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Washington, D.C. 20549
 FORM 10-Q
For the quarterly period ended March 31, 2022
For the transition period from                      to                     
Commission File Number: 001-38054 
Schneider National, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Wisconsin 39-1258315
(State of Incorporation) (IRS Employer Identification No.)
3101 South Packerland Drive
Green BayWisconsin54313
(Address of Registrant’s Principal Executive Offices and Zip Code)
(920) 592-2000
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Class B common stock, no par valueSNDRNew 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   
As of April 22, 2022, the registrant had 83,029,500 shares of Class A common stock, no par value, outstanding and 94,892,655 shares of Class B common stock, no par value, outstanding.

For the Quarter Ended March 31, 2022
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13


3PLProvider of outsourced logistics services. In logistics and supply chain management, it means a company’s use of third-party businesses, the 3PL(s), to outsource elements of the company’s distribution, fulfillment, and supply chain management services.
ASCAccounting Standards Codification
ASUAccounting Standards Update
ChemDirectFortem Invenio, Inc.
CODMChief Operating Decision Maker
COVID-19Coronavirus disease 2019, including its variants
FASBFinancial Accounting Standards Board
GAAPUnited States Generally Accepted Accounting Principles
IPOInitial Public Offering
KPIKey Performance Indicator
LIBORLondon InterBank Offered Rate
MLSMidwest Logistics Systems, Ltd. and affiliated entities holding assets comprising substantially all of its business.
MLSIMastery Logistics Systems, Inc.
NASDAQNational Association of Securities Dealers Automated Quotations
PSIPlatform Science, Inc.
SECUnited States Securities and Exchange Commission
TuSimpleTuSimple Holdings, Inc. (formerly TuSimple (Cayman) Limited)
U.S.United States
WSLWatkins and Shepard Trucking, Inc. and Lodeso, Inc. These businesses were acquired simultaneously in June 2016.


This report contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current expectations, beliefs, plans, or forecasts with respect to, among other things, future events and financial performance and trends in the business and industry. The words “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “prospects,” “potential,” “budget,” “forecast,” “continue,” “predict,” “seek,” “objective,” “goal,” “guidance,” “outlook,” “effort,” “target,” and similar words, expressions, terms, and phrases among others, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties. Readers are cautioned that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement.

The risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: our ability to successfully manage the demand, supply, and operational challenges and disruptions (including the impact of reduced freight volumes) associated with the COVID-19 pandemic and the associated responses of federal, state, and local governments and businesses; economic and business risks inherent in the truckload and transportation industry, including inflation and competitive pressures pertaining to pricing, capacity, and service; our ability to effectively manage tight truck capacity brought about by driver shortages and successfully execute our yield management strategies; our ability to maintain key customer and supply arrangements (including dedicated arrangements) and to manage disruption of our business due to factors outside of our control, such as natural disasters, acts of war or terrorism, disease outbreaks, or pandemics; volatility in the market valuation of our investments in strategic partners and technologies; our ability to manage and effectively implement our growth and diversification strategies and cost saving initiatives; our dependence on our reputation and the Schneider brand and the potential for adverse publicity, damage to our reputation, and the loss of brand equity; risks related to demand for our service offerings; risks associated with the loss of a significant customer or customers; capital investments that fail to match customer demand or for which we cannot obtain adequate funding; fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase agreements, our ability to recover fuel costs through our fuel surcharge programs, and potential changes in customer preferences (e.g. truckload vs. intermodal services) driven by diesel fuel prices; our ability to attract and retain qualified drivers and owner-operators; our reliance on owner-operators to provide a portion of our truck fleet; our dependence on railroads in the operation of our intermodal business; our ability to successfully transition from Burlington Northern Santa Fe Railway Company to Union Pacific Railroad Company as our primary intermodal rail service provider by January 2023; potential port congestion or interruptions that may result from contract negotiations between the International Longshore and Warehouse Union and west coast port owners; potential volatility in the value of our investments in strategic partners, especially as it relates to our investment in TuSimple; service instability and/or increased costs from third-party capacity providers used by our business; changes in the outsourcing practices of our third-party logistics customers; difficulty in obtaining material, equipment, goods, and services from our vendors and suppliers; variability in insurance and claims expenses and the risks of insuring claims through our captive insurance company; the impact of laws and regulations that apply to our business, including those that relate to the environment, taxes, associates, owner-operators, and our captive insurance company; changes to those laws and regulations; and the increased costs of compliance with existing or future federal, state, and local regulations; political, economic, and other risks from cross-border operations and operations in multiple countries; risks associated with financial, credit, and equity markets, including our ability to service indebtedness and fund capital expenditures and strategic initiatives; negative seasonal patterns generally experienced in the trucking industry during traditionally slower shipping periods and winter months; risks associated with severe weather and similar events; significant systems disruptions, including those caused by cybersecurity events and firmware defects; exposure to claims and lawsuits in the ordinary course of business; our ability to adapt to new technologies and new participants in the truckload and transportation industry; and those risks and uncertainties discussed in (1) our most recently filed Annual Report on Form 10-K in (a) Part I, Item 1A. “Risk Factors,” (b) Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (c) Part II, Item 8. “Financial Statements and Supplementary Data: Note 14, Commitments and Contingencies,” (2) this Quarterly Report on Form 10-Q in (a) Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (b) Part I, Item 1. “Financial Statements: Note 12, Commitments and Contingencies,” and (3) other factors discussed in filings with the SEC by the Company.

