 2018 (recast) | 2017 (recast) | |||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||
Total revenue | $ | 3,952,866 | $ | 4,290,254 | $ | 1,970,326 | |||||
Total operating expenses | (3,484,117 | ) | (3,739,436 | ) | (1,767,068 | ) | |||||
Operating income | $ | 468,749 | $ | 550,818 | $ | 203,258 | |||||
Operating ratio | 88.1 | % | 87.2 | % | 89.7 | % | |||||
Non-GAAP Presentation | |||||||||||
Total revenue | $ | 3,952,866 | $ | 4,290,254 | $ | 1,970,326 | |||||
Fuel surcharge | (448,618 | ) | (534,398 | ) | (225,970 | ) | |||||
Intersegment transactions | (157 | ) | (242 | ) | (129 | ) | |||||
Revenue, excluding fuel surcharge and intersegment transactions | 3,504,091 | 3,755,614 | 1,744,227 | ||||||||
Total operating expenses | 3,484,117 | 3,739,436 | 1,767,068 | ||||||||
Adjusted for: | |||||||||||
Fuel surcharge | (448,618 | ) | (534,398 | ) | (225,970 | ) | |||||
Intersegment transactions | (157 | ) | (242 | ) | (129 | ) | |||||
Amortization of intangibles ¹ | (1,371 | ) | (1,209 | ) | — | ||||||
Impairments ² | (2,417 | ) | (1,640 | ) | — | ||||||
Legal accruals ³ | — | — | (1,900 | ) | |||||||
Other merger-related operating expenses 4 | — | — | (6,596 | ) | |||||||
Merger-related costs 5 | — | — | (16,516 | ) | |||||||
Adjusted Operating Expenses | 3,031,554 | 3,201,947 | 1,515,957 | ||||||||
Adjusted Operating Income | $ | 472,537 | $ | 553,667 | $ | 228,270 | |||||
Adjusted Operating Ratio | 86.5 | % | 85.3 | % | 86.9 | % |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 817,003 | $ | 375,841 | 117.4 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 798,689 | $ | 365,099 | 118.8 | % | |||||||||||||||||||||||
GAAP: Operating income | $ | 93,920 | $ | 20,245 | 363.9 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 2 | $ | 94,685 | $ | 20,245 | 367.7 | % | |||||||||||||||||||||||
Revenue per load 2 | $ | 2,439 | $ | 1,689 | 44.4 | % | |||||||||||||||||||||||
Gross margin percentage 2 | 18.1 | % | 14.5 | % | 360 | bps | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 88.5 | % | 94.6 | % | (610 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.1 | % | 94.5 | % | (640 | bps) |
2019 | 2018 (recast) | 2017 (recast) | |||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||
Total revenue | $ | 352,988 | $ | 436,044 | $ | 235,925 | |||||
Total operating expenses | (331,119 | ) | (404,053 | ) | (220,757 | ) | |||||
Operating income | $ | 21,869 | $ | 31,991 | $ | 15,168 | |||||
Operating ratio | 93.8 | % | 92.7 | % | 93.6 | % | |||||
Non-GAAP Presentation | |||||||||||
Total revenue | $ | 352,988 | $ | 436,044 | $ | 235,925 | |||||
Intersegment transactions | (9,105 | ) | (9,374 | ) | (7,815 | ) | |||||
Revenue, excluding intersegment transactions | 343,883 | 426,670 | 228,110 | ||||||||
Total operating expenses | 331,119 | 404,053 | 220,757 | ||||||||
Adjusted for: | |||||||||||
Intersegment transactions | (9,105 | ) | (9,374 | ) | (7,815 | ) | |||||
Impairments ¹ | (621 | ) | (794 | ) | — | ||||||
Adjusted Operating Expenses | 321,393 | 393,885 | 212,942 | ||||||||
Adjusted Operating Income | $ | 22,490 | $ | 32,785 | $ | 15,168 | |||||
Adjusted Operating Ratio | 93.5 | % | 92.3 | % | 93.4 | % |
2019 | 2018 (recast) | 2017 (recast) | |||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||
Total revenue | $ | 455,466 | $ | 498,821 | $ | 150,326 | |||||
Total operating expenses | (450,965 | ) | (467,549 | ) | (143,285 | ) | |||||
Operating income | $ | 4,501 | $ | 31,272 | $ | 7,041 | |||||
Operating ratio | 99.0 | % | 93.7 | % | 95.3 | % | |||||
Non-GAAP Presentation | |||||||||||
Total revenue | $ | 455,466 | $ | 498,821 | $ | 150,326 | |||||
Intersegment transactions | (1,488 | ) | (1,223 | ) | (420 | ) | |||||
Revenue, excluding intersegment transactions | 453,978 | 497,598 | 149,906 | ||||||||
Total operating expenses | 450,965 | 467,549 | 143,285 | ||||||||
Adjusted for: | |||||||||||
Intersegment transactions | (1,488 | ) | (1,223 | ) | (420 | ) | |||||
Impairments ¹ | — | (45 | ) | — | |||||||
Adjusted Operating Expenses | 449,477 | 466,281 | 142,865 | ||||||||
Adjusted Operating Income | $ | 4,501 | $ | 31,317 | $ | 7,041 | |||||
Adjusted Operating Ratio | 99.0 | % | 93.7 | % | 95.3 | % |
2021 | |||||||||||||||||||||||
(Dollars in thousands, except per shipment and per hundredweight data) | |||||||||||||||||||||||
Total revenue | $ | 396,308 | |||||||||||||||||||||
Revenue, excluding fuel surcharge | $ | 345,785 | |||||||||||||||||||||
GAAP: Operating income | $ | 31,169 | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Income 1 | $ | 38,293 | |||||||||||||||||||||
GAAP: Operating ratio 2 | 92.1 | % | |||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 88.9 | % | |||||||||||||||||||||
Shipments per day 2 | 16,438 | ||||||||||||||||||||||
Weight per shipment 2 | 1,111 | ||||||||||||||||||||||
Average length of haul (miles) 2 | 518 | ||||||||||||||||||||||
Revenue per shipment 2 | $ | 161.66 | |||||||||||||||||||||
Revenue xFSR per shipment 2 | $ | 141.57 | |||||||||||||||||||||
Revenue per hundredweight 2 | $ | 14.55 | |||||||||||||||||||||
Revenue xFSR per hundredweight 2 | $ | 12.75 | |||||||||||||||||||||
Average tractors 2 3 | 2,735 | ||||||||||||||||||||||
Average trailers 2 4 | 7,413 |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands, except per load data) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 458,867 | $ | 391,462 | 17.2 | % | |||||||||||||||||||||||
Revenue, excluding intersegment transactions | $ | 458,583 | $ | 391,098 | 17.3 | % | |||||||||||||||||||||||
GAAP: Operating income (loss) | $ | 42,060 | $ | (943) | 4,560.2 | % | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Income (Loss) 1 2 | $ | 42,060 | $ | (830) | 5,167.5 | % | |||||||||||||||||||||||
Average revenue per load 2 | $ | 2,852 | $ | 2,342 | 21.8 | % | |||||||||||||||||||||||
GAAP: Operating ratio 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Non-GAAP: Adjusted Operating Ratio 1 2 | 90.8 | % | 100.2 | % | (940 | bps) | |||||||||||||||||||||||
Load count | 160,774 | 166,977 | (3.7 | %) | |||||||||||||||||||||||||
Average tractors 2 3 | 597 | 577 | 3.5 | % | |||||||||||||||||||||||||
Average containers 2 | 10,847 | 10,604 | 2.3 | % |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Total revenue | $ | 306,414 | $ | 188,882 | 62.2 | % | |||||||||||||||||||||||
Operating income (loss) | $ | 14,112 | $ | (33,376) | 142.3 | % |
Results of Operations — Consolidated Operating and Other Expenses |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Salaries, wages, and benefits | $ | 1,771,772 | $ | 1,483,188 | 19.5 | % | |||||||||||||||||||||||
% of total revenue | 29.5 | % | 31.7 | % | (220 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 32.0 | % | 33.9 | % | (190 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Fuel | $ | 546,256 | $ | 416,307 | 31.2 | % | |||||||||||||||||||||||
% of total revenue | 9.1 | % | 8.9 | % | 20 | bps | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 9.9 | % | 9.5 | % | 40 | bps |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Operations and maintenance | $ | 313,505 | $ | 275,290 | 13.9 | % | |||||||||||||||||||||||
% of total revenue | 5.2 | % | 5.9 | % | (70 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 5.7 | % | 6.3 | % | (60 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Insurance and claims | $ | 275,378 | $ | 192,840 | 42.8 | % | |||||||||||||||||||||||
% of total revenue | 4.6 | % | 4.1 | % | 50 | bps | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 5.0 | % | 4.4 | % | 60 | bps |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Operating taxes and licenses | $ | 98,784 | $ | 87,422 | 13.0 | % | |||||||||||||||||||||||
% of total revenue | 1.6 | % | 1.9 | % | (30 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 1.8 | % | 2.0 | % | (20 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Communications | $ | 22,486 | $ | 19,596 | 14.7 | % | |||||||||||||||||||||||
% of total revenue | 0.4 | % | 0.4 | % | — | bps | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 0.4 | % | 0.4 | % | — | bps |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | $ | 522,596 | $ | 460,775 | 13.4 | % | |||||||||||||||||||||||
% of total revenue | 8.7 | % | 9.9 | % | (120 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 9.4 | % | 10.5 | % | (110 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Amortization of intangibles | $ | 55,299 | $ | 45,895 | 20.5 | % | |||||||||||||||||||||||
% of total revenue | 0.9 | % | 1.0 | % | (10 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 1.0 | % | 1.1 | % | (10 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Rental expense | $ | 55,161 | $ | 86,640 | (36.3 | %) | |||||||||||||||||||||||
% of total revenue | 0.9 | % | 1.9 | % | (100 | bps) | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 1.0 | % | 2.0 | % | (100 | bps) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Purchased transportation | $ | 1,320,888 | $ | 936,649 | 41.0 | % | |||||||||||||||||||||||
% of total revenue | 22.0 | % | 20.0 | % | 200 | bps | |||||||||||||||||||||||
% of revenue, excluding truckload and LTL fuel surcharge | 23.9 | % | 21.4 | % | 250 | bps |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Impairments | $ | 299 | $ | 5,335 | (94.4 | %) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Miscellaneous operating expenses | $ | 49,898 | $ | 99,488 | (49.8 | %) |
2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||||||||||||||
Interest income | $ | (1,173) | $ | (1,928) | (39.2 | %) | |||||||||||||||||||||||
Interest expense | $ | 21,140 | $ | 17,309 | 22.1 | % | |||||||||||||||||||||||
Other income, net | $ | (28,905) | $ | (11,254) | 156.8 | % | |||||||||||||||||||||||
Income tax expense | $ | 230,887 | $ | 149,676 | 54.3 | % |
Non-GAAP Financial Measures |
2021 | 2020 | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
GAAP: Net income attributable to Knight-Swift | $ | 743,388 | $ | 410,002 | |||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Income tax expense attributable to Knight-Swift | 230,887 | 149,676 | |||||||||||||||||||||||||||
Income before income taxes attributable to Knight-Swift | 974,275 | 559,678 | |||||||||||||||||||||||||||
Amortization of intangibles 1 | 55,299 | 45,895 | |||||||||||||||||||||||||||
Change in fair value of deferred earnout 2 | — | 6,730 | |||||||||||||||||||||||||||
Impairments 3 | 299 | 5,335 | |||||||||||||||||||||||||||
Legal accruals 4 | (2,481) | 6,160 | |||||||||||||||||||||||||||
COVID-19 incremental costs 5 | — | 12,259 | |||||||||||||||||||||||||||
Transaction fees 6 | 4,445 | — | |||||||||||||||||||||||||||
Write-off of deferred debt issuance costs 7 | 1,024 | — | |||||||||||||||||||||||||||
Adjusted income before income taxes | 1,032,861 | 636,057 | |||||||||||||||||||||||||||
Provision for income tax expense at effective rate | (244,680) | (169,910) | |||||||||||||||||||||||||||
Non-GAAP: Adjusted Net Income Attributable to Knight-Swift | $ | 788,181 | $ | 466,147 | |||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
GAAP: Earnings per diluted share | $ | 4.45 | $ | 2.40 | |||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Income tax expense attributable to Knight-Swift | 1.38 | 0.88 | |||||||||||||||||||||||||||
Income before income taxes attributable to Knight-Swift | 5.83 | 3.28 | |||||||||||||||||||||||||||
Amortization of intangibles 1 | 0.33 | 0.27 | |||||||||||||||||||||||||||
Change in fair value of deferred earnout 2 | — | 0.04 | |||||||||||||||||||||||||||
Impairments 3 | — | 0.03 | |||||||||||||||||||||||||||
Legal accruals 4 | (0.01) | 0.04 | |||||||||||||||||||||||||||
COVID-19 incremental costs 5 | — | 0.07 | |||||||||||||||||||||||||||
Transaction fees 6 | 0.03 | — | |||||||||||||||||||||||||||
Write-off of deferred debt issuance costs 7 | 0.01 | — | |||||||||||||||||||||||||||
Adjusted income before income taxes | 6.18 | 3.73 | |||||||||||||||||||||||||||
Provision for income tax expense at effective rate | (1.46) | (1.00) | |||||||||||||||||||||||||||
Non-GAAP: Adjusted EPS | $ | 4.72 | $ | 2.73 | |||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 5,998,019 | $ | 4,673,863 | |||||||||||||||||||||||||
Total operating expenses | (5,032,322) | (4,109,425) | |||||||||||||||||||||||||||
Operating income | $ | 965,697 | $ | 564,438 | |||||||||||||||||||||||||
Operating ratio | 83.9 | % | 87.9 | % | |||||||||||||||||||||||||
Non-GAAP Presentation | |||||||||||||||||||||||||||||
Total revenue | $ | 5,998,019 | $ | 4,673,863 | |||||||||||||||||||||||||
Truckload and LTL fuel surcharge | (466,129) | (304,656) | |||||||||||||||||||||||||||
Revenue, excluding truckload and LTL fuel surcharge | 5,531,890 | 4,369,207 | |||||||||||||||||||||||||||
Total operating expenses | 5,032,322 | 4,109,425 | |||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Truckload and LTL fuel surcharge | (466,129) | (304,656) | |||||||||||||||||||||||||||
Amortization of intangibles 1 | (55,299) | (45,895) | |||||||||||||||||||||||||||
Change in fair value of deferred earnout 2 | — | (6,730) | |||||||||||||||||||||||||||
Impairments 3 | (299) | (5,335) | |||||||||||||||||||||||||||
Legal accruals 4 | 2,481 | (6,160) | |||||||||||||||||||||||||||
COVID-19 incremental costs 5 | — | (12,259) | |||||||||||||||||||||||||||
Transaction fees 6 | (4,445) | — | |||||||||||||||||||||||||||
Adjusted Operating Expenses | 4,508,631 | 3,728,390 | |||||||||||||||||||||||||||
Adjusted Operating Income | $ | 1,023,259 | $ | 640,817 | |||||||||||||||||||||||||
Adjusted Operating Ratio | 81.5 | % | 85.3 | % |
2021 | 2020 | ||||||||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||||||||
Total revenue | $ | 4,098,005 | $ | 3,786,030 | |||||||||||||
Total operating expenses | (3,313,569) | (3,207,518) | |||||||||||||||
Operating income | $ | 784,436 | $ | 578,512 | |||||||||||||
Operating ratio | 80.9 | % | 84.7 | % | |||||||||||||
Non-GAAP Presentation | |||||||||||||||||
Total revenue | $ | 4,098,005 | $ | 3,786,030 | |||||||||||||
Fuel surcharge | (415,606) | (304,656) | |||||||||||||||
Intersegment transactions | (1,128) | (753) | |||||||||||||||
Revenue, excluding fuel surcharge and intersegment transactions | 3,681,271 | 3,480,621 | |||||||||||||||
Total operating expenses | 3,313,569 | 3,207,518 | |||||||||||||||
Adjusted for: | |||||||||||||||||
Fuel surcharge | (415,606) | (304,656) | |||||||||||||||
Intersegment transactions | (1,128) | (753) | |||||||||||||||
Amortization of intangibles 1 | (1,295) | (1,296) | |||||||||||||||
Impairments 2 | (41) | (1,131) | |||||||||||||||
COVID-19 incremental costs 3 | — | (12,146) | |||||||||||||||
Adjusted Operating Expenses | 2,895,499 | 2,887,536 | |||||||||||||||
Adjusted Operating Income | $ | 785,772 | $ | 593,085 | |||||||||||||
Adjusted Operating Ratio | 78.7 | % | 83.0 | % |
2021 | 2020 | ||||||||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||||||||
Total revenue | $ | 817,003 | $ | 375,841 | |||||||||||||
Total operating expenses | (723,083) | (355,596) | |||||||||||||||
Operating income | $ | 93,920 | $ | 20,245 | |||||||||||||
Operating ratio | 88.5 | % | 94.6 | % | |||||||||||||
Non-GAAP Presentation | |||||||||||||||||
Total revenue | $ | 817,003 | $ | 375,841 | |||||||||||||
Intersegment transactions | (18,314) | (10,742) | |||||||||||||||
Revenue, excluding intersegment transactions | 798,689 | 365,099 | |||||||||||||||
Total operating expenses | 723,083 | 355,596 | |||||||||||||||
Adjusted for: | |||||||||||||||||
Intersegment transactions | (18,314) | (10,742) | |||||||||||||||
Amortization of intangibles 1 | (765) | — | |||||||||||||||
Adjusted Operating Expenses | 704,004 | 344,854 | |||||||||||||||
Adjusted Operating Income | $ | 94,685 | $ | 20,245 | |||||||||||||
Adjusted Operating Ratio | 88.1 | % | 94.5 | % |
