Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Knight Transportation Inc | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 80,818,638 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000929452 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Unaudit
Condensed Consolidated Unaudited Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Current Assets: | ' | ' | |
Cash and cash equivalents | $9,601,000 | $992,000 | |
Trade receivables, net of allowance for doubtful accounts of $2,636 and $2,409 respectively | 123,015,000 | 116,391,000 | |
Notes receivable, net of allowance for doubtful notes receivable of $296, and $312 respectively | 773,000 | 774,000 | |
Related party notes and interest receivable | ' | 748,000 | |
Prepaid expenses | 17,784,000 | 15,026,000 | |
Assets held for sale | 14,055,000 | 16,476,000 | |
Other current assets | 9,548,000 | 11,066,000 | |
Current deferred tax assets | 3,544,000 | 3,359,000 | |
Total current assets | 178,320,000 | 164,832,000 | |
Property and Equipment: | ' | ' | |
Revenue equipment | 673,457,000 | 683,275,000 | |
Land and land improvements | 46,504,000 | 45,615,000 | |
Buildings and improvements | 116,342,000 | 115,201,000 | |
Furniture and fixtures | 14,239,000 | 18,605,000 | |
Shop and service equipment | 9,545,000 | 9,564,000 | |
Leasehold improvements | 3,000,000 | 3,382,000 | |
Gross property and equipment | 863,087,000 | 875,642,000 | |
Less: accumulated depreciation and amortization | -279,757,000 | -283,851,000 | |
Property and equipment, net | 583,330,000 | 591,791,000 | |
Notes receivable, long-term | 3,850,000 | 4,047,000 | |
Goodwill | 10,252,000 | 10,257,000 | |
Other long-term assets and restricted cash and investments | 38,443,000 | 36,194,000 | |
Total assets | 814,195,000 | 807,121,000 | |
Current Liabilities: | ' | ' | |
Accounts payable | 13,204,000 | 14,354,000 | |
Accrued payroll and purchased transportation | 16,511,000 | 13,864,000 | |
Accrued liabilities | 31,683,000 | 19,062,000 | [1] |
Claims accrual – current portion | 16,516,000 | 15,616,000 | |
Dividend payable – current portion | 187,000 | 168,000 | |
Total current liabilities | 78,101,000 | 63,064,000 | |
Long-term Liabilities: | ' | ' | |
Claims accrual – long-term portion | 9,513,000 | 8,889,000 | |
Long-term dividend payable and other liabilities | 2,357,000 | 2,486,000 | |
Deferred tax liabilities | 134,284,000 | 140,149,000 | |
Long-term debt | 12,000,000 | 38,000,000 | |
Total long-term liabilities | 158,154,000 | 189,524,000 | |
Total liabilities | 236,255,000 | 252,588,000 | |
Commitments and Contingencies (Note 6) | ' | ' | |
Shareholders' Equity: | ' | ' | |
Preferred stock, $0.01 par value; 50,000 shares authorized; none issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value; 300,000 shares authorized; 80,758 and 80,199 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 807,000 | 802,000 | |
Additional paid-in capital | 159,684,000 | 150,858,000 | |
Accumulated other comprehensive income | 5,662,000 | 4,582,000 | |
Retained earnings | 410,746,000 | 397,346,000 | |
Total Knight Transportation shareholders' equity | 576,899,000 | 553,588,000 | |
Noncontrolling interest | 1,041,000 | 945,000 | |
Total shareholders’ equity | 577,940,000 | 554,533,000 | |
Total liabilities and shareholders' equity | $814,195,000 | $807,121,000 | |
[1] | Income tax payable is included in Accrued Liabilities of our consolidated balance sheets. |
Condensed_Consolidated_Unaudit1
Condensed Consolidated Unaudited Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts (in Dollars) | $2,636 | $2,409 |
Allowance for doubtful notes receivable (in Dollars) | $296 | $312 |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock,shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 80,758 | 80,199 |
Common stock, shares outstanding | 80,758 | 80,199 |
Condensed_Consolidated_Unaudit2
Condensed Consolidated Unaudited Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUE: | ' | ' |
Revenue, before fuel surcharge | $205,596 | $189,600 |
Fuel surcharge | 43,567 | 45,800 |
Total revenue | 249,163 | 235,400 |
OPERATING EXPENSES: | ' | ' |
Salaries, wages and benefits | 60,733 | 57,654 |
Fuel | 52,009 | 55,693 |
Operations and maintenance | 17,020 | 15,910 |
Insurance and claims | 7,422 | 7,155 |
Operating taxes and licenses | 4,065 | 3,908 |
Communications | 1,279 | 1,172 |
Depreciation and amortization | 21,788 | 21,507 |
Purchased transportation | 51,969 | 42,792 |
Miscellaneous operating expenses | 1,628 | 4,065 |
Total operating expenses | 217,913 | 209,856 |
Income from operations | 31,250 | 25,544 |
Interest income | 114 | 109 |
Interest expense | -117 | -141 |
Other income | 866 | 220 |
Income before income taxes | 32,113 | 25,732 |
Income taxes | 12,780 | 10,298 |
Net income | 19,333 | 15,434 |
Net income attributable to noncontrolling interest | -269 | -251 |
Net income attributable to Knight Transportation | $19,064 | $15,183 |
Basic Earnings Per Share (in Dollars per share) | $0.24 | $0.19 |
Diluted Earnings Per Share (in Dollars per share) | $0.23 | $0.19 |
Weighted Average Shares Outstanding b Basic (in Shares) | 80,501 | 79,841 |
Weighted Average Shares Outstanding b Diluted (in Shares) | 81,336 | 80,124 |
Condensed_Consolidated_Unaudit3
Condensed Consolidated Unaudited Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income attributable to Knight Transportation | $19,064 | $15,183 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized gain from available-for-sale securities | 1,080 | 251 |
Comprehensive income | $20,144 | $15,434 |
Condensed_Consolidated_Unaudit4
Condensed Consolidated Unaudited Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flows From Operating Activities: | ' | ' |
Net income | $19,333,000 | $15,434,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 21,788,000 | 21,507,000 |
Gain on sale of equipment | -4,305,000 | -1,411,000 |
Gain from sale of available-for-sale securities | ' | -47,000 |
Gain from investment in Transportation Resource Partners III | -866,000 | -173,000 |
Provision for doubtful accounts and notes receivable | 282,000 | 235,000 |
Excess tax benefits related to stock-based compensation | -497,000 | ' |
Stock-based compensation expense, net | 837,000 | 646,000 |
Deferred income taxes | -6,718,000 | -2,401,000 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables | -6,884,000 | -10,262,000 |
Other current assets | 1,518,000 | 2,081,000 |
Prepaid expenses | -2,758,000 | 2,869,000 |
Other long-term assets | 454,000 | -1,461,000 |
Accounts payable | -2,196,000 | 6,033,000 |
Accrued liabilities and claims accrual | 16,499,000 | 7,272,000 |
Net cash provided by operating activities | 36,487,000 | 40,322,000 |
Cash Flows From Investing Activities: | ' | ' |
Purchases of property and equipment | -29,173,000 | -11,856,000 |
Proceeds from sale of equipment/assets held for sale | 23,447,000 | 13,614,000 |
Proceeds from notes receivable | 347,000 | 881,000 |
Proceeds from related party notes receivable | 748,000 | 745,000 |
Change in restricted cash and investments | -15,000 | -15,000 |
Proceeds from sale of available-for-sale securities | 0 | 2,080,000 |
Contributions to Transportation Resource Partners | -67,000 | -127,000 |
Net cash (used in) provided by investing activities | -4,713,000 | 5,322,000 |
Cash Flows From Financing Activities: | ' | ' |
Dividends paid | -4,986,000 | -5,018,000 |
Payments on line of credit borrowings, net | -26,000,000 | -37,000,000 |
Excess tax benefits related to stock-based compensation | 497,000 | ' |
Cash distribution to noncontrolling interest holder | -173,000 | -160,000 |
Proceeds from exercise of stock options | 7,497,000 | 1,046,000 |
Net cash used in financing activities | -23,165,000 | -41,132,000 |
Net increase in Cash and Cash Equivalents | 8,609,000 | 4,512,000 |
Cash and Cash Equivalents, beginning of period | 992,000 | 5,684,000 |
Cash and Cash Equivalents, end of period | 9,601,000 | 10,196,000 |
Non-cash investing and financing transactions: | ' | ' |
Equipment acquired included in accounts payable | 3,900,000 | 278,000 |
Transfer from property and equipment to assets held for sale | 12,560,000 | 9,960,000 |
Financing provided to independent contractors for equipment sold | 133,000 | 318,000 |
Net dividend accrued for restricted stock units | 26,000 | 46,000 |
Cash flow information: | ' | ' |
Income taxes paid | 7,699,000 | 5,719,000 |
Interest expense paid | $131,000 | $137,000 |
Note_1_Financial_Information
Note 1 - Financial Information | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||||||
Note 1. Financial Information | |||||||||||||
References in this Report on Form 10-Q to "we," "us," "our," "Knight," or the "Company" or similar terms refer to Knight Transportation, Inc. and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. | |||||||||||||
The accompanying condensed consolidated unaudited financial statements of Knight Transportation, Inc. and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America and Regulation S-X, instructions to Form 10-Q, and other relevant rules and regulations of the Securities and Exchange Commission (the "SEC"), as applicable to the preparation and presentation of interim financial information. Certain information and footnote disclosures have been omitted or condensed pursuant to such rules and regulations. We believe all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results of operations in interim periods are not necessarily indicative of results for a full year. These condensed consolidated unaudited financial statements and notes thereto should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||
Revision of Prior Period Reported Amounts | |||||||||||||
