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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________________________________________________________________________________________________________
FORM 10-Q
_________________________________________________________________________________________________________________________________________________________
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 001-35007
_________________________________________________________________________________________________________________________________________________________
knx-20220930_g1.jpg
___________________________________________________________________________________________________________________________________
 Knight-Swift Transportation Holdings Inc.
(Exact name of registrant as specified in its charter)
___________________________________________________________________________________________________________________
Delaware 20-5589597
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
2002 West Wahalla Lane
Phoenix, Arizona 85027
(Address of principal executive offices and zip code)
(602269-2000
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock $0.01 Par ValueKNXNew York Stock Exchange
_________________________________________________________________________________________________________________________________________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer  Accelerated Filer
Non-accelerated Filer  Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No   
There were approximately 160,696,000 shares of the registrant's common stock outstanding as of October 26, 2022.


KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.

QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
PART I FINANCIAL INFORMATIONPAGE
PART II OTHER INFORMATION
2

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
GLOSSARY OF TERMS
The following glossary defines certain acronyms and terms used in this Quarterly Report on Form 10-Q. These acronyms and terms are specific to our company, commonly used in our industry, or are otherwise frequently used throughout our document.
TermDefinition
Knight-Swift/the Company/Management/We/Us/Our
Unless otherwise indicated or the context otherwise requires, these terms represent Knight-Swift Transportation Holdings Inc. and its subsidiaries.
2017 MergerThe September 8, 2017 merger of Knight Transportation, Inc. and its subsidiaries and Swift Transportation Company and its subsidiaries, pursuant to which we became Knight-Swift Transportation Holdings Inc.
2017 Debt AgreementThe Company's unsecured credit agreement, entered into on September 29, 2017, as amended on October 2, 2020
2021 Debt AgreementThe Company's unsecured credit agreement, entered into on September 3, 2021, consisting of the 2021 Revolver and 2021 Term Loans, which are defined below
2021 Prudential NotesThird amended and restated note purchase and private shelf agreement, entered into on September 3, 2021 by ACT with unrelated financial entities
2021 RevolverRevolving line of credit under the 2021 Debt Agreement
2021 Term LoansThe Company's term loans under the 2021 Debt Agreement, collectively consisting of the 2021 Term Loan A-1, 2021 Term Loan A-2 and 2021 Term Loan A-3
2021 Term Loan A-1The Company's term loan under the 2021 Debt Agreement, maturing on December 3, 2022
2021 Term Loan A-2The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2024
2021 Term Loan A-3The Company's term loan under the 2021 Debt Agreement, maturing on September 3, 2026
2021 RSAFifth Amendment to the Amended and Restated Receivables Sales Agreement, entered into on April 23, 2021 by Swift Receivables Company II, LLC with unrelated financial entities.
July 2021 Term LoanThe Company's term loan entered into on July 6, 2021
ACT
AAA Cooper Transportation, and its affiliated entity
ACT AcquisitionThe Company's acquisition of 100% of the securities of ACT on July 5, 2021
Annual ReportAnnual Report on Form 10-K
ASCAccounting Standards Codification
ASUAccounting Standards Update
BoardKnight-Swift's Board of Directors
BSBYBloomberg Short-Term Bank Yield Index
DOEUnited States Department of Energy
EPSEarnings Per Share
EmbarkEmbark Technology Inc. and its related entities
ESPPKnight-Swift Transportation Holdings Inc. Amended and Restated 2012 Employee Stock Purchase Plan
GAAPUnited States Generally Accepted Accounting Principles
LIBORLondon InterBank Offered Rate
NYSENew York Stock Exchange
LTLLess-than-truckload
MMERAC MME Holdings, LLC. and its subsidiaries, MME, Inc., Midwest Motor Express, Inc., and Midnite Express Inc.
Quarterly ReportQuarterly Report on Form 10-Q
RSURestricted Stock Unit
SECUnited States Securities and Exchange Commission
SOFRSecured overnight financing rate as administered by the Federal Reserve Bank of New York
USThe United States of America
UTXL
UTXL Enterprises, Inc.
3

