Knight-Swift Transportation (KNX) 8-K Regulation FD Disclosure

Exhibit 99.4

NON-GAAP RECONCILIATION:

QUARTERLY ADJUSTED OPERATING RATIO BY REPORTABLE SEGMENT (UNAUDITED)⁽¹⁾⁽²⁾ 

FOR THE TWO-YEAR PERIOD ENDED DECEMBER 31, 2016

(Dollars in thousands)

	Three Months Ended																								Years Ended December 31,
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016			2015			2016
Truckload:
Operating revenue	$	538,341		$	555,715		$	552,816		$	557,242		$	492,522		$	517,593		$	516,692		$	521,242		$	2,204,114		$	2,048,049
Less: Fuel surcharge revenue	(69,561		)	(70,281		)	(63,363		)	(53,945		)	(36,705		)	(43,847		)	(47,549		)	(48,575		)	(257,150		)	(176,676		)
Revenue xFSR	468,780			485,434			489,453			503,297			455,817			473,746			469,143			472,667			1,946,964			1,871,373
Operating expense	481,487			487,771			495,804			482,045			456,235			467,118			469,022			473,893			1,947,107			1,866,268
Adjusted for:
Fuel surcharge revenue	(69,561		)	(70,281		)	(63,363		)	(53,945		)	(36,705		)	(43,847		)	(47,549		)	(48,575		)	(257,150		)	(176,676		)
Adjusted operating expense	411,926			417,490			432,441			428,100			419,530			423,271			421,473			425,318			1,689,957			1,689,592
Operating Ratio	89.4		%	87.8		%	89.7		%	86.5		%	92.6		%	90.2		%	90.8		%	90.9		%	88.3		%	91.1		%
Adjusted Operating Ratio	87.9		%	86.0		%	88.4		%	85.1		%	92.0		%	89.3		%	89.8		%	90.0		%	86.8		%	90.3		%
Dedicated:
Operating revenue	$	135,929		$	146,812		$	145,381		$	152,243		$	142,911		$	146,119		$	156,382		$	161,491		$	580,365		$	606,903
Less: Fuel surcharge revenue	(17,276		)	(17,963		)	(15,975		)	(13,322		)	(9,222		)	(11,432		)	(12,904		)	(13,576		)	(64,536		)	(47,134		)
Revenue xFSR	118,653			128,849			129,406			138,921			133,689			134,687			143,478			147,915			515,829			559,769
Operating expense	124,856			128,634			130,717			132,100			124,170			125,601			132,775			142,240			516,307			524,786
Adjusted for:
Fuel surcharge revenue	(17,276		)	(17,963		)	(15,975		)	(13,322		)	(9,222		)	(11,432		)	(12,904		)	(13,576		)	(64,536		)	(47,134		)
Adjusted operating expense	107,580			110,671			114,742			118,778			114,948			114,169			119,871			128,664			451,771			477,652
Operating Ratio	91.9		%	87.6		%	89.9		%	86.8		%	86.9		%	86.0		%	84.9		%	88.1		%	89.0		%	86.5		%
Adjusted Operating Ratio	90.7		%	85.9		%	88.7		%	85.5		%	86.0		%	84.8		%	83.5		%	87.0		%	87.6		%	85.3		%
Refrigerated:
Operating revenue	$	177,414		$	185,089		$	182,181		$	182,859		$	169,688		$	178,162		$	177,435		$	180,338		$	727,543		$	705,623
Less: Fuel surcharge revenue	(18,834		)	(19,703		)	(15,351		)	(13,147		)	(6,699		)	(10,720		)	(11,417		)	(13,370		)	(67,035		)	(42,206		)
Revenue xFSR	158,580			165,386			166,830			169,712			162,989			167,442			166,018			166,968			660,508			663,417
Operating expense	169,343			174,183			176,650			171,610			164,903			165,427			190,959			170,814			691,786			692,103
Adjusted for:
Fuel surcharge revenue	(18,834		)	(19,703		)	(15,351		)	(13,147		)	(6,699		)	(10,720		)	(11,417		)	(13,370		)	(67,035		)	(42,206		)
Adjusted operating expense	150,509			154,480			161,299			158,463			158,204			154,707			179,542			157,444			624,751			649,897
Operating Ratio	95.5		%	94.1		%	97.0		%	93.8		%	97.2		%	92.9		%	107.6		%	94.7		%	95.1		%	98.1		%
Adjusted Operating Ratio	94.9		%	93.4		%	96.7		%	93.4		%	97.1		%	92.4		%	108.1		%	94.3		%	94.6		%	98.0		%

Exhibit 99.4

Intermodal:
Operating revenue	$	90,354		$	98,507		$	100,966		$	100,745		$	82,548		$	90,066		$	92,260		$	95,283		$	390,572		$	360,157
Less: Fuel surcharge revenue	(13,090		)	(13,664		)	(12,903		)	(10,784		)	(6,692		)	(8,305		)	(9,294		)	(10,166		)	(50,441		)	(34,457		)
Revenue xFSR	77,264			84,843			88,063			89,961			75,856			81,761			82,966			85,117			340,131			325,700
Operating expense	91,597			96,906			100,243			97,698			85,456			89,163			91,902			94,183			386,444			360,704
Adjusted for:
Fuel surcharge revenue	(13,090		)	(13,664		)	(12,903		)	(10,784		)	(6,692		)	(8,305		)	(9,294		)	(10,166		)	(50,441		)	(34,457		)
Non-cash impairments	—			—			—			—			—			—			—			(37		)	—			(37		)
Adjusted operating expense	78,507			83,242			87,340			86,914			78,764			80,858			82,608			83,980			336,003			326,210
Operating Ratio	101.4		%	98.4		%	99.3		%	97.0		%	103.5		%	99.0		%	99.6		%	98.8		%	98.9		%	100.2		%
Adjusted Operating Ratio	101.6		%	98.1		%	99.2		%	96.6		%	103.8		%	98.9		%	99.6		%	98.7		%	98.8		%	100.2		%

(1) During the first quarter of 2017, Swift Transportation Company (the "Company") reorganized its reportable segments to reflect management’s revised reporting structure of its Dedicated and Refrigerated (formerly "Swift Refrigerated") reportable segments.  In association with the reorganization, the operations of our dedicated grocery line of business, which was previously reported within the Company’s Dedicated segment, will now be reported within the Company's Refrigerated segment.  This will result in all of our temperature-controlled lines of business reporting under the Refrigerated segment.

(2) Our definition of the non-GAAP measure, Adjusted Operating Ratio, starts with (a) operating expense and (b) operating revenue, which are GAAP financial measures. We subtract the following items from (a) to arrive at (c) adjusted operating expense:

(i)fuel surcharge revenue,

(ii)amortization of the intangibles from our 2007 going-private transaction,

(iii)non-cash operating impairment charges,

(iv)other special non-cash items,

(v)excludable transaction costs, and

(vi)severance expense, including cash and equity award impact, related to the departure of certain executive leadership.

We then subtract fuel surcharge revenue from (b) to arrive at (d) Revenue xFSR. Adjusted Operating Ratio is equal to (c) adjusted operating expense as a percentage of (d) Revenue xFSR.

We net fuel surcharge revenue against fuel expense in the calculation of our Adjusted Operating Ratio, thereby excluding fuel surcharge revenue from operating revenue in the denominator. Because fuel surcharge revenue is so volatile, we believe excluding it provides for more transparency and comparability. Additionally, we believe that comparability of our performance is improved by excluding impairments, non-comparable intangibles from our 2007 going-private transaction and other special items.