2021 | |||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||
Total revenue | $ | 396,308 | |||||||||
Total operating expenses | (365,139) | ||||||||||
Operating income | $ | 31,169 | |||||||||
Operating ratio | 92.1 | % | |||||||||
Non-GAAP Presentation | |||||||||||
Total revenue | $ | 396,308 | |||||||||
Fuel surcharge | (50,523) | ||||||||||
Revenue, excluding fuel surcharge and intersegment transactions | 345,785 | ||||||||||
Total operating expenses | 365,139 | ||||||||||
Adjusted for: | |||||||||||
Fuel surcharge | (50,523) | ||||||||||
Amortization of intangibles 1 | (7,124) | ||||||||||
Adjusted Operating Expenses | 307,492 | ||||||||||
Adjusted Operating Income | 38,293 | ||||||||||
Adjusted Operating Ratio | 88.9 | % |
2021 | 2020 | ||||||||||||||||
GAAP Presentation | (Dollars in thousands) | ||||||||||||||||
Total revenue | $ | 458,867 | $ | 391,462 | |||||||||||||
Total operating expenses | (416,807) | (392,405) | |||||||||||||||
Operating income (loss) | $ | 42,060 | $ | (943) | |||||||||||||
Operating ratio | 90.8 | % | 100.2 | % | |||||||||||||
Non-GAAP Presentation | |||||||||||||||||
Total revenue | $ | 458,867 | $ | 391,462 | |||||||||||||
Intersegment transactions | (284) | (364) | |||||||||||||||
Revenue, excluding intersegment transactions | 458,583 | 391,098 | |||||||||||||||
Total operating expenses | 416,807 | 392,405 | |||||||||||||||
Adjusted for: | |||||||||||||||||
Intersegment transactions | (284) | (364) | |||||||||||||||
COVID-19 incremental costs 1 | — | (113) | |||||||||||||||
Adjusted Operating Expenses | 416,523 | 391,928 | |||||||||||||||
Adjusted Operating Income (Loss) | $ | 42,060 | $ | (830) | |||||||||||||
Adjusted Operating Ratio | 90.8 | % | 100.2 | % |
2021 | |||||
GAAP: Cash flows from operations | $ | 1,190,153 | |||
Adjusted for: | |||||
Proceeds from sale of property and equipment, including assets held for sale | 252,080 | ||||
Purchases of property and equipment | (534,096) | ||||
Non-GAAP: Free cash flow | $ | 908,137 | |||
Liquidity and Capital Resources |
Source: | Amount | |||
(In thousands) | ||||
Cash and cash equivalents, excluding restricted cash | $ | 159,722 | ||
Availability under Revolver, due October 2022 ¹ | 492,662 | |||
Availability under 2018 RSA, due July 2021 ² | 23,259 | |||
Total unrestricted liquidity | $ | 675,643 | ||
Cash and cash equivalents – restricted ³ | 42,506 | |||
Restricted investments, held-to-maturity, amortized cost ³ | 8,912 | |||
Total liquidity, including restricted cash and restricted investments | $ | 727,061 | ||
(In thousands) | ||||||||
Cash and cash equivalents, excluding restricted cash | $ |
775,969 | ||||||||
Availability under 2021 RSA, due April 2024 2 | 55,700 | |||||||
80,000 | ||||||||
Total unrestricted liquidity | $ | 1,172,670 | ||||||
Cash and cash equivalents – | 89,022 | |||||||
Restricted investments, held-to-maturity, amortized cost | 5,866 | |||||||
Total liquidity, including restricted cash and | $ | 1,267,558 | ||||||
•$199.6 million: 2021 Term Loan A-2, due September 2024, net of $0.4 million in deferred loan costs •$798.4 million: 2021 Term Loan A-3, due September 2026, net of $1.6 million in deferred loan costs •$278.5 million: 2021 RSA outstanding borrowings, net of $0.5 million in deferred loan costs •$306.2 million: Finance lease obligations •$260.0 million: 2021 Revolver, due September 2026 •$52.3 million: Other, net of $0.1 million |
Payments Due By Period | |||||||||||||||||||
Total | 1 Year or Less | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||
(In thousands) | |||||||||||||||||||
Long-term debt obligations 1a | $ | 365,000 | $ | 365,000 | $ | — | $ | — | $ | — | |||||||||
Revolving line of credit ¹ | 279,000 | — | 279,000 | — | — | ||||||||||||||
2018 RSA ¹ | 205,000 | — | 205,000 | — | — | ||||||||||||||
Finance lease obligations ² | 70,209 | 12,826 | 47,072 | 10,311 | — | ||||||||||||||
Interest obligations ³ | 42,639 | 23,273 | 18,782 | 584 | — | ||||||||||||||
Operating lease obligations 4 | 195,275 | 83,919 | 71,237 | 17,810 | 22,309 | ||||||||||||||
Purchase obligations 5 | 579,193 | 578,062 | 951 | 180 | — | ||||||||||||||
Investment commitments 6 | 2,465 | 1,795 | 160 | 168 | 342 | ||||||||||||||
ERP obligation 7 | 4,344 | 1,930 | 2,414 | — | — | ||||||||||||||
Dividend payable | 1,458 | 452 | 667 | 339 | — | ||||||||||||||
Total contractual obligations | $ | 1,744,583 | $ | 1,067,257 | $ | 625,283 | $ | 29,392 | $ | 22,651 | |||||||||
Cash Flow Analysis |
2019 | 2018 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 839,594 | $ | 881,977 | $ | (42,383 | ) | Net cash provided by operating activities | $ | 1,190,153 | $ | 919,645 | $ | 270,508 | ||||||||||||||||||||||||||
Net cash used in investing activities | (583,706 | ) | (647,292 | ) | 63,586 | Net cash used in investing activities | (1,816,733) | (480,712) | (1,336,021) | |||||||||||||||||||||||||||||||
Net cash used in financing activities | (184,636 | ) | (255,442 | ) | 70,806 | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | 779,326 | (443,884) | 1,223,210 |
Inflation |
Critical Accounting Estimates |
Recently Issued Accounting Pronouncements |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Audited Financial Statements of Knight-Swift Transportation Holdings Inc. |
Index to Consolidated Financial Statements | ||||||||
Page | ||||||||
Notes to Consolidated Financial Statements | ||||||||
Note 1 | ||||||||
Note 2 | ||||||||
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Note 19 | ||||||||
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Note 25 | ||||||||
Consolidated Balance Sheets |
December 31, | December 31, | |||||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||||
ASSETS | (In thousands, except per share data) | ASSETS | (In thousands, except per share data) | |||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 159,722 | $ | 82,486 | Cash and cash equivalents | $ | 261,001 | $ | 156,699 | |||||||||
Cash and cash equivalents – restricted | 41,331 | 46,888 | Cash and cash equivalents – restricted | 87,241 | 39,328 | |||||||||||||
Restricted investments, held-to-maturity, amortized cost | 8,912 | 17,413 | Restricted investments, held-to-maturity, amortized cost | 5,866 | 9,001 | |||||||||||||
Trade receivables, net of allowance for doubtful accounts of $18,178 and $16,355, respectively | 518,547 | 601,228 | ||||||||||||||||
Trade receivables, net of allowance for doubtful accounts of $21,663 and $22,093, respectively | Trade receivables, net of allowance for doubtful accounts of $21,663 and $22,093, respectively | 911,336 | 578,479 | |||||||||||||||
Contract balance – revenue in transit | 12,696 | 15,602 | Contract balance – revenue in transit | 22,936 | 14,560 | |||||||||||||
Prepaid expenses | 62,160 | 67,011 | Prepaid expenses | 90,507 | 71,649 | |||||||||||||
Assets held for sale | 41,786 | 39,955 | Assets held for sale | 8,166 | 29,756 | |||||||||||||
Income tax receivable | 17,026 | 6,943 | Income tax receivable | 909 | 2,903 | |||||||||||||
Other current assets | 27,848 | 29,706 | Other current assets | 26,318 | 20,988 | |||||||||||||
Total current assets | 890,028 | 907,232 | Total current assets | 1,414,280 | 923,363 | |||||||||||||
Property and equipment: | Property and equipment: | |||||||||||||||||
Revenue equipment | 3,007,774 | 2,617,989 | Revenue equipment | 3,994,519 | 3,417,194 | |||||||||||||
Land and land improvements | 228,546 | 227,581 | Land and land improvements | 326,731 | 236,517 | |||||||||||||
Buildings and building improvements | 406,105 | 375,435 | Buildings and building improvements | 639,990 | 458,464 | |||||||||||||
Furniture and fixtures | 61,567 | 51,619 | Furniture and fixtures | 97,102 | 69,250 | |||||||||||||
Shop and service equipment | 26,417 | 22,771 | Shop and service equipment | 46,640 | 29,033 | |||||||||||||
Leasehold improvements | 12,330 | 10,549 | Leasehold improvements | 13,915 | 12,890 | |||||||||||||
Total property and equipment | 3,742,739 | 3,305,944 | Total property and equipment | 5,118,897 | 4,223,348 | |||||||||||||
Less: accumulated depreciation and amortization | (892,019 | ) | (693,107 | ) | Less: accumulated depreciation and amortization | (1,563,533) | (1,230,696) | |||||||||||
Property and equipment, net | 2,850,720 | 2,612,837 | Property and equipment, net | 3,555,364 | 2,992,652 | |||||||||||||
Operating lease right-of-use-assets | 169,425 | — | Operating lease right-of-use-assets | 147,540 | 113,296 | |||||||||||||
Goodwill | 2,918,992 | 2,919,176 | Goodwill | 3,515,135 | 2,922,964 | |||||||||||||
Intangible assets, net | 1,379,459 | 1,420,919 | Intangible assets, net | 1,831,049 | 1,389,245 | |||||||||||||
Other long-term assets | 73,108 | 51,721 | Other long-term assets | 192,132 | 126,482 | |||||||||||||
Total assets | $ | 8,281,732 | $ | 7,911,885 | Total assets | $ | 10,655,500 | $ | 8,468,002 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 99,194 | $ | 117,883 | Accounts payable | $ | 224,844 | $ | 101,001 | |||||||||
Accrued payroll and purchased transportation | 110,065 | 126,464 | Accrued payroll and purchased transportation | 217,084 | 160,888 | |||||||||||||
Accrued liabilities | 175,222 | 151,500 | Accrued liabilities | 128,536 | 88,894 | |||||||||||||
Claims accruals – current portion | 150,805 | 160,044 | Claims accruals – current portion | 206,607 | 174,928 | |||||||||||||
Finance lease liabilities and long-term debt – current portion | 377,651 | 58,672 | Finance lease liabilities and long-term debt – current portion | 262,423 | 52,583 | |||||||||||||
Operating lease liabilities – current portion | 80,101 | — | Operating lease liabilities – current portion | 35,322 | 47,496 | |||||||||||||
Accounts receivable securitization – current portion | Accounts receivable securitization – current portion | — | 213,918 | |||||||||||||||
Total current liabilities | 993,038 | 614,563 | Total current liabilities | 1,074,816 | 839,708 | |||||||||||||
Revolving line of credit | 279,000 | 195,000 | Revolving line of credit | 260,000 | 210,000 | |||||||||||||
Long-term debt – less current portion | — | 364,590 | Long-term debt – less current portion | 1,037,552 | 298,907 | |||||||||||||
Finance lease liabilities – less current portion | 57,383 | 71,248 | Finance lease liabilities – less current portion | 256,166 | 138,243 | |||||||||||||
Operating lease liabilities – less current portion | 96,160 | — | Operating lease liabilities – less current portion | 107,614 | 69,852 | |||||||||||||
Accounts receivable securitization | 204,762 | 239,606 | ||||||||||||||||
Accounts receivable securitization – less current portion | Accounts receivable securitization – less current portion | 278,483 | — | |||||||||||||||
Claims accruals – less current portion | 196,912 | 201,327 | Claims accruals – less current portion | 210,714 | 174,814 | |||||||||||||
Deferred tax liabilities | 771,719 | 739,538 | Deferred tax liabilities | 874,877 | 815,941 | |||||||||||||
Other long-term liabilities | 14,455 | 23,294 | Other long-term liabilities | 11,828 | 48,497 | |||||||||||||
Total liabilities | 2,613,429 | 2,449,166 | Total liabilities | 4,112,050 | 2,595,962 | |||||||||||||
Commitments and contingencies (notes 18 and 19) | ||||||||||||||||||
Commitments and contingencies (Notes 4, 6, 17, 18, and 19) | Commitments and contingencies (Notes 4, 6, 17, 18, and 19) | 0 | 0 | |||||||||||||||
Stockholders’ equity: | Stockholders’ equity: | |||||||||||||||||
Preferred stock, par value $0.01 per share; 10,000 shares authorized; none issued | — | — | Preferred stock, par value $0.01 per share; 10,000 shares authorized; none issued | — | — | |||||||||||||
Common stock, par value $0.01 per share; 500,000 shares authorized; 170,688 and 172,844 shares issued and outstanding as of December 31, 2019 and 2018, respectively. | 1,707 | 1,728 | ||||||||||||||||
Common stock, par value $0.01 per share; 500,000 shares authorized; 165,980 and 166,553 shares issued and outstanding as of December 31, 2021 and 2020, respectively. | Common stock, par value $0.01 per share; 500,000 shares authorized; 165,980 and 166,553 shares issued and outstanding as of December 31, 2021 and 2020, respectively. | 1,660 | 1,665 | |||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (563) | — | |||||||||||||||
Additional paid-in capital | 4,269,043 | 4,242,369 | Additional paid-in capital | 4,350,913 | 4,301,424 | |||||||||||||
Retained earnings | 1,395,465 | 1,216,852 | Retained earnings | 2,181,142 | 1,566,759 | |||||||||||||
Total Knight-Swift stockholders' equity | 5,666,215 | 5,460,949 | Total Knight-Swift stockholders' equity | 6,533,152 | 5,869,848 | |||||||||||||
Noncontrolling interest | 2,088 | 1,770 | Noncontrolling interest | 10,298 | 2,192 | |||||||||||||
Total stockholders’ equity | 5,668,303 | 5,462,719 | Total stockholders’ equity | 6,543,450 | 5,872,040 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 8,281,732 | $ | 7,911,885 | Total liabilities and stockholders’ equity | $ | 10,655,500 | $ | 8,468,002 |
Consolidated Statements of Comprehensive Income |
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||
Revenue: | Revenue: | |||||||||||||||||||||||||||
Revenue, excluding trucking fuel surcharge | $ | 4,395,332 | $ | 4,809,668 | $ | 2,199,483 | ||||||||||||||||||||||
Trucking fuel surcharge | 448,618 | 534,398 | 225,970 | |||||||||||||||||||||||||
Revenue, excluding truckload and LTL fuel surcharge | Revenue, excluding truckload and LTL fuel surcharge | $ | 5,531,890 | $ | 4,369,207 | $ | 4,395,332 | |||||||||||||||||||||
Truckload and LTL fuel surcharge | Truckload and LTL fuel surcharge | 466,129 | 304,656 | 448,618 | ||||||||||||||||||||||||
Total revenue | 4,843,950 | 5,344,066 | 2,425,453 | Total revenue | 5,998,019 | 4,673,863 | 4,843,950 | |||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||
Salaries, wages, and benefits | 1,474,073 | 1,495,126 | 688,543 | Salaries, wages, and benefits | 1,771,772 | 1,483,188 | 1,474,073 | |||||||||||||||||||||
Fuel | 583,123 | 621,997 | 274,956 | Fuel | 546,256 | 416,307 | 583,123 | |||||||||||||||||||||
Operations and maintenance | 322,188 | 340,627 | 164,307 | Operations and maintenance | 313,505 | 275,290 | 322,188 | |||||||||||||||||||||
Insurance and claims | 194,336 | 215,362 | 95,199 | Insurance and claims | 275,378 | 192,840 | 194,336 | |||||||||||||||||||||
Operating taxes and licenses | 88,481 | 90,778 | 40,544 | Operating taxes and licenses | 98,784 | 87,422 | 88,481 | |||||||||||||||||||||
Communications | 19,520 | 20,911 | 10,691 | Communications | 22,486 | 19,596 | 19,520 | |||||||||||||||||||||
Depreciation and amortization of property and equipment | 420,082 | 387,505 | 193,733 | Depreciation and amortization of property and equipment | 522,596 | 460,775 | 420,082 | |||||||||||||||||||||
Amortization of intangibles | 42,876 | 42,584 | 13,372 | Amortization of intangibles | 55,299 | 45,895 | 42,876 | |||||||||||||||||||||
Rental expense | 122,738 | 177,406 | 74,224 | Rental expense | 55,161 | 86,640 | 122,738 | |||||||||||||||||||||
Purchased transportation | 1,035,969 | 1,318,303 | 594,113 | Purchased transportation | 1,320,888 | 936,649 | 1,035,969 | |||||||||||||||||||||
Impairments | 3,486 | 2,798 | 16,844 | Impairments | 299 | 5,335 | 3,486 | |||||||||||||||||||||
Miscellaneous operating expenses | 109,640 | 61,626 | 41,781 | Miscellaneous operating expenses | 49,898 | 99,488 | 109,640 | |||||||||||||||||||||
Merger-related costs | — | — | 16,516 | |||||||||||||||||||||||||
Total operating expenses | 4,416,512 | 4,775,023 | 2,224,823 | Total operating expenses | 5,032,322 | 4,109,425 | 4,416,512 | |||||||||||||||||||||
Operating income | 427,438 | 569,043 | 200,630 | Operating income | 965,697 | 564,438 | 427,438 | |||||||||||||||||||||
Other (expenses) income: | Other (expenses) income: | |||||||||||||||||||||||||||
