| FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
NOTE B – FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Instruments The following table presents the components of cash and cash equivalents and short-term investments: | | | | | | | | | | June 30 | | December 31 | | | | 2026 | | 2025 | | | | | (in thousands) | | Cash and cash equivalents | | | | | | | | Cash deposits(1) | | $ | 62,232 | | $ | 72,280 | | Money market funds(2) | | | 83,619 | | | 29,750 | | Total cash and cash equivalents | | $ | 145,851 | | $ | 102,030 | | | | | | | | | | Short-term investments | | | | | | | | Certificates of deposit(3) | | $ | 22,580 | | $ | 22,204 | |
| (1) | Recorded at cost plus accrued interest, which approximates fair value. |
| (2) | Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets and liabilities measured at fair value within this Note). |
| (3) | Recorded at cost plus accrued interest, which approximates fair value due to its short-term nature and is categorized in Level 2 of the fair value hierarchy. |
The Company’s long-term financial instruments are presented in the table of financial assets and liabilities measured at fair value within this Note. Concentrations of Credit Risk of Financial Instruments The Company is subject to concentrations of credit risk related to its cash, cash equivalents, and short-term investments. The Company reduces credit risk by maintaining its cash deposits and short-term investments in accounts and certificates of deposit that are primarily FDIC‑insured. However, certain cash deposits and certificates of deposit may exceed federally insured limits. At June 30, 2026 and December 31, 2025, cash deposits and short-term investments totaling $39.1 million and $31.1 million, respectively, were not FDIC‑insured. The Company also holds money market funds, which are invested in U.S. government securities and repurchase agreements collateralized solely by U.S. government securities. Fair Value Disclosure of Financial Instruments Fair value disclosures are made in accordance with the following hierarchy of valuation techniques based on whether the inputs of market data and market assumptions used to measure fair value are observable or unobservable: | ● | Level 1 — Quoted prices for identical assets and liabilities in active markets. |
| ● | Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. |
| ● | Level 3 — Unobservable inputs (based on the Company’s market assumptions) that are significant to the valuation model. |
Fair value and carrying value disclosures of financial instruments are presented in the following table: | | | | | | | | | | | | | | | | June 30 | | December 31 | | | | 2026 | | 2025 | | | | | (in thousands) | | | | | Carrying | | | Fair | | | Carrying | | | Fair | | | | | Value | | | Value | | | Value | | | Value | | Notes payable(1) | | $ | 215,549 | | $ | 216,321 | | $ | 223,856 | | $ | 225,797 | | New England Pension Fund withdrawal liability(2) | | | 17,511 | | | 15,796 | | | 17,906 | | | 16,258 | | | | $ | 233,060 | | $ | 232,117 | | $ | 241,762 | | $ | 242,055 | |
| (1) | Fair value of the notes payable was determined using a present value income approach based on quoted interest rates from lending institutions with which the Company would enter into similar transactions (Level 2 of the fair value hierarchy). |
| (2) | See Note C to the consolidated financial statements in the Company’s 2025 Annual Report on Form 10-K for additional information regarding ABF Freight’s multiemployer pension plan obligation with the New England Teamsters and Trucking Industry Pension Fund. The fair values of the outstanding withdrawal liability at June 30, 2026 and December 31, 2025 were determined using the 20‑year U.S. Treasury rate plus a spread (Level 2 of the fair value hierarchy). |
Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents assets and liabilities that are measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | June 30, 2026 | | | | | | | Fair Value Measurements Using | | | | | | | Quoted Prices | | Significant | | Significant | | | | | | | In Active | | Observable | | Unobservable | | | | | | | Markets | | Inputs | | Inputs | | | | Total | | (Level 1) | | (Level 2) | | (Level 3) | | | | | (in thousands) | | Assets: | | | | | | | | | | | | | | Money market funds(1) | | $ | 83,619 | | $ | 83,619 | | $ | — | | $ | — | | Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2) | | | 4,647 | | | 4,647 | | | — | | | — | | | | $ | 88,266 | | $ | 88,266 | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | Fair Value Measurements Using | | | | | | | Quoted Prices | | Significant | | Significant | | | | | | | In Active | | Observable | | Unobservable | | | | | | | Markets | | Inputs | | Inputs | | | | Total | | (Level 1) | | (Level 2) | | (Level 3) | | | | | (in thousands) | | Assets: | | | | | | | | | | | | | | Money market funds(1) | | $ | 29,750 | | $ | 29,750 | | $ | — | | $ | — | | Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2) | | | 5,166 | | | 5,166 | | | — | | | — | | | | $ | 34,916 | | $ | 34,916 | | $ | — | | $ | — | |
| (1) | Included in cash and cash equivalents. |
| (2) | Nonqualified deferred compensation plan investments consist of U.S. and international equity mutual funds, government and corporate bond mutual funds, and money market funds which are held in a trust with a third-party brokerage firm. Included in other long-term assets, with a corresponding liability reported within other long-term liabilities. |
Assets Measured at Fair Value on a Nonrecurring Basis The Company remeasures certain assets on a nonrecurring basis upon events or changes in circumstances that indicate the carrying amount may not be recoverable. The following table summarizes asset impairment charges recognized during the second quarter of 2026 on current assets, long-lived assets and intangible assets measured on a nonrecurring basis. The fair value measurements associated with these impairments were classified within Level 3 of the fair value hierarchy because significant unobservable inputs were used in determining fair value. | | | | | | | | | | | | | | | | Impairment | | | | | | | Carrying Value | | | Charges | | | Fair Value | | | | (in thousands) | Other current assets(1) | | $ | 3,284 | | $ | (3,284) | | $ | — | Service, office and other equipment(1) | | | 48,402 | | | (45,722) | | | 2,680 | Software(1) | | | 666 | | | (666) | | | — | Operating right-of-use assets(2) | | | 14,371 | | | (8,363) | | | 6,008 | Intangible assets – indefinite-lived(3) | | | 25,660 | | | (25,660) | | | — | Intangible assets – finite-lived(1) | | | 1,091 | | | (1,091) | | | — | Leasehold improvements(2) | | | 824 | | | (480) | | | 344 | | | $ | 94,298 | | $ | (85,266) | | $ | 9,032 |
| (1) | Represents an impairment charge totaling $50.8 million to write off certain equipment and other assets associated with the Vaux Freight Movement System, as discussed in Note A. |
| (2) | Represents impairment charges of $8.8 million associated with the probable sublease of a portion of leased office space. The fair value of these assets was estimated at June 30, 2026, using a discounted cash flow method utilizing a 9.0% discount rate and certain unobservable inputs, including estimated cash flows based on projected sublease income and the anticipated future sublease term, as determined using third-party real estate broker quotes. These fair value measurements were classified within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs. See Note E for additional discussion related to this impairment. |
| (3) | Represents the $25.7 million in impairment charges related to the write-off of the indefinite-lived Panther trade name carrying value following the Company’s brand consolidation decision, as discussed further in Note C. |
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