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
PART I FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets (Unaudited)
September 30, 2022December 31, 2021
(In thousands, except per share data)
ASSETS
Current assets:
Cash and cash equivalents$194,082 $261,001 
Cash and cash equivalents – restricted144,960 87,241 
Restricted investments, held-to-maturity, amortized cost7,827 5,866 
Trade receivables, net of allowance for doubtful accounts of $22,210 and $21,663, respectively
944,060 911,336 
Contract balance – revenue in transit19,605 22,936 
Prepaid expenses93,292 90,507 
Assets held for sale16,318 8,166 
Income tax receivable15,100 909 
Other current assets39,103 26,318 
Total current assets1,474,347 1,414,280 
Gross property and equipment5,543,221 5,118,897 
Less: accumulated depreciation and amortization(1,867,896)(1,563,533)
Property and equipment, net3,675,325 3,555,364 
Operating lease right-of-use-assets160,920 147,540 
Goodwill3,518,589 3,515,135 
Intangible assets, net1,782,452 1,831,049 
Other long-term assets135,734 192,132 
Total assets$10,747,367 $10,655,500 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$229,555 $224,844 
Accrued payroll and purchased transportation200,871 217,084 
Accrued liabilities98,513 128,536 
Claims accruals – current portion271,111 206,607 
Finance lease liabilities and long-term debt – current portion76,684 262,423 
Operating lease liabilities – current portion35,618 35,322 
Total current liabilities912,352 1,074,816 
Revolving line of credit146,000 260,000 
Long-term debt – less current portion1,028,014 1,037,552 
Finance lease liabilities – less current portion348,594 256,166 
Operating lease liabilities – less current portion121,028 107,614 
Accounts receivable securitization278,649 278,483 
Claims accruals – less current portion208,055 210,714 
Deferred tax liabilities878,167 874,877 
Other long-term liabilities9,895 11,828 
Total liabilities3,930,754 4,112,050 
Commitments and contingencies (Notes 3, 7, 8, and 9)
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 10,000 shares authorized; none issued
  
Common stock, par value $0.01 per share; 500,000 shares authorized; 160,670 and 165,980 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.
1,607 1,660 
Accumulated other comprehensive loss(2,554)(563)
Additional paid-in capital4,382,895 4,350,913 
Retained earnings2,424,469 2,181,142 
Total Knight-Swift stockholders' equity6,806,417 6,533,152 
Noncontrolling interest10,196 10,298 
Total stockholders’ equity6,816,613 6,543,450 
Total liabilities and stockholders’ equity$10,747,367 $10,655,500 
See accompanying notes to condensed consolidated financial statements (unaudited).
4

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
 Quarter-to-Date September 30,Year-to-Date September 30,
 2022202120222021
(In thousands, except per share data)
Revenue:
Revenue, excluding truckload and LTL fuel surcharge$1,649,982 $1,510,572 $4,992,391 $3,856,549 
Truckload and LTL fuel surcharge246,857 131,873 692,568 324,611 
Total revenue1,896,839 1,642,445 5,684,959 4,181,160 
Operating expenses:
Salaries, wages, and benefits559,849 500,673 1,645,861 1,248,656 
Fuel231,128 146,422 678,763 390,713 
Operations and maintenance115,918 86,951 318,525 226,334 
Insurance and claims116,493 73,757 316,769 188,176 
Operating taxes and licenses26,628 27,475 85,869 71,240 
Communications5,095 6,612 16,709 16,284 
Depreciation and amortization of property and equipment150,363 138,570 442,889 382,091 
Amortization of intangibles16,254 15,719 48,635 39,452 
Rental expense15,216 12,002 42,109 42,265 
Purchased transportation364,394 352,061 1,135,750 914,448 
Impairments  810  
Miscellaneous operating expenses30,060 12,116 62,965 38,040 
Total operating expenses1,631,398 1,372,358 4,795,654 3,557,699 
Operating income265,441 270,087 889,305 623,461 
Other (expenses) income:
Interest income1,221 245 2,357 809 
Interest expense(14,679)(7,179)(30,704)(13,972)
Other income (expenses), net8,488 4,072 (31,493)37,017 
Total other (expenses) income, net(4,970)(2,862)(59,840)23,854 
Income before income taxes260,471 267,225 829,465 647,315 
Income tax expense65,679 61,059 206,943 158,171 
Net income194,792 206,166 622,522 489,144 
Net loss (income) attributable to noncontrolling interest3 12 102 (372)
Net income attributable to Knight-Swift194,795 206,178 622,624 488,772 
Other comprehensive income (loss)243 (878)(1,991)(878)
Comprehensive income$195,038 $205,300 $620,633 $487,894 
Earnings per share:
Basic$1.21 $1.24 $3.82 $2.95 
Diluted$1.21 $1.23 $3.80 $2.93 
Dividends declared per share:$0.12 $0.10 $0.36 $0.28 
Weighted average shares outstanding:
Basic160,665 165,966 162,785 165,823 
Diluted161,572 167,106 163,720 166,936 
See accompanying notes to the condensed consolidated financial statements (unaudited).
5