The Company undertakes no obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.


The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information that the Company files electronically with the SEC. These documents are also available to the public from commercial document retrieval services and at the “Investors” section of our website at www.schneider.com. Information disclosed or available on our website shall not be deemed incorporated into, or to be a part of, this Report.

(in millions, except per share data)
 Three Months Ended
March 31,
Operating revenues$1,620.5 $1,228.6 
Operating expenses:
Purchased transportation740.1 558.5 
Salaries, wages, and benefits337.5 267.1 
Fuel and fuel taxes110.2 63.8 
Depreciation and amortization83.8 73.1 
Operating supplies and expenses—net89.5 136.1 
Insurance and related expenses26.4 24.4 
Other general expenses97.9 29.4 
Total operating expenses1,485.4 1,152.4 
Income from operations135.1 76.2 
Other expenses (income):
Interest income(0.4)(0.8)
Interest expense2.8 3.4 
Other expense—net9.2 0.8 
Total other expenses—net 11.6 3.4 
Income before income taxes123.5 72.8 
Provision for income taxes31.4 18.0 
Net income92.1 54.8 
Other comprehensive income (loss):
Foreign currency translation adjustment—net0.1 (0.1)
Net unrealized losses on marketable securities—net of tax(1.6)(0.6)
Total other comprehensive loss—net(1.5)(0.7)
Comprehensive income$90.6 $54.1 
Weighted average shares outstanding177.7 177.4 
Basic earnings per share$0.52 $0.31 
Weighted average diluted shares outstanding178.5 177.8 
Diluted earnings per share$0.52 $0.31 
See notes to consolidated financial statements (unaudited).

(in millions, except share data)
March 31,December 31,
Current Assets:
Cash and cash equivalents$272.6 $244.8 
Marketable securities48.5 49.3 
Trade accounts receivable—net of allowance of $6.6 million and $5.2 million, respectively
754.4 705.4 
Other receivables59.2 35.9 
Current portion of lease receivables—net of allowance of $1.2 million and $1.1 million, respectively
111.9 110.6 
Inventories31.3 27.4 
Prepaid expenses and other current assets119.4 75.1 
Total current assets1,397.3 1,248.5 
Noncurrent Assets:
Property and equipment:
Transportation equipment3,119.0 3,056.2 
Land, buildings, and improvements208.1 215.7 
Other property and equipment176.9 175.1 
Total property and equipment3,504.0 3,447.0 
Less accumulated depreciation1,455.9 1,396.0 
Net property and equipment2,048.1 2,051.0 
Lease receivables161.0 160.1 
Internal use software and other noncurrent assets235.2 237.2 
Goodwill245.0 240.5 
Total noncurrent assets2,689.3 2,688.8 
Total Assets$4,086.6 $3,937.3 
Liabilities and Shareholders’ Equity
Current Liabilities:
Trade accounts payable$400.2 $331.7 
Accrued salaries, wages, and benefits67.4 104.5 
Claims accruals—current85.9 83.9 
Current maturities of debt and finance lease obligations1.8 61.4 
Other current liabilities170.6 108.7 
Total current liabilities725.9 690.2 
Noncurrent Liabilities:
Long-term debt and finance lease obligations209.9 208.9 
Claims accruals—noncurrent94.6 88.5 
Deferred income taxes480.2 451.0 
Other noncurrent liabilities71.1 74.9 
Total noncurrent liabilities855.8 823.3 
Total Liabilities1,581.7 1,513.5 
Commitments and Contingencies (Note 12)
Shareholders’ Equity:
Preferred shares, no par value, 50,000,000 shares authorized, no shares issued or outstanding
Class A common shares, no par value, 250,000,000 shares authorized, 83,029,500 shares issued and outstanding
Class B common shares, no par value, 750,000,000 shares authorized, 95,641,086 and 95,701,868 shares issued, and 94,890,562 and 94,626,740 shares outstanding, respectively
Additional paid-in capital1,571.4 1,566.0 
Retained earnings935.0 857.8 
Accumulated other comprehensive loss(1.5) 
Total Shareholders’ Equity
2,504.9 2,423.8 
Total Liabilities and Shareholders’ Equity
$4,086.6 $3,937.3 
See notes to consolidated financial statements (unaudited).

(in millions)
Three Months Ended March 31,
Operating Activities:
Net income$92.1 $54.8 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization83.8 73.1 
Gains on sales of property and equipment—net(60.9)(1.9)
Proceeds from lease receipts20.5 17.1 
Deferred income taxes29.7 7.7 
Long-term incentive and share-based compensation expense5.8 5.2 
Losses on investments in equity securities—net8.4  
Other noncash items(6.4)1.4 
Changes in operating assets and liabilities:
Other assets(52.6)(51.8)
Payables56.1 28.7 
Claims reserves and other receivables—net9.1  
Other liabilities27.8 (10.4)
Net cash provided by operating activities135.6 101.1 
Investing Activities:
Purchases of transportation equipment(60.3)(19.0)
Purchases of other property and equipment(14.4)(9.8)
Proceeds from sale of property and equipment64.8 32.2 
Proceeds from sale of off-lease inventory5.1 4.4 
Purchases of lease equipment(21.0)(11.3)
Proceeds from marketable securities2.2 6.1 
Purchases of marketable securities(3.6)(9.5)
Investments in equity securities(4.0)(5.0)
Acquisition of business(3.2) 
Net cash used in investing activities(34.4)(11.9)
Financing Activities:
Payments of debt and finance lease obligations(60.4)(0.2)
Dividends paid(12.9)(12.3)
Other financing activities(0.1) 
Net cash used in financing activities(73.4)(12.5)
Net increase in cash and cash equivalents27.8 76.7 
Cash and Cash Equivalents:
Beginning of period244.8 395.5 
End of period$272.6 $472.2 
Additional Cash Flow Information:
Noncash investing and financing activity:
Transportation and lease equipment purchases in accounts payable$25.2 $22.0 
Dividends declared but not yet paid16.0 13.8 
Cash paid during the period for:
Interest4.2 4.2 
Income taxes—net of refunds16.7 1.1 
See notes to consolidated financial statements (unaudited).

