##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K





|           |  |                                                                                                                                                                 
|---------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                                                                                                 
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended December 31, 2004                       
|or        
|o          |  | 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 0-19791





USF Corporation


(Exact name of registrant as specified in its charter)





|                                                                           |  |                                                   
|-------------------------------------------------------------------------- |  | --------------------------------------------------
|                                                                          
|Delaware(State or other jurisdiction of
    incorporation or organization) |  | 36-3790696(I.R.S. Employer
    Identification No.)

8550 W. Bryn Mawr Ave., Ste. 700, Chicago, IL 60631


(Address of principal executive offices) (Zip Code)


(773) 824-1000


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


|                                |  |                                          
|------------------------------- |  | -----------------------------------------
|Title of each class             |  | Name of each exchange on which registered
|                                |  |                                          
|Common Stock $.01 Par Value     |  | Nasdaq®                                  
|Preferred Stock Purchase Rights |  |                                          

Securities registered pursuant to Section 12(g) of the
Act:


1 2


1 2




þ o


o


þ o












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TABLE OF CONTENTS







|                                      |  |                                                                                           |  |  |      |  |  | 
|------------------------------------- |  | ----------------------------------------------------------------------------------------- |  |  | ---- |  |  | 
|Item                                  |  |                                                                                           |  |  | Page | 
|                                      |  |                                                                                           |  |  |      | 
|PART I                                |  |                                                                                           |  |  |      | 
|1.                                    |  | Business                                                                                  |  |  | 2    | 
|2.                                    |  | Properties                                                                                |  |  | 6    | 
|3.                                    |  | Legal Proceedings                                                                         |  |  | 6    | 
|4.                                    |  | Submission of Matters to a Vote of Security
    Holders                                   |  |  | 8    | 
|PART II                               |  |                                                                                           |  |  |      | 
|5.                                    |  | Market for Registrants Common Equity
    and Related Stockholder Matters                 |  |  | 8    | 
|6.                                    |  | Selected Financial Data                                                                   |  |  | 9    | 
|7.                                    |  | Managements Discussion and Analysis
    of Results of Operations and Financial Condition |  |  | 11   | 
|7a.                                   |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |  |  | 21   | 
|8.                                    |  | Financial Statements and Supplementary
    Data                                           |  |  | 22   | 
|9a.                                   |  | Controls and Procedures                                                                   |  |  | 44   | 
|PART III                              |  |                                                                                           |  |  |      | 
|10.                                   |  | Directors and Executive Officers of the
    Registrant                                    |  |  | 47   | 
|11.                                   |  | Executive Compensation                                                                    |  |  | 49   | 
|12.                                   |  | Security Ownership of Certain Beneficial
    Owners and Management                        |  |  | 49   | 
|13.                                   |  | Certain Relationships and Related
    Transactions                                        |  |  | 52   | 
|14.                                   |  | Principal Accounting Fees and Services                                                    |  |  | 52   | 
|PART IV                               |  |                                                                                           |  |  |      | 
|15.                                   |  | Exhibits, Financial Statements Schedules
    and Reports on Form 8-K                      |  |  | 53   | 
|$200,000 Credit Agreement            
|Board of Directors Fee Schedule      
|2005 Annual Incentive Plan           
|Subsidiaries                         
|Consent of Deloitte & Touche LLP     
|Power of Attorney                    
|Certification Pursuant to Section 302
|Certification Pursuant to Section 906





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##### Table of Contents






PART I


(Thousands of dollars, except share and per share amounts)







|         |         
|-------- | --------
|Item 1  | Business

General Development of Business




| |                                        
| | ---------------------------------------
| | Continuing Operations  Core Businesses









| |                                     
| | ------------------------------------
| | Continuing Operations  Acquisitions







| |                                                     
| | ----------------------------------------------------
| | Continuing Operations  Non-Core Asia
    Operations



2



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##### Table of Contents



(Thousands of dollars, except share and per share amounts)




| |                                        
| | ---------------------------------------
| | Discontinued Freight Forwarding Segment





| |                                     
| | ------------------------------------
| | Financial Information About Segments



LTL Trucking










3



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(Thousands of dollars, except share and per share amounts)


Truckload Trucking






Logistics Subsidiaries






Seasonality




Customers




Fuel




Regulation




4



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(Thousands of dollars, except share and per share amounts)