During the first quarter of 2014, we identified errors associated with income tax accounts reported in prior periods. Specifically, the errors related to our income tax accounting for incentive stock options since the adoption of FAS 123R in 2006 and errors in recording required annual adjustments to the tax provision and taxes payable. The aforementioned errors resulted in an overstatement of the deferred tax liability by $2,355,000, understatement of income tax payable by $262,000, understatement of additional paid-in capital by $779,000, and understatement of retained earnings by $1,314,000 as of December 31, 2013. We have adjusted our previously reported income taxes payable, deferred tax liability, additional paid in capital, and retained earnings accounts as of January 1, 2013 to correct these errors and such adjustments are reflected in the accompanying condensed consolidated financial statements. | |||||||||||||
Pursuant to the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality, we concluded that the errors were not material to any of our prior period financial statements. However, in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatement in the Current Year Financial Statements, the prior period financial statements were revised to facilitate comparability between current and prior year periods. | |||||||||||||
A reconciliation of the effects of the adjustments to our previously reported balance sheet as of December 31, 2013 follows: | |||||||||||||
31-Dec-13 | |||||||||||||
(in thousands) | |||||||||||||
As | Adjustment | As Adjusted | |||||||||||
Previously | |||||||||||||
Reported | |||||||||||||
Account | |||||||||||||
Accrued liabilities(1) | $ | 18,800 | $ | 262 | $ | 19,062 | |||||||
Total current liabilities | 62,802 | 262 | 63,064 | ||||||||||
Deferred tax liability | 142,504 | (2,355 | ) | 140,149 | |||||||||
Total long term liabilities | 191,879 | (2,355 | ) | 189,524 | |||||||||
Total liabilities | 254,681 | (2,093 | ) | 252,588 | |||||||||
Additional paid-in capital | 150,079 | 779 | 150,858 | ||||||||||
Retained earnings | 396,032 | 1,314 | 397,346 | ||||||||||
Total Knight Transportation Shareholders’ Equity | 551,495 | 2,093 | 553,588 | ||||||||||
Total shareholders' equity | 552,440 | 2,093 | 554,533 | ||||||||||
-1 | Income tax payable is included in Accrued Liabilities of our consolidated balance sheets. | ||||||||||||
Note_2_StockBased_Compensation
Note 2 - Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
Note 2. Stock-Based Compensation | |||||||||
In May 2012, our shareholders approved the 2012 Equity Compensation Plan. This replaced the stock-based employee compensation plan known as the Knight Transportation, Inc. Amended and Restated 2003 Stock Option and Equity Compensation Plan, as amended and restated in May 2009 (the "2003 Plan"). Grants outstanding under the 2003 Plan will continue in force and effect. Any grants of stock-based compensation after May 18, 2012, are made under the 2012 Equity Compensation Plan. Stock based compensation cost for the three months ended March 31, 2014, and 2013, respectively, are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Stock compensation expense for options, net of forfeitures | $ | 84 | $ | 38 | |||||
Stock compensation expense for restricted stock units and performance restricted stock units, net of forfeitures | 753 | 608 | |||||||
Combined stock compensation expense | $ | 837 | $ | 646 | |||||
We received approximately $7.5 million in cash from the exercise of stock options during the three months ended March 31, 2014, compared to $1.0 million for the same period in 2013. | |||||||||
As of March 31, 2014, we have approximately $2.3 million of unrecognized compensation cost related to unvested options granted under our equity compensation plan. This cost is expected to be recognized over a weighted-average period of 2.3 years and a total period of 4.0 years. We also have approximately $15.2 million of unrecognized compensation expense related to restricted stock unit awards, which is anticipated to be recognized over a weighted average period of 4.3 years and a total period of 8.8 years. | |||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option valuation model. Listed below are the weighted average assumptions used for the fair value computation: | |||||||||
Quarter Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Dividend yield (1) | 1.06 | % | N/A | ||||||
Expected volatility (2) | 28.04 | % | N/A | ||||||
Risk-free interest rate (3) | 0.82 | % | N/A | ||||||
Expected terms (years) (4) | 2.74 | N/A | |||||||
Weighted average fair value of options granted | $ | 3.97 | N/A | ||||||
-1 | Dividend yield – the dividend yield is based on our historical experience and future expectation of dividend payouts. | ||||||||
-2 | Expected volatility – we analyzed the volatility of our stock using historical data. | ||||||||
-3 | Risk-free interest rate – the risk-free interest rate assumption is based on U.S. Treasury securities at a constant maturity with a maturity period that most closely resembles the expected term of the stock option award. | ||||||||
-4 | Expected term – the expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on an analysis of historical exercise behavior. | ||||||||
A total of 394,550 stock options were granted during the first three months of 2014 and no options were granted during the first three months of 2013. A summary of the option award activity under our equity compensation plan as of March 31, 2014, and changes during the three-month period is presented below: | |||||||||
Option Totals | Weighted Average | ||||||||
Exercise | |||||||||
Price Per Share | |||||||||
Outstanding as of December 31, 2013 | 3,374,846 | $ | 16.26 | ||||||
Granted | 394,550 | 22.61 | |||||||
Exercised | (490,413 | ) | 15.28 | ||||||
Forfeited | (31,890 | ) | 16 | ||||||
Outstanding as of March 31, 2014 | 3,247,093 | $ | 17.18 | ||||||
A total of 9,000 and 113,611 restricted stock unit awards were granted during the first three months of 2014 and 2013, respectively. A summary of the restricted stock unit award activity under our equity compensation plan as of March 31, 2014, and changes during the three-month period is presented below: | |||||||||
Number of | Weighted Average | ||||||||
Restricted Stock | Grant Date | ||||||||
Unit Awards | Fair Value | ||||||||
Unvested as of December 31, 2013 | 1,213,698 | $ | 16.04 | ||||||
Granted | 9,000 | 22.61 | |||||||
Vested | (107,459 | ) | 16.02 | ||||||
Forfeited | (17,710 | ) | 16.34 | ||||||
Unvested as of March 31, 2014 | 1,097,529 | $ | 16.09 | ||||||
The fair value of each restricted stock unit is based on the closing market price on the date of grant. | |||||||||
Beginning in 2014, we issued performance restricted stock units (“PRSUs’) to selected key employees that may be earned based on revenue growth and return on assets, and may then be modified based on our total shareholder return over the three-year period. The primary award adjustment may range from 0 percent to 150 percent of the initial grant, based upon performance achieved. The primary award modifier, which would multiply the adjusted primary award by 75 percent to 125 percent, is measured by determining the percentile rank of the total shareholder return of Knight common stock in relation to the total shareholder return of a peer group for the three-year period. The final award will be based on performance achieved in accordance with the scale set forth in the plan agreement. Performance restricted stock units do not earn dividend equivalents. | |||||||||
During the three months ended March 31, 2014, we granted 181,112 PRSUs. The performance measurement period for this award is January 1, 2014 to December 31, 2016 (for Fiscal Year 2014, 2015, and 2016). This award will vest January 31, 2018, or thirteen months following the expiration of the performance period. The fair value of each PRSU grant is estimated on the date of grant using the Monte Carlo Simulation valuation model. Listed below are the weighted average assumptions used for the fair value computation: | |||||||||
Three months ended | |||||||||
31-Mar-14 | |||||||||
Dividend yield (1) | 1.06% | ||||||||
Expected volatility (2) | 26.11% | ||||||||
Average peer volatility(2) | 36.01% | ||||||||
Average peer correlation coefficient(3) | 0.5796 | ||||||||
Risk-free interest rate (4) | 0.66% | ||||||||
Expected term (5) | 2.8 | ||||||||
Weighted average fair value of PRSUs granted | $23.85 | ||||||||
1 | The dividend yield, used to project stock price to the end of the performance period, is based on our historical experience and future expectation of dividend payouts. Total shareholder return is determined assuming that dividends are reinvested in the issuing entity over the performance period, which is mathematically equivalent to utilizing a 0% dividend yield. | ||||||||
2 | We (or peer company) estimated volatility using its historical share price performance over the remaining performance period as of the grant date. | ||||||||
3 | The correlation coefficients are used to model the way in which each entity tends to move in relation to each other; the correlation assumptions were developed using the same stock price data as the volatility assumptions. | ||||||||
4 | The risk-free interest rate assumption is based on U.S. Treasury securities at a constant maturity with a maturity period that most closely resembles the expected term of the performance award. | ||||||||
5 | Since Monte Carlo valuation is an open form model that uses an expected life commensurate with the performance period, the expected life of the PRSUs was assumed to be the period from the grant date to the end of the performance period. | ||||||||
Our policy is to recognize compensation cost on a straight-line basis over the requisite service period for the entire award. | |||||||||
As of March 31, 2014, there was $4.4 million of unrecognized compensation cost related to unvested performance awards. That cost is expected to be recognized over a weighted-average period and total period of 3.8 years. |
Note_3_Earnings_Per_Share
Note 3 - Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
Note 3. Earnings Per Share | |||||||||
A reconciliation of the basic and diluted earnings per share computations for the three months ended March 31, 2014 and 2013, respectively, is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except for | |||||||||
share data) | |||||||||
Weighted average common shares outstanding – basic | 80,501 | 79,841 | |||||||
Dilutive effect of stock options and unvested restricted stock units | 835 | 283 | |||||||