(in millions, except per share data)
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTotal
Balance—December 31, 2020$ $1,552.2 $502.5 $0.8 $2,055.5 
Net income  54.8  54.8 
Other comprehensive loss   (0.7)(0.7)
Share-based compensation expense 4.5   4.5 
Dividends declared at $0.07 per share of Class A and Class B common shares  (12.6) (12.6)
Share issuances 0.1   0.1 
Exercise of employee stock options 0.7   0.7 
Shares withheld for employee taxes (2.4)  (2.4)
Balance—March 31, 2021$ $1,555.1 $544.7 $0.1 $2,099.9 
Balance—December 31, 2021$ $1,566.0 $857.8 $ $2,423.8 
Net income  92.1  92.1 
Other comprehensive loss   (1.5)(1.5)
Share-based compensation expense 5.4   5.4 
Dividends declared at $0.08 per share of Class A and Class B common shares  (14.9) (14.9)
Share issuances 0.1   0.1 
Exercise of employee stock options 2.3   2.3 
Shares withheld for employee taxes (2.4)  (2.4)
Balance—March 31, 2022$ $1,571.4 $935.0 $(1.5)$2,504.9 
See notes to consolidated financial statements (unaudited).




Nature of Operations

Schneider National, Inc. and its subsidiaries (together “Schneider,” the “Company,” “we,” “us,” or “our”) are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and possess an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the movement of customer products timely, safely, and effectively. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico, thus adding value to their supply chains.

Principles of Consolidation and Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation.

In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented.

Property and Equipment

Gains and losses on property and equipment are recognized at the time of sale or disposition and are classified in operating supplies and expenses—net in the consolidated statements of comprehensive income. For the three months ended March 31, 2022 and 2021, we recognized $60.9 million and $1.9 million of net gains on the sale of property and equipment, respectively. Net gains in 2022 were primarily related to the sale of the Company’s Canadian facility.

Accounting Standards Recently Adopted

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This standard requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy (for example, International Financial Reporting Standards guidance in International Accounting Standards 20 or guidance on contributions for not-for-profit entities in ASC 958-605), including information about the nature and significant terms and conditions of the transaction, as well as the amounts and specific financial statement line items affected by the transaction. ASU 2021-10 is effective for us beginning with our December 31, 2022 financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements or disclosures.


We entered into a Securities Purchase Agreement, dated December 31, 2021 (“Acquisition Date”), to acquire 100% of the outstanding equity of MLS, a dedicated trucking company based in Celina, OH, and certain affiliated entities holding assets comprising substantially all of MLS’s business (the “Acquisition”). MLS is a premier dedicated carrier in the central U.S. that we believe complements our growing dedicated operations.

The aggregate purchase price of the Acquisition was approximately $274.5 million inclusive of certain cash and net working capital adjustments and a deferred payment of $3.2 million made in January 2022. Proceeds from the total purchase consideration were used to settle $26.9 million of MLS’s outstanding debt as of the Acquisition Date. The purchase price is subject to certain customary purchase price adjustments.

The acquisition of MLS was accounted for under the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized on the consolidated balance sheets at their fair values as of the Acquisition Date. These inputs represent Level 3 measurements in the fair value hierarchy and required significant judgments and estimates at the time of

valuation. Fair value estimates of acquired property and equipment were based on an independent appraisal, giving consideration to the highest and best use of the assets. Key assumptions used in the transportation equipment appraisals were based on the market approach, while key assumptions used in the land, buildings and improvements, and other property and equipment appraisals were based on a combination of the income (direct capitalization) and sales comparison approaches, as appropriate.

The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill within the Truckload reporting segment. The goodwill is attributable to expected synergies and growth opportunities within our dedicated business and is expected to be deductible for tax purposes.

Acquisition-related costs, which consisted of fees incurred for advisory, legal, and accounting services, were $1.9 million and were included in other general expenses in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2021.

The following table summarizes the preliminary purchase price allocation for MLS, including any adjustments during the measurement period:
Recognized amounts of identifiable assets acquired and liabilities assumed (in millions)
December 31, 2021
Opening Balance Sheet
AdjustmentsAdjusted December 31, 2021 Opening Balance Sheet
Trade accounts receivable—net of allowance$18.6 $(5.9)$12.7 
Other receivables0.9 1.4 2.3 
Prepaid expenses and other current assets1.6  1.6 
Net property and equipment148.9 (2.3)146.6 
Internal use software and other noncurrent assets 1.7 1.7 
Goodwill122.7 4.5 127.2 
Total assets acquired292.7 (0.6)292.1 
Trade accounts payable1.8 1.8 3.6 
Accrued salaries, wages, and benefits1.7 1.0 2.7 
Claims accruals—current7.5  7.5 
Other current liabilities7.2 (3.7)3.5 
Other noncurrent liabilities 0.3 0.3 
Total liabilities assumed18.2 (0.6)17.6 
Net assets acquired$274.5 $ $274.5 

The above adjustments made during the period were primarily related to working capital, property and equipment, and leases. No material statement of comprehensive income effects were identified with these adjustments.