Insurance and Safety








|                                         |  |      |      |  |      |  |      |      |  |  |      | 
|---------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|Year                                     |  | 2004 |      |  | 2003 |  |      | 2002 | 
|                                         |  |      |      |  |      |  |      |      | 
|Cargo, bodily injury and property damage |  |      | 2.0% |  |      |  | 1.9% |      |  |  | 1.9% | 
|Workers compensation                    |  |      | 2.5% |  |      |  | 2.1% |      |  |  | 1.8% | 

Employees




Forward-Looking Statements






| |   |                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------
| |  | General economic conditions and specific conditions in the
    markets in which we operate, which can affect demand for our
    services.
|
| |  | The costs and difficulties in execution of certain of our sales,
    marketing, and IT functions.                                        
|
| |  | Competition from other transportation and logistics services
    providers.                                                              
|
| |  | Our ability to adapt to technological change and to compete with
    new or improved services offered by our competitors.                

5



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(Thousands of dollars, except share and per share amounts)




| |   |                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Shortages in motor fuel (see Fuel).                                                                                                                
|
| |  | Work stoppages, strikes or slowdowns by our employees.                                                                                               
|
| |  | Changes in government regulation (see Regulation).                                                                                                 
|
| |  | Effects of weather.                                                                                                                                  
|
| |  | Availability of financing on terms acceptable to us.                                                                                                 
|
| |  | Other uncertainties detailed herein and at various times in
    Securities and Exchange Commission filings and press releases of
    USF Corporation.



Available Information









|         |           
|-------- | ----------
|Item 2  | Properties












|         |                  
|-------- | -----------------
|Item 3  | Legal Proceedings

de
minimis




6



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(Thousands of dollars, except share and per share amounts)
















7



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(Thousands of dollars, except share and per share amounts)







|         |                                                    
|-------- | ---------------------------------------------------
|Item 4  | Submission of Matters to a Vote of Security Holders






PART II







|         |                                                                          
|-------- | -------------------------------------------------------------------------
|Item 5  | Market for Registrants Common Equity and Related
    Stockholder Matters





8



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(Thousands of dollars, except share and per share amounts)







|         |                        
|-------- | -----------------------
|Item 6  | Selected Financial Data