Weighted average common shares outstanding – diluted | 81,336 | 80,124 | |||||||
Net income attributable to Knight Transportation | $ | 19,064 | $ | 15,183 | |||||
Basic Earnings Per Share | $ | 0.24 | $ | 0.19 | |||||
Diluted Earnings per Share | $ | 0.23 | $ | 0.19 | |||||
Certain shares of options, restricted stock units, and performance restricted stock units were excluded from the computation of diluted earnings per share because the option’s exercise prices were greater than the average market price of the common shares and the sum total of assumed proceeds resulted in few shares repurchased than the weighted options outstanding hypothetically exercised per the treasury method. | |||||||||
The number of anti-dilutive shares are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Number of anti-dilutive shares | 273 | 1,469 | |||||||
Note_4_Segment_Information
Note 4 - Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
Note 4. Segment Information | |||||||||||||||||
We have two operating segments: (i) the Trucking (Asset-Based) segment comprised of three operating units (Dry Van, Refrigerated, and Drayage), and (ii) the Logistics (Non-Asset-Based) segment comprised of two operating units (Brokerage and Intermodal). We also provide logistics, freight management and other non-trucking services through our Logistics (Non-Asset-Based) businesses. Through our Trucking (Asset-Based) and Logistics (Non-Asset-Based) segment capabilities, we are able to transport, or can arrange for the transportation of, general commodities for customers throughout the United States and parts of Canada and Mexico. | |||||||||||||||||
We, in determining its reportable operating segments, focus on financial information such as operating revenues and expenses, operating income, operating ratios, and other key operating statistics common in the industry. The chief operating decision makers also use this information to evaluate segment performance and allocate resources to our operations. | |||||||||||||||||
Our operating segments provide transportation and related services for one another. Such services are billed at cost, and no profit is earned. Such intersegment revenues and expenses are eliminated in our consolidated results. | |||||||||||||||||
The following table sets forth revenue and operating income between the Trucking (Asset-Based) and Logistics (Non-Asset-Based) segments for the three months ended March 31, 2014 and 2013. | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Revenues: | $ | % | $ | % | |||||||||||||
Trucking (Asset-Based) Segment | $ | 205,423 | 82.4 | $ | 203,556 | 86.5 | |||||||||||
Logistics (Non-Asset-Based) Segment | 44,616 | 17.9 | 33,208 | 14.1 | |||||||||||||
Subtotal | 250,039 | 236,764 | |||||||||||||||
Intersegment Eliminations Asset-Based | (29 | ) | 0 | (53 | ) | 0 | |||||||||||
Intersegment Eliminations Non-Asset-Based | (847 | ) | (0.3 | ) | (1,311 | ) | (0.6 | ) | |||||||||
Total | $ | 249,163 | 100 | % | $ | 235,400 | 100 | % | |||||||||
Operating Income: | |||||||||||||||||
Trucking (Asset-Based) Segment | $ | 29,121 | 93.2 | $ | 23,234 | 91 | |||||||||||
Logistics (Non-Asset-Based) Segment | 2,129 | 6.8 | 2,310 | 9 | |||||||||||||
Total | $ | 31,250 | 100 | % | $ | 25,544 | 100 | % | |||||||||
Trucking (Asset-Based) Segment Information | |||||||||||||||||
The Trucking (Asset-Based) trucking units operate large modern company-owned tractor fleets and use independent contractors to provide various transportation solutions, including multiple stop pick-ups and deliveries, dedicated equipment and personnel, on-time expedited pick-ups and deliveries, specialized driver training, and other truckload services. Revenues are generally set at a predetermined rate per mile or per load for the Trucking (Asset-Based) trucking services. In addition, revenue streams are also generated by charging for tractor and trailer detention, loading and unloading activities, dedicated services, and other specialized services, as well as through the collection of fuel surcharges to mitigate the impact of increases in the cost of fuel. | |||||||||||||||||
The primary measurement we use to evaluate the profitability of the Trucking (Asset-Based) segment is operating ratio, measured both on a GAAP basis (operating expenses expressed as a percentage of revenue) and non-GAAP basis used by many in our industry (operating expenses, net of Trucking (Asset-Based) fuel surcharge revenue, expressed as a percentage of Trucking (Asset-Based) revenue, excluding Trucking (Asset-Based) fuel surcharge revenue). We believe the second method allows it to more effectively compare periods while excluding the potentially volatile effect of changes in fuel prices. The tables below compare operating ratio using both methods. | |||||||||||||||||
The following table sets forth the Trucking (Asset-Based) segment operating ratio on a GAAP basis (amount in thousands). | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trucking (Asset-Based)Segment | $ | % | $ | % | |||||||||||||
Revenue | $ | 205,423 | $ | 203,556 | |||||||||||||
Operating expenses | 176,302 | 85.8 | 180,322 | 88.6 | |||||||||||||
Operating income | $ | 29,121 | $ | 23,234 | |||||||||||||
The following table sets forth the Trucking (Asset-Based) segment operating ratio as if fuel surcharges are excluded from total revenue and instead reported as a reduction of operation expenses, excluding intersegment activity (amount in thousands). | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trucking (Asset-Based) Segment | $ | % | $ | % | |||||||||||||
Revenue | $ | 205,423 | $ | 203,556 | |||||||||||||
Less: Trucking (Asset-Based) fuel surcharge revenue | (43,567 | ) | (45,800 | ) | |||||||||||||
Less: Intersegment transactions(1) | (29 | ) | (53 | ) | |||||||||||||
Revenue, net of fuel surcharge and intersegment transactions(1) | 161,827 | 157,703 | |||||||||||||||
Operating expenses | 176,302 | 180,322 | |||||||||||||||
Less: Trucking (Asset-Based) fuel surcharge revenue | (43,567 | ) | (45,800 | ) | |||||||||||||
Less: Intersegment transactions(1) | (29 | ) | (53 | ) | |||||||||||||
Operating expenses, net of fuel surcharge and intersegment transactions(1) | 132,706 | 82 | 134,469 | 85.3 | |||||||||||||
Operating income | $ | 29,121 | $ | 23,234 | |||||||||||||
-1 | These items represent non-GAAP financial measures and are not substitutes for, and should be considered in addition to, the GAAP financial measures presented in the previous table. | ||||||||||||||||
Our Trucking (Asset-Based) segment requires substantial capital expenditures for purchases of new revenue equipment. Total depreciation and amortization expense for the Trucking (Asset-Based) Segment was approximately $20.6 million and $20.2 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||
Logistics (Non-Asset-Based) Segment Information | |||||||||||||||||
Logistics (Non-Asset-Based) revenue is generated primarily by the Brokerage and Intermodal operating units, which charge a predetermined rate per mile or per load for arranging freight transportation for their customers. We also provide logistics, freight management and other non-trucking services through its Non-Asset-Based business. Additional revenue is generated by offering specialized logistics solutions (including, but not limited to, origin management, surge volumes, disaster relief, special projects, and other logistics needs). Logistics (Non-Asset-Based) revenue is mainly affected by the rates we are able to negotiate with clients, the freight volumes that are shipped through third-party capacity providers and our ability to secure qualified third-party capacity providers to transport customer freight. | |||||||||||||||||
The following table sets forth the Logistics (Non-Asset-Based) segment revenue, other operating expenses, and operating income (amount in thousands). | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Logistics Non-Asset-Based | $ | % | $ | % | |||||||||||||
Revenue | $ | 44,616 | $ | 33,208 | |||||||||||||
Other operating expenses | 42,487 | 95.2 | 30,898 | 93 | |||||||||||||
Operating income | $ | 2,129 | $ | 2,310 | |||||||||||||
The following table sets forth the Logistics (Non-Asset-Based) revenue, operating expenses, and operating income, excluding intersegment transactions (amount in thousands). | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Logistics (Non-Asset-Based) | $ | % | $ | % | |||||||||||||
Revenue | $ | 44,616 | $ | 33,208 | |||||||||||||
Less: Intersegment transactions | (847 | ) | (1,311 | ) | |||||||||||||
Revenue excluding intersegment transactions | 43,769 | 31,897 | |||||||||||||||
Operating expenses | 42,487 | 30,898 | |||||||||||||||
Less: Intersegment transactions | (847 | ) | (1,311 | ) | |||||||||||||
Operating expenses excluding intersegment transactions | 41,640 | 95.1 | 29,587 | 92.8 | |||||||||||||
Operating income | $ | 2,129 | $ | 2,310 | |||||||||||||
We primarily measure the Logistics (Non-Asset-Based) segment's profitability by reviewing the gross margin percentage (revenue net of intersegment elimination), less purchased transportation expense, expressed as a percentage of revenue (net of intersegment elimination) and the operating income percentage. The gross margin percentage can be affected by customer rates and the costs of securing third-party capacity providers. Our third-party capacity providers are generally not subject to long-term or predetermined contracted rates, and the operating results could be affected if the availability of third-party capacity providers or the rates for such providers change in the future. | |||||||||||||||||
The following table lists the gross margin percentage for our Brokerage and Intermodal businesses. | |||||||||||||||||
Three Months | Three Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Brokerage gross margin percent(1) | 14.00% | 14.20% | |||||||||||||||
Intermodal gross margin percent(1) | 8.90% | 12.70% | |||||||||||||||
-1 | Gross margin percentage is based on revenue net of intersegment elimination. | ||||||||||||||||