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
 Year-to-Date September 30,
 20222021
(In thousands)
Cash flows from operating activities:
Net income$622,522 $489,144 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment, and intangibles491,524 421,543 
Gain on sale of property and equipment(73,373)(47,700)
Impairments810  
Deferred income taxes1,126 40,987 
Non-cash lease expense30,973 35,939 
Loss (gain) on equity securities51,033 (12,839)
Non-cash adjustment to fair value of convertible note (12,631)
Other adjustments to reconcile net income to net cash provided by operating activities32,545 30,211 
Increase (decrease) in cash resulting from changes in:
Trade receivables(44,043)(152,482)
Income tax receivable(14,191)(43,462)
Accounts payable14,259 34,255 
Accrued liabilities and claims accrual19,207 57,157 
Operating lease liabilities(30,755)(37,357)
Other assets and liabilities(2,442)14,759 
Net cash provided by operating activities1,099,195 817,524 
Cash flows from investing activities:
Proceeds from maturities of held-to-maturity investments7,506 8,380 
Purchases of held-to-maturity investments(9,594)(6,683)
Proceeds from sale of property and equipment, including assets held for sale139,545 192,454 
Purchases of property and equipment(496,237)(388,518)
Expenditures on assets held for sale(499)(1,367)
Net cash, restricted cash, and equivalents invested in acquisitions(1,291)(1,342,042)
Investment in convertible note (25,000)
Other cash flows from investing activities1,944 14,019 
Net cash used in investing activities(358,626)(1,548,757)
Cash flows from financing activities:
Repayment of finance leases and long-term debt(250,884)(374,539)
Proceeds from long-term debt 1,200,000 
Repayments on revolving lines of credit, net(114,000)90,000 
Borrowings under accounts receivable securitization 80,000 
Repayment of accounts receivable securitization (15,000)
Proceeds from common stock issued6,111 7,624 
Repurchases of the Company's common stock(299,941)(53,661)
Dividends paid(59,011)(46,935)
Other cash flows from financing activities(31,104)(14,180)
Net cash (used in) provided by financing activities(748,829)873,309 
Net (decrease) increase in cash, restricted cash, and equivalents(8,260)142,076 
Cash, restricted cash, and equivalents at beginning of period350,023 197,277 
Cash, restricted cash, and equivalents at end of period$341,763 $339,353 
See accompanying notes to condensed consolidated financial statements (unaudited).
6

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.


Condensed Consolidated Statements of Cash Flows (Unaudited) — Continued
 Year-to-Date September 30,
 20222021
(In thousands)
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest$29,342 $11,683 
Income taxes234,260 160,281 
Non-cash investing and financing activities:
Equipment acquired included in accounts payable$4,264 $9,278 
Transfers from property and equipment to assets held for sale45,618 80,881 
Noncontrolling interest associated with acquisition 10,281 
Purchase price adjustment on acquisition2,164  
Contingent consideration associated with acquisitions and investments1,717 5,000 
Value of common stock issued for acquisition 10,000 
Right-of-use assets obtained in exchange for operating lease liabilities44,465 20,261 
Right-of-use assets obtained in exchange for operating lease liabilities through acquisitions 4,613 
Property and equipment obtained in exchange for finance lease liabilities141,374 114,803 
Property and equipment obtained in exchange for finance lease liabilities reclassified from operating lease liabilities6,462 42,298 