Selected Consolidated Financial Data


|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |      | 
|------------------------------------------------------------------------------- | --------------------------------- | ---- | --------- | ---- | ---- | - | --------- | ---- |  | - | --------- | ----- | - | ---- | --------- | ---- |  | - | --------- | ---- | 
|Year                                                                            |                                   | 2004 |           |      | 2003 |   |           | 2002 |  |   | 2001      |       |   | 2000 |          
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Statements of Operations                                                        |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|Revenue                                                                         |                                   | $    | 2,394,579 |      |      | $ | 2,292,139 |      |  | $ | 2,250,526 |       |   | $    | 2,220,974 |      |  | $ | 2,288,613 |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Income from operations                                                          |                                   |      | 63,745    |      |      |   | 95,592    |      |  |   | 80,854    |       |   |      | 103,336   |      |  |   | 182,673   |     
|Interest expense                                                                |                                   |      | (20,917   | )    |      |   | (20,900   | )    |  |   | (20,516   | )     |   |      | (20,964   | )    |  |   | (21,090   | )   
|Interest income                                                                 |                                   |      | 2,824     |      |      |   | 1,867     |      |  |   | 2,708     |       |   |      | 2,278     |      |  |   | 638       |     
|Other non-operating expense                                                     |                                   |      | (1,794    | )    |      |   | (1,274    | )    |  |   | (1,054    | )     |   |      | (499      | )    |  |   | (926      | )   
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Income from continuing operations before income taxes and
    minority interest |                                   |      | 43,858    |      |      |   | 75,285    |      |  |   | 61,992    |       |   |      | 84,151    |      |  |   | 161,295   |     
|Minority interest                                                               |                                   |      |          |      |      |   |          |      |  |   |          |       |   |      | (1,100    | )    |  |   | 1,708     |     
|Income tax expense                                                              |                                   |      | (20,063   | )    |      |   | (31,184   | )    |  |   | (28,724   | )     |   |      | (33,074   | )    |  |   | (64,962   | )   
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Income from continuing operations                                               |                                   |      | 23,795    |      |      |   | 44,101    |      |  |   | 33,268    |       |   |      | 49,977    |      |  |   | 98,041    |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Loss on discontinued operations, net of tax                                     |                                   |      |          |      |      |   | (338      | )    |  |   | (30,217   | )     |   |      | (11,589   | )    |  |   | (1,243    | )   
|Cumulative effect of change in accounting for revenue recognition               |                                   |      |          |      |      |   | (1,467    | )    |  |   |           |       |   |      |           |      |  |   |           |     
|Cumulative effect of change in accounting for goodwill                          |                                   |      |          |      |      |   |          |      |  |   | (70,022   | )     |   |      |          |      |  |   |          |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Net income/(loss)                                                               |                                   | $    | 23,795    |      |      | $ | 42,296    |      |  | $ | (66,971   | )     |   | $    | 38,388    |      |  | $ | 96,798    |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Basic earnings per share                                                        |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|                                                                                | Income from continuing operations |      | $         | 0.86 |      |   | $         | 1.62 |  |   | $         | 1.23  |   |      | $         | 1.90 |  |   | $         | 3.72 | 
|Diluted earnings per share                                                      |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|                                                                                | Income from continuing operations |      |           | 0.85 |      |   |           | 1.61 |  |   |           | 1.22  |   |      |           | 1.87 |  |   |           | 3.65 | 
|Basic earnings per share                                                        |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|                                                                                | Net income/(loss) per share       |      |           | 0.86 |      |   |           | 1.55 |  |   |           | (2.49 | ) |      |           | 1.46 |  |   |           | 3.68 | 
|Diluted earnings per share                                                      |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|                                                                                | Net income/(loss) per share       |      |           | 0.85 |      |   |           | 1.55 |  |   |           | (2.45 | ) |      |           | 1.43 |  |   |           | 3.61 | 
|Cash dividends declared per share                                               |                                   |      | 0.37      |      |      |   | 0.37      |      |  |   | 0.37      |       |   |      | 0.37      |      |  |   | 0.37      |     
|Balance Sheets (excluding discontinued operations)                              |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|Assets:                                                                         |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |           |      |  |   |           |     
|Current assets                                                                  |                                   | $    | 530,443   |      |      | $ | 459,239   |      |  | $ | 410,007   |       |   | $    | 384,011   |      |  | $ | 335,762   |     
|Property and equipment, net                                                     |                                   |      | 775,940   |      |      |   | 753,902   |      |  |   | 760,153   |       |   |      | 724,465   |      |  |   | 744,848   |     
|Goodwill                                                                        |                                   |      | 100,813   |      |      |   | 100,813   |      |  |   | 100,504   |       |   |      | 100,504   |      |  |   | 107,420   |     
|Other assets                                                                    |                                   |      | 33,999    |      |      |   | 44,134    |      |  |   | 24,607    |       |   |      | 26,459    |      |  |   | 21,215    |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          
|Total assets                                                                    |                                   | $    | 1,441,195 |      |      | $ | 1,358,088 |      |  | $ | 1,295,271 |       |   | $    | 1,235,439 |      |  | $ | 1,209,245 |     
|                                                                                |                                   |      |           |      |      |   |           |      |  |   |           |       |   |      |          

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(Thousands of dollars, except share and per share amounts)


|                                      |  |      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|Year                                  |  | 2004 |         |  | 2003 |   |         | 2002 |  |   | 2001    |  |  | 2000 |        
|                                      |  |      |         |  |      |   |         |      |  |   |         |  |  |      |        
|Liabilities and Stockholders Equity: |  |      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Current liabilities                   |  | $    | 276,006 |  |      | $ | 252,467 |      |  | $ | 240,068 |  |  | $    | 228,797 |  |  | $ | 261,696 | 
|Long-term debt                        |  |      | 250,022 |  |      |   | 250,087 |      |  |   | 252,129 |  |  |      | 252,515 |  |  |   | 260,017 | 
|Other non-current liabilities         |  |      | 212,189 |  |      |   | 190,745 |      |  |   | 183,943 |  |  |      | 172,470 |  |  |   | 161,893 | 
|Minority interest                     |  |      |         |  |      |   |        |      |  |   |        |  |  |      | 1,855   |  |  |   | 539     | 
|Total stockholders equity            |  |      | 702,978 |  |      |   | 664,789 |      |  |   | 619,131 |  |  |      | 687,652 |  |  |   | 635,176 | 