Interest income | 3,834 | 3,200 | 1,207 | Interest income | 1,173 | 1,928 | 3,834 | |||||||||||||||||||||
Interest expense | (29,433 | ) | (30,170 | ) | (8,686 | ) | Interest expense | (21,140) | (17,309) | (29,433) | ||||||||||||||||||
Other income, net | 12,137 | 9,965 | 558 | Other income, net | 28,905 | 11,254 | 12,137 | |||||||||||||||||||||
Total other (expenses) income, net | (13,462 | ) | (17,005 | ) | (6,921 | ) | Total other (expenses) income, net | 8,938 | (4,127) | (13,462) | ||||||||||||||||||
Income before income taxes | 413,976 | 552,038 | 193,709 | Income before income taxes | 974,635 | 560,311 | 413,976 | |||||||||||||||||||||
Income tax expense (benefit) | 103,798 | 131,389 | (291,716 | ) | ||||||||||||||||||||||||
Income tax expense | Income tax expense | 230,887 | 149,676 | 103,798 | ||||||||||||||||||||||||
Net income | 310,178 | 420,649 | 485,425 | Net income | 743,748 | 410,635 | 310,178 | |||||||||||||||||||||
Net income attributable to noncontrolling interest | (972 | ) | (1,385 | ) | (1,133 | ) | Net income attributable to noncontrolling interest | (360) | (633) | (972) | ||||||||||||||||||
Net income attributable to Knight-Swift | $ | 309,206 | $ | 419,264 | $ | 484,292 | Net income attributable to Knight-Swift | $ | 743,388 | $ | 410,002 | $ | 309,206 | |||||||||||||||
Other comprehensive loss | Other comprehensive loss | (563) | — | — | ||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 742,825 | $ | 410,002 | $ | 309,206 | |||||||||||||||||||||
Earnings per share: | Earnings per share: | |||||||||||||||||||||||||||
Basic | $ | 1.80 | $ | 2.37 | $ | 4.38 | Basic | $ | 4.48 | $ | 2.42 | $ | 1.80 | |||||||||||||||
Diluted | $ | 1.80 | $ | 2.36 | $ | 4.34 | Diluted | $ | 4.45 | $ | 2.40 | $ | 1.80 | |||||||||||||||
Dividends declared per share: | $ | 0.24 | $ | 0.24 | $ | 0.24 | Dividends declared per share: | $ | 0.38 | $ | 0.32 | $ | 0.24 | |||||||||||||||
Weighted average shares outstanding: | Weighted average shares outstanding: | |||||||||||||||||||||||||||
Basic | 171,541 | 177,018 | 110,657 | Basic | 165,860 | 169,711 | 171,541 | |||||||||||||||||||||
Diluted | 172,142 | 177,999 | 111,697 | Diluted | 167,060 | 170,549 | 172,142 |
Consolidated Statements of Stockholders' Equity |
Common Stock | Additional Paid-in Capital | Retained Earnings | Total Knight-Swift Stockholders' Equity | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||
Shares | Par Value | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balances, December 31, 2016 | 80,229 | $ | 802 | $ | 223,267 | $ | 562,404 | $ | 786,473 | $ | 2,258 | $ | 788,731 | |||||||||||||
2017 Merger reverse split of Swift shares | 97,031 | 971 | 3,975,832 | 3,976,803 | 102 | 3,976,905 | ||||||||||||||||||||
Common stock issued to employees | 718 | 7 | 13,151 | 13,158 | 13,158 | |||||||||||||||||||||
Common stock issued to the board of directors | 12 | — | 398 | 398 | 398 | |||||||||||||||||||||
Common stock issued under employee stock purchase plan | 8 | — | 324 | 324 | 324 | |||||||||||||||||||||
Shares withheld – restricted stock unit settlement | (4,709 | ) | (4,709 | ) | (4,709 | ) | ||||||||||||||||||||
Employee stock-based compensation expense | 6,242 | 6,242 | 6,242 | |||||||||||||||||||||||
Cash dividends paid and dividends accrued | (25,249 | ) | (25,249 | ) | (25,249 | ) | ||||||||||||||||||||
Net income attributable to Knight-Swift | 484,292 | 484,292 | 484,292 | |||||||||||||||||||||||
Distribution to noncontrolling interest | (855 | ) | (855 | ) | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 1,133 | 1,133 | ||||||||||||||||||||||||
Balances, December 31, 2017 | 177,998 | $ | 1,780 | $ | 4,219,214 | $ | 1,016,738 | $ | 5,237,732 | $ | 2,638 | $ | 5,240,370 | |||||||||||||
Common stock issued to employees | 670 | 6 | 10,944 | 10,950 | 10,950 | |||||||||||||||||||||
Common stock issued to the board of directors | 19 | — | 774 | 774 | 774 | |||||||||||||||||||||
Common stock issued under employee stock purchase plan | 49 | 1 | 1,822 | 1,823 | 1,823 | |||||||||||||||||||||
Company shares repurchased | (5,892 | ) | (59 | ) | (179,259 | ) | (179,318 | ) | (179,318 | ) | ||||||||||||||||
Shares withheld – restricted stock unit settlement | (2,550 | ) | (2,550 | ) | (2,550 | ) | ||||||||||||||||||||
Employee stock-based compensation expense | 11,488 | 11,488 | 11,488 | |||||||||||||||||||||||
Cash dividends paid and dividends accrued | (42,642 | ) | (42,642 | ) | (42,642 | ) | ||||||||||||||||||||
Net income attributable to Knight-Swift | 419,264 | 419,264 | 419,264 | |||||||||||||||||||||||
Distribution to noncontrolling interest | (2,253 | ) | (2,253 | ) | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 1,385 | 1,385 | ||||||||||||||||||||||||
Net acquisition of remaining ownership interest, previously noncontrolling | (1,873 | ) | (1,873 | ) | (1,873 | ) | ||||||||||||||||||||
Net cumulative-effect adjustment from adopting ASC Topic 606 | 5,301 | 5,301 | 5,301 | |||||||||||||||||||||||
Balances, December 31, 2018 | 172,844 | $ | 1,728 | $ | 4,242,369 | $ | 1,216,852 | $ | 5,460,949 | $ | 1,770 | $ | 5,462,719 | |||||||||||||
Common stock issued to employees | 621 | 7 | 10,471 | 10,478 | 10,478 | |||||||||||||||||||||
Common stock issued to the board of directors | 19 | — | 531 | 531 | 531 | |||||||||||||||||||||
Common stock issued under employee stock purchase plan | 78 | 1 | 2,297 | 2,298 | 2,298 | |||||||||||||||||||||
Company shares repurchased | (2,874 | ) | (29 | ) | (86,863 | ) | (86,892 | ) | (86,892 | ) | ||||||||||||||||
Shares withheld – restricted stock unit settlement | (2,330 | ) | (2,330 | ) | (2,330 | ) | ||||||||||||||||||||
Employee stock-based compensation expense | 13,375 | 13,375 | 13,375 | |||||||||||||||||||||||
Cash dividends paid and dividends accrued | (41,400 | ) | (41,400 | ) | (41,400 | ) | ||||||||||||||||||||
Net income attributable to Knight-Swift | 309,206 | 309,206 | 309,206 | |||||||||||||||||||||||
Distribution to noncontrolling interest | (654 | ) | (654 | ) | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 972 | 972 | ||||||||||||||||||||||||
Balances, December 31, 2019 | 170,688 | $ | 1,707 | $ | 4,269,043 | $ | 1,395,465 | $ | 5,666,215 | $ | 2,088 | $ | 5,668,303 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Knight-Swift Stockholders' Equity | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balances – December 31, 2018 | 172,844 | $ | 1,728 | $ | 4,242,369 | $ | 1,216,852 | $ | — | $ | 5,460,949 | $ | 1,770 | $ | 5,462,719 | ||||||||||||||||||||||||||||||||
Common stock issued to employees | 621 | 7 | 10,471 | 10,478 | 10,478 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued to the Board | 19 | — | 531 | 531 | 531 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued under ESPP | 78 | 1 | 2,297 | 2,298 | 2,298 | ||||||||||||||||||||||||||||||||||||||||||
Company shares repurchased | (2,874) | (29) | (86,863) | (86,892) | (86,892) | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld – RSU settlement | (2,330) | (2,330) | (2,330) | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock-based compensation expense | 13,375 | 13,375 | 13,375 | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid and dividends accrued ($0.24 per share) | (41,400) | (41,400) | (41,400) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Knight-Swift | 309,206 | 309,206 | 309,206 | ||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (654) | (654) | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 972 | 972 | |||||||||||||||||||||||||||||||||||||||||||||
Balances – December 31, 2019 | 170,688 | $ | 1,707 | $ | 4,269,043 | $ | 1,395,465 | $ | — | $ | 5,666,215 | $ | 2,088 | $ | 5,668,303 | ||||||||||||||||||||||||||||||||
Common stock issued to employees | 631 | 6 | 10,007 | 10,013 | 10,013 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued to the Board | 13 | — | 515 | 515 | 515 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued under ESPP | 62 | — | 2,220 | 2,220 | 2,220 | ||||||||||||||||||||||||||||||||||||||||||
Company shares repurchased | (4,841) | (48) | (179,537) | (179,585) | (179,585) | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld – RSU settlement | (4,510) | (4,510) | (4,510) | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock-based compensation expense | 19,639 | 19,639 | 19,639 | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid and dividends accrued ($0.32 per share) | (54,661) | (54,661) | (54,661) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Knight-Swift | 410,002 | 410,002 | 410,002 | ||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (529) | (529) | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 633 | 633 | |||||||||||||||||||||||||||||||||||||||||||||
Balances – December 31, 2020 | 166,553 | $ | 1,665 | $ | 4,301,424 | $ | 1,566,759 | $ | — | $ | 5,869,848 | $ | 2,192 | $ | 5,872,040 | ||||||||||||||||||||||||||||||||
Common stock issued to employees | 510 | 6 | 5,918 | 5,924 | 5,924 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued to the Board | 12 | — | 575 | 575 | 575 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued with ACT Acquisition | 219 | 2 | 9,998 | 10,000 | 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Common stock issued under ESPP | 63 | 1 | 2,782 | 2,783 | 2,783 | ||||||||||||||||||||||||||||||||||||||||||
Company shares repurchased | (1,377) | (14) | (57,161) | (57,175) | (57,175) | ||||||||||||||||||||||||||||||||||||||||||
Shares withheld – RSU settlement | (8,257) | (8,257) | (8,257) | ||||||||||||||||||||||||||||||||||||||||||||
Employee stock-based compensation expense | 33,495 | 33,495 | 33,495 | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid and dividends accrued ($0.38 per share) | (63,587) | (63,587) | (63,587) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Knight-Swift | 743,388 | 743,388 | 743,388 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | (563) | (563) | (563) | ||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest associated with acquisition | 10,281 | 10,281 | |||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (64) | (64) | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 360 | 360 | |||||||||||||||||||||||||||||||||||||||||||||
Net acquisition of remaining ownership interest, previously noncontrolling | (3,279) | (3,279) | (2,471) | (5,750) | |||||||||||||||||||||||||||||||||||||||||||
Balances – December 31, 2021 | 165,980 | $ | 1,660 | $ | 4,350,913 | $ | 2,181,142 | $ | (563) | $ | 6,533,152 | $ | 10,298 | $ | 6,543,450 | ||||||||||||||||||||||||||||||||
Consolidated Statements of Cash Flows |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 743,748 | $ | 410,635 | $ | 310,178 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization of property, equipment, and intangibles | 577,895 | 506,670 | 462,958 | ||||||||||||||
Gain on sale of property and equipment | (74,799) | (9,706) | (32,935) | ||||||||||||||
Impairments | 299 | 5,335 | 3,486 | ||||||||||||||
Deferred income taxes | 39,929 | 46,214 | 30,731 | ||||||||||||||
Non-cash lease expense | 45,192 | 80,891 | 120,769 | ||||||||||||||
Other adjustments to reconcile net income to net cash provided by operating activities | 28,279 | 43,682 | 24,156 | ||||||||||||||
Increase (decrease) in cash resulting from changes in: | |||||||||||||||||
Trade receivables | (214,573) | (75,521) | 70,106 | ||||||||||||||
Income tax receivable | 2,528 | 14,123 | (10,069) | ||||||||||||||
Accounts payable | 73,371 | 7,500 | (13,180) | ||||||||||||||
Accrued liabilities and claims accrual | 40,872 | (31,210) | (919) | ||||||||||||||
Operating lease liabilities | (48,171) | (83,675) | (121,737) | ||||||||||||||
Other assets and liabilities | (24,417) | 4,707 | (3,950) | ||||||||||||||
Net cash provided by operating activities | 1,190,153 | 919,645 | 839,594 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from maturities of held-to-maturity investments | 10,624 | 13,675 | 22,695 | ||||||||||||||
Purchases of held-to-maturity investments | (7,706) | (16,936) | (14,302) | ||||||||||||||
Proceeds from sale of property and equipment, including assets held for sale | 252,080 | 133,230 | 260,140 | ||||||||||||||
Purchases of property and equipment | (534,096) | (521,067) | (829,977) | ||||||||||||||
Expenditures on assets held for sale | (1,367) | (483) | (16,093) | ||||||||||||||
Net cash, restricted cash, and equivalents invested in acquisitions | (1,496,208) | (46,811) | (1,885) | ||||||||||||||
Investment in convertible notes | (35,000) | — | — | ||||||||||||||
Other cash flows from investing activities | (5,060) | (42,320) | (4,284) | ||||||||||||||
Net cash used in investing activities | (1,816,733) | (480,712) | (583,706) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayment of finance leases and long-term debt | (409,889) | (148,910) | (115,642) | ||||||||||||||
Proceeds from long-term debt | 1,200,000 | — | — | ||||||||||||||
Borrowings (repayments) on revolving lines of credit, net | 50,000 | (69,000) | 84,000 | ||||||||||||||
Borrowings under accounts receivable securitization | 80,000 | 61,000 | 150,000 | ||||||||||||||
Repayment of accounts receivable securitization | (15,000) | (52,000) | (185,000) | ||||||||||||||
Proceeds from common stock issued | 9,282 | 12,748 | 13,307 | ||||||||||||||
Repurchases of the Company's common stock | (57,175) | (179,585) | (86,892) | ||||||||||||||
Dividends paid | (63,535) | (54,620) | (41,425) | ||||||||||||||
Other cash flows from financing activities | (14,357) | (13,517) | (2,984) | ||||||||||||||
Net cash provided by (used in) financing activities | 779,326 | (443,884) | (184,636) | ||||||||||||||
Net increase (decrease) in cash, restricted cash, and equivalents | 152,746 | (4,951) | 71,252 | ||||||||||||||
Cash, restricted cash, and equivalents at beginning of period | 197,277 | 202,228 | 130,976 | ||||||||||||||
Cash, restricted cash, and equivalents at end of period | $ | 350,023 | $ | 197,277 | $ | 202,228 |
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 310,178 | $ | 420,649 | $ | 485,425 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property, equipment, and intangibles | 462,958 | 430,089 | 207,105 | ||||||||
Gain on sale of property and equipment | (32,935 | ) | (36,236 | ) | (8,939 | ) | |||||
Impairments | 3,486 | 2,798 | 16,844 | ||||||||
Deferred income taxes | 30,731 | 62,469 | (305,584 | ) | |||||||
Non-cash lease expense | 120,769 | — | — | ||||||||
Other adjustments to reconcile net income to net cash provided by operating activities | 24,156 | 4,617 | 14,758 | ||||||||
Increase (decrease) in cash resulting from changes in: | |||||||||||
Trade receivables | 70,106 | (9,375 | ) | (48,454 | ) | ||||||
Income tax receivable | (10,069 | ) | 48,171 | (39,122 | ) | ||||||
Accounts payable | (13,180 | ) | (18,033 | ) | (29,890 | ) | |||||
Accrued liabilities and claims accrual | (919 | ) | (14,367 | ) | 35,820 | ||||||
Operating lease liabilities | (121,737 | ) | — | — | |||||||
Other assets and liabilities | (3,950 | ) | (8,805 | ) | (5,373 | ) | |||||
Net cash provided by operating activities | 839,594 | 881,977 | 322,590 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from maturities of held-to-maturity investments | 22,695 | 26,970 | 10,730 | ||||||||
Purchases of held-to-maturity investments | (14,302 | ) | (22,156 | ) | (10,893 | ) | |||||
Proceeds from sale of property and equipment, including assets held for sale | 260,140 | 225,821 | 82,731 | ||||||||
Purchases of property and equipment | (829,977 | ) | (755,997 | ) | (387,191 | ) | |||||
Expenditures on assets held for sale | (16,093 | ) | (30,322 | ) | (1,553 | ) | |||||
Net cash, restricted cash, and equivalents (invested in) acquired from 2017 Merger and other acquisitions | (1,885 | ) | (101,693 | ) | 91,960 | ||||||
