Knight-Swift Transportation Holdings Inc

Note 9 —Accrued Payroll and Purchased Transportation and Accrued Liabilities

The following table presents the composition of accrued payroll and purchased transportation:

1 Accrued payroll includes accruals related to the Knight-Swift 401(k) Retirement Plan (the "401(k) Plan") which is offered by the Company to its employees. Eligible employees must be at least 18 years of age, have completed ninety days of service, and belong to an Eligible Class of Employees (as defined in the 401(k) Plan) with the Company in order to participate in the 401(k) Plan. Employees earn vested interests in their employer contribution accounts over a period of five years based upon their years of service. The Employer may make discretionary matching contributions to the 401(k) Plan.

The Company's employee benefits expense for matching contributions related to the 401(k) plans was approximately $31.5 million, $31.3 million, and $29.6 million in 2024, 2023, and 2022, respectively. This expense was included in "Salaries, wages, and benefits" in the consolidated statements of comprehensive income. As of December 31, 2024 and 2023, the balance above in accrued payroll included $39.2 million and $36.2 million, respectively, in matching contributions for the 401(k) plans.

The following table presents the composition of accrued liabilities:

1 As of December 31, 2024, the mandatorily redeemable contingent consideration is included in "Other long-term liabilities" in the Company's consolidated balance sheet. Refer to Note 4 for further information regarding the contingent consideration related to the U.S. Xpress Acquisition.