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(Thousands of dollars, except share and per share amounts)







|         |                                                                                          
|-------- | -----------------------------------------------------------------------------------------
|Item 7  | Managements Discussion and Analysis of Results of
    Operations and Financial Condition

EXECUTIVE SUMMARY












CONSOLIDATED RESULTS




|                  |  |      |           |  |      |   |           |      |  |   |           |  
|----------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | -
|Year              |  | 2004 |           |  | 2003 |   |           | 2002 | 
|                  |  |      |           |  |      |   |           |      | 
|Revenue           |  | $    | 2,394,579 |  |      | $ | 2,292,139 |      |  | $ | 2,250,526 |  
|Net Income (loss) |  |      | 23,795    |  |      |   | 42,296    |      |  |   | (66,971   | )



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(Thousands of dollars, except share and per share amounts)


2004 Compared to 2003






| |   |                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our net income was negatively impacted by the shutdown of Red
    Star which included after-tax operating losses and shutdown
    costs of $25,605, and after-tax write-off and amortization
    expense of Red Star intangible assets of $1,214.             
|
| |  | Our net income for 2004 included the after-tax write-down of
    $3,815 for an information technology project that we abandoned
    due to software stability and performance issues realized at the
    conclusion of pilot tests in the 2004 second quarter.
|
| |  | Our net income for 2004 included after-tax executive retirement
    and severance costs of $1,358.                                                                                                                                                            

2003 Compared to 2002




| |   |                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our net income for 2003 included after-tax Red Star operating
    profits of $895 which included a $6,100 after-tax gain on the
    sale of its Newark terminal. In addition, our net income
    included after-tax amortization expense of Red Star intangible
    assets of $1,313.                                             
|
| |  | Our net income in 2003 included after-tax retirement costs of
    $1,202 for a former CEO.                                                                                                                                                                                                                                        
|
| |  | Our net income in 2003 included an after-tax receivables
    write-off of $1,145 as a result of The Fleming Companies
    bankruptcy.                                                                                                                                                                                             
|
| |  | Our net income for 2003 was negatively impacted by an after-tax
    loss of $1,467 due to a change in the accounting for revenue and
    expense recognition. This change was made to recognize the
    increase in our average length of haul of freight, which
    resulted from our implementation of new marketing strategies.
|
| |  | Our net income (loss) for 2003 and 2002 was negatively impacted
    by our after-tax losses from discontinued freight forwarding
    operations of $338 and $16,798, respectively.                                                                                                                                                
|
| |  | Our net loss for 2002 included a goodwill impairment charge of
    $70,022 at Worldwide, our discontinued freight forwarding
    segment. The charge resulted from the adoption of
    SFAS No. 142.                                                                                                                              
|
| |  | Our net loss for 2002 included an after-tax loss of $13,239
    related to the disposal of our freight forwarding segment. The
    disposal of this segment was the result of taking the action
    necessary to better focus on our core competencies of providing
    high value comprehensive supply chain management services.
|
| |  | Our net loss for 2002 included an after-tax charge of $12,760
    related to the relinquishment of our interest in Asia.                                                                                                                                                                                                          

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(Thousands of dollars, except share and per share amounts)