Other cash flows from investing activities | (4,284 | ) | 10,085 | 9,953 | |||||||
Net cash used in investing activities | (583,706 | ) | (647,292 | ) | (204,263 | ) | |||||
Cash flows from financing activities: | |||||||||||
Repayment of finance leases and long-term debt | (115,642 | ) | (46,630 | ) | (503,153 | ) | |||||
Proceeds from long-term debt | — | — | 400,000 | ||||||||
Borrowings on revolving lines of credit, net | 84,000 | 70,000 | 107,000 | ||||||||
Borrowings under accounts receivable securitization | 150,000 | 70,000 | 40,000 | ||||||||
Repayment of accounts receivable securitization | (185,000 | ) | (135,000 | ) | — | ||||||
Proceeds from common stock issued | 13,307 | 13,547 | 13,483 | ||||||||
Repurchases of the Company's common stock | (86,892 | ) | (179,318 | ) | — | ||||||
Dividends paid | (41,425 | ) | (42,770 | ) | (25,454 | ) | |||||
Other cash flows from financing activities | (2,984 | ) | (5,271 | ) | (7,876 | ) | |||||
Net cash (used in) provided by financing activities | (184,636 | ) | (255,442 | ) | 24,000 | ||||||
Net increase (decrease) in cash, restricted cash, and equivalents | 71,252 | (20,757 | ) | 142,327 | |||||||
Cash, restricted cash, and equivalents at beginning of period | 130,976 | 151,733 | 9,406 | ||||||||
Cash, restricted cash, and equivalents at end of period | $ | 202,228 | $ | 130,976 | $ | 151,733 |
Consolidated Statements of Cash Flows — Continued |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | 18,949 | $ | 17,396 | $ | 28,916 | |||||||||||
Income taxes | 167,092 | 80,006 | 78,658 | ||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Equipment acquired included in accounts payable | $ | 10,489 | $ | 651 | $ | 6,748 | |||||||||||
Equipment sales receivables | 67 | 223 | 1,333 | ||||||||||||||
Financing provided to independent contractors for equipment sold | 4,773 | 5,428 | 5,288 | ||||||||||||||
Transfer from property and equipment to assets held for sale | 92,445 | 75,292 | 137,391 | ||||||||||||||
Noncontrolling interest associated with acquisition | 10,281 | — | — | ||||||||||||||
Contingent consideration associated with acquisition | 6,250 | 16,200 | — | ||||||||||||||
Value of common stock issued for acquisition | 10,000 | — | — | ||||||||||||||
Conversion of note receivable to equity investment | 37,631 | — | — | ||||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | 22,771 | 12,406 | 9,803 | ||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities through acquisitions | 50,988 | 12,356 | — | ||||||||||||||
Property and equipment obtained in exchange for new finance lease liabilities | 181,234 | 137,097 | — | ||||||||||||||
Property and equipment obtained in exchange for finance lease liabilities reclassified from operating lease liabilities | 42,298 | 67,430 | 56,352 |
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 28,916 | $ | 28,723 | $ | 9,286 | |||||
Income taxes | 78,658 | 16,106 | 51,817 | ||||||||
Non-cash investing and financing activities: | |||||||||||
Equipment acquired included in accounts payable | $ | 6,748 | $ | 11,931 | $ | 8,361 | |||||
Equipment sales receivables | 1,333 | 5,565 | 350 | ||||||||
Financing provided to independent contractors for equipment sold | 5,288 | 1,742 | 3,316 | ||||||||
Transfer from property and equipment to assets held for sale | 137,391 | 133,434 | 45,016 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 9,803 | — | — | ||||||||
Property and equipment obtained in exchange for new finance lease liabilities | 56,352 | — | — | ||||||||
Property and equipment obtained in exchange for new capital lease obligations (under ASC Topic 840) | — | — | 15,020 |
Reconciliation of Cash, Restricted Cash, and Equivalents: | 2019 | 2018 | 2017 | Reconciliation of Cash, Restricted Cash, and Equivalents: | 2021 | 2020 | 2019 | |||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 159,722 | $ | 82,486 | $ | 76,649 | Cash and cash equivalents | $ | 261,001 | $ | 156,699 | $ | 159,722 | |||||||||||||||
Cash and cash equivalents – restricted ¹ | 41,331 | 46,888 | 73,657 | |||||||||||||||||||||||||
Other long-term assets ¹ | 1,175 | 1,602 | 1,427 | |||||||||||||||||||||||||
Cash and cash equivalents – restricted 1 | Cash and cash equivalents – restricted 1 | 87,241 | 39,328 | 41,331 | ||||||||||||||||||||||||
Other long-term assets 1 | Other long-term assets 1 | 1,781 | 1,250 | 1,175 | ||||||||||||||||||||||||
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||
Cash, restricted cash, and equivalents | $ | 202,228 | $ | 130,976 | $ | 151,733 | Cash, restricted cash, and equivalents | $ | 350,023 | $ | 197,277 | $ | 202,228 | |||||||||||||||
Notes to Consolidated Financial Statements |
Category: | Range (in years) | |||
Revenue equipment | 4 | — | 20 | |
Shop and service equipment | 2 | — | 10 | |
Land improvements | 5 | — | 15 | |
Buildings and building improvements | 10 | — | 40 | |
Furniture and fixtures | 3 | — | 10 | |
Leasehold improvements | Life of the lease |
Category: | Range (in years) | |||||||||||||
Revenue equipment * | 3 | — | 20 | |||||||||||
Shop and service equipment | 2 | — | 10 | |||||||||||
Land improvements | 5 | — | 15 | |||||||||||
Buildings and building improvements | 10 | — | 40 | |||||||||||
Furniture and fixtures | 3 | — | 10 | |||||||||||
Leasehold improvements | Life of the lease |
In accordance with ASC 842, Leases, property and equipment held under operating leases are recorded as right-of-use assets, with a corresponding operating lease liability. Additionally, property and equipment held under finance leases are recorded as property and equipment with corresponding finance lease liabilities. All expenses related to operating leases are reflected in our consolidated statements of comprehensive income in "Rental expense." Expenses related to finance leases are reflected in our consolidated statements of comprehensive income in "Depreciation and amortization of property and equipment" and "Interest expense." •Lease Term — The Company’s leases generally have lease terms corresponding to the useful lives of the underlying assets. Revenue equipment leases have fixed payment terms based on the passage of time, which is typically three to five years for tractors and five to seven years for trailers. Certain finance leases for revenue equipment contain renewal or fixed price purchase options. Real estate leases, excluding drop yards, generally have varying lease terms between five and fifteen years and may include renewal options. Drop yards include month-to-month leases, as well as leases with varying lease terms generally ranging from two to five years. |
•Portfolio Approach — The Company typically leases its revenue equipment under master lease agreements, which contain general terms, conditions, definitions, representations, warranties, and other general language, while the specific contract provisions are contained within the various individual lease schedules that fall under a master lease agreement. Each individual leased asset within a lease schedule is similar in nature (i.e. all tractors or all trailers) and has identical contract provisions to all of the other individual leased assets within the same lease schedule (such as the contract provisions discussed above). Management has elected to apply the portfolio approach to its revenue equipment leases, as accounting for its revenue equipment under the portfolio approach would not be materially different from separately accounting for each individual underlying asset as a lease. Each individual real estate and other lease is accounted for at the individual asset level. |
•Short-Term Lease Exemption — Management has elected to apply the short-term lease exemption to all asset groups. Accordingly, leases with terms of twelve months or less are not capitalized and continue to be expensed on a straight-line basis over the term of the lease. This primarily affects the Company’s drop yards and corresponding temporary structures on those drop yards. To a lesser extent, certain short-term leases for revenue equipment, technology, and other assets are affected. •Discount Rate — The Company uses the rate implicit in the lease, when readily determinable, which is generally related to the Company's finance leases. Otherwise the Company’s incremental borrowing rate is applied. The implicit interest rate is not readily determinable for the Company’s operating leases. As such, management applies the Company’s incremental borrowing rate, which is defined by GAAP as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company's incremental borrowing rate is based on the results of an independent third-party valuation. • |
Residual Values — The Company's finance leases for revenue equipment are typically structured with balloon payments at the end of the lease term equal to the residual value the Company is contracted to receive from certain equipment manufacturers upon sale or trade back to the manufacturers. If the Company does not receive proceeds of the contracted residual value from the manufacturer, the Company is still obligated to make the balloon payment at the end of the lease term. |
•Contract Balances — In-transit revenue balances are included in "Contract balance – revenue in transit" in the consolidated balance sheets. The Company's contract liability balances are typically immaterial. •Revenue Disaggregation — In considering the level at which the Company should disaggregate revenues pertaining to contracts with customers, management determined that there are no significant differences between segments in how the nature, amount, timing, and uncertainty of revenue or cash flows are affected by economic factors. Additionally, management considered how and where the Company has communicated information about revenue for various purposes, including disclosures outside of the financial statements and how information is regularly reviewed by the Company's chief operating decision makers for evaluating financial performance of the Company's segments, among others. Based on these considerations, management determined that revenues should be disaggregated by reportable segment. |
December 31, 2018 | Opening Balance Adjustments | January 1, 2019 | |||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Prepaid expenses 2 | $ | 67,011 | $ | (948 | ) | $ | 66,063 | ||||
Operating lease right-of-use assets 1 | — | 280,527 | 280,527 | ||||||||
Other long-term assets 2 | 51,721 | (1 | ) | 51,720 | |||||||
Liabilities | |||||||||||
Accounts payable 2 | $ | 117,883 | $ | (437 | ) | $ | 117,446 | ||||
Accrued liabilities 2 | 151,500 | (4,168 | ) | 147,332 | |||||||
Operating lease liabilities – current portion 1 | — | 119,963 | 119,963 | ||||||||
Operating lease liabilities – less current portion 1 | — | 168,232 | 168,232 | ||||||||
Deferred tax liabilities 3 | 739,538 | — | 739,538 | ||||||||
Other long-term liabilities 2 | 23,294 | (4,012 | ) | 19,282 |
December 31, 2019 | |||||||||||
As Reported under ASC Topic 842 | If Reported Under ASC Topic 840 | Effect of Change to ASC Topic 842 | |||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Prepaid expenses 2 | $ | 62,160 | $ | 62,879 | $ | (719 | ) | ||||
Gross property and equipment 4 | 3,742,739 | 3,741,911 | 828 | ||||||||
Accumulated depreciation and amortization 4 | (892,019 | ) | (891,191 | ) | (828 | ) | |||||
Operating lease right-of-use assets 1 | 169,425 | — | 169,425 | ||||||||
Other long-term assets 2 | 73,108 | 73,108 | — | ||||||||
Liabilities | |||||||||||
Accounts payable 2 | $ | 99,194 | $ | 101,264 | $ | (2,070 | ) | ||||
Accrued liabilities 2 | 175,222 | 178,404 | (3,182 | ) | |||||||
Finance lease liabilities and long-term debt – current portion 4 | 377,651 | 377,651 | — | ||||||||
Operating lease liabilities – current portion 1 | 80,101 | — | 80,101 | ||||||||
Operating lease liabilities – less current portion 1 | 96,160 | — | 96,160 | ||||||||
Deferred tax liabilities 3 | 771,719 | 771,772 | (53 | ) | |||||||
Other long-term liabilities 2 | 14,455 | 16,705 | (2,250 | ) |
Date Issued | Reference | Description | Expected Adoption Date and Method | Financial Statement Impact | ||||||||||||||||||||||
The amendments in this ASU | January | |||||||||||||||||||||||||
Currently under evaluation, but not expected to be material | ||||||||||||||||||||||||||
The | ||||||||||||||||||||||||||
The amendments in this ASU add disclosure requirements to convertible debt instruments and convertible preferred stock, require convertible instruments to be disclosed at fair value, and update the | ||||||||||||||||||||||||||
diluted EPS. The amendments in this ASU | ||||||||||||
Relief | ||||||||||||
January | ||||||||||||
No material impact |
(In thousands, except ratio and stock price) | |||
Number of Swift shares outstanding at September 8, 2017 | 134,765 | ||
Swift share consolidation ratio | 0.72 | ||
Swift shares outstanding post-Reverse Split and immediately prior to the 2017 Merger | 97,031 | ||
Closing price of Knight on September 8, 2017 | $ | 40.85 | |
Fair value of equity portion of the 2017 Merger consideration | $ | 3,963,712 | |
Fair value of Swift equity awards and noncontrolling interest assumed | 13,193 | ||
Total fair value of consideration transferred | $ | 3,976,905 | |
September 9, 2017 Opening Balance Sheet | Adjustments ¹ | Adjusted September 9, 2017 Opening Balance Sheet | |||||||||
(In thousands) | |||||||||||
Fair value of the consideration transferred | $ | 3,976,905 | $ | — | $ | 3,976,905 | |||||
Cash and cash equivalents | $ | 28,484 | $ | — | $ | 28,484 | |||||
Restricted cash and fixed maturity securities | 85,615 | — | 85,615 | ||||||||
Trade and other receivables | 411,767 | — | 411,767 | ||||||||
Prepaid expenses | 44,564 | — | 44,564 | ||||||||
Other current assets | 19,736 | — | 19,736 | ||||||||
Property and equipment | 1,522,123 | — | 1,522,123 | ||||||||
Identifiable intangible assets ¹ | 1,285,900 | 165,800 | 1,451,700 | ||||||||
Other noncurrent assets | 18,537 | — | 18,537 | ||||||||
Total assets | 3,416,726 | 165,800 | 3,582,526 | ||||||||
Accounts payable | (188,411 | ) | — | (188,411 | ) | ||||||
Accrued liabilities ² | (232,280 | ) | (6,466 | ) | (238,746 | ) | |||||
Claims accruals | (306,846 | ) | — | (306,846 | ) | ||||||
Long-term debt and capital lease obligations | (894,681 | ) | — | (894,681 | ) | ||||||
Deferred tax liabilities ¹ ² | (741,405 | ) | (61,900 | ) | (803,305 | ) | |||||
Other long-term liabilities | (18,452 | ) | — | (18,452 | ) | ||||||
Total liabilities | (2,382,075 | ) | (68,366 | ) | (2,450,441 | ) | |||||
Goodwill ¹ ² | $ | 2,942,254 | $ | (97,434 | ) | $ | 2,844,820 | ||||
Estimated Life | Estimated Fair Value as of September 9, 2017 | Adjustments ¹ | Adjusted Estimated Fair Value as of September 9, 2017 | ||||||||||
(years) | (thousands) | ||||||||||||
Customer relationships | 10 - 20 years | $ | 817,200 | $ | (700 | ) | $ | 816,500 | |||||
Trade name | indefinite | 468,700 | 166,500 | 635,200 | |||||||||
Total identifiable intangible assets | $ | 1,285,900 | $ | 165,800 | $ | 1,451,700 | |||||||
March 16, 2018 Opening Balance Sheet | Adjustments | Adjusted March 16, 2018 Opening Balance Sheet | |||||||||
(in thousands) | |||||||||||
Fair value of the consideration transferred | $ | 103,223 | $ | 124 | $ | 103,347 | |||||
Cash | 1,654 | — | 1,654 | ||||||||
Trade receivables | 11,745 | 1,265 | 13,010 | ||||||||
Other assets | 7,785 | 842 | 8,627 | ||||||||
Property and equipment | 41,403 | (41 | ) | 41,362 | |||||||
Identifiable intangible assets ¹ | 23,000 | (400 | ) | 22,600 | |||||||
Total assets | 85,587 | 1,666 | 87,253 | ||||||||
Accounts payable | 1,959 | 1,577 | 3,536 | ||||||||
Accrued liabilities | 2,419 | 4,942 | 7,361 | ||||||||
Claims accruals | 230 | 179 | 409 | ||||||||
