ARCBEST CORPORATION (NASDAQ:ARCB) Files An 8-K Entry into a Material Definitive Agreement

ARCBEST CORPORATION (NASDAQ:ARCB) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

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The International Brotherhood of Teamsters (the “IBT”), and certain local unions affiliated with the IBT (the “Unions”), ratified the supplemental agreements for 2018-2023 previously disclosed in the Report on Form8-K filed July11, 2018 by ArcBest Corporation (the “Company”). As a result, ABF Freight System,Inc. (“ABF Freight”), the largest subsidiary of the Company, New England Teamsters and Trucking Industry Pension Fund (the “Fund”), and the Unions have entered into a Withdrawal Agreement and a Reentry Agreement (collectively, the “Agreements”).

to the terms of the Agreements, ABF Freight has retroactively withdrawn as a participating employer in the Fund and reached a settlement of withdrawal liability with the Fund. ABF Freight simultaneously re-entered the Fund as a new participating employer free from any pre-existing withdrawal liability.

to the Withdrawal Agreement, the withdrawal liability was settled through an initial lump sum cash payment of $15 million which was paid August31, 2018, plus monthly payments to the Fund over a period of 23 years. In accordance with current tax law, these payments will be deductible when paid, reducing, to the extent deductible, the actual after tax cost to ABF Freight of the settlement. The Agreements (1)reduce the total withdrawal liability of ABF Freight, (2)strengthen the Fund’s financial position, (3)provide additional security to the ABF Freight employees who rely on the Fund for retirement benefits, and (4)reduce the future contributions required by ABF Freight to the Fund without a corresponding decrease in benefits payable to participating ABF Freight employees. These Agreements have no impact or bearing on any of the other multiemployer pension plans to which ABF Freight contributes.


About ARCBEST CORPORATION (NASDAQ:ARCB)

ArcBest Corporation is a holding company of businesses providing freight transportation services and logistics solutions. The Company operates through five segments: Freight Transportation (ABF Freight) segment, Premium Logistics (Panther), Transportation Management (ABF Logistics), Emergency & Preventative Maintenance (FleetNet) and Household Goods Moving Services (ABF Moving). ABF Freight provides interstate and intrastate direct service to over 48,000 communities through over 250 service centers in over 50 states of the United States, Canada and Puerto Rico. The Panther segment provides freight transportation services to commercial and government customers, and offers logistics services. The FleetNet segment includes the operations of FleetNet America, Inc. The ABF Logistics segment includes the operations of its businesses, which provide freight brokerage and intermodal transportation services, and others. Its principal operations are conducted through ABF Freight.

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