Our Logistics (Non-Asset-Based) segment does not require significant capital expenditures and is not asset-intensive like the Trucking (Asset-Based) segment. Total Logistics (Non-Asset-Based) segment depreciation and amortization expense is primarily attributed to equipment leased to third parties, which totaled approximately $1.2 million and $1.3 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||
No segmental asset information is provided as we do not prepare balance sheets by segment, and the chief operating decision makers do not review segment assets to make operating decisions. |
Note_5_Joint_Venture
Note 5 - Joint Venture | 3 Months Ended |
Mar. 31, 2014 | |
Joint Venture [Abstract] | ' |
Joint Venture [Text Block] | ' |
Note 5. Joint Venture | |
In 2010, we partnered with a non-related investor to form an Arizona limited liability company for the purpose of sourcing commercial vehicle parts. We contributed $26,000 to acquire 52% ownership of this entity. In accordance with ASC 810-10-15-8, Consolidation, we consolidate the financial activities of this entity into the consolidated financial statements. The noncontrolling interest for this entity is presented as a separate component of the consolidated financial statements. |
Note_6_Commitments_and_Conting
Note 6 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Note 6. Commitments and Contingencies | |
We are a party to certain claims and pending litigation arising in the normal course of business. These proceedings primarily involve claims for personal injury, property damage, physical damage, and cargo loss incurred in the transportation of freight or for personnel matters, as well as certain class action litigation in which plaintiffs allege failure to provide meal and rest breaks, unpaid wages, unauthorized deductions, and other items. | |
We are insured against auto liability claims under a self-insured retention ("SIR") policy. For the policy year February 1, 2012 to January 31, 2013, the SIR was $2.0 million with an additional $1.0 million responsibility for "aggregate" losses. For the policy period February 1, 2013 to January 31, 2014, our SIR is $3.0 million with no additional responsibility for "aggregate" losses. For the policy period February 1, 2014 to March 1, 2015, our SIR is $2.5 million with no additional responsibility for "aggregate" losses. In the past, our retention generally ranged from $1.0 million to $3.0 million per occurrence, plus "aggregate" losses of up to $1.5 million. We have secured excess liability coverage up to $105.0 million per occurrence. We also carry a $2.5 million aggregate deductible for any loss or losses that rise to the excess coverage layer. | |
We are self-insured for workers' compensation claims up to a maximum limit of $500,000 per occurrence. We also maintain primary and excess coverage for employee medical expenses and hospitalization, with self-insured retention of $225,000 per claimant. | |
Based on claims resolved this quarter, and our present knowledge of the facts and, in certain cases, advice of outside counsel, management believes the resolution of open claims and pending litigation, taking into account existing reserves, is not likely to have a materially adverse effect on us. |
Note_7_Dividends
Note 7 - Dividends | 3 Months Ended |
Mar. 31, 2014 | |
Common Stock Dividends [Abstract] | ' |
Common Stock Dividends [Text Block] | ' |
Note 7. Dividends | |
On February 5, 2014, we announced a cash dividend of $0.06 per share of our common stock. The dividend was payable to shareholders of record on March 7, 2014, and was paid on March 28, 2014. Future payment of cash dividends, and the amount of any such dividends, will depend upon our financial condition, results of operations, cash requirements, tax treatment, and certain corporate law requirements, as well as other factors deemed relevant by our Board of Directors. |
Note_8_Property_and_Equipment
Note 8 - Property and Equipment | 3 Months Ended |
Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment Disclosure [Text Block] | ' |
Note 8. Property and Equipment | |
To ensure that our facilities remain modern and efficient, we periodically have facility upgrades, or new construction, in process at our various service center or corporate headquarters locations. Until these projects are completed, we consider these to be assets not yet placed in service and they are not depreciated. Once they are placed into service, we depreciate them according to our depreciation policy. At March 31, 2014 and December 31, 2013, we had approximately $4.4 million and $6.5 million, respectively, of assets not yet placed in service included with "buildings and improvements" on the accompanying consolidated balance sheets. |
Note_9_Goodwill
Note 9 - Goodwill | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||
Note 9. Goodwill | |||||
Goodwill represents the excess of the purchase price of our acquisitions over the fair value of the net assets acquired. The tax benefit from the recognition on the tax return of the amortization of the excess tax goodwill over book goodwill is treated as a reduction in the book basis of goodwill. The changes in the carrying amount of goodwill for the three months ended March 31, 2014, is as follows: | |||||
In thousands | |||||
Goodwill at December 31, 2013 | $ | 10,257 | |||
Amortization relating to deferred tax assets | (5 | ) | |||
Goodwill at March 31, 2014 | $ | 10,252 | |||
Note_10_Investments_and_Relate
Note 10 - Investments and Related Commitments | 3 Months Ended |
Mar. 31, 2014 | |
Investments Schedule [Abstract] | ' |
Investment [Text Block] | ' |
Note 10. Investments and Related Commitments | |
In 2003, we signed a partnership agreement with Transportation Resource Partners ("TRP"), a company that makes privately negotiated equity investments. Per the original partnership agreement, we committed to invest $5.0 million in TRP. In 2006, we increased the commitment amount to $5.5 million. The carrying value of our investment in TRP was $2.0 million at March 31, 2014 and December 31, 2014. | |
In the fourth quarter of 2008, we formed Knight Capital Growth, LLC and committed $15.0 million to invest in a new partnership managed and operated by the managers and principals of TRP. The new partnership, Transportation Resource Partners III, LP ("TRP III"), is focused on investment opportunities similar to TRP. As of March 31, 2014, we have contributed approximately $10.9 million to TRP III, leaving an outstanding commitment of $4.1 million. Our investment in TRP III is accounted for using the equity method. The carrying value of our investment in TRP III was $12.4 million and $11.4 million as of March 31,2014 and December 31, 2013, respectively. |
Note_11_Marketable_Equity_Secu
Note 11 - Marketable Equity Securities | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | ' |
Note 11. Marketable Equity Securities | |
We have certain marketable equity securities classified as available-for-sale securities, which are recorded at fair value with unrealized gains and losses, net of tax, as a component of "Accumulated other comprehensive income" in shareholders' equity. Realized gains and losses on available-for-sale securities are included in the determination of net income. For the quarter ended March 31, 2014, there were no sales of available for sale securities. For the quarter ended March 31, 2013, gross proceeds from the sale of available-for-sale securities totaled $2.1 million and realized gains from sales of these securities of approximately $29,000, net of tax impact of $18,000, were reclassified from accumulated other comprehensive income and included in net income. For the quarter ended March 31, 2013, changes in unrealized gains from available-for-sale securities of $221,000, net of tax impact of $137,000 were recorded during the period. We use specific identification to determine the amount reclassified out of accumulated other comprehensive income into earnings. As of March 31, 2014, our available-for-sale equity investment included in "Other long-term assets and restricted cash and investments" was approximately $19.2 million, including gross unrealized gains of approximately $9.2 million, or $5.7 million (net of tax). As of December 31, 2013, our available-for-sale investment balance was approximately $17.5 million, including gross unrealized gains of approximately $7.4 million, or $4.6 million (net of tax). |
Note_12_Assets_Held_for_Sale
Note 12 - Assets Held for Sale | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Other Assets Disclosure [Text Block] | ' |
Note 12. Assets Held for Sale | |
Revenue equipment that is not utilized in continuing operations and is held for sale is classified as "Assets held for sale" on the accompanying consolidated balance sheets. Assets held for sale at March 31, 2014 and December 31, 2013, totaled $14.1 million and $16.5 million, respectively. Assets held for sale are no longer subject to depreciation, and are recorded at the lower of depreciated carrying value or fair market value less selling costs. We expect to sell these assets and replace them with new assets within twelve months of being classified as "Assets held for sale." |
Note_13_Income_Taxes
Note 13 - Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Note 13. Income Taxes | |
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. For interim reporting purposes, our income tax provisions are recorded based on the estimated annual effective tax rate. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial operations. A valuation allowance for deferred tax assets has not been deemed necessary due to our profitable operations. | |
We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We file U.S. and state income tax returns with varying statutes of limitations. The 2010 through 2013 tax years generally remain subject to examination by federal authority, and the 2009 through 2013 tax years generally remain subject to examination by state tax authorities. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our consolidated financial position, results of operations and cash flows. Our policy is to recognize interest and penalties related to unrecognized tax benefits as income tax expense. We have not recorded any unrecognized tax benefits at March 31, 2014 or December 31, 2013. |