During the measurement period, which is up to one year from the Acquisition Date, we may continue to adjust provisional amounts that were recognized at the Acquisition Date to reflect new information about facts and circumstances that existed as of the Acquisition Date. Amounts that are still considered provisional include working capital and intangibles. We anticipate finalizing the determination of fair value by December 31, 2022.
Combined unaudited pro forma operating revenues of the Company and MLS would have been approximately $1,280.0 million during the three months ended March 31, 2021, and our earnings for that period would not have been materially different.



As Lessee

We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:
Three Months Ended
March 31,
(in millions)20222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$8.3 $7.8 
Financing cash flows for finance leases0.3 0.2 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$4.3 $14.6 
Finance leases1.8 1.2 

As of March 31, 2022, we had signed leases that had not yet commenced totaling $3.5 million. These leases will commence during the remainder of 2022 and have lease terms of one to seven years.

As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of March 31, 2022 and December 31, 2021, investments in lease receivables were as follows:
(in millions)March 31, 2022December 31, 2021
Future minimum payments to be received on leases$194.2 $193.9 
Guaranteed residual lease values125.4 123.3 
Total minimum lease payments to be received319.6 317.2 
Unearned income(46.7)(46.5)
Net investment in leases$272.9 $270.7 

Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of March 31, 2022 was $31.8 million, which includes both current and future lease payments.

Lease payments are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of March 31, 2022, our lease payments past due were $3.1 million.


The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
Three Months Ended
March 31,
(in millions)20222021
Revenue$42.3 $58.8 
Cost of goods sold(36.0)(50.4)
Operating profit$6.3 $8.4 
Interest income on lease receivable$8.7 $7.3 


Disaggregated Revenues

The majority of our revenues are related to transportation and have similar characteristics. Beginning in 2022, MLS revenues are included within Transportation revenues, consistent with the remainder of our Truckload segment. The following table summarizes our revenues by type of service.
Three Months Ended
March 31,
Disaggregated Revenues (in millions)
Transportation$1,499.2 $1,118.6 
Logistics Management75.7 46.5 
Other45.6 63.5 
Total operating revenues$1,620.5 $1,228.6 

Quantitative Disclosure

The following table provides information related to transactions and expected timing of revenue recognition for performance obligations that are fixed in nature and relate to contracts with terms greater than one year as of the date shown.
Remaining Performance Obligations (in millions)
March 31, 2022
Expected to be recognized within one year
Logistics Management11.9 
Expected to be recognized after one year
Logistics Management4.8 

This disclosure does not include revenue related to performance obligations that are part of a contract with an original expected duration of one year or less, nor does it include expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice (e.g., usage-based pricing terms).

The following table provides information related to contract balances associated with our contracts with customers as of the dates shown.
Contract Balances (in millions)
March 31, 2022December 31, 2021
Other current assets—Contract assets$44.5 $33.8 
Other current liabilities—Contract liabilities3.1 3.2 


We generally receive payment within 40 days of completion of performance obligations. Contract assets in the table above relate to revenue in transit at the end of the reporting period. Contract liabilities relate to amounts that customers paid in advance of the associated services.


Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows:

Level 1—Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date.

Level 2—Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities.

Level 3—Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820.
Fair Value
(in millions)Level in Fair
 Value Hierarchy
March 31, 2022December 31, 2021
Equity investment in TuSimple (1)
1$4.3 $12.7 
Marketable securities (2)
248.5 49.3 
(1)Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on the NASDAQ. See Note 6, Investments, for additional information.
(2)Marketable securities are classified as Level 2 in the fair value hierarchy as they are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active. See Note 6, Investments, for additional information.

The fair value of the Company’s debt was $206.2 million and $276.7 million as of March 31, 2022 and December 31, 2021, respectively. The carrying value of the Company’s debt was $205.0 million and $265.0 million as of March 31, 2022 and December 31, 2021, respectively. The fair value of our debt was calculated using a fixed rate debt portfolio with similar terms and maturities, which is based on the borrowing rates available to us in the applicable year. This valuation used Level 2 inputs.

The recorded values of cash, trade accounts receivable, lease receivables, and trade accounts payable approximate fair values.

As part of the acquisition of MLS on December 31, 2021, certain assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. Refer to Note 2, Acquisition, for further details.


Marketable Securities

Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or our liquidity needs may cause us to sell certain securities in advance of their maturity date.

Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. We did not have an allowance for credit losses on our marketable securities as of March 31, 2022 or December 31, 2021. Cost basis is determined using the specific identification method.