|                                                                  |  |                              |        |  |                              |   |        |     |  |   |         |  |  |           |        |   |     |   |       |   |  |   |       |  
|----------------------------------------------------------------- |  | ---------------------------- | ------ |  | ---------------------------- | - | ------ | --- |  | - | ------- |  |  | --------- | ------ | - | --- | - | ----- | - |  | - | ----- | -
|                                                                  |  | Year Ended December 31, 2004 |        |  | Year Ended December 31, 2003 |  
|                                                                  |  |                              |        |  |                              |  
|                                                                  |  | Pre-tax                      |        |  | After-tax                    |   |        | EPS |  |   | Pre-tax |  |  | After-tax |        |   | EPS |  
|                                                                  |  |                              |        |  |                              |   |        |     |  |   |         |  |  |           |        |   |     |  
|Significant items:                                                |  |                              |        |  |                              |   |        |     |  |   |         |  |  |           |        |   |     |   |       |   |  |   |       |  
|Red Star operating (profits)/ losses and shutdown costs           |  | $                            | 38,556 |  |                              | $ | 25,605 |     |  | $ | 0.92    |  |  | $         | (1,029 | ) |     | $ | (895  | ) |  | $ | (0.03 | )
|Write-off/amortization expense of Red Star intangible assets      |  |                              | 1,903  |  |                              |   | 1,214  |     |  |   | 0.04    |  |  |           | 2,249  |   |     |   | 1,313 |   |  |   | 0.05  |  
|Information technology write-down                                 |  |                              | 5,980  |  |                              |   | 3,815  |     |  |   | 0.14    |  |  |           |       |   |     |   |      |   |  |   |      |  
|Executive retirement/ severance                                   |  |                              | 1,896  |  |                              |   | 1,358  |     |  |   | 0.05    |  |  |           | 2,100  |   |     |   | 1,202 |   |  |   | 0.04  |  
|Receivables write-off related to Logistics customer              |  |                              |       |  |                              |   |       |     |  |   |        |  |  |           | 2,000  |   |     |   | 1,145 |   |  |   | 0.04  |  
|Cumulative loss from change in accounting for revenue recognition |  |                              |       |  |                              |   |       |     |  |   |        |  |  |           | 2,531  |   |     |   | 1,467 |   |  |   | 0.05  |  
|Loss from discontinued operations                                 |  |                              |       |  |                              |   |       |     |  |   |        |  |  |           | 577    |   |     |   | 338   |   |  |   | 0.01  |  

RESULTS OF OPERATIONS


LTL Group




|                       |  |      |           |   |      |   |           |      |  |   |           |  
|---------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|Year                   |  | 2004 |           |   | 2003 |   |           | 2002 | 
|                       |  |      |           |   |      |   |           |      | 
|Total Revenue          |  | $    | 2,005,330 |   |      | $ | 1,898,668 |      |  | $ | 1,866,892 |  
|Income from operations |  |      | 93,348    |   |      |   | 110,555   |      |  |   | 105,172   |  
|Operating Ratio        |  |      | 95.4      | % |      |   | 94.2      | %    |  |   | 94.4      | %



|     |  |                          |           |         |             |  |             |             |  |            |          |  |        |        |          |  |          |         |       |         |  |  |       |  |  |  |     | 
|---- |  | ------------------------ | --------- | ------- | ----------- |  | ----------- | ----------- |  | ---------- | -------- |  | ------ | ------ | -------- |  | -------- | ------- | ----- | ------- |  |  | ----- |  |  |  | --- | 
|     |  | LTL Shipments Statistics |          
|     |  |                          |          
|     |  |                          |           | Revenue |             |  | Revenue per |             |  |           
|     |  |                          |           | per     |             |  | Hundred-    |             |  | Weight per |          |  | Length |       
|     |  | Revenue                  |           |         | Tons        |  |             | Shipments   |  |            | Shipment |  |        | weight |          |  | Shipment |         |       | of Haul | 
|     |  |                          |           |         |             |  |             |             |  |            |          |  |        |        |          |  |          |         |       |         | 
|     |  | (Thousands)              |           |         | (Thousands) |  |             | (Thousands) |  |            |          |  |        |        | (Pounds) |  |          | (Miles) |      
|2004 |  | $                        | 1,870,750 |         |             |  | 8,226.5     |             |  |            | 13,689.3 |  |        | $      | 136.66   |  |          | $       | 11.37 |         |  |  | 1,186 |  |  |  | 507 | 
|2003 |  | $                        | 1,801,382 |         |             |  | 7,959.5     |             |  |            | 14,019.8 |  |        | $      | 128.49   |  |          | $       | 11.32 |         |  |  | 1,135 |  |  |  | 493 | 
|2002 |  | $                        | 1,758,871 |         |             |  | 8,140.1     |             |  |            | 14,425.9 |  |        | $      | 121.92   |  |          | $       | 10.80 |         |  |  | 1,129 |  |  |  | 488 | 

2004 Compared to 2003






| |   |                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The 2004 second quarter shutdown of our Red Star operations in
    the Northeast resulted in $35,595 in pre-tax operating losses
    and shutdown costs. In addition Red Star incurred $2,961 in
    operating losses

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(Thousands of dollars, except share and per share amounts)