Reconciliation of Cash, Restricted Cash, and Equivalents:September 30,
2022
December 31,
2021
September 30,
2021
December 31,
2020
(In thousands)
Consolidated Balance Sheets
Cash and cash equivalents$194,082 $261,001 $269,694 $156,699 
Cash and cash equivalents – restricted 1
144,960 87,241 68,019 39,328 
Other long-term assets 1
2,721 1,781 1,640 1,250 
Consolidated Statements of Cash Flows
Cash, restricted cash, and equivalents$341,763 $350,023 $339,353 $197,277 
________
1    Reflects cash and cash equivalents that are primarily restricted for claims payments.
See accompanying notes to condensed consolidated financial statements (unaudited).
7

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
 Common StockAdditional
Paid-in Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
Total Knight-Swift Stockholders' EquityNoncontrolling
 Interest
Total
Stockholders’ Equity
 SharesPar Value
(In thousands, except per share data)
Balances – December 31, 2021165,980 $1,660 $4,350,913 $2,181,142 $(563)$6,533,152 $10,298 $6,543,450 
Common stock issued to employees614 6 2,369 2,375 2,375 
Common stock issued to the Board18  873 873 873 
Common stock issued under ESPP59 1 2,862 2,863 2,863 
Company shares repurchased(6,001)(60)(299,881)(299,941)(299,941)
Shares withheld – RSU settlement(20,504)(20,504)(20,504)
Employee stock-based compensation expense25,878 25,878 25,878 
Cash dividends paid and dividends accrued ($0.36 per share)
(58,912)(58,912)(58,912)
Net income attributable to Knight-Swift622,624 622,624 622,624 
Other comprehensive loss(1,991)(1,991)(1,991)
Net income attributable to noncontrolling interest(102)(102)
Balances – September 30, 2022160,670 $1,607 $4,382,895 $2,424,469 $(2,554)$6,806,417 $10,196 $6,816,613 
 Common StockAdditional
Paid-in Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
Total Knight-Swift Stockholders' EquityNoncontrolling InterestTotal
Stockholders’ Equity
 SharesPar Value
(In thousands, except per share data)
Balances – December 31, 2020166,553 $1,665 $4,301,424 $1,566,759 $ $5,869,848 $2,192 $5,872,040 
Common stock issued to employees475 6 5,020 5,026 5,026 
Common stock issued to the Board12  575 575 575 
Common stock issued with ACT acquisition219 2 9,998 10,000 10,000 
Common stock issued under ESPP47  2,023 2,023 2,023 
Company shares repurchased(1,303)(13)(53,648)(53,661)(53,661)
Shares withheld – RSU settlement(8,079)(8,079)(8,079)
Employee stock-based compensation expense25,854 25,854 25,854 
Cash dividends paid and dividends accrued ($0.28 per share)
(46,820)(46,820)(46,820)
Net income attributable to Knight-Swift488,772 488,772 488,772 
Other comprehensive income(878)(878)(878)
Investment in noncontrolling interest10,281 10,281 
Distribution to noncontrolling interest(65)(65)
Net income attributable to noncontrolling interest372 372 
Balances – September 30, 2021166,003 $1,660 $4,344,894 $1,946,984 $(878)$6,292,660 $12,780 $6,305,440 
See accompanying notes to condensed consolidated financial statements (unaudited).
8

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) — Continued
Common StockAdditional
Paid-in Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
Total Knight-Swift Stockholders' EquityNoncontrolling
 Interest
Total
Stockholders’ Equity
SharesPar Value
(In thousands, except per share data)
Balances – June 30, 2022160,639 $1,606 $4,372,916 $2,249,333 $(2,797)$6,621,058 $10,199 $6,631,257 
Common stock issued to employees7     
Common stock issued under ESPP24 1 1,053 1,054 1,054 
Shares withheld – RSU settlement(188)(188)(188)
Employee stock-based compensation expense8,926 8,926 8,926 
Cash dividends paid and dividends accrued ($0.12 per share)
(19,471)(19,471)(19,471)
Net income attributable to Knight-Swift194,795 194,795 194,795 
Other comprehensive loss243 243 243 
Net income attributable to noncontrolling interest(3)(3)
Balances – September 30, 2022160,670 $1,607 $4,382,895 $2,424,469 $(2,554)$6,806,417 $10,196 $6,816,613 
Common StockAdditional
Paid-in Capital
Retained EarningsAccumulated
Other
Comprehensive Loss
Total Knight-Swift Stockholders' EquityNoncontrolling InterestTotal
Stockholders’ Equity
SharesPar Value
(In thousands, except per share data)