Note_14_Company_Share_Repurcha
Note 14 - Company Share Repurchase Programs | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Treasury Stock [Text Block] | ' |
Note 14. Company Share Repurchase Programs | |
In November 2008, our Board of Directors unanimously authorized the repurchase of up to 3.0 million shares of our common stock, and in May 2011, our Board of Directors unanimously authorized the repurchase of an additional 10.0 million shares of our common stock. The repurchase authorization is intended to afford flexibility to acquire shares opportunistically in future periods and does not indicate an intention to repurchase any particular number of shares within a definite timeframe. Any repurchases would be effected based upon share price and market conditions. | |
We did not purchase any shares in either of the three months ended March 31, 2014 or 2013, and as of March 31, 2014, there were 7,438,556 shares remaining for future purchases under our repurchase program. The repurchase authorization will remain in effect until the share limit is reached or the programs are terminated. |
Note_15_Fair_Value_Measurement
Note 15 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||||||||||
Note 15. Fair Value Measurements | |||||||||||||||||||||||||||||||||
Our assets and liabilities measured at fair value are based on principles set forth in ASC 820-10, Fair Value Measurements and Disclosure, for non-recurring fair value measurements of non-financial assets and liabilities. This standard defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to us while unobservable inputs are generally developed internally, utilizing management's estimates, assumptions, and specific knowledge of the nature of the assets or liabilities and related markets. The three levels are defined as follows: | |||||||||||||||||||||||||||||||||
Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||||||||||||||||||
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). | |||||||||||||||||||||||||||||||||
Level 3 – Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability. | |||||||||||||||||||||||||||||||||
In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be measured at fair value as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
Total | Total | Level One | Level Two | Level Three | |||||||||||||||||||||||||||||
Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | ||||||||||||||||||||||||||
March | 31-Dec-13 | March | 31-Dec-13 | March | 31-Dec-13 | March | 31-Dec-13 | ||||||||||||||||||||||||||
31, 2014 | 31, 2014 | 31, 2014 | 31, 2014 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Available-for-sale Securities: | |||||||||||||||||||||||||||||||||
Equity securities - common shares | $ | 19,202 | $ | 17,454 | $ | 19,202 | $ | 17,454 | - | - | - | - | |||||||||||||||||||||
Restricted cash and investments: | |||||||||||||||||||||||||||||||||
Money market funds | $ | 1,392 | $ | 1,371 | $ | 1,392 | $ | 1,371 | - | - | - | - | |||||||||||||||||||||
Trading Securities: | |||||||||||||||||||||||||||||||||
Debt securities - municipal securities | $ | 2,227 | $ | 2,232 | - | - | $ | 2,227 | $ | 2,232 | - | - | |||||||||||||||||||||
Note_16_Notes_Receivable
Note 16 - Notes Receivable | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Notes Receivable [Abstract] | ' | ||||||||
Notes Receivable [Text Block] | ' | ||||||||
Note 16. Notes Receivable | |||||||||
We provide financing to independent contractors and third parties on equipment sold or leased under our equipment sale program. Most of the notes are collateralized and are due in weekly installments, including principal and interest payments generally ranging from 2% to 20%. We had 111 and 117 loans outstanding from independent contractors and third parties as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
The notes receivable balances are classified separately between current and long-term on the accompanying consolidated balance sheets. The current and long-term balance of our notes receivable at March 31, 2014 and December 31, 2013, are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Notes receivable from independent contractors | $ | 472 | $ | 503 | |||||
Notes receivable from third parties | 4,447 | 4,630 | |||||||
Gross notes receivable | 4,919 | 5,133 | |||||||
Allowance for doubtful notes receivable | (296 | ) | (312 | ) | |||||
Total notes receivable, net of allowance | 4,623 | 4,821 | |||||||
Current portion, net of allowance | 773 | 774 | |||||||
Long-term portion | $ | 3,850 | $ | 4,047 | |||||
Note_17_Related_Party_Transact
Note 17 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 17. Related Party Transactions | |
We have provided general business loans to US West Agriculture Exporters, LLC, ("USW") a company that transacted business with our drayage operation, and in which Larry Knight is a 33% owner. Larry Knight is an employee of the Company and the brother of Kevin Knight and Keith Knight, our Chief Executive Officer and Chief Operating Officer, respectively. The loan balance, including interest due from USW, at December 31, 2013, was approximately $748,000. The principal loan and interest balance was recorded in "Related party notes and interest receivable" on our consolidated balance sheets at December 31, 2013. During the first quarter of 2014, we received full payment for the remaining balance of the loan to USW, and as of March 31, 2014, there is no balance recorded on the financial statements associated with this related party transaction. |
Note_18_Line_of_Credit
Note 18 - Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Long-term Debt [Text Block] | ' |
Note 18. Line of Credit | |
We maintain a revolving line of credit with Wells Fargo Bank, which permits revolving borrowings and letters of credit. Previously, the line of credit had been maintained at $150.0 million with interest at either the prime rate, or LIBOR plus 0.625%. In October 2013, we increased this limit to $300.0 million, and going forward it will bear interest at either the prime rate, or LIBOR plus 0.75%, determined by us at the time of borrowing, and has a maturity date of October 21, 2016. We had $12.0 million outstanding under the line of credit as of March 31, 2014, compared to $38.0 million as of December 31, 2013. The weighted average variable annual percentage rate ("APR") for amounts borrowed during the first quarter of 2014 was 2.0%. Borrowing under the line of credit is recorded in the "Long-term debt" line of the consolidated balance sheets. In connection with our self-insurance program, we also utilized $24.1 million of the line of credit for letters of credit issued to various regulatory authorities as of March 31, 2014. Considering the increase in the line of credit limit noted above, as of March 31, 2014, we have $263.9 million available for future borrowings. We are obligated to comply with certain financial and other covenants under the line of credit agreement and was in compliance with such covenants at March 31, 2014 and December 31, 2013. |
Note_19_Recent_Accounting_Pron
Note 19 - Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
Note 19. Recent Accounting Pronouncements | |
In of March 2014, FASB issued ASU 2014-06, Technical Corrections and Improvements Related to Glossary Terms. The amendments in this update represent changes to clarify the Master Glossary of the Codification, consolidate multiple instances of the same term into a single definition, or make minor improvements to the Master Glossary that are not expected to result in substantive changes to the application of existing guidance or create a significant administrative cost to most entities. Additionally, the amendments will make the Master Glossary easier to understand, as well as reduce the number of terms appearing in the Master Glossary. The amendments do not have transition guidance and are effective upon issuance for both public entities and nonpublic entities. |
Note_1_Financial_Information_T
Note 1 - Financial Information (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' | ||||||||||||
31-Dec-13 | |||||||||||||
(in thousands) | |||||||||||||
As | Adjustment | As Adjusted | |||||||||||
Previously | |||||||||||||
Reported | |||||||||||||
Account | |||||||||||||
Accrued liabilities(1) | $ | 18,800 | $ | 262 | $ | 19,062 | |||||||
Total current liabilities | 62,802 | 262 | 63,064 | ||||||||||
Deferred tax liability | 142,504 | (2,355 | ) | 140,149 | |||||||||
Total long term liabilities | 191,879 | (2,355 | ) | 189,524 | |||||||||
Total liabilities | 254,681 | (2,093 | ) | 252,588 | |||||||||
Additional paid-in capital | 150,079 | 779 | 150,858 | ||||||||||
Retained earnings | 396,032 | 1,314 | 397,346 | ||||||||||
Total Knight Transportation Shareholders’ Equity | 551,495 | 2,093 | 553,588 | ||||||||||
Total shareholders' equity | 552,440 | 2,093 | 554,533 |
Note_2_StockBased_Compensation1
Note 2 - Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Note 2 - Stock-Based Compensation (Tables) [Line Items] | ' | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Stock compensation expense for options, net of forfeitures | $ | 84 | $ | 38 | |||||
Stock compensation expense for restricted stock units and performance restricted stock units, net of forfeitures | 753 | 608 | |||||||
Combined stock compensation expense | $ | 837 | $ | 646 | |||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||
Option Totals | Weighted Average | ||||||||
Exercise | |||||||||
Price Per Share | |||||||||
Outstanding as of December 31, 2013 | 3,374,846 | $ | 16.26 | ||||||
Granted | 394,550 | 22.61 | |||||||
Exercised | (490,413 | ) | 15.28 | ||||||
Forfeited | (31,890 | ) | 16 | ||||||
Outstanding as of March 31, 2014 | 3,247,093 | $ | 17.18 | ||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||
Number of | Weighted Average | ||||||||
Restricted Stock | Grant Date | ||||||||
Unit Awards | Fair Value | ||||||||
Unvested as of December 31, 2013 | 1,213,698 | $ | 16.04 | ||||||
Granted | 9,000 | 22.61 | |||||||
Vested | (107,459 | ) | 16.02 | ||||||