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | prior to the shutdown for a full year total of $38,556 in Red
    Star shutdown costs and operating losses. Of these costs,
    $16,498 related to exit and disposal activities per
    SFAS No. 146, Accounting for Costs Associated
    with Exit or Disposal Activities, including $2,083 in
    accruals for two multi-employer pension plans and $4,988 in
    withdrawal payments made under the Multi-Employer Pension Plan
    Amendment Act of 1980 (MEPPA) for certain of these
    plans, and there was $22,058 in operating losses for shutdown
    staffing, utilities, depreciation, and other miscellaneous
    expenses. The closure of Red Star negatively impacted the LTL
    segments statistics and operating results for 2004.
|
| |  | LTL segment total revenue increased 5.6% despite the shutdown of
    Red Star largely due to continued growth of PremierPlus
    inter-regional service in the remaining segment and generally
    favorable economic conditions for LTL trucking. Red Star
    accounted for $88,356 and $228,539 of the segments revenue
    in 2004 and 2003, respectively.                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Holland expanded its brand into the Northeast market in
    September 2004 by opening eight terminals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Income from operations decreased 15.6% primarily due to the
    shutdown of Red Star. Operating ratio was also negatively
    impacted and increased from 94.2% to 95.4%. The operating losses
    and shutdown costs at Red Star negatively impacted an otherwise
    strong performance from the remainder of our LTL segment which
    experienced improvement in operating ratio through revenue
    growth and cost-savings related to our Team One initiatives.                                                                                                                                                                                                                                                                                    
|
| |  | PremierPlus revenue increased 7.1% to $247,987 from $231,554
    despite the shutdown of Red Star, as the remaining segment
    experienced strong growth in inter-regional service. Red
    Stars portion of PremierPlus revenue was approximately
    $22,000 in 2004 and $49,000 in 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | LTL tonnage increased 3.4% to 8.2 million tons from
    8.0 million tons as the absence of Red Star tonnage was
    more than offset by increased tonnage in the remaining segment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

2003 Compared to 2002






| |   |                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The general rate increase of 5.9% that was implemented during
    the 2nd quarter of 2003. Its implementation occurred three
    weeks earlier in the year than 2002s 5.9% increase.                                                                                                                                                                       
|
| |  | PremierPlus revenue increased 12.5% as a result of our marketing
    and service efforts. This revenue represented 12.6% and 11.4% of
    LTL revenue in 2003 and 2002, respectively.                                                                                                                                                                       
|
| |  | Income from operations for 2003 included a gain of $10,000 from
    the sale of our Red Star Newark terminal.                                                                                                                                                                                                                                               
|
| |  | Income from operations was also impacted by the effect of
    increased insurance costs of 14.3% or $11,238, which reflects
    the continued escalation of insurance premiums and the medical
    cost-driven inflation of workers compensation, and
    continued pricing pressures in the Midwest and Southwest, which
    affected Holland and Bestway.
|
| |  | We were able to increase our revenue per shipment and revenue
    per hundredweight through increased focus on yield in our
    pricing decisions.                                                                                                                                                                                                          

Truckload


|                       |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|Year                   |  | 2004 |         |   | 2003 |   |         | 2002 | 
|                       |  |      |         |   |      |   |         |      | 
|Revenue                |  | $    | 133,725 |   |      | $ | 128,093 |      |  | $ | 114,151 |  
|Income from operations |  |      | 3,368   |   |      |   | 4,663   |      |  |   | 5,311   |  
|Operating Ratio        |  |      | 97.5    | % |      |   | 96.4    | %    |  |   | 95.3    | %

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(Thousands of dollars, except share and per share amounts)




2004 Compared to 2003




| |   |                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The revenue growth of 4.4% was negatively impacted by a tight
    driver market in 2004. The percentage of unseated trucks peaked
    at 12.9% in the 2004 second quarter but improved to 6.8% by the
    end of the year.                  
|
| |  | The decline in the TL segments 2004 income from operations
    was primarily due to higher fuel, driver and maintenance costs
    and claims expense. These higher costs were partially offset by
    our improved loaded revenue per mile.