The following table presents the maturities and values of our marketable securities as of the dates shown.
 March 31, 2022December 31, 2021
(in millions, except maturities in months)MaturitiesAmortized CostFair ValueAmortized CostFair Value
U.S. treasury and government agencies20 to 107$19.9 $18.6 $19.9 $19.6 
Corporate debt securities1 to 6619.1 18.5 20.3 20.4 
State and municipal bonds10 to 12011.6 11.4 9.1 9.3 
Total marketable securities$50.6 $48.5 $49.3 $49.3 

Equity Investments without Readily Determinable Fair Values

The Company’s strategic equity investments without readily determinable fair values include PSI, a provider of telematics and fleet management tools, MLSI, a transportation technology development company, and ChemDirect, a business to business digital marketplace for the chemical industry. These investments are being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative, and their combined values as of March 31, 2022 and December 31, 2021 were $40.2 million and $36.2 million, respectively. If the Company identifies observable price changes for identical or similar securities of the same issuer, the equity security is measured at fair value as of the date the observable transaction occurred using Level 3 inputs.

As of March 31, 2022, our cumulative upward adjustments were $26.2 million. The following table summarizes the activity related to these equity investments during the periods presented.
Three Months Ended
March 31,
(in millions)20222021
Investment in equity securities$4.0 $ 

Equity Investments with Readily Determinable Fair Values

In 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a global self-driving technology company. Upon completion of its initial public offering in April 2021, our investment in TuSimple was converted into Class A common shares and is now being accounted for under ASC 321, Investments - Equity Securities. In the three months ended March 31, 2022, the Company recognized a pre-tax loss of $8.4 million on its investment in TuSimple. See Note 5, Fair Value, for additional information on the fair value of our investment in TuSimple.

All of our equity investments are included in other noncurrent assets on the consolidated balance sheets with subsequent gains or losses recognized within other expense—net on the consolidated statements of comprehensive income.


Goodwill represents the excess of the purchase price of acquisitions over the fair value of the identifiable net assets acquired. The following table shows changes to our goodwill balances by segment during the period ended March 31, 2022.
(in millions)TruckloadLogisticsTotal
Balance at December 31, 2021$226.3 $14.2 $240.5 
Acquisition adjustments (see Note 2)4.5  4.5 
Balance at March 31, 2022$230.8 $14.2 $245.0 

At March 31, 2022 and December 31, 2021, we had accumulated goodwill impairment charges of $53.2 million, which consisted of $34.6 million and $18.6 million in our Truckload segment and Other, respectively.

During the period ended March 31, 2022, we made measurement period adjustments related to the December 31, 2021 acquisition of MLS which were recorded within the Truckload segment. Refer to Note 2, Acquisition, for further details.



As of March 31, 2022 and December 31, 2021, debt included the following:
(in millions)March 31, 2022December 31, 2021
Unsecured senior notes: principal maturities ranging from 2023 through 2025; interest payable in semiannual installments through the same timeframe; weighted average interest rate of 3.80% and 3.61% for 2022 and 2021, respectively
$205.0 $265.0 
Current maturities (60.0)
Long-term debt$205.0 $205.0 

Our Credit Agreement (the “2018 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an increase in total commitment up to $150.0 million, for a total potential commitment of $400.0 million through August 2023. The agreement also provides a sublimit of $100.0 million to be used for the issuance of letters of credit. We had no outstanding borrowings under this agreement as of March 31, 2022 or December 31, 2021. Standby letters of credit under this agreement amounted to $3.9 million at March 31, 2022 and December 31, 2021 and were primarily related to the requirements of certain of our real estate leases.

We also have a Receivables Purchase Agreement (the “2021 Receivables Purchase Agreement”), which allows us to borrow funds against qualifying trade receivables at rates based on one-month LIBOR up to $150.0 million and provides for the issuance of standby letters of credit through July 2024. We had no outstanding borrowings under this facility at March 31, 2022 or December 31, 2021. At March 31, 2022 and December 31, 2021, standby letters of credit under this agreement amounted to $73.3 million and $70.3 million, respectively, and were primarily related to the requirements of certain of our insurance obligations.


Our effective income tax rate was 25.4% and 24.7% for the three months ended March 31, 2022 and 2021, respectively. In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, and best estimates of nontaxable and nondeductible income and expense items.


Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2022 and 2021, respectively.
Three Months Ended
March 31,
(in millions, except per share data)20222021
Net income available to common shareholders$92.1 $54.8 
Weighted average common shares outstanding177.7 177.4 
Dilutive effect of share-based awards and options outstanding0.8 0.4 
Weighted average diluted common shares outstanding (1)
178.5 177.8 
Basic earnings per common share$0.52 $0.31 
Diluted earnings per common share0.52 0.31 
(1)Weighted average diluted common shares outstanding may not sum due to rounding.

The calculation of diluted earnings per share excluded 0.6 million share-based awards and options that had an anti-dilutive effect for the three months ended March 31, 2022 and 2021.

Subsequent Event - Dividends Declared

In April of 2022, the Board of Directors declared a quarterly cash dividend for the second fiscal quarter of 2022 in the amount of $0.08 per share to holders of our Class A and Class B common stock. The dividend is payable to shareholders of record at the close of business on June 10, 2022 and will be paid on July 11, 2022.


We grant various equity-based awards relating to Class B common stock to employees under our 2017 Omnibus Incentive Plan (“the Plan”). These awards have historically consisted of restricted shares, restricted stock units (“RSUs”), performance-based restricted shares (“performance shares”), performance-based restricted stock units (“PSUs”), and non-qualified stock options. Performance shares and PSUs granted prior to 2021 are earned based on attainment of threshold performance of earnings and return on capital targets. Beginning with grants in 2021, in addition to achievement of earnings and return on capital targets, a multiplier is applied to performance share and PSU achievement based on relative total shareholder return (“rTSR”) against peers over the performance period.