Forfeited | (17,710 | ) | 16.34 | ||||||
Unvested as of March 31, 2014 | 1,097,529 | $ | 16.09 | ||||||
Stock Compensation Plan [Member] | ' | ||||||||
Note 2 - Stock-Based Compensation (Tables) [Line Items] | ' | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||
Quarter Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Dividend yield (1) | 1.06 | % | N/A | ||||||
Expected volatility (2) | 28.04 | % | N/A | ||||||
Risk-free interest rate (3) | 0.82 | % | N/A | ||||||
Expected terms (years) (4) | 2.74 | N/A | |||||||
Weighted average fair value of options granted | $ | 3.97 | N/A | ||||||
Performance Shares [Member] | ' | ||||||||
Note 2 - Stock-Based Compensation (Tables) [Line Items] | ' | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||
Three months ended | |||||||||
31-Mar-14 | |||||||||
Dividend yield (1) | 1.06% | ||||||||
Expected volatility (2) | 26.11% | ||||||||
Average peer volatility(2) | 36.01% | ||||||||
Average peer correlation coefficient(3) | 0.5796 | ||||||||
Risk-free interest rate (4) | 0.66% | ||||||||
Expected term (5) | 2.8 | ||||||||
Weighted average fair value of PRSUs granted | $23.85 |
Note_3_Earnings_Per_Share_Tabl
Note 3 - Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except for | |||||||||
share data) | |||||||||
Weighted average common shares outstanding – basic | 80,501 | 79,841 | |||||||
Dilutive effect of stock options and unvested restricted stock units | 835 | 283 | |||||||
Weighted average common shares outstanding – diluted | 81,336 | 80,124 | |||||||
Net income attributable to Knight Transportation | $ | 19,064 | $ | 15,183 | |||||
Basic Earnings Per Share | $ | 0.24 | $ | 0.19 | |||||
Diluted Earnings per Share | $ | 0.23 | $ | 0.19 | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Number of anti-dilutive shares | 273 | 1,469 |
Note_4_Segment_Information_Tab
Note 4 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Note 4 - Segment Information (Tables) [Line Items] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Revenues: | $ | % | $ | % | |||||||||||||
Trucking (Asset-Based) Segment | $ | 205,423 | 82.4 | $ | 203,556 | 86.5 | |||||||||||
Logistics (Non-Asset-Based) Segment | 44,616 | 17.9 | 33,208 | 14.1 | |||||||||||||
Subtotal | 250,039 | 236,764 | |||||||||||||||
Intersegment Eliminations Asset-Based | (29 | ) | 0 | (53 | ) | 0 | |||||||||||
Intersegment Eliminations Non-Asset-Based | (847 | ) | (0.3 | ) | (1,311 | ) | (0.6 | ) | |||||||||
Total | $ | 249,163 | 100 | % | $ | 235,400 | 100 | % | |||||||||
Operating Income: | |||||||||||||||||
Trucking (Asset-Based) Segment | $ | 29,121 | 93.2 | $ | 23,234 | 91 | |||||||||||
Logistics (Non-Asset-Based) Segment | 2,129 | 6.8 | 2,310 | 9 | |||||||||||||
Total | $ | 31,250 | 100 | % | $ | 25,544 | 100 | % | |||||||||
Trucking (Asset-Based) Segment [Member] | ' | ||||||||||||||||
Note 4 - Segment Information (Tables) [Line Items] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trucking (Asset-Based)Segment | $ | % | $ | % | |||||||||||||
Revenue | $ | 205,423 | $ | 203,556 | |||||||||||||
Operating expenses | 176,302 | 85.8 | 180,322 | 88.6 | |||||||||||||
Operating income | $ | 29,121 | $ | 23,234 | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trucking (Asset-Based) Segment | $ | % | $ | % | |||||||||||||
Revenue | $ | 205,423 | $ | 203,556 | |||||||||||||
Less: Trucking (Asset-Based) fuel surcharge revenue | (43,567 | ) | (45,800 | ) | |||||||||||||
Less: Intersegment transactions(1) | (29 | ) | (53 | ) | |||||||||||||
Revenue, net of fuel surcharge and intersegment transactions(1) | 161,827 | 157,703 | |||||||||||||||
Operating expenses | 176,302 | 180,322 | |||||||||||||||
Less: Trucking (Asset-Based) fuel surcharge revenue | (43,567 | ) | (45,800 | ) | |||||||||||||
Less: Intersegment transactions(1) | (29 | ) | (53 | ) | |||||||||||||
Operating expenses, net of fuel surcharge and intersegment transactions(1) | 132,706 | 82 | 134,469 | 85.3 | |||||||||||||
Operating income | $ | 29,121 | $ | 23,234 | |||||||||||||
Logistics (Non-Asset-Based) Segment [Member] | ' | ||||||||||||||||
Note 4 - Segment Information (Tables) [Line Items] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Logistics Non-Asset-Based | $ | % | $ | % | |||||||||||||
Revenue | $ | 44,616 | $ | 33,208 | |||||||||||||
Other operating expenses | 42,487 | 95.2 | 30,898 | 93 | |||||||||||||
Operating income | $ | 2,129 | $ | 2,310 | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Logistics (Non-Asset-Based) | $ | % | $ | % | |||||||||||||
Revenue | $ | 44,616 | $ | 33,208 | |||||||||||||
Less: Intersegment transactions | (847 | ) | (1,311 | ) | |||||||||||||
Revenue excluding intersegment transactions | 43,769 | 31,897 | |||||||||||||||
Operating expenses | 42,487 | 30,898 | |||||||||||||||
Less: Intersegment transactions | (847 | ) | (1,311 | ) | |||||||||||||
Operating expenses excluding intersegment transactions | 41,640 | 95.1 | 29,587 | 92.8 | |||||||||||||
Operating income | $ | 2,129 | $ | 2,310 | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Three Months | Three Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Brokerage gross margin percent(1) | 14.00% | 14.20% | |||||||||||||||
Intermodal gross margin percent(1) | 8.90% | 12.70% |
Note_9_Goodwill_Tables
Note 9 - Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||
Schedule of Goodwill [Table Text Block] | ' | ||||
In thousands | |||||
Goodwill at December 31, 2013 | $ | 10,257 | |||
Amortization relating to deferred tax assets | (5 | ) | |||
Goodwill at March 31, 2014 | $ | 10,252 |
Note_15_Fair_Value_Measurement1
Note 15 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Total | Total | Level One | Level Two | Level Three | |||||||||||||||||||||||||||||
Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | Balance at | ||||||||||||||||||||||||||
March | 31-Dec-13 | March | 31-Dec-13 | March | 31-Dec-13 | March | 31-Dec-13 | ||||||||||||||||||||||||||
31, 2014 | 31, 2014 | 31, 2014 | 31, 2014 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Available-for-sale Securities: | |||||||||||||||||||||||||||||||||
Equity securities - common shares | $ | 19,202 | $ | 17,454 | $ | 19,202 | $ | 17,454 | - | - | - | - | |||||||||||||||||||||
Restricted cash and investments: | |||||||||||||||||||||||||||||||||
Money market funds | $ | 1,392 | $ | 1,371 | $ | 1,392 | $ | 1,371 | - | - | - | - | |||||||||||||||||||||
Trading Securities: | |||||||||||||||||||||||||||||||||
Debt securities - municipal securities | $ | 2,227 | $ | 2,232 | - | - | $ | 2,227 | $ | 2,232 | - | - |
Note_16_Notes_Receivable_Table
Note 16 - Notes Receivable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Notes Receivable [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Notes receivable from independent contractors | $ | 472 | $ | 503 | |||||
Notes receivable from third parties | 4,447 | 4,630 | |||||||
Gross notes receivable | 4,919 | 5,133 | |||||||
Allowance for doubtful notes receivable | (296 | ) | (312 | ) | |||||
Total notes receivable, net of allowance | 4,623 | 4,821 | |||||||
Current portion, net of allowance | 773 | 774 | |||||||
Long-term portion | $ | 3,850 | $ | 4,047 |
Note_1_Financial_Information_D
Note 1 - Financial Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Note 1 - Financial Information (Details) [Line Items] | ' | ' | |
Deferred Tax Liabilities, Net, Noncurrent | $134,284,000 | $140,149,000 | |
Accrued Liabilities, Current | 31,683,000 | 19,062,000 | [1] |
Additional Paid in Capital, Common Stock | 159,684,000 | 150,858,000 | |
Retained Earnings (Accumulated Deficit) | 410,746,000 | 397,346,000 | |
Scenario, Adjustment [Member] | ' | ' | |
Note 1 - Financial Information (Details) [Line Items] | ' | ' | |
Deferred Tax Liabilities, Net, Noncurrent | -2,355,000 | -2,355,000 | |
Accrued Liabilities, Current | 262,000 | 262,000 | [1] |
Additional Paid in Capital, Common Stock | 779,000 | 779,000 | |
Retained Earnings (Accumulated Deficit) | $1,314,000 | $1,314,000 | |
[1] | Income tax payable is included in Accrued Liabilities of our consolidated balance sheets. |
Note_1_Financial_Information_D1
Note 1 - Financial Information (Details) - Reconciliation of Effects of Adjustments to Previously Reported Balances Sheet (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Account | ' | ' | |
Accrued liabilities(1) | $31,683,000 | $19,062,000 | [1] |
Total current liabilities | 78,101,000 | 63,064,000 | |
Deferred tax liability | 134,284,000 | 140,149,000 | |
Total long term liabilities | 158,154,000 | 189,524,000 | |
Total liabilities | 236,255,000 | 252,588,000 | |
Additional paid-in capital | 159,684,000 | 150,858,000 | |
Retained earnings | 410,746,000 | 397,346,000 | |
Total Knight Transportation Shareholdersb Equity | 576,899,000 | 553,588,000 | |
Total shareholders' equity | 577,940,000 | 554,533,000 | |
Scenario, Previously Reported [Member] | ' | ' | |
Account | ' | ' | |
Accrued liabilities(1) | ' | 18,800,000 | [1] |
Total current liabilities | ' | 62,802,000 | |
Deferred tax liability | ' | 142,504,000 | |
Total long term liabilities | ' | 191,879,000 | |
Total liabilities | ' | 254,681,000 | |
Additional paid-in capital | ' | 150,079,000 | |
Retained earnings | ' | 396,032,000 | |
Total Knight Transportation Shareholdersb Equity | ' | 551,495,000 | |
Total shareholders' equity | ' | 552,440,000 | |
Scenario, Adjustment [Member] | ' | ' | |
Account | ' | ' | |
Accrued liabilities(1) | 262,000 | 262,000 | [1] |
Total current liabilities | ' | 262,000 | |
Deferred tax liability | -2,355,000 | -2,355,000 | |
Total long term liabilities | ' | -2,355,000 | |
Total liabilities | ' | -2,093,000 | |
Additional paid-in capital | 779,000 | 779,000 | |
Retained earnings | 1,314,000 | 1,314,000 | |
Total Knight Transportation Shareholdersb Equity | ' | 2,093,000 | |
Total shareholders' equity | ' | $2,093,000 | |
[1] | Income tax payable is included in Accrued Liabilities of our consolidated balance sheets. |
Note_2_StockBased_Compensation2
Note 2 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Proceeds from Stock Options Exercised | $7,497,000 | $1,046,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 2,300,000 | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 394,550 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,000 | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | |
Restricted Stock Units (RSUs) [Member] | Weighted-Average Period [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '4 years 109 days | ' | |
Restricted Stock Units (RSUs) [Member] | Total Period [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '8 years 292 days | ' | |
Restricted Stock Units (RSUs) [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 15,200,000 | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,000 | 113,611 | |
Performance Shares [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '3 years 292 days | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 181,112 | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Payout Range, Lower Limit | 0.00% | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Payout Range, Upper Limit | 150.00% | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Payout Modifier Range, Lower Limit | 75.00% | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Payout Modifier Range, Upper Limit | 125.00% | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.06% | [1] | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $4,400,000 | ' | |
Weighted-Average Period [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 109 days | ' | |
Total Period [Member] | ' | ' | |
Note 2 - Stock-Based Compensation (Details) [Line Items] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' | |
[1] | The dividend yield, used to project stock price to the end of the performance period, is based on our historical experience and future expectation of dividend payouts. Total shareholder return is determined assuming that dividends are reinvested in the issuing entity over the performance period, which is mathematically equivalent to utilizing a 0% dividend yield. |
Note_2_StockBased_Compensation3
Note 2 - Stock-Based Compensation (Details) - Stock-Based Compensation Cost (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock-Based Compensation Cost [Abstract] | ' | ' |
Stock compensation expense for options, net of forfeitures | $84 | $38 |
Stock compensation expense for restricted stock units and performance restricted stock units, net of forfeitures | 753 | 608 |
Combined stock compensation expense | $837 | $646 |
Note_2_StockBased_Compensation4
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Stock Options (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Stock Options [Line Items] | ' | ' | ||
Dividend yield (1) | 0.00% | ' | ||
Stock Compensation Plan [Member] | ' | ' | ||
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Stock Options [Line Items] | ' | ' | ||
Dividend yield (1) | 1.06% | [1] | ' | [1] |
Expected volatility (2) | 28.04% | [2] | ' | [2] |
Risk-free interest rate (3) | 0.82% | [3] | ' | [3] |
Expected terms (years) (4) | '2 years 270 days | [4] | ' | [4] |
Weighted average fair value of options granted (in Dollars per share) | $3.97 | ' | ||
[1] | Dividend yield - the dividend yield is based on our historical experience and future expectation of dividend payouts. | |||
[2] | Expected volatility - we analyzed the volatility of our stock using historical data. | |||
[3] | Risk-free interest rate - the risk-free interest rate assumption is based on U.S. Treasury securities at a constant maturity with a maturity period that most closely resembles the expected term of the stock option award. | |||
[4] | Expected term - the expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on an analysis of historical exercise behavior. |
Note_2_StockBased_Compensation5
Note 2 - Stock-Based Compensation (Details) - A Summary of the Option Award Activity Under Our Equity Compensation Plan (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
A Summary of the Option Award Activity Under Our Equity Compensation Plan [Abstract] | ' |
Outstanding as of December 31, 2013 | 3,374,846 |
Outstanding as of December 31, 2013 | $16.26 |
Granted | $22.61 |
Granted | 394,550 |
Exercised | -490,413 |
Exercised | $15.28 |
Forfeited | -31,890 |
Forfeited | $16 |
Outstanding as of March 31, 2014 | 3,247,093 |
Outstanding as of March 31, 2014 | $17.18 |
Note_2_StockBased_Compensation6
Note 2 - Stock-Based Compensation (Details) - A Summary of the Restricted Stock Unit Award Activity Under Our Equity Compensation Plan (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
A Summary of the Restricted Stock Unit Award Activity Under Our Equity Compensation Plan [Abstract] | ' |
Unvested as of December 31, 2013 | 1,213,698 |
Unvested as of December 31, 2013 | $16.04 |
Granted | 9,000 |
Granted | $22.61 |
Vested | -107,459 |
Vested | $16.02 |
Forfeited | -17,710 |
Forfeited | $16.34 |
Unvested as of March 31, 2014 | 1,097,529 |
Unvested as of March 31, 2014 | $16.09 |
Note_2_StockBased_Compensation7
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Performance Shares (USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Performance Shares [Line Items] | ' | |
Dividend yield (1) | 0.00% | |
Performance Shares [Member] | ' | |
Note 2 - Stock-Based Compensation (Details) - Fair Value Assumptions - Performance Shares [Line Items] | ' | |
Dividend yield (1) | 1.06% | [1] |
Expected volatility (2) | 26.11% | [2] |
Average peer volatility(2) | 36.01% | [2] |
Average peer correlation coefficient(3) | 0.58% | [3] |
Risk-free interest rate (4) | 0.66% | [4] |
Expected term (5) | '2 years 292 days | [5] |
Weighted average fair value of PRSUs granted (in Dollars per share) | 23.85 | |
[1] | The dividend yield, used to project stock price to the end of the performance period, is based on our historical experience and future expectation of dividend payouts. Total shareholder return is determined assuming that dividends are reinvested in the issuing entity over the performance period, which is mathematically equivalent to utilizing a 0% dividend yield. | |
[2] | We (or peer company) estimated volatility using its historical share price performance over the remaining performance period as of thegrant date. | |
[3] | The correlation coefficients are used to model the way in which each entity tends to move in relation to each other; the correlation assumptions were developed using the same stock price data as the volatility assumptions. | |
[4] | The risk-free interest rate assumption is based on U.S. Treasury securities at a constant maturity with a maturity period that most closelyresembles the expected term of the performance award. | |
[5] | Since Monte Carlo valuation is an open form model that uses an expected life commensurate with the performance period, the expected life of the PRSUs was assumed to be the period from the grant date to the end of the performance period. |
Note_3_Earnings_Per_Share_Deta
Note 3 - Earnings Per Share (Details) - Reconciliation of Basic and Diluted Earnings Per Share Computation (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation of Basic and Diluted Earnings Per Share Computation [Abstract] | ' | ' |
Weighted average common shares outstanding b basic | 80,501 | 79,841 |
Dilutive effect of stock options and unvested restricted stock units | 835 | 283 |
Weighted average common shares outstanding b diluted | 81,336 | 80,124 |
Net income attributable to Knight Transportation (in Dollars) | $19,064 | $15,183 |
Basic Earnings Per Share (in Dollars per share) | $0.24 | $0.19 |
Diluted Earnings per Share (in Dollars per share) | $0.23 | $0.19 |
Note_3_Earnings_Per_Share_Deta1
Note 3 - Earnings Per Share (Details) - Summary of Anti-dilutive Common Shares | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Summary of Anti-dilutive Common Shares [Abstract] | ' | ' |
Number of anti-dilutive shares | 273 | 1,469 |
Note_4_Segment_Information_Det
Note 4 - Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 4 - Segment Information (Details) [Line Items] | ' | ' |
Number of Operating Segments | 2 | ' |
Depreciation, Depletion and Amortization | $21,788 | $21,507 |
Asset-Based Segment [Member] | ' | ' |
Note 4 - Segment Information (Details) [Line Items] | ' | ' |
Number of Operating Segments | 3 | ' |
Depreciation, Depletion and Amortization | 20,600 | 20,200 |
Non-Asset-Based Segment [Member] | ' | ' |
Note 4 - Segment Information (Details) [Line Items] | ' | ' |
Number of Operating Segments | 2 | ' |
Depreciation, Depletion and Amortization | $1,200 | $1,300 |
Note_4_Segment_Information_Det1
Note 4 - Segment Information (Details) - Revenue and Operating Income Between Assets-Based and Non-Asset-Based Segments (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | $249,163 | $235,400 |
Percentage of revenues | 100.00% | 100.00% |
Operating income | 31,250 | 25,544 |
Percentage of operating income | 100.00% | 100.00% |
Operating Segments [Member] | Asset-Based Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 205,423 | 203,556 |
Percentage of revenues | 82.40% | 86.50% |
Operating income | 29,121 | 23,234 |
Percentage of operating income | 93.20% | 91.00% |
Operating Segments [Member] | Non-Asset-Based Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 44,616 | 33,208 |
Percentage of revenues | 17.90% | 14.10% |
Operating income | 2,129 | 2,310 |
Percentage of operating income | 6.80% | 9.00% |
Operating Segments [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 250,039 | 236,764 |
Intersegment Eliminations [Member] | Asset-Based Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | -29 | -53 |
Percentage of revenues | 0.00% | 0.00% |
Intersegment Eliminations [Member] | Non-Asset-Based Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | ($847) | ($1,311) |
Percentage of revenues | -0.30% | -0.60% |
Note_4_Segment_Information_Det2
Note 4 - Segment Information (Details) - Reconciliation of Revenue from Segments to Consolidated, Asset-Based (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Revenue | $249,163 | $235,400 | ||
Revenue, net of fuel surcharge and intersegment transactions(1) | 205,596 | 189,600 | ||
Less: Asset-Based fuel surcharge revenue | 43,567 | 45,800 | ||
Operating expenses | 217,913 | 209,856 | ||
Operating income | 31,250 | 25,544 | ||