Total liabilities | 4,608 | 6,698 | 11,306 | ||||||||
Goodwill | $ | 22,244 | $ | 5,156 | $ | 27,400 | |||||
2018 | |||
(in thousands, except per share data) | |||
Total revenue | $ | 5,366,551 | |
Net income attributable to Knight-Swift | $ | 419,812 | |
Earnings per diluted share | $ | 2.36 |
2021 | 2020 | ||||||||||
(in thousands, except per share data) | |||||||||||
Total revenue | $ | 6,387,329 | $ | 5,374,934 | |||||||
Net income attributable to Knight-Swift | 763,393 | 437,835 | |||||||||
Earnings per share – diluted | 4.57 | 2.57 | |||||||||
MME | ACT | UTXL | Eleos | Warehousing Co.1 | |||||||||||||||||||||||||
December 6, 2021 Opening Balance Sheet as Reported at December 31, 2021 | July 5, 2021 Opening Balance Sheet as Reported at December 31, 2021 | June 1, 2021 Opening Balance Sheet as Reported at December 31, 2021 | February 1, 2021 Opening Balance Sheet as Reported at December 31, 2021 | January 1, 2020 Opening Balance Sheet as Reported at December 31, 2021 | |||||||||||||||||||||||||
Fair value of the consideration transferred | $ | 164,382 | $ | 1,306,214 | $ | 37,230 | $ | 41,518 | $ | 66,444 | |||||||||||||||||||
Cash and cash equivalents | 14,716 | 17,477 | 8,206 | 2,237 | 1,388 | ||||||||||||||||||||||||
Trade receivables | 21,915 | 104,220 | 9,451 | 545 | 3,301 | ||||||||||||||||||||||||
Prepaid expenses | 2,067 | 15,803 | — | 47 | 608 | ||||||||||||||||||||||||
Other current assets | 462 | 3,537 | — | — | 78 | ||||||||||||||||||||||||
Property and equipment | 49,192 | 427,722 | 54 | — | 1,938 | ||||||||||||||||||||||||
Operating lease right-of-use assets | 52,065 | 4,053 | — | 560 | 12,356 | ||||||||||||||||||||||||
Identifiable intangible assets 2 | 52,960 | 406,160 | 22,121 | 15,850 | 55,681 | ||||||||||||||||||||||||
Other noncurrent assets | 139 | 1,739 | — | — | 458 | ||||||||||||||||||||||||
Total assets | 193,516 | 980,711 | 39,832 | 19,239 | 75,808 | ||||||||||||||||||||||||
Accounts payable | (7,681) | (19,386) | (14,183) | (156) | (347) | ||||||||||||||||||||||||
Accrued payroll and payroll-related expenses | (7,106) | (33,411) | (247) | (605) | — | ||||||||||||||||||||||||
Accrued liabilities | (544) | (9,302) | (69) | (1,391) | (644) | ||||||||||||||||||||||||
Claims accruals – current and noncurrent portions | (1,090) | (40,958) | (418) | — | — | ||||||||||||||||||||||||
Operating lease liabilities – current and noncurrent portions | (46,375) | (4,052) | — | (560) | (12,356) | ||||||||||||||||||||||||
Long-term debt – current and noncurrent portions | — | (54,024) | — | — | — | ||||||||||||||||||||||||
Deferred tax liabilities | (19,009) | — | — | — | — | ||||||||||||||||||||||||
Other long-term liabilities | (568) | (4,243) | — | (475) | — | ||||||||||||||||||||||||
Total liabilities | (82,373) | (165,376) | (14,917) | (3,187) | (13,347) | ||||||||||||||||||||||||
Noncontrolling interest | — | — | — | (10,281) | — | ||||||||||||||||||||||||
Total stockholders' equity | — | — | — | (10,281) | — | ||||||||||||||||||||||||
Goodwill | $ | 53,239 | $ | 490,879 | $ | 12,315 | $ | 35,747 | $ | 3,983 | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||||
Cost or Amortized Cost | Gains | Temporary Losses | Estimated Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
US corporate securities | $ | 5,866 | $ | — | $ | (7) | $ | 5,859 | |||||||||||||||
Restricted investments, held-to-maturity | $ | 5,866 | $ | — | $ | (7) | $ | 5,859 | |||||||||||||||
December 31, 2019 | |||||||||||||||
Gross Unrealized | |||||||||||||||
Cost or Amortized Cost | Gains | Temporary Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
US corporate securities | $ | 8,912 | $ | 4 | $ | (1 | ) | $ | 8,915 | ||||||
Restricted investments, held-to-maturity | $ | 8,912 | $ | 4 | $ | (1 | ) | $ | 8,915 | ||||||
December 31, 2018 | |||||||||||||||
Gross Unrealized | |||||||||||||||
Cost or Amortized Cost | Gains | Temporary Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
US corporate securities | $ | 15,296 | $ | 1 | $ | (16 | ) | $ | 15,281 | ||||||
Municipal bonds | 1,082 | — | — | 1,082 | |||||||||||
Negotiable certificates of deposit | 1,035 | — | — | 1,035 | |||||||||||
Restricted investments, held-to-maturity | $ | 17,413 | $ | 1 | $ | (16 | ) | $ | 17,398 | ||||||
December 31, 2020 | |||||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||||
Cost or Amortized Cost | Gains | Temporary Losses | Estimated Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
US corporate securities | $ | 9,001 | $ | 2 | $ | (8) | $ | 8,995 | |||||||||||||||
Restricted investments, held-to-maturity | $ | 9,001 | $ | 2 | $ | (8) | $ | 8,995 | |||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Knight-Swift's Ownership Interest 1 | Total Commitment (All Partners) | Knight-Swift's Contracted Commitment | Knight-Swift's Remaining Commitment | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
TRP III – equity method investment 3 5 | 6.0 | % | $ | 245,000 | $ | 15,000 | $ | 1,692 | |||||||||||||||
TRP IV – equity investment 2 4 | 4.2 | % | $ | 116,065 | $ | 4,900 | $ | 654 | |||||||||||||||
TRP IV Coinvestment NTI – equity method investment 5 | — | % | $ | 120,000 | $ | 10,000 | $ | — | |||||||||||||||
TRP IV Coinvestment QLS – equity method investment | 25.0 | % | $ | 39,000 | $ | 9,735 | $ | — | |||||||||||||||
TRP IV Coinvestment FFR – equity method investment 5 | 7.4 | % | $ | 66,555 | $ | 4,950 | $ | — | |||||||||||||||
TRP V - equity method investment 6 | 16.6 | % | $ | 180,700 | $ | 30,000 | $ | 17,803 | |||||||||||||||
TRP V Coinvest - equity method investment 5 6 | 13.3 | % | $ | 30,000 | $ | 4,000 | $ | — | |||||||||||||||
December 31, 2019 | ||||||||||||||
Knight's Ownership Interest 1 | Total Commitment (All Partners) | Knight's Contracted Commitment | Knight's Remaining Commitment | |||||||||||
(Dollars in thousands) | ||||||||||||||
TRP – equity investment 2 | 2.4 | % | $ | 260,000 | $ | 5,500 | $ | — | ||||||
TRP III – equity method investment 3 | 4.9 | % | $ | 245,000 | $ | 15,000 | $ | 1,715 | ||||||
TRP IV – equity investment 2 4 | 4.4 | % | $ | 116,000 | $ | 4,900 | $ | 750 | ||||||
TRP Coinvestment NTI – equity method investment 5 | 8.3 | % | $ | 120,000 | $ | 10,000 | $ | — | ||||||
TRP Coinvestment QLS – equity method investment 5 | 25.0 | % | $ | 39,000 | $ | 9,735 | $ | — | ||||||
TRP Coinvestment FFR – equity method investment 5 6 | 7.4 | % | $ | 66,555 | $ | 4,950 | $ | — | ||||||
KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED The carrying amount of the Company's initial investment in Holdings Co. was approximately $36.6 million in excess of the Company's initial underlying equity interest in the net assets in Holdings Co. This basis difference represents the Company's proportionate share of the fair value of Holdings Co.'s net tangible assets and its identified intangible assets, with the remaining excess recognized as equity method goodwill. The Company's proportionate share of certain identified definite-lived intangibles are amortized over their estimated useful lives and accreted against the earnings recognized from the Company's interest in Holdings Co. Net Investment Balances |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
TRP III – equity method investment | $ | 801 | $ | 217 | |||||||
TRP IV – equity investment 1 | 3 | 2,952 | |||||||||
TRP IV Coinvestment NTI – equity method investment | 37 | 5,609 | |||||||||
TRP IV Coinvestment QLS – equity method investment | 12,444 | 16,240 | |||||||||
TRP IV Coinvestment FFR – equity method investment | 6,761 | 4,905 | |||||||||
TRP V – equity method investment | 12,043 | 3,304 | |||||||||
TRP V Coinvest – equity method investment | 4,859 | 4,000 | |||||||||
Holdings Co. – equity method investment 2 | 38,821 | 40,335 | |||||||||
Embark – equity investment | $ | 54,467 | $ | — | |||||||
Total carrying value | $ | 130,236 | $ | 77,562 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
TRP – equity investment ¹ | $ | — | $ | 211 | |||
TRP III – equity method investment | 252 | 1,781 | |||||
TRP IV – equity investment ¹ | 3,068 | 2,022 | |||||
TRP Coinvestment NTI – equity method investment | 6,225 | 5,547 | |||||
TRP Coinvestment QLS – equity method investment | 16,383 | 11,085 | |||||
TRP Coinvestment FFR – equity method investment | 4,950 | — | |||||
Total carrying value | $ | 30,878 | $ | 20,646 | |||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Trade customers | $ | 847,305 | $ | 570,611 | |||||||
Equipment manufacturers | 11,923 | 5,680 | |||||||||
Insurance premiums 1 | 43,455 | 5,804 | |||||||||
Other 1 | 30,316 | 18,477 | |||||||||
Trade receivables | 932,999 | 600,572 | |||||||||
Less: Allowance for doubtful accounts | (21,663) | (22,093) | |||||||||
Trade receivables, net | $ | 911,336 | $ | 578,479 | |||||||
December 31, | |||||||
2019 | 2018 ¹ | ||||||
(In thousands) | |||||||
Trade customers | $ | 511,487 | $ | 581,475 | |||
Equipment manufacturers | 5,146 | 7,166 | |||||
Other | 20,092 | 28,942 | |||||
Trade receivables | 536,725 | 617,583 | |||||
Less: Allowance for doubtful accounts | (18,178 | ) | (16,355 | ) | |||
Trade receivables, net | $ | 518,547 | $ | 601,228 | |||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | 22,093 | $ | 18,178 | $ | 16,355 | |||||||||||
Provision | 10,900 | 17,267 | 16,925 | ||||||||||||||
Write-offs directly against the reserve | (776) | (902) | (2,652) | ||||||||||||||
Write-offs for revenue adjustments | (11,504) | (12,450) | (12,450) | ||||||||||||||
Other 1 | 950 | — | — | ||||||||||||||
Ending balance | $ | 21,663 | $ | 22,093 | $ | 18,178 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Beginning balance | $ | 16,355 | $ | 14,829 | $ | 2,727 | |||||
Provision (reduction) | 16,925 | (3,092 | ) | 4,671 | |||||||
Write-offs directly against the reserve | (2,652 | ) | (1,362 | ) | (1,583 | ) | |||||
Write-offs for revenue adjustments | (12,450 | ) | 5,861 | (3,758 | ) | ||||||
Other ¹ | — | 119 | 12,772 | ||||||||
Ending balance | $ | 18,178 | $ | 16,355 | $ | 14,829 | |||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Notes receivable from independent contractors | $ | 5,969 | $ | 7,291 | |||||||
Convertible note receivable from third party | 10,141 | — | |||||||||
Notes receivable from other third parties | 994 | 3,034 | |||||||||
Gross notes receivable | 17,104 | 10,325 | |||||||||
Allowance for doubtful notes receivable | (496) | (602) | |||||||||
Total notes receivable, net of allowance | $ | 16,608 | $ | 9,723 | |||||||
Current portion, net of allowance | 1,848 | 2,846 | |||||||||
Long-term portion | $ | 14,760 | $ | 6,877 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Notes receivable from independent contractors | $ | 9,167 | $ | 9,318 | |||
Notes receivable from third parties | 6,164 | 7,075 | |||||
Gross notes receivable | 15,331 | 16,393 | |||||
Allowance for doubtful notes receivable | (503 | ) | (1,051 | ) | |||
Total notes receivable, net of allowance | $ | 14,828 | $ | 15,342 | |||
Current portion, net of allowance | 4,163 | 4,563 | |||||
Long-term portion | $ | 10,665 | $ | 10,779 | |||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Beginning balance | $ | 1,051 | $ | 1,040 | $ | 240 | |||||
(Reduction) provision | (137 | ) | (100 | ) | 574 | ||||||
Write-offs | (411 | ) | (103 | ) | (53 | ) | |||||
Other ¹ | — | 214 | 279 | ||||||||
Ending balance | $ | 503 | $ | 1,051 | $ | 1,040 | |||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Goodwill at beginning of period | $ | 2,922,964 | $ | 2,918,992 | $ | 2,919,176 | |||||||||||
Amortization relating to deferred tax assets | (9) | (11) | (232) | ||||||||||||||
Acquisitions 1 | 592,180 | 3,983 | 48 | ||||||||||||||
Goodwill at end of period | $ | 3,515,135 | $ | 2,922,964 | $ | 2,918,992 | |||||||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Goodwill at beginning of period | $ | 2,919,176 | $ | 2,887,867 | |||
Amortization relating to deferred tax assets | (232 | ) | (17 | ) | |||
Abilene Acquisition ¹ | 48 | 27,352 | |||||
Goodwill related to 2017 Merger ² | — | 3,974 | |||||
Goodwill at end of period | $ | 2,918,992 | $ | 2,919,176 | |||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Net Carrying Amount 1 | Net Carrying Amount 1 | ||||||||||
(In thousands) | |||||||||||
Truckload | $ | 2,658,086 | $ | 2,658,095 | |||||||
Logistics | 54,827 | 42,512 | |||||||||
LTL | 544,118 | — | |||||||||
Intermodal | 175,594 | 175,594 | |||||||||
Non-reportable | 82,510 | 46,763 | |||||||||
Goodwill | $ | 3,515,135 | $ | 2,922,964 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
Net Carrying Amount ¹ | Net Carrying Amount ¹ | ||||||
(In thousands) | |||||||
Trucking | $ | 2,658,106 | $ | 2,658,290 | |||
Intermodal | 175,594 | 175,594 | |||||
Logistics | 42,512 | 42,512 | |||||
Non-reportable | 42,780 | 42,780 | |||||
Goodwill | $ | 2,918,992 | $ | 2,919,176 | |||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Definite-lived intangible assets: 1 | |||||||||||
Gross carrying amount | $ | 1,227,630 | $ | 894,597 | |||||||
Accumulated amortization | (201,139) | (145,852) | |||||||||
Definite-lived intangible assets, net | 1,026,491 | 748,745 | |||||||||
Indefinite-lived trade names: | |||||||||||
Gross carrying amount | 804,558 | 640,500 | |||||||||
Intangible assets, net | $ | 1,831,049 | $ | 1,389,245 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Customer relationships and non-compete: | |||||||
Gross carrying amount ¹ | $ | 839,516 | $ | 838,100 | |||
Accumulated amortization | (99,957 | ) | (57,081 | ) | |||
Customer relationships and non-compete, net | 739,559 | 781,019 | |||||
Trade names: | |||||||
Gross carrying amount | 639,900 | 639,900 | |||||
Intangible assets, net | $ | 1,379,459 | $ | 1,420,919 | |||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Amortization of intangible assets related to the 2017 Merger | $ | 41,375 | $ | 41,375 | $ | 12,872 | |||||
Amortization related to other intangible assets | 1,501 | 1,209 | 500 | ||||||||
Amortization of intangibles | $ | 42,876 | $ | 42,584 | $ | 13,372 | |||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Amortization of intangible assets related to the 2017 Merger | $ | 41,375 | $ | 41,375 | $ | 41,375 | |||||||||||
Amortization related to other intangible assets | 13,924 | 4,520 | 1,501 | ||||||||||||||
Amortization of intangibles | $ | 55,299 | $ | 45,895 | $ | 42,876 | |||||||||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Accrued payroll 1 | $ | 146,326 | $ | 114,835 | |||||||
Accrued purchased transportation | 70,758 | 46,053 | |||||||||
Accrued payroll and purchased transportation | $ | 217,084 | $ | 160,888 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Accrued payroll ¹ | $ | 70,534 | $ | 68,121 | |||
Accrued purchased transportation | 39,531 | 58,343 | |||||
Accrued payroll and purchased transportation | $ | 110,065 | $ | 126,464 | |||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Accrued legal ¹ | $ | 121,312 | $ | 90,789 | |||
Other | 53,910 | 60,711 | |||||
Accrued liabilities | $ | 175,222 | $ | 151,500 | |||
December 31, | December 31, | |||||||||||||||||
2019 | 2018 | 2021 | 2020 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Auto reserves | $ | 224,541 | $ | 222,004 | Auto reserves | $ | 263,091 | $ | 231,875 | |||||||||
Workers’ compensation reserves | 108,035 | 120,522 | Workers’ compensation reserves | 90,481 | 94,609 | |||||||||||||
Third-party carrier claims reserves | Third-party carrier claims reserves | 31,524 | 40 | |||||||||||||||
Independent contractor claims reserves | 8,044 | 12,170 | Independent contractor claims reserves | 6,285 | 7,112 | |||||||||||||
Cargo damage reserves | 2,818 | 2,998 | Cargo damage reserves | 5,409 | 2,494 | |||||||||||||
Employee medical reserves | 4,279 | 3,677 | ||||||||||||||||