Share-based compensation expense was $5.1 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively. We recognize share-based compensation expense over the awards’ vesting period. As of March 31, 2022, we had $35.5 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted average period of 2.4 years.

Equity-based awards granted during the first quarter of 2022 had a grant date fair value of $16.5 million and are included in the table below. No restricted or performance shares were granted during the first quarter of 2022.
2022 GrantsNumber of Awards GrantedWeighted Average Grant Date Fair Value
RSUs315,184 $25.91 
PSUs219,713 28.43 
Non-qualified stock options287,841 7.40 
Total grants822,738 

The Black-Scholes valuation model is used by the Company to determine the grant date fair value of non-qualified stock options, while the Monte-Carlo valuation model is used by the Company to determine the grant date fair value of PSUs that include a rTSR component. The Company uses its stock price on the grant date as the fair value assigned to RSUs.


In the ordinary course of conducting our business, we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements.

We record liabilities for claims against the Company based on our best estimate of expected losses. The primary claims arising for the Company through its trucking, intermodal, and logistics operations consist of accident-related claims for personal injury, collision, and comprehensive compensation, in addition to workers’ compensation, property damage, cargo, and wage and benefit claims. We maintain excess liability insurance with licensed insurance carriers for liability in excess of amounts we self-insure, which serves to largely offset the Company’s liability associated with these claims, with the exception of wage and benefit claims for which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although we expect that our claims accruals will continue to vary based on future developments, assuming that we are able to continue to obtain and maintain excess liability insurance coverage for such claims, we do not anticipate that such accruals will, in any period, materially impact our operating results.

At March 31, 2022, our firm commitments to purchase transportation equipment totaled $408.7 million.

In March 2022, the Company recorded a $5.2 million charge as a result of an adverse audit assessment by a state jurisdiction over the applicability of sales tax for prior periods on rolling stock equipment used within that state. The charge is included

within operating supplies and expenses—net on the consolidated statements of comprehensive income for the three months ended March 31, 2022. The Company plans to appeal the audit assessment.

Subsequent Event

As previously disclosed, a representative of the former owners of WSL filed a lawsuit in the Delaware Court of Chancery alleging that we did not fulfill certain obligations under the purchase and sale agreement and claiming that the former owners of WSL were entitled to damages including an additional payment of $40.0 million under an earn-out arrangement. The Delaware Court of Chancery conducted a remote trial in January 2021. In September 2021, the Delaware Chancery Court transferred the proceedings to Delaware Superior Court to ensure there were no jurisdictional deficiencies prior to entry of a final ruling. On April 25, 2022, the Delaware Superior Court entered judgment in favor of the former owners of WSL, awarding $40.0 million in compensatory damages, plus prejudgment interest and the former owners’ attorneys’ fees. We estimate that prejudgment interest and attorneys’ fees will amount to approximately $19.0 million, for a total of $59.0 million in damages, interest, and fees. We are evaluating all options for appealing this judgment. The $59.0 million is included within other current liabilities in the consolidated balance sheets and other general expenses in the consolidated statements of comprehensive income as of and for the three months ended March 31, 2022, respectively.


We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides.

As of December 31, 2021, our operating segments within the Truckload reportable segment were VTL and Bulk. The operating results of MLS, a standalone operating segment, have been aggregated into the Truckload reportable segment as of March 31, 2022 as it shares similar economic characteristics with our other Truckload operating segments and meets the other aggregation criteria described in ASC 280. VTL delivers truckload quantities over irregular routes and customer freight with dedicated contracts using dry van and specialty trailers. Bulk transports key inputs to manufacturing processes, such as specialty chemicals, using specialty trailers. MLS provides dedicated truckload services focusing primarily on freight with consistent routes.

The CODM reviews revenues for each segment without the inclusion of fuel surcharge revenues. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at the segment level reflects the measure presented to the CODM for each segment.

Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable by segment. All transactions between reportable segments are eliminated in consolidation.

Substantially all of our revenues and assets were generated or located within the U.S.

The following tables summarize our segment information. Inter-segment revenues were immaterial for all segments, with the exception of Other, which included revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $19.5 million and $18.0 million for the three months ended March 31, 2022 and 2021, respectively.
Revenues by SegmentThree Months Ended
March 31,
(in millions)20222021
Truckload$548.4 $451.7 
Intermodal302.1 255.8 
Logistics545.7 355.9 
Other85.3 98.4 
Fuel surcharge166.0 90.2 
Inter-segment eliminations(27.0)(23.4)
Operating revenues$1,620.5 $1,228.6 


Income (Loss) from Operations by Segment Three Months Ended
March 31,
(in millions)20222021
Truckload$119.4 $38.3 
Intermodal38.9 20.0 
Logistics41.9 15.9 
Income from operations$135.1 $76.2 
Depreciation and Amortization by SegmentThree Months Ended
March 31,
(in millions)20222021
Truckload$57.1 $52.6 
Intermodal13.7 11.5 
Other13.0 9.0 
Depreciation and amortization$83.8 $73.1 


The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and related notes and our Annual Report on Form 10-K for the year ended December 31, 2021.