Operating Segments [Member] | Asset-Based Segment [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Revenue | 205,423 | 203,556 | ||
Less: Asset-Based fuel surcharge revenue | -43,567 | -45,800 | ||
Operating expenses | 176,302 | 180,322 | ||
Operating expenses | 85.80% | 88.60% | ||
Operating income | 29,121 | 23,234 | ||
Operating Segments [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Revenue | 250,039 | 236,764 | ||
Asset-Based Segment [Member] | Intersubsegment Eliminations [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Revenue | -29 | [1] | -53 | [1] |
Revenue, net of fuel surcharge and intersegment transactions(1) | 161,827 | [1] | 157,703 | [1] |
Asset-Based Segment [Member] | Reportable Subsegments [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Operating expenses, net of fuel surcharge and intersegment transactions(1) | 132,706 | [1] | 134,469 | [1] |
Operating expenses, net of fuel surcharge and intersegment transactions(1) | 82.00% | [1] | 85.30% | [1] |
Operating income | $29,121 | $23,234 | ||
[1] | These items represent non-GAAP financial measures and are not substitutes for, and should be considered in addition to, the GAAP financial measures presented in the previous table. |
Note_4_Segment_Information_Det3
Note 4 - Segment Information (Details) - Reconciliation of Revenue from Segments to Consolidated, Non-Asset-Based (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | $205,596 | $189,600 |
Operating expenses | 217,913 | 209,856 |
Operating income | 31,250 | 25,544 |
Operating Segments [Member] | Non-Asset-Based Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 44,616 | 33,208 |
Operating expenses | 42,487 | 30,898 |
Percentage of operating expenses | 95.20% | 93.00% |
Operating income | 2,129 | 2,310 |
Non-Asset-Based Segment [Member] | Intersubsegment Eliminations [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | -847 | -1,311 |
Non-Asset-Based Segment [Member] | Reportable Subsegments [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 43,769 | 31,897 |
Operating expenses | 41,640 | 29,587 |
Percentage of operating expenses | 95.10% | 92.80% |
Operating income | $2,129 | $2,310 |
Note_4_Segment_Information_Det4
Note 4 - Segment Information (Details) - Gross Margin Percentage of Segments (Reportable Subsegments [Member]) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Brokerage [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Gross margin percent | 14.00% | [1] | 14.20% | [1] |
Intermodal Unit [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Gross margin percent | 8.90% | [1] | 12.70% | [1] |
[1] | Gross margin percentage is based on revenue net of intersegment elimination. |
Note_5_Joint_Venture_Details
Note 5 - Joint Venture (Details) (USD $) | 12 Months Ended |
Dec. 31, 2010 | |
Joint Venture [Abstract] | ' |
Payments to Acquire Businesses, Gross | $26,000 |
Joint Venture Ownership Interest | 52.00% |
Note_6_Commitments_and_Conting1
Note 6 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Excess Personal Injury And Property Damage Liability Insurance | $105,000,000 |
Insurance Aggregate Deductible Amount | 2,500,000 |
Self Retention For Employee Medical Health | 225,000 |
Previous to Reporting Period [Member] | Minimum [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Retention | 1,000,000 |
Previous to Reporting Period [Member] | Maximum [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Retention | 3,000,000 |
Previous to Reporting Period [Member] | Maximum [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Aggregate Losses | 1,500,000 |
Previous Policy Year [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Retention | 2,000,000 |
Self Insurance Aggregate Losses | 1,000,000 |
Current Policy Year [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Retention | 3,000,000 |
Self Insurance Aggregate Losses | 0 |
Next Policy Year [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self Insurance Retention | 2,500,000 |
Self Insurance Aggregate Losses | 0 |
Maximum [Member] | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' |
Self-Insurance Retention for Workers' Compensation Claims Per Occurrence | $500,000 |
Note_7_Dividends_Details
Note 7 - Dividends (Details) (USD $) | 0 Months Ended |
Feb. 05, 2014 | |
Common Stock Dividends [Abstract] | ' |
Common Stock, Dividends, Per Share, Cash Paid | $0.06 |
Note_8_Property_and_Equipment_
Note 8 - Property and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 8 - Property and Equipment (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $863,087 | $875,642 |
Building and Building Improvements [Member] | ' | ' |
Note 8 - Property and Equipment (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $4,400 | $6,500 |
Note_9_Goodwill_Details_Change
Note 9 - Goodwill (Details) - Changes in Carrying Amount of Goodwill and Intangible Assets (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Changes in Carrying Amount of Goodwill and Intangible Assets [Abstract] | ' |
Goodwill at December 31, 2013 | $10,257 |
Amortization relating to deferred tax assets | -5 |
Goodwill at March 31, 2014 | $10,252 |
Note_10_Investments_and_Relate1
Note 10 - Investments and Related Commitments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2006 | Dec. 31, 2003 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 |
In Millions, unless otherwise specified | Transportation Resource Partners [Member] | Transportation Resource Partners [Member] | Transportation Resource Partners [Member] | Transportation Resource Partners III [Member] | Transportation Resource Partners III [Member] | Transportation Resource Partners III [Member] |
Note 10 - Investments and Related Commitments (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ' | ' | $5 | ' | ' | ' |
Amounts Committed to Invest | ' | 5.5 | ' | ' | ' | 15 |
Investments | 2 | ' | ' | ' | ' | ' |
Payments for (Proceeds from) Investments | ' | ' | ' | 10.9 | ' | ' |
Remaining Investment Commitment | ' | ' | ' | 4.1 | ' | ' |
Equity Method Investments | ' | ' | ' | $12.40 | $11.40 | ' |
Note_11_Marketable_Equity_Secu1
Note 11 - Marketable Equity Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' |
Proceeds from Sale of Available-for-sale Securities | $0 | $2,080,000 | ' |
Available-for-sale Securities, Gross Realized Gains | ' | 29,000 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | ' | 18,000 | ' |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | 9,200,000 | 221,000 | 7,400,000 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | 5,700,000 | 137,000 | 4,600,000 |
Available-for-sale Securities | $19,200,000 | ' | $17,500,000 |
Note_12_Assets_Held_for_Sale_D
Note 12 - Assets Held for Sale (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure Text Block Supplement [Abstract] | ' | ' |
Assets Held-for-sale, Long Lived | $14.10 | $16.50 |
Note_14_Company_Share_Repurcha1
Note 14 - Company Share Repurchase Programs (Details) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | 19-May-11 | Nov. 13, 2008 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | 10,000,000 | 3,000,000 |
Stock Repurchased During Period, Shares | 0 | 0 | ' | ' |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 7,438,556 | ' | ' | ' |
Note_15_Fair_Value_Measurement2
Note 15 - Fair Value Measurements (Details) - Fair Value of Financial Assets and Liabilities (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Equity securities - common shares | $19,202 | $17,454 |
Restricted cash and investments: | ' | ' |
Money market funds | 1,392 | 1,371 |
Debt securities - municipal securities | 2,227 | 2,232 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Equity securities - common shares | 19,202 | 17,454 |
Restricted cash and investments: | ' | ' |
Money market funds | 1,392 | 1,371 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Restricted cash and investments: | ' | ' |
Debt securities - municipal securities | $2,227 | $2,232 |
Note_16_Notes_Receivable_Detai
Note 16 - Notes Receivable (Details) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Note 16 - Notes Receivable (Details) [Line Items] | ' | ' |
Interest On Note Receivable Minimum | 2.00% | ' |
Loans Outstanding Independent Contractors | 111 | 117 |
Maximum [Member] | ' | ' |
Note 16 - Notes Receivable (Details) [Line Items] | ' | ' |
Interest On Note Receivable Maximum | 20.00% | ' |
Note_16_Notes_Receivable_Detai1
Note 16 - Notes Receivable (Details) - Current and Long-Term Balance of Notes Receivable (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current and Long-Term Balance of Notes Receivable [Abstract] | ' | ' |
Notes receivable from independent contractors | $472 | $503 |
Notes receivable from third parties | 4,447 | 4,630 |
Gross notes receivable | 4,919 | 5,133 |
Allowance for doubtful notes receivable | -296 | -312 |
Total notes receivable, net of allowance | 4,623 | 4,821 |
Current portion, net of allowance | 773 | 774 |
Long-term portion | $3,850 | $4,047 |
Note_17_Related_Party_Transact1
Note 17 - Related Party Transactions (Details) (US West Agriculture Exporters LLC [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
US West Agriculture Exporters LLC [Member] | ' | ' |
Note 17 - Related Party Transactions (Details) [Line Items] | ' | ' |
Related Party Transaction Percent of Ownership | 33.00% | ' |
Related Party Transaction, Due from (to) Related Party, Noncurrent | $0 | $748,000 |
Note_18_Line_of_Credit_Details
Note 18 - Line of Credit (Details) (USD $) | 3 Months Ended | 5 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2013 |
Note 18 - Line of Credit (Details) [Line Items] | ' | ' | ' | ' |
New Line of Credit | ' | ' | $150 | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | 0.75% | 0.63% | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 300 | 300 | ' | ' |
Line of Credit Facility, Amount Outstanding | 12 | 12 | ' | 38 |
Line of Credit Facility, Interest Rate During Period | 2.00% | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 263.9 | 263.9 | ' | ' |
Letter of Credit [Member] | ' | ' | ' | ' |
Note 18 - Line of Credit (Details) [Line Items] | ' | ' | ' | ' |
Line of Credit, Current | $24.10 | $24.10 | ' | ' |