Employee medical and other reserves | Employee medical and other reserves | 20,531 | 13,612 | |||||||||||||||
Claims accruals | 347,717 | 361,371 | Claims accruals | 417,321 | 349,742 | |||||||||||||
Less: current portion of claims accruals | (150,805 | ) | (160,044 | ) | Less: current portion of claims accruals | (206,607) | (174,928) | |||||||||||
Claims accruals, less current portion | $ | 196,912 | $ | 201,327 | Claims accruals, less current portion | $ | 210,714 | $ | 174,814 | |||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Current expense: | |||||||||||
Federal | $ | 50,703 | $ | 44,357 | $ | 4,868 | |||||
State | 16,616 | 22,300 | 8,337 | ||||||||
Foreign | 5,526 | 3,124 | 133 | ||||||||
72,845 | 69,781 | 13,338 | |||||||||
Deferred expense (benefit): | |||||||||||
Federal | 28,618 | 59,508 | (323,326 | ) | |||||||
State | 3,712 | 1,639 | 17,731 | ||||||||
Foreign | (1,377 | ) | 461 | 541 | |||||||
30,953 | 61,608 | (305,054 | ) | ||||||||
Income tax expense (benefit) | $ | 103,798 | $ | 131,389 | $ | (291,716 | ) | ||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Current expense: | |||||||||||||||||
Federal | $ | 140,258 | $ | 80,060 | $ | 50,703 | |||||||||||
State | 42,319 | 19,153 | 16,616 | ||||||||||||||
Foreign | 8,382 | 4,248 | 5,526 | ||||||||||||||
190,959 | 103,461 | 72,845 | |||||||||||||||
Deferred expense (benefit): | |||||||||||||||||
Federal | 48,874 | 29,640 | 28,618 | ||||||||||||||
State | (10,369) | 7,292 | 3,712 | ||||||||||||||
Foreign | 1,423 | 9,283 | (1,377) | ||||||||||||||
39,928 | 46,215 | 30,953 | |||||||||||||||
Income tax expense | $ | 230,887 | $ | 149,676 | $ | 103,798 | |||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Computed "expected" tax expense | $ | 204,673 | $ | 117,665 | $ | 86,935 | |||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 23,063 | 22,423 | 17,803 | ||||||||||||||
Other | 3,151 | 9,588 | (940) | ||||||||||||||
Income tax expense | $ | 230,887 | $ | 149,676 | $ | 103,798 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Computed "expected" tax expense | $ | 86,935 | $ | 117,478 | $ | 67,798 | |||||
Increase (decrease) in income taxes resulting from: | |||||||||||
State income taxes, net of federal income tax benefit | 17,803 | 19,256 | 4,871 | ||||||||
Statutory rate change effect on deferred taxes | — | 452 | (367,000 | ) | |||||||
Other | (940 | ) | (5,797 | ) | 2,615 | ||||||
Income tax expense (benefit) | $ | 103,798 | $ | 131,389 | $ | (291,716 | ) | ||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Claims accrual | $ | 80,019 | $ | 79,675 | |||
Allowance for doubtful accounts | 5,478 | 5,333 | |||||
Amortization of stock options | 5,769 | 5,325 | |||||
Accrued liabilities | 32,284 | 27,692 | |||||
Vacation accrual | 3,380 | 3,499 | |||||
Other | 8,595 | 8,759 | |||||
Total deferred tax assets | 135,525 | 130,283 | |||||
Valuation allowance | — | — | |||||
Total deferred tax assets, net | 135,525 | 130,283 | |||||
Deferred tax liabilities: | |||||||
Property and equipment, principally due to differences in depreciation | (550,521 | ) | (503,570 | ) | |||
Prepaid taxes, licenses, and permits deducted for tax purposes | (11,168 | ) | (10,933 | ) | |||
Intangible assets | (345,555 | ) | (354,944 | ) | |||
Other | — | (374 | ) | ||||
Total deferred tax liabilities | (907,244 | ) | (869,821 | ) | |||
Deferred tax liabilities | $ | (771,719 | ) | $ | (739,538 | ) | |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Claims accrual | $ | 79,496 | $ | 81,426 | |||||||
Allowance for doubtful accounts | 5,530 | 5,727 | |||||||||
Amortization of stock options | 8,192 | 7,712 | |||||||||
Accrued liabilities | 11,497 | 17,941 | |||||||||
Operating lease liabilities | 34,260 | 29,278 | |||||||||
Other | 20,562 | 10,687 | |||||||||
Total deferred tax assets | 159,537 | 152,771 | |||||||||
Valuation allowance | — | — | |||||||||
Total deferred tax assets, net | 159,537 | 152,771 | |||||||||
Deferred tax liabilities: | |||||||||||
Property and equipment, principally due to differences in depreciation | (635,877) | (586,349) | |||||||||
Prepaid taxes, licenses, and permits deducted for tax purposes | (15,241) | (12,629) | |||||||||
Intangible assets | (338,191) | (334,618) | |||||||||
Operating lease right-of-use assets | (34,016) | (28,259) | |||||||||
Other | (11,089) | (6,857) | |||||||||
Total deferred tax liabilities | (1,034,414) | (968,712) | |||||||||
Deferred income taxes | $ | (874,877) | $ | (815,941) | |||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Unrecognized tax benefits at beginning of year | $ | 7,423 | $ | 7,096 | $ | 729 | |||||
Increases for tax positions taken prior to beginning of year | 38 | 1,056 | 5,432 | ||||||||
Increases for tax positions taken in the current year | — | — | 935 | ||||||||
Decreases for tax positions taken prior to beginning of year | (3,378 | ) | (729 | ) | — | ||||||
Unrecognized tax benefits at end of year | $ | 4,083 | $ | 7,423 | $ | 7,096 | |||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Unrecognized tax benefits at beginning of year | $ | 2,950 | $ | 4,083 | $ | 7,423 | |||||||||||
Increases for tax positions taken prior to beginning of year | — | — | 38 | ||||||||||||||
Decreases for tax positions taken prior to beginning of year | (1,215) | (1,133) | (3,378) | ||||||||||||||
Unrecognized tax benefits at end of year | $ | 1,735 | $ | 2,950 | $ | 4,083 | |||||||||||
2021 RSA | 2018 RSA | ||||||||||
(Dollars in thousands) | |||||||||||
Effective | April 23, 2021 | July 11, 2018 | |||||||||
Final maturity date | April 23, 2024 | July 9, 2021 | |||||||||
Borrowing capacity | $400,000 | $325,000 | |||||||||
Accordion option 1 | $100,000 | $175,000 | |||||||||
Unused commitment fee rate 2 | 20 to 40 basis points | 20 to 40 basis points | |||||||||
Program fees on outstanding balances 3 4 | one month LIBOR + 82.5 basis points | one month LIBOR + 80 to 100 basis points |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Borrowing base, based on eligible receivables | $ | 400,000 | $ | 302,700 | |||||||
Less: outstanding borrowings 1 | (279,000) | (214,000) | |||||||||
Less: outstanding letters of credit | (65,300) | (67,281) | |||||||||
Availability under accounts receivable securitization facilities | $ | 55,700 | $ | 21,419 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Borrowing base, based on eligible receivables | $ | 299,100 | $ | 325,000 | |||
Less: outstanding borrowings ¹ | (205,000 | ) | (240,000 | ) | |||
Less: outstanding letters of credit | (70,841 | ) | (70,900 | ) | |||
Availability under accounts receivable securitization facilities | $ | 23,259 | $ | 14,100 | |||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
2021 Term Loan A-1, due December 3 2022, net 1 2 | $ | 199,676 | $ | — | |||||||
2021 Term Loan A-2, due September 3, 2024, net 1 2 | 199,607 | — | |||||||||
2021 Term Loan A-3, due September 3, 2026, net 1 2 | 798,352 | — | |||||||||
2017 Term Loan, due October 2022, net 1 3 | — | 298,907 | |||||||||
Prudential Notes, net 1 | 47,265 | — | |||||||||
Other | 5,069 | — | |||||||||
Total long-term debt, including current portion | 1,249,969 | 298,907 | |||||||||
Less: current portion of long-term debt | (212,417) | — | |||||||||
Long-term debt, less current portion | $ | 1,037,552 | $ | 298,907 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Term Loan, due October 2020, net ¹ ² ³ | $ | 364,825 | $ | 364,590 | |||
Other long-term debt, including current portion | — | 421 | |||||
Total long-term debt, including current portion | 364,825 | 365,011 | |||||
Less: current portion of long-term debt | (364,825 | ) | (421 | ) | |||
Long-term debt, less current portion | $ | — | $ | 364,590 | |||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Total long-term debt, including current portion | $ | 1,249,969 | $ | 298,907 | |||||||
2021 Revolver, due September 3, 2026 1 4 | 260,000 | — | |||||||||
2017 Revolver, due October 2022 1 5 | — | 210,000 | |||||||||
Long-term debt, including revolving line of credit | $ | 1,509,969 | $ | 508,907 | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Total long-term debt, including current portion | $ | 364,825 | $ | 365,011 | |||
Revolver, due October 2022 1 4 | 279,000 | 195,000 | |||||
Long-term debt, including revolving line of credit | $ | 643,825 | $ | 560,011 | |||
2021 Term Loan A-1 | 2021 Term Loan A-2 | 2021 Term Loan A-3 | 2021 Revolver 2 | ||||||||||||||||||||
2021 Debt Agreement Terms | (Dollars in thousands) | ||||||||||||||||||||||
Maximum borrowing capacity | $200,000 | $200,000 | $800,000 | $1,100,000 | |||||||||||||||||||
Final maturity date | December 3, 2022 | September 3, 2024 | September 3, 2026 | September 3, 2026 | |||||||||||||||||||
Interest rate margin reference rate | BSBY | BSBY | BSBY | BSBY | |||||||||||||||||||
Interest rate minimum margin 1 | 0.75% | 0.75% | 0.88% | 0.88% | |||||||||||||||||||
Interest rate maximum margin 1 | 1.38% | 1.38% | 1.50% | 1.50% | |||||||||||||||||||
Minimum principal payment — amount | $— | $— | $10,000 | $— | |||||||||||||||||||
Minimum principal payment — frequency | Once | Once | Quarterly | Once | |||||||||||||||||||
Minimum principal payment — commencement date | December 3, 2022 | September 3, 2024 | September 30, 2024 | September 3, 2026 |
Term Loan | Revolver ³ | |||
2017 Debt Agreement Terms: | (Dollars in thousands) | |||
Maximum borrowing capacity | $400,000 | $800,000 | ||
Final maturity date | October 2, 2020 | October 3, 2022 | ||
Interest rate minimum margin ¹ | LIBOR | LIBOR | ||
Interest rate minimum margin ² | 0.88% | 0.88% | ||
Interest rate maximum margin ² | 1.50% | 1.50% | ||
Minimum principal payment — amount | $— | $— | ||
Minimum principal payment — frequency | Once | Once | ||
Minimum principal payment — commencement date | October 2, 2020 | October 3, 2022 |
1 |
2The commitment fee for the unused portion of the 2021 Revolver is based on the Company's consolidated leverage ratio, and ranges from 0.07% to 0.20%. As of December 31, 2021, commitment fees on the unused portion of the 2021 Revolver accrued at 0.100% and outstanding letter of credit fees accrued at 1.000%. |
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
Operating lease cost: | |||||||||||
Operating lease costs | $ | 46,795 | $ | 80,456 | |||||||
Short-term lease cost ¹ | 8,426 | 6,544 | |||||||||
Sublease income | (60) | (360) | |||||||||
Rental expense | 55,161 | 86,640 | |||||||||
Finance lease cost: | |||||||||||
Amortization of property and equipment | 37,659 | 16,638 | |||||||||
Interest expense | 5,232 | 2,896 | |||||||||
Total finance lease cost | 42,891 | 19,534 | |||||||||
Total operating and finance lease costs | $ | 98,052 | $ | 106,174 | |||||||
2019 | |||
(in thousands) | |||
Operating lease cost: | |||
Operating lease costs | $ | 120,201 | |
Short-term lease cost ¹ | 2,897 | ||
Sublease income | (360 | ) | |
Rental expense | 122,738 | ||
Finance lease cost: | |||
Amortization of property and equipment | 19,878 | ||
Interest expense | 3,048 | ||
Total finance lease cost | 22,926 | ||
Total operating and finance lease costs | $ | 145,664 | |
December 31, 2019 | |||||
Operating | Finance | ||||
Revenue equipment leases | |||||
Weighted average remaining lease term | 2.4 years | 2.3 years | |||
Weighted average discount rate | 2.6 | % | 3.3 | % | |
Real estate and other leases | |||||
Weighted average remaining lease term | 13.3 years | — | |||
Weighted average discount rate | 4.3 | % | — | % | |
December 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Operating | Finance | Operating | Finance | ||||||||||||||||||||
Revenue equipment leases | |||||||||||||||||||||||
Weighted average remaining lease term | 1.6 years | 4.0 years | 2.0 years | 3.6 years | |||||||||||||||||||
Weighted average discount rate | 2.3 | % | 1.9 | % | 2.4 | % | 2.4 | % | |||||||||||||||
Real estate and other leases | |||||||||||||||||||||||
Weighted average remaining lease term | 12.6 years | — | 10.6 years | — | |||||||||||||||||||
Weighted average discount rate | 3.0 | % | — | % | 3.7 | % | — | % | |||||||||||||||
December 31, 2019 | |||||||
Operating | Finance | ||||||
(In thousands) | |||||||
2020 | $ | 83,919 | $ | 14,963 | |||
2021 | 44,482 | 30,711 | |||||
2022 | 26,755 | 18,508 | |||||
2023 | 13,764 | 1,342 | |||||
2024 | 4,046 | 9,553 | |||||
Thereafter | 22,309 | — | |||||
Future minimum lease payments | 195,275 | 75,077 | |||||
Less: amounts representing interest | (19,014 | ) | (4,868 | ) | |||
Present value of minimum lease payments | 176,261 | 70,209 | |||||
Less: current portion | (80,101 | ) | (12,826 | ) | |||
Lease liabilities – less current portion | $ | 96,160 | $ | 57,383 | |||
December 31, 2021 | |||||||||||
Operating | Finance | ||||||||||
(In thousands) | |||||||||||
2022 | $ | 38,871 | $ | 54,741 | |||||||
2023 | 27,124 | 49,275 | |||||||||
2024 | 15,084 | 91,115 | |||||||||
2025 | 11,037 | 70,543 | |||||||||
2026 | 8,793 | 9,839 | |||||||||
Thereafter | 71,007 | 45,185 | |||||||||
Future minimum lease payments | 171,916 | 320,698 | |||||||||
Less: amounts representing interest | (28,980) | (14,526) | |||||||||
Present value of minimum lease payments | 142,936 | 306,172 | |||||||||
Less: current portion | (35,322) | (50,006) | |||||||||
Lease liabilities – less current portion | $ | 107,614 | $ | 256,166 | |||||||
2019 | |||
(in thousands) | |||
Operating cash flows for operating leases | $ | 121,737 | |
Operating cash flows for finance leases | 3,048 | ||
Financing cash flows for finance leases | 115,642 | ||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
Operating cash flows for operating leases | $ | 48,171 | $ | 83,675 | |||||||
Operating cash flows for finance leases | 5,232 | 2,896 | |||||||||
Financing cash flows for finance leases | 108,186 | 83,910 | |||||||||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
Operating lease revenue | $ | 95,934 | $ | 45,698 | |||||||
Variable lease revenue | 1,353 | 1,691 | |||||||||
Total lease revenue 1 | $ | 97,287 | $ | 47,389 | |||||||
Rental income 2 | $ | 10,375 | $ | 10,365 | |||||||
2019 | |||
(in thousands) | |||
Operating lease revenue | $ | 46,858 | |
Variable lease revenue | 2,169 | ||
Total lease revenue ¹ | $ | 49,027 | |
Rental income ² | $ | 9,982 | |
December 31, 2019 | |||
(In thousands) | |||
2020 | $ | 46,480 | |
2021 | 33,607 | ||
2022 | 20,989 | ||
2023 | 8,386 | ||
2024 | 988 | ||
Thereafter | 842 | ||
Future minimum lease revenues | $ | 111,292 | |
December 31, 2021 | |||||
(In thousands) | |||||
2022 | $ | 38,262 | |||
2023 | 26,211 | ||||
2024 | 12,492 | ||||
2025 | 5,215 | ||||
2026 | 1,926 | ||||
Thereafter | 3,618 | ||||
Future minimum lease revenues | $ | 87,724 | |||
December 31, 2021 | |||||||||||
(In thousands) | |||||||||||
Projected benefit obligation | $ | 71,440 | |||||||||
Less: fair value of plan assets | 70,467 | ||||||||||
Unfunded status | $ | 973 | |||||||||
Accrued pension liability recognized 1 | $ | 973 | |||||||||
2021 | |||||||||||
(In thousands) | |||||||||||
Net periodic pension income | $ | 1,483 | |||||||||
Benefits paid | 2,981 | ||||||||||
2021 | |||||||||||
Discount rate | 2.55 | % | |||||||||
Expected long-term rate of return on pension plan assets | 6.00 | % | |||||||||
2021 | |||||||||||
Asset category: | |||||||||||
Equity securities | 30 | % | |||||||||
Debt securities | 68 | % | |||||||||
Cash and cash equivalents | 2 | % | |||||||||
Total | 100 | % | |||||||||
2021 | |||||||||||
Asset category: | |||||||||||
Equity securities | 30 | % | |||||||||
Debt securities | 70 | % | |||||||||
Total | 100 | % | |||||||||
Operating | Capital | ||||||
(In thousands) | |||||||
2019 | $ | 123,380 | $ | 61,285 | |||
2020 | 79,088 | 15,843 | |||||
2021 | 42,441 | 30,845 | |||||
2022 | 24,693 | 18,528 | |||||
2023 | 11,728 | 1,347 | |||||
Thereafter | 25,403 | 9,572 | |||||