Company Overview

We are a transportation and logistics services company providing a broad portfolio of truckload, intermodal, and logistics solutions and operating one of the largest for-hire trucking fleets in North America. Our diversified portfolio of complementary service offerings combines truckload services with intermodal and logistics offerings, enabling us to serve the varied needs of our customers. Our broad portfolio of services provides us with a greater opportunity to allocate capital within our portfolio of services in a manner designed to maximize returns across all market cycles and economic conditions. We continually monitor our performance and market conditions to ensure appropriate allocation of capital and resources to grow our businesses, while optimizing returns across reportable segments. Furthermore, our strong balance sheet enables us to carry out an acquisition strategy that strengthens our overall portfolio. We are positioned to leverage our scalable platform and experienced operations team to acquire high-quality businesses that meet our disciplined selection criteria to enhance our service offerings and broaden our customer base.

Our truckload services consist of freight transported and delivered by our company-employed drivers in company trucks and by owner-operators. These services are executed through either network or dedicated contracts and include standard long-haul and regional shipping services primarily using dry van, bulk, temperature-controlled, and flat-bed equipment, as well as cross dock and customized solutions for high-value and time-sensitive loads with coverage throughout North America.

Our intermodal service consists of door-to-door container on flat car (“COFC”) service through a combination of rail and dray transportation, in association with our rail carrier providers. Our intermodal service uses company-owned containers, chassis, and trucks with primarily company dray drivers, augmented by third-party dray capacity.

Our logistics services consist of freight brokerage (including Power Only which leverages our nationwide trailer pools to match capacity with demand), supply chain (including 3PL), warehousing, and import/export services. Our logistics business provides value-added services using both our assets and third-party capacity, augmented by our trailing assets, to manage and move our customers’ freight.

Our success depends on our ability to balance our transportation network and efficiently and effectively manage our resources in the delivery of truckload, intermodal, and logistics services to our customers. Resource requirements vary with customer demand, which may be subject to seasonal or general economic conditions. We believe that our ability to properly select freight and adapt to changes in customer transportation needs allows us to efficiently deploy resources and make capital investments in trucks, trailers, containers, and chassis or obtain qualified third-party capacity at a reasonable price.

Consistent with the transportation industry, our business is seasonal across each of our segments which generally translates to our reported revenues being the lowest in the first quarter and highest in the fourth quarter. Operating expenses tend to be higher in the winter months, primarily due to colder weather, which causes higher maintenance expense and higher fuel consumption from increased idle time.

Recent Developments


On December 31, 2021, the Company completed the acquisition of MLS, a privately held truckload carrier based in Celina, OH. MLS is a dedicated carrier that primarily serves the central U.S. and complements our growing dedicated operations. Beginning in the first quarter of 2022, MLS financial results are reported in dedicated operations as part of our Truckload segment. Refer to Note 2, Acquisition, for additional details.

Adverse Legal Judgment

On April 25, 2022, in connection with our litigation against the former owners of WSL, the Delaware Superior Court entered judgment in favor of the former owners, awarding $59.0 million in damages, interest, and attorneys’ fees. This judgment has

been recognized in our results of operations for the three months ended March 31, 2022. Refer to Note 12, Commitments and Contingencies, for additional details.


Non-GAAP Financial Measures

In this section of our report, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted operating ratio, and (4) adjusted net income. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge), we believe the measure is useful to investors because it isolates volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage such fluctuations. Fuel-related costs and their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry.

Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or by other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.

Enterprise Summary

The following table includes key GAAP and non-GAAP financial measures for the consolidated enterprise. Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.
 Three Months Ended
March 31,
(in millions, except ratios)20222021
Operating revenues$1,620.5 $1,228.6 
Revenues (excluding fuel surcharge) (1)
1,454.5 1,138.4 
Income from operations135.1 76.2 
Adjusted income from operations (2)
148.4 76.2 
Operating ratio91.7 %93.8 %
Adjusted operating ratio (3)
89.8 %93.3 %
Net income$92.1 $54.8 
Adjusted net income (4)
102.1 54.8 
(1)We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Included below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge).
(2)We define “adjusted income from operations” as income from operations, adjusted to exclude material items that do not reflect our core operating performance. Included below is a reconciliation of income from operations, which is the most directly comparable GAAP measure, to adjusted income from operations. Excluded items for the periods shown are explained in the table and notes below. 
(3)We define “adjusted operating ratio” as operating expenses, adjusted to exclude material items that do not reflect our core operating performance, divided by revenues (excluding fuel surcharge). Included below is a reconciliation of operating ratio, which is the most directly comparable GAAP measure, to adjusted operating ratio. Excluded items for the periods shown are explained below under our explanation of “adjusted income from operations.”

(4)We define “adjusted net income” as net income, adjusted to exclude material items that do not reflect our core operating performance. Included below is a reconciliation of net income, which is the most directly comparable GAAP measure, to adjusted net income. Excluded items for the periods shown are explained below under our explanation of “adjusted income from operations.”

Revenues (excluding fuel surcharge)
 Three Months Ended
March 31,
(in millions)20222021
Operating revenues$1,620.5 $1,228.6 
Less: Fuel surcharge revenues166.0 90.2 
Revenues (excluding fuel surcharge)$1,454.5 $1,138.4 

Adjusted income from operations
 Three Months Ended
March 31,
(in millions)20222021
Income from operations$135.1 $76.2 
Litigation and audit assessments (1) (2)
64.2 — 
Property gain—net (3)
Adjusted income from operations$148.4 $76.2 
(1)Includes $5.2 million in charges related to an adverse audit assessment for prior period state sales tax on rolling stock equipment used within that state.
(2)Includes a $59.0 million adverse judgment related to a lawsuit with former owners of WSL, inclusive of prejudgment interest and the former owners’ attorneys’ fees.
(3)Net gain on the sale of our Canadian facility due to a change in approach to servicing Canada.