Future minimum lease payments | $ | 306,733 | $ | 137,420 | |||
Less: amounts representing interest | (7,921 | ) | |||||
Present value of minimum lease payments | 129,499 | ||||||
Less: current portion | (58,251 | ) | |||||
Capital lease obligations – less current portion | $ | 71,248 | |||||
(In thousands) | |||
2019 | $ | 54,080 | |
2020 | 37,694 | ||
2021 | 22,991 | ||
2022 | 8,343 | ||
2023 | 13 | ||
Thereafter | — | ||
Future minimum lease payments receivable | $ | 123,121 | |
December 31, 2021 | |||||
(In thousands) | |||||
2022 | 3,594 | ||||
2023 | 3,708 | ||||
2024 | 3,854 | ||||
2025 | 3,956 | ||||
2026 | 4,043 | ||||
2027 through 2030 | 20,543 | ||||
Total | $ | 39,698 | |||
EMPLOYEE COMPENSATION AND PAY PRACTICES MATTERS | ||||||||||||||||||||
The | ||||||||||||||||||||
Plaintiff(s) | Defendant(s) | Date instituted | Court or agency currently pending in | |||||||||||||||||
CRST Expedited, Inc. | Swift Transportation Co. of Arizona LLC. | March 20, 2017 | United States District Court for the Northern District of Iowa | |||||||||||||||||
Recent Developments and Current Status | ||||||||||||||||||||
In July 2019, a jury issued an adverse verdict in this lawsuit. | ||||||||||||||||||||
California Wage, Meal, and Rest Class Actions | ||||||||||||||||||||
The plaintiffs generally allege one or more of the following: that the Company 1) failed to pay the California minimum wage; 2) failed to provide proper meal and rest periods; 3) failed to timely pay wages upon separation from employment; 4) failed to pay for all hours worked; 5) failed to pay overtime; 6) failed to properly reimburse work-related expenses; and 7) failed to provide accurate wage statements. | ||||||||||||||||||||
Plaintiff(s) | Defendant(s) | Date instituted | Court or agency currently pending in | |||||||||||||||||
John Burnell | Swift Transportation Co., Inc | March 22, 2010 | United States District Court for the Central District of California | |||||||||||||||||
James R. Rudsell 1 | Swift Transportation Co. of Arizona, LLC and Swift Transportation Company | April 5, 2012 | United States District Court for the Central District of California | |||||||||||||||||
Recent Developments and Current Status | ||||||||||||||||||||
In April 2019, the parties reached settlement of this matter. In January 2020, the | ||||||||||||||||||||
INDEPENDENT CONTRACTOR MATTERS | ||||||||||||||||||||
Ninth Circuit Independent | ||||||||||||||||||||
The putative class alleges that Swift misclassified independent contractors as independent contractors, instead of employees, in violation of the FLSA and various state laws. The lawsuit also raises certain related issues with respect to the lease agreements that certain independent contractors have entered into with Interstate Equipment Leasing, LLC. The putative class seeks unpaid wages, liquidated damages, interest, other costs, and attorneys' fees. | ||||||||||||||||||||
Plaintiff(s) | Defendant(s) | Date instituted | Court or agency currently pending in | |||||||||||||||||
Joseph Sheer, Virginia Van Dusen, Jose Motolinia, Vickii Schwalm, Peter Wood | Swift Transportation Co., Inc., Interstate Equipment Leasing, Inc., Jerry Moyes, and Chad Killebrew | December 22, 2009 | Unites States District Court of Arizona and Ninth Circuit Court of Appeals | |||||||||||||||||
Recent Developments and Current Status | ||||||||||||||||||||
In January 2020, the court granted final approval of the settlement in this matter. |
Share Repurchase Plan | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Board Approval Date | Authorized Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
May 30, 2019 | $250,000 | — | — | 4,841 | 179,585 | |||||||||||||||||||||||||||||||||
November 24, 2020 1 | $250,000 | 1,377 | 57,175 | — | — | |||||||||||||||||||||||||||||||||
1,377 | $ | 57,175 | 4,841 | $ | 179,585 | |||||||||||||||||||||||||||||||||
Share Repurchase Plan | 2019 | 2018 | ||||||||||||||
Board Approval Date | Authorized Amount | Shares | Amount | Shares | Amount | |||||||||||
(in thousands) | ||||||||||||||||
June 1, 2018 ¹ | $250,000 | 2,315 | $ | 70,500 | 5,892 | $ | 179,318 | |||||||||
May 30, 2019 ² | $250,000 | 559 | 16,392 | — | — | |||||||||||
2,874 | $ | 86,892 | 5,892 | $ | 179,318 | |||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Stock options | $ | 232 | $ | 567 | $ | 1,149 | |||||||||||
Restricted stock units | 18,190 | 13,496 | 9,734 | ||||||||||||||
Performance units | 15,073 | 5,576 | 2,492 | ||||||||||||||
Stock-based compensation expense – equity awards | $ | 33,495 | $ | 19,639 | $ | 13,375 | |||||||||||
Stock-based compensation (benefit) expense – liability awards 1 | (5,364) | 6,955 | 2,663 | ||||||||||||||
Total stock-based compensation expense, net of forfeitures | $ | 28,131 | $ | 26,594 | $ | 16,038 | |||||||||||
Income tax benefit 2 | $ | 8,357 | $ | 4,949 | $ | 3,344 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Stock options | $ | 1,149 | $ | 1,678 | $ | 1,788 | |||||
Restricted stock units and restricted stock awards | 9,734 | 8,019 | 4,004 | ||||||||
Performance units | 2,492 | 1,791 | 450 | ||||||||
Stock-based compensation expense – equity awards | $ | 13,375 | $ | 11,488 | $ | 6,242 | |||||
Stock-based compensation expense – liability awards ¹ | 2,663 | 899 | 148 | ||||||||
Total stock-based compensation expense, net of forfeitures | $ | 16,038 | $ | 12,387 | $ | 6,390 | |||||
Income tax benefit ² | $ | 3,344 | $ | 3,097 | $ | 2,415 | |||||
December 31, 2019 | |||||
Expense | Weighted Average Period | ||||
(In thousands) | (In years) | ||||
Equity awards – Stock options | $ | 853 | 1.0 | ||
Equity awards – Restricted stock units and restricted stock awards | 28,463 | 2.1 | |||
Equity awards – Performance units | 5,644 | 2.6 | |||
Liability awards – Restricted stock units and performance units | 5,757 | 2.1 | |||
Total unrecognized stock-based compensation expense | $ | 40,717 | 2.2 | ||
December 31, 2021 | |||||||||||
Expense | Weighted Average Period | ||||||||||
(In thousands) | (In years) | ||||||||||
Equity awards – Restricted stock units | 49,704 | 2.2 | |||||||||
Equity awards – Performance units | 14,306 | 2.4 | |||||||||
Total unrecognized stock-based compensation expense | $ | 64,010 | 2.3 | ||||||||
2021 | 2020 | 2019 | |||||||||||||||
Restricted stock units | 562,021 | 722,499 | 588,819 | ||||||||||||||
Performance units | 112,690 | 146,036 | 102,776 | ||||||||||||||
Equity awards granted | 674,711 | 868,535 | 691,595 | ||||||||||||||
Liability awards granted 1 2 | — | — | 80,927 | ||||||||||||||
Total stock awards granted | 674,711 | 868,535 | 772,522 | ||||||||||||||
2019 | 2018 | 2017 | ||||||
Stock options | — | — | 497,421 | |||||
Restricted stock units and restricted stock awards | 588,819 | 420,014 | 266,958 | |||||
Performance units | 102,776 | 106,785 | 44,244 | |||||
Equity awards granted | 691,595 | 526,799 | 808,623 | |||||
Liability awards granted ¹ ² | 80,927 | 91,268 | 77,620 | |||||
Total stock awards granted | 772,522 | 618,067 | 886,243 | |||||
KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED |
Stock options outstanding: | Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value 1 | |||||||||||||||||||
(In years) | (In thousands) | ||||||||||||||||||||||
Stock options outstanding at December 31, 2020 | 302,976 | $ | 29.45 | 1.2 | $ | 3,748 | |||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | (207,242) | 28.59 | |||||||||||||||||||||
Expired | (7,419) | 23.80 | |||||||||||||||||||||
Forfeited | (3,308) | 33.35 | |||||||||||||||||||||
Stock options outstanding at December 31, 2021 | 85,007 | $ | 31.95 | 0.6 | $ | 2,464 | |||||||||||||||||
Aggregate number of stock options expected to vest at a future date as of December 31, 2021 | — | $ | — | 0.0 | $ | — | |||||||||||||||||
Exercisable at December 31, 2021 | 85,007 | $ | 31.95 | 0.6 | $ | 2,464 | |||||||||||||||||
Stock options outstanding: | Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ¹ | ||||||||
(In years) | (In thousands) | |||||||||||
Stock options outstanding at December 31, 2018 | 1,321,605 | $ | 27.13 | 2.6 | $ | 2,690 | ||||||
Granted | — | — | ||||||||||
Exercised ² | (443,288 | ) | 23.80 | |||||||||
Expired | (150,399 | ) | 32.69 | |||||||||
Forfeited | (27,245 | ) | 30.68 | |||||||||
Stock options outstanding at December 31, 2019 | 700,673 | $ | 27.90 | 1.7 | $ | 5,563 | ||||||
Aggregate number of stock options expected to vest at a future date as of December 31, 2019 ³ | 271,965 | $ | 30.34 | 2.0 | $ | 1,496 | ||||||
Exercisable at December 31, 2019 | 425,090 | $ | 26.28 | 1.5 | $ | 4,064 | ||||||
Stock option exercises | 2019 | 2018 | 2017 | ||||||||
(In thousands, except share data) | |||||||||||
Number of stock options exercised | 443,288 | 533,226 | 589,020 | ||||||||
Intrinsic value of stock options exercised | $ | 5,183 | $ | 11,745 | $ | 8,792 | |||||
Cash received upon exercise of stock options | $ | 10,478 | $ | 10,815 | $ | 13,159 | |||||
Income tax benefit | $ | 221 | $ | 1,685 | $ | 1,833 |
Stock option exercises | 2021 | 2020 | 2019 | ||||||||||||||
(In thousands, except share data) | |||||||||||||||||
Number of stock options exercised | 207,242 | 382,254 | 443,288 | ||||||||||||||
Intrinsic value of stock options exercised | $ | 4,120 | $ | 4,929 | $ | 5,183 | |||||||||||
Cash received upon exercise of stock options | $ | 5,924 | $ | 10,199 | $ | 10,478 | |||||||||||
Income tax benefit | $ | 1,304 | $ | 1,029 | $ | 221 |
Unvested stock options: | Shares | Weighted Average Fair Value | ||||
Unvested stock options at December 31, 2018 | 582,341 | $ | 5.69 | |||
Granted | — | — | ||||
Vested | (278,076 | ) | 5.38 | |||
Forfeited and canceled | (28,682 | ) | 5.98 | |||
Unvested stock options at December 31, 2019 | 275,583 | $ | 5.97 | |||
Unvested stock options: | Shares | Weighted Average Fair Value | |||||||||
Unvested stock options at December 31, 2020 | 86,779 | $ | 6.78 | ||||||||
Vested | (83,707) | 6.78 | |||||||||
Forfeited and canceled | (3,072) | 6.78 | |||||||||
Unvested stock options at December 31, 2021 | — | $ | — | ||||||||
Unvested restricted stock units: | Number of Awards | Weighted Average Fair Value 1 | |||||||||
Unvested restricted stock units at December 31, 2020 | 1,723,838 | $ | 34.07 | ||||||||
Granted | 562,021 | 50.63 | |||||||||
Vested 2 | (456,670) | 32.53 | |||||||||
Forfeited | (119,428) | 39.97 | |||||||||
Unvested restricted stock units at December 31, 2021 | 1,709,761 | $ | 39.81 | ||||||||
Unvested restricted stock units: | Number of Awards | Weighted Average Fair Value ¹ | ||||
Unvested restricted stock units at December 31, 2018 | 1,169,974 | $ | 30.14 | |||
Granted | 621,190 | 29.32 | ||||
Vested ² | (266,277 | ) | 31.46 | |||
Forfeited | (76,692 | ) | 34.03 | |||
Unvested restricted stock units at December 31, 2019 | 1,448,195 | $ | 29.78 | |||
Unvested performance units: | Shares | Weighted Average Fair Value | |||||||||
Unvested performance units at December 31, 2020 | 549,730 | $ | 39.50 | ||||||||
Granted | 112,690 | $ | 60.55 | ||||||||
Shares earned above target | 45,409 | $ | 37.89 | ||||||||
Vested 1 | (136,225) | $ | 45.02 | ||||||||
Unvested performance units at December 31, 2021 2 | 571,604 | $ | 44.22 | ||||||||
Unvested performance units: | Shares | Weighted Average Fair Value | ||||
Unvested performance units at December 31, 2018 | 309,179 | $ | 29.50 | |||
Granted | 151,332 | $ | 37.24 | |||
Vested | — | $ | — | |||
Forfeited | (56,817 | ) | $ | 26.59 | ||
Unvested performance units at December 31, 2019 ¹ | 403,694 | $ | 35.53 | |||
Performance unit fair value assumptions: | 2021 | 2020 | 2019 | ||||||||||||||
Dividend yield 1 | 0.67 | % | 0.78 | % | 0.66 | % | |||||||||||
Expected volatility 2 | 36.00 | % | 37.99 | % | 34.88 | % | |||||||||||
Average peer volatility 2 | 35.49 | % | 35.62 | % | 27.96 | % | |||||||||||
Average peer correlation coefficient 3 | 0.60 | 0.59 | 0.60 | ||||||||||||||
Risk-free interest rate 4 | 0.92 | % | 0.20 | % | 1.60 | % | |||||||||||
Expected term (in years) 5 | 3.1 | 3.1 | 3.1 | ||||||||||||||
Weighted-average fair value of performance units granted | $ | 60.55 | $ | 42.41 | $ | 37.24 |
Performance unit fair value assumptions: | 2019 | 2018 | 2017 | ||||||||
Dividend yield ¹ | 0.66 | % | 0.81 | % | 0.59 | % | |||||
Expected volatility ² | 34.88 | % | 32.30 | % | 31.28 | % | |||||
Average peer volatility ² | 27.96 | % | 28.61 | % | 28.45 | % | |||||
Average peer correlation coefficient ³ | 0.60 | 0.58 | 0.60 | ||||||||
Risk-free interest rate 4 | 1.60 | % | 2.80 | % | 1.88 | % | |||||
Expected term (in years) 5 | 3.1 | 3.1 | 3.1 | ||||||||
Weighted-average fair value of performance units granted | $ | 37.24 | $ | 34.34 | $ | 40.81 |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Basic weighted average common shares outstanding | 165,860 | 169,711 | 171,541 | ||||||||||||||
Dilutive effect of equity awards | 1,200 | 838 | 601 | ||||||||||||||
Diluted weighted average common shares outstanding | 167,060 | 170,549 | 172,142 | ||||||||||||||
Anti-dilutive shares excluded from earnings per diluted share 1 | 208 | 63 | 603 |
2019 | 2018 | 2017 | ||||||
(In thousands) | ||||||||
Basic weighted average common shares outstanding | 171,541 | 177,018 | 110,657 | |||||
Dilutive effect of equity awards | 601 | 981 | 1,040 | |||||
Diluted weighted average common shares outstanding | 172,142 | 177,999 | 111,697 | |||||
Anti-dilutive shares excluded from earnings per diluted share ¹ | 603 | 47 | 98 |
•Level 1 — Valuation techniques in which all significant inputs are quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. |
•Level 3 — Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. 112 KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
Consolidated Balance Sheets Caption | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Restricted investments, held-to-maturity 1 | Restricted investments, held-to-maturity, amortized cost | $ | 5,866 | $ | 5,859 | $ | 9,001 | $ | 8,995 | ||||||||||||||||||||
Equity method investments | Other long-term assets | 75,769 | 75,769 | 77,562 | 77,562 | ||||||||||||||||||||||||
Investments in equity securities | Other long-term assets | 74,201 | 74,201 | 18,675 | 18,675 | ||||||||||||||||||||||||
Convertible note | Other long-term assets | 10,141 | 10,141 | — | — | ||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
2021 Term Loan A-1, due December 2022 2 | Long-term debt – less current portion | 199,676 | 200,000 | — | — | ||||||||||||||||||||||||
2021 Term Loan A-2, due September, 2024 2 | Long-term debt – less current portion | 199,607 | 200,000 | — | — | ||||||||||||||||||||||||
2021 Term Loan A-3, due September 2026 2 | Long-term debt – less current portion | 798,352 | 800,000 | — | — | ||||||||||||||||||||||||
2021 Revolver, due September 2026 | Revolving line of credit | 260,000 | 260,000 | — | — | ||||||||||||||||||||||||
2021 Prudential Notes 3 | Finance lease liabilities and long-term debt – current portion, Long-term debt – less current portion | 47,265 | 47,354 | — | — | ||||||||||||||||||||||||
2021 RSA, due April 2024 4 | Accounts receivable securitization – less current portion | 278,483 | 279,000 | — | — | ||||||||||||||||||||||||
Contingent consideration associated with acquisition | Accrued liabilities, Other long-term liabilities | 13,100 | 13,100 | 16,200 | 16,200 | ||||||||||||||||||||||||
2017 Term Loan, due October 2022 5 | Long-term debt – less current portion | $ | — | $ | — | $ | 298,907 | $ | 300,000 | ||||||||||||||||||||
2017 Revolver, due October 2022 | Revolving line of credit | — | — | 210,000 | 210,000 | ||||||||||||||||||||||||
2018 RSA, due July 2021 6 | Accounts receivable securitization – current portion | — | — | 213,918 | 214,000 | ||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets: | |||||||||||||||