Adjusted operating ratio
Three Months Ended
March 31,
(in millions, except ratios)20222021
Total operating expenses$1,485.4 $1,152.4 
Divide by: Operating revenues1,620.5 1,228.6 
Operating ratio91.7 %93.8 %
Total operating expenses$1,485.4 $1,152.4 
Adjusted for:
Fuel surcharge revenues(166.0)(90.2)
Litigation and audit assessments(64.2)— 
Property gain—net50.9 — 
Adjusted total operating expenses$1,306.1 $1,062.2 
Operating revenues$1,620.5 $1,228.6 
Less: Fuel surcharge revenues166.0 90.2 
Revenues (excluding fuel surcharge)$1,454.5 $1,138.4 
Adjusted operating ratio89.8 %93.3 %


Adjusted net income
 Three Months Ended
March 31,
(in millions)20222021
Net income$92.1 $54.8 
Litigation and audit assessments64.2 — 
Property gain—net(50.9)— 
Income tax effect of non-GAAP adjustments (1)
Adjusted net income$102.1 $54.8 
(1)Our estimated tax rate on non-GAAP items is determined annually using the applicable consolidated federal and state effective tax rate, modified to remove the impact of tax credits and adjustments that are not applicable to the specific items. Due to differences in the tax treatment of items excluded from non-GAAP income, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP items may differ from our GAAP tax rate and from our actual tax liabilities.

Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021

Enterprise Results Summary

Enterprise net income increased $37.3 million, approximately 68%, in the first quarter of 2022 compared to the same quarter in 2021, primarily due to a $58.9 million increase in income from operations, partially offset by the corresponding increase in income taxes and a pre-tax equity investment loss of $8.4 million during three months ended March 31, 2022.

Adjusted net income increased $47.3 million, approximately 86%.

Components of Enterprise Net Income

Enterprise Revenues

Enterprise operating revenues increased $391.9 million, approximately 32%, in the first quarter of 2022 compared to the same quarter in 2021.

Factors contributing to the increase were as follows:
a $189.8 million increase in Logistics segment revenues (excluding fuel surcharge) driven by increased revenue per order, volume growth within our brokerage business, and incremental port dray revenues;
a $96.7 million increase in Truckload segment revenues (excluding fuel surcharge) resulting from improved revenue per truck per week and the addition of revenues (excluding fuel surcharge) from the recent acquisition of MLS, partially offset by lower network volumes due to driver capacity constraints and reduced productivity resulting from COVID-19 disruptions early in the quarter;
a $75.8 million increase in fuel surcharge revenues resulting from an increase in fuel prices in the first quarter of 2022 compared to the same quarter in 2021 (for example, based on information reported by the U.S. Department of Energy, the average diesel price per gallon in the U.S. increased by 44% between such periods), as well as fuel surcharge revenues from the recent acquisition of MLS; and
a $46.3 million increase in Intermodal segment revenues (excluding fuel surcharge) due to improvement in revenue per order and an increase in orders despite continued network fluidity challenges.

Enterprise revenues (excluding fuel surcharge) increased $316.1 million, approximately 28%.

Enterprise Income from Operations and Operating Ratio

Enterprise income from operations increased $58.9 million, approximately 77%, in the first quarter of 2022 compared to the same quarter in 2021, primarily due to an increase in revenue per truck per week in Truckload, revenue per order in Intermodal, and net revenue per order in Logistics driven by strong freight market conditions, effective network and revenue management, and contracted rate renewals. A net gain on sale of $50.9 million in connection with the sale of our Canadian facility due to a change in approach to servicing Canada also contributed to the increase. Our brokerage business experienced a 24% increase in order volume driven by the leveraging of our digital platform, in addition to the continued expansion of our Power Only offering. The above factors were partially offset by a $59.0 million adverse judgment related to a lawsuit with former owners of

WSL, an increase in driver costs resulting from additional costs incurred to attract and retain drivers and an increase in company drivers, and higher rail purchased transportation costs within Intermodal.

Adjusted income from operations increased $72.2 million, approximately 95%.

Enterprise operating ratio improved on both a GAAP and adjusted basis when compared to the first quarter of 2021. Among other factors, our operating ratio can be negatively impacted by changes in portfolio mix when our higher operating ratio, less asset-focused Logistics segment grows faster than our lower operating ratio, capital-intensive Truckload segment.

Enterprise Operating Expenses

Key operating expense fluctuations are described below.
Purchased transportation increased $181.6 million, or 33%, quarter over quarter, primarily resulting from increased third party carrier costs attributable to higher purchased transportation costs per order and volume growth within Logistics, as well as higher rail purchased transportation driven by an increase in rail cost per mile within Intermodal.
Salaries, wages, and benefits increased $70.4 million, or 26%, quarter over quarter, primarily due to higher Truckload driver pay resulting from pay increases and actions to address driver capacity constraints and an increase in company drivers. The recent acquisition of MLS, an increase in headcount across the organization, and incremental healthcare costs added to the remaining increase quarter over quarter.
Fuel and fuel taxes for company trucks increased $46.