Restricted investments, held-to-maturity ¹ | $ | 8,912 | $ | 8,915 | $ | 17,413 | $ | 17,398 | |||||||
TRP Investments | 30,878 | 30,878 | 20,646 | 20,646 | |||||||||||
Investments in equity securities ² | 8,722 | 8,722 | — | — | |||||||||||
Financial Liabilities: | |||||||||||||||
Term Loan, due October 2020 ³ | $ | 364,825 | $ | 365,000 | $ | 364,590 | $ | 365,000 | |||||||
2018 RSA, due July 2021 4 | 204,762 | 205,000 | 239,606 | 240,000 | |||||||||||
Revolver, due October 2022 | 279,000 | 279,000 | 195,000 | 195,000 | |||||||||||
KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Unrealized Gain Position | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Convertible note 1 | $ | 10,141 | $ | — | $ | — | $ | 10,141 | $ | 141 | |||||||||||||||||||
Investments in equity securities 2 | 74,201 | 74,201 | — | — | 14,456 | ||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||
Investments in equity securities 3 | 18,675 | 18,675 | — | — | 3,553 | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Losses | |||||||||||||||
(In thousands) | |||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||
Investments in equity securities ¹ | $ | 8,722 | $ | 8,722 | $ | — | $ | — | $ | (184 | ) |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Gain (Loss) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Contingent consideration associated with acquisition 1 | $ | 13,100 | $ | — | $ | — | $ | 13,100 | $ | — | |||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||
Contingent consideration associated with acquisition 2 | 16,200 | — | — | 16,200 | (6,730) | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Loss | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Equipment 1 | $ | — | $ | — | $ | — | $ | — | $ | (299) | |||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||
Equipment 2 | 5,851 | — | 5,851 | — | (5,335) | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Losses | |||||||||||||||
(In thousands) | |||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||
Leasehold improvements ¹ | $ | — | $ | — | $ | — | $ | — | $ | (2,182 | ) | ||||||||
Equipment ² | 1,380 | — | 1,380 | — | (870 | ) | |||||||||||||
Software ³ | — | — | — | — | (434 | ) | |||||||||||||
As of December 31, 2018 | |||||||||||||||||||
Software 4 | $ | — | $ | — | $ | — | $ | — | $ | (550 | ) | ||||||||
Equipment 5 | 2,800 | — | 2,800 | — | (2,248 | ) |
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||
Estimated Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||
US equity funds | $ | 14,877 | $ | 14,877 | $ | — | $ | — | |||||||||||||||
International equity funds | 6,304 | 6,304 | — | — | |||||||||||||||||||
Fixed income funds | 47,873 | 47,873 | — | — | |||||||||||||||||||
Cash and cash equivalents | 1,413 | 1,413 | — | — | |||||||||||||||||||
Total pension plan assets | $ | 70,467 | $ | 70,467 | $ | — | $ | — | |||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Provided by Knight-Swift | Received by Knight-Swift | Provided by Knight-Swift | Received by Knight-Swift | Provided by Knight-Swift | Received by Knight-Swift | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Freight Services: | |||||||||||||||||||||||||||||||||||
Central Freight Lines 1 | $ | — | $ | — | $ | 7,837 | $ | — | $ | 19,651 | $ | — | |||||||||||||||||||||||
SME Industries 1 | — | — | 56 | — | 345 | — | |||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 7,893 | $ | — | $ | 19,996 | $ | — | |||||||||||||||||||||||
Facility and Equipment Leases: | |||||||||||||||||||||||||||||||||||
Central Freight Lines 1 | $ | — | $ | — | $ | 48 | $ | 277 | $ | 322 | $ | 369 | |||||||||||||||||||||||
Other Affiliates 1 | — | 311 | 11 | 229 | 18 | — | |||||||||||||||||||||||||||||
Total | $ | — | $ | 311 | $ | 59 | $ | 506 | $ | 340 | $ | 369 | |||||||||||||||||||||||
Other Services: | |||||||||||||||||||||||||||||||||||
Central Freight Lines 1 | $ | — | $ | — | $ | 427 | $ | — | $ | 1,834 | $ | — | |||||||||||||||||||||||
DPF Mobile 1 | — | — | — | 33 | — | 220 | |||||||||||||||||||||||||||||
Other Affiliates 1 | 31 | 35 | 15 | 35 | 39 | 2,432 | |||||||||||||||||||||||||||||
Total | $ | 31 | $ | 35 | $ | 442 | $ | 68 | $ | 1,873 | $ | 2,652 | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
Provided by Knight-Swift | Received by Knight-Swift | Provided by Knight-Swift | Received by Knight-Swift | Provided by Knight-Swift | Received by Knight-Swift | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Freight Services: | |||||||||||||||||||||||
Central Freight Lines ¹ | $ | 19,651 | $ | — | $ | 681 | $ | — | $ | 161 | $ | — | |||||||||||
SME Industries ¹ | 345 | — | 698 | — | 275 | — | |||||||||||||||||
Total | $ | 19,996 | $ | — | $ | 1,379 | $ | — | $ | 436 | $ | — | |||||||||||
Facility and Equipment Leases: | |||||||||||||||||||||||
Central Freight Lines ¹ | $ | 322 | $ | 369 | $ | 916 | $ | 370 | $ | 245 | $ | 92 | |||||||||||
Other Affiliates ¹ | 18 | — | 19 | — | — | — | |||||||||||||||||
Total | $ | 340 | $ | 369 | $ | 935 | $ | 370 | $ | 245 | $ | 92 | |||||||||||
Other Services: | |||||||||||||||||||||||
Central Freight Lines ¹ | $ | 1,834 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Updike Distribution and Logistics ² | 4 | — | 554 | — | 2,771 | — | |||||||||||||||||
DPF Mobile ¹ | — | 220 | — | 308 | — | — | |||||||||||||||||
Other Affiliates ¹ | 35 | 2,432 | 35 | 2,282 | 48 | 604 | |||||||||||||||||
Total | $ | 1,873 | $ | 2,652 | $ | 589 | $ | 2,590 | $ | 2,819 | $ | 604 | |||||||||||
1 Entities affiliated with former Board member |
December 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Receivable | Payable | Receivable | Payable | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Central Freight Lines | $ | — | $ | — | $ | 133 | $ | — | |||||||||||||||
DPF Mobile | — | — | — | 41 | |||||||||||||||||||
Other Affiliates | 14 | 44 | 2 | 10 | |||||||||||||||||||
Total | $ | 14 | $ | 44 | $ | 135 | $ | 51 | |||||||||||||||
(In thousands) | |||
Accrued consulting fees – Jerry Moyes, balance at December 31, 2018 1a | $ | 2,225 | |
Additions to accrual | — | ||
Less: payments | (2,225 | ) | |
Accrued consulting fees – Jerry Moyes, balance at December 31, 2019 | $ | — | |
December 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Receivable | Payable | Receivable | Payable | ||||||||||||
(In thousands) | |||||||||||||||
Central Freight Lines | $ | 2,872 | $ | — | $ | 254 | $ | — | |||||||
SME Industries | 17 | — | 24 | — | |||||||||||
Other Affiliates | — | 2 | — | 20 | |||||||||||
Total | $ | 2,889 | $ | 2 | $ | 278 | $ | 20 | |||||||
2019 | 2018 (recast) | 2017 (recast) | ||||||||||||||||||
Total revenue: | (Dollars in thousands) | |||||||||||||||||||
Trucking | $ | 3,952,866 | 81.6 | % | $ | 4,290,254 | 80.3 | % | $ | 1,970,326 | 81.2 | % | ||||||||
Logistics | $ | 352,988 | 7.3 | % | $ | 436,044 | 8.2 | % | $ | 235,925 | 9.7 | % | ||||||||
Intermodal | $ | 455,466 | 9.4 | % | $ | 498,821 | 9.3 | % | $ | 150,326 | 6.2 | % | ||||||||
Subtotal | $ | 4,761,320 | 98.3 | % | $ | 5,225,119 | 97.8 | % | $ | 2,356,577 | 97.1 | % | ||||||||
Non-reportable segments | $ | 130,782 | 2.7 | % | $ | 184,140 | 3.4 | % | $ | 93,875 | 3.9 | % | ||||||||
Intersegment eliminations | $ | (48,152 | ) | (1.0 | %) | $ | (65,193 | ) | (1.2 | %) | $ | (24,999 | ) | (1.0 | %) | |||||
Total revenue | $ | 4,843,950 | 100.0 | % | $ | 5,344,066 | 100.0 | % | $ | 2,425,453 | 100.0 | % | ||||||||
2019 | 2018 (recast) | 2017 (recast) | ||||||||||||||||||
Operating income (loss): | (Dollars in thousands) | |||||||||||||||||||
Trucking | $ | 468,749 | 109.7 | % | $ | 550,818 | 96.8 | % | $ | 203,258 | 101.3 | % | ||||||||
Logistics | $ | 21,869 | 5.1 | % | $ | 31,991 | 5.6 | % | $ | 15,168 | 7.6 | % | ||||||||
Intermodal | $ | 4,501 | 1.1 | % | $ | 31,272 | 5.5 | % | $ | 7,041 | 3.5 | % | ||||||||
Subtotal | $ | 495,119 | 115.9 | % | $ | 614,081 | 107.9 | % | $ | 225,467 | 112.4 | % | ||||||||
Non-reportable segments | $ | (67,681 | ) | (15.9 | %) | $ | (45,038 | ) | (7.9 | %) | $ | (24,837 | ) | (12.4 | %) | |||||
Operating income | $ | 427,438 | 100.0 | % | $ | 569,043 | 100.0 | % | $ | 200,630 | 100.0 | % | ||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Total revenue: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Truckload | $ | 4,098,005 | 68.3 | % | $ | 3,786,030 | 81.0 | % | $ | 3,952,866 | 81.6 | % | |||||||||||||||||||||||
Logistics | $ | 817,003 | 13.6 | % | $ | 375,841 | 8.0 | % | $ | 352,988 | 7.3 | % | |||||||||||||||||||||||
LTL | $ | 396,308 | 6.6 | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Intermodal | $ | 458,867 | 7.7 | % | $ | 391,462 | 8.4 | % | $ | 455,466 | 9.4 | % | |||||||||||||||||||||||
Subtotal | $ | 5,770,183 | 96.2 | % | $ | 4,553,333 | 97.4 | % | $ | 4,761,320 | 98.3 | % | |||||||||||||||||||||||
Non-reportable segments | $ | 306,414 | 5.1 | % | $ | 188,882 | 4.0 | % | $ | 130,782 | 2.7 | % | |||||||||||||||||||||||
Intersegment eliminations | $ | (78,578) | (1.3 | %) | $ | (68,352) | (1.4 | %) | $ | (48,152) | (1.0 | %) | |||||||||||||||||||||||
Total revenue | $ | 5,998,019 | 100.0 | % | $ | 4,673,863 | 100.0 | % | $ | 4,843,950 | 100.0 | % | |||||||||||||||||||||||
2019 | 2018 (recast) | 2017 (recast) | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trucking | $ | 355,270 | 84.6 | % | $ | 319,210 | 82.4 | % | $ | 169,339 | 87.4 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss): | Operating income (loss): | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Truckload | Truckload | $ | 784,436 | 81.2 | % | $ | 578,512 | 102.5 | % | $ | 468,749 | 109.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Logistics | $ | 728 | 0.2 | % | $ | 607 | 0.2 | % | $ | 348 | 0.2 | % | Logistics | $ | 93,920 | 9.7 | % | $ | 20,245 | 3.6 | % | $ | 21,869 | 5.1 | % | ||||||||||||||||||||||||||||||
LTL | LTL | $ | 31,169 | 3.2 | % | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
Intermodal | $ | 13,506 | 3.2 | % | $ | 12,044 | 3.1 | % | $ | 3,253 | 1.7 | % | Intermodal | $ | 42,060 | 4.4 | % | $ | (943) | (0.2 | %) | $ | 4,501 | 1.1 | % | ||||||||||||||||||||||||||||||
Subtotal | $ | 369,504 | 88.0 | % | $ | 331,861 | 85.7 | % | $ | 172,940 | 89.3 | % | Subtotal | $ | 951,585 | 98.5 | % | $ | 597,814 | 105.9 | % | $ | 495,119 | 115.9 | % | ||||||||||||||||||||||||||||||
Non-reportable segments | $ | 50,578 | 12.0 | % | $ | 55,644 | 14.3 | % | $ | 20,793 | 10.7 | % | Non-reportable segments | $ | 14,112 | 1.5 | % | $ | (33,376) | (5.9 | %) | $ | (67,681) | (15.9 | %) | ||||||||||||||||||||||||||||||
Consolidated depreciation and amortization of property and equipment | $ | 420,082 | 100.0 | % | $ | 387,505 | 100.0 | % | $ | 193,733 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | $ | 965,697 | 100.0 | % | $ | 564,438 | 100.0 | % | $ | 427,438 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Truckload | $ | 422,558 | 80.9 | % | $ | 390,417 | 84.7 | % | $ | 355,270 | 84.6 | % | |||||||||||||||||||||||
Logistics | $ | 1,357 | 0.3 | % | $ | 829 | 0.2 | % | $ | 728 | 0.2 | % | |||||||||||||||||||||||
LTL | $ | 24,844 | 4.8 | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||
Intermodal | $ | 15,345 | 2.9 | % | $ | 14,377 | 3.1 | % | $ | 13,506 | 3.2 | % | |||||||||||||||||||||||
Subtotal | $ | 464,104 | 88.9 | % | $ | 405,623 | 88.0 | % | $ | 369,504 | 88.0 | % | |||||||||||||||||||||||
Non-reportable segments | $ | 58,492 | 11.1 | % | $ | 55,152 | 12.0 | % | $ | 50,578 | 12.0 | % | |||||||||||||||||||||||
Consolidated depreciation and amortization of property and equipment | $ | 522,596 | 100.0 | % | $ | 460,775 | 100.0 | % | $ | 420,082 | 100.0 | % | |||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2019 | |||||||||||||||
Total revenue | $ | 1,204,535 | $ | 1,242,083 | $ | 1,200,522 | $ | 1,196,810 | |||||||
Net income | 88,183 | 79,439 | 74,981 | 67,575 | |||||||||||
Net income attributable to Knight-Swift | 87,938 | 79,205 | 74,619 | 67,444 | |||||||||||
Basic earnings per share | 0.51 | 0.46 | 0.44 | 0.40 | |||||||||||
Earnings per diluted share | 0.51 | 0.46 | 0.44 | 0.39 | |||||||||||
2018 | |||||||||||||||
Total revenue | $ | 1,271,132 | $ | 1,331,683 | $ | 1,346,611 | $ | 1,394,640 | |||||||
Net income | 70,732 | 91,628 | 106,344 | 151,945 | |||||||||||
Net income attributable to Knight-Swift | 70,364 | 91,323 | 105,881 | 151,696 | |||||||||||
Basic earnings per share | 0.39 | 0.51 | 0.60 | 0.87 | |||||||||||
Earnings per diluted share | 0.39 | 0.51 | 0.60 | 0.86 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
OTHER INFORMATION |
ITEM 9C | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
PART III |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||||||
Plan Category: | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by security holders | 2,366,372 | $ | 31.95 | 5,681,000 | |||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
Total | 2,366,372 | $ | 31.95 | 5,681,000 | |||||||||||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||
Plan Category: | (a) | (b) | (c) | ||||||
Equity compensation plans approved by security holders | 2,552,562 | $ | 30.34 | 2,860,077 | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 2,552,562 | $ | 30.34 | 2,860,077 | |||||
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
PART IV |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit Number | Description | Page or Method of Filing | ||||||||||||
Exhibit Number | Description | Page or Method of Filing | ||||||||||||
Exhibit Number | Description | Page or Method of Filing | ||||||||||||
Exhibit Number | Description | Page or Method of Filing | ||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed herewith | ||
Exhibit Number | Description | Page or Method of Filing | ||||||||||||
Exhibit Number | Description | Page or Method of Filing | ||||||||||||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Document | Filed herewith | ||||||||||||
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith | ||||||||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed herewith | ||||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | Filed herewith | ||||||||||||
ITEM 16. | 10-K SUMMARY |
KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. | ||||||||||||||
By: | /s/ David A. Jackson | |||||||||||||
David A. Jackson | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
in his capacity as such and on behalf of the registrant |
Signature and Title | Date | Signature and Title | Date | |||||||||||||||||
/s/ David A. Jackson | February 24, 2022 | /s/ Michael Garnreiter | February 24, 2022 | |||||||||||||||||
David A. Jackson | Michael Garnreiter | |||||||||||||||||||
President, Chief Executive Officer, and Director | Director | |||||||||||||||||||
(Principal Executive Officer) | ||||||||||||||||||||
/s/ Adam W. Miller | February | /s/ Robert Synowicki, Jr. | February | |||||||||||||||||
Adam W. Miller | Robert Synowicki, Jr. | |||||||||||||||||||
Chief Financial Officer | Director | |||||||||||||||||||
(Principal Financial Officer) | ||||||||||||||||||||
/s/ Cary M. Flanagan | February | /s/ David Vander Ploeg | February | |||||||||||||||||
Cary M. Flanagan | David Vander Ploeg | |||||||||||||||||||
Chief Accounting Officer | Director | |||||||||||||||||||
(Principal Accounting Officer) | ||||||||||||||||||||
/s/ Kevin P. Knight | February | /s/ Kathryn Munro | February | |||||||||||||||||
Kevin P. Knight | Kathryn Munro | |||||||||||||||||||
Executive Chairman | Director | |||||||||||||||||||
/s/ Gary J. Knight | February | /s/ Roberta Roberts Shank | February | |||||||||||||||||
Gary J. Knight | Roberta Roberts Shank | |||||||||||||||||||
Executive Vice Chairman | Director | |||||||||||||||||||
/s/ Reid B. Dove | February 24, 2022 | /s/ Louis Hobson | February 24, 2022 | |||||||||||||||||
Reid B. Dove | Louis Hobson | |||||||||||||||||||
Director | Director | |||||||||||||||||||