2003 Compared to 2002




| |   |                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The increase in revenue in 2003 from 2002 was primarily due to
    the acquisition of System 81 Express, Inc., a truckload carrier
    based in Tennessee that contributed $8,000.                                                                          
|
| |  | Increases in revenue per mile, increased business volumes with
    new customers and our regional LTL carriers (performing the
    intercompany substitute line-haul for our PremierPlus service
    product) also contributed to the 2003 revenue increase.
|
| |  | The decline in the TL segments 2003 income from operations
    was primarily due to substantially higher fuel costs compared to
    2002, which were partially offset by our improved loaded revenue
    per mile.                                         

Logistics


|                       |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|Year                   |  | 2004 |         |   | 2003 |   |         | 2002 | 
|                       |  |      |         |   |      |   |         |      | 
|Revenue                |  | $    | 269,378 |   |      | $ | 276,441 |      |  | $ | 278,161 |  
|Income from operations |  |      | 9,765   |   |      |   | 9,270   |      |  |   | 12,603  |  
|Operating Ratio        |  |      | 96.4    | % |      |   | 96.7    | %    |  |   | 95.5    | %



2004 Compared to 2003




| |   |                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenue from our dedicated fleet operation and warehouse
    operations decreased $9,888 due in large part to our customer,
    The Fleming Companies, bankruptcy in April 2003. However
    operating profit increased $1,488 despite the lower revenue.
|
| |  | Revenue from our cross-dock operations decreased $8,257,
    primarily due to the closure of a distribution center.                                                                                                                                      
|
| |  | Revenue in the remainder of our segment increased by $11,082 led
    by strong growth in transportation management services.                                                                                                                             

2003 Compared to 2002




| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenue from our cross-dock operations increased $4,200 in 2003,
    primarily through growth at existing distribution centers.                                                
|
| |  | Revenue from our dedicated fleet and warehouse operations
    decreased $30,300 in 2003 due in large part to our customer, The
    Fleming Companies, bankruptcy in April 2003.
|
| |  | Revenue from our reverse logistics services decreased $4,900
    resulting from the loss of a major customer in early 2003.                                                    

15



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(Thousands of dollars, except share and per share amounts)




| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | These revenue decreases were partially offset by $26,800 in
    revenue from the domestic ocean freight forwarding operations
    that we acquired in late 2002 from Seko Worldwide.
|
| |  | A receivables write-off of $2,000 was recorded in 2003 as a
    result of The Fleming Companies bankruptcy.                                                                         

Corporate and Other


|                  |  |      |         |   |      |   |         |      |  |   |         |  
|----------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|Year              |  | 2004 |         |   | 2003 |   |         | 2002 | 
|                  |  |      |         |   |      |   |         |      | 
|Corporate & Other |  | $    | (42,736 | ) |      | $ | (28,896 | )    |  | $ | (29,472 | )



2004 Compared to 2003




| |   |                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2004, we had a $5,980 write-down for an LTL information
    technology project that was abandoned as a result of software
    stability and performance issues.
|
| |  | In 2004, the write-off and amortization expense of USF Red Star
    intangible assets totaled $1,903.                                                             
|
| |  | In 2004, we had $1,896 in executive severance and retirement
    costs.                                                                                           
|
| |  | The remainder of the increase in expenses in 2004 were primarily
    for employee costs from additional headcount.                                                

2003 Compared to 2002




| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In 2003, several major software projects that were begun in 2002
    and were in the non-capitalizable phase moved into the phase
    where the development costs were capitalized. 
|
| |  | 2003 included a $621 restructuring charge as a result of staff
    reductions of 29 employees to streamline the IT organization.                                                    
|
| |  | 2003 included retirement costs of approximately $2,100 for a
    former CEO.                                                                                                        
|
| |  | Amortization of intangible assets increased by $1,134 in 2003,
    which resulted from the acquisitions of System 81 Express, Inc.
    and Plymouth Rock Transportation Corporation.

Non-operating Income and Expense




Income Taxes




Outlook  Unknown Trends or Uncertainties




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(Thousands of dollars, except share and per share amounts)


LIQUIDITY AND CAPITAL RESOURCES




|                              |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |         |  |  |   |         | 
|----------------------------- |  | -------------------------------- | ------- | ------------ | ---- | - | ------ | ----- |  | - | --------- | ------- |  | ----- | ------- |  |  | - | ------- | 
|                              |  | Payments & Commitments by Period |        
|                              |  |                                  |        
|                              |  |                                  |         | Through      |      |   |       
|                              |  |                                  |         | December 31, |      |   | 2-3    |       |  |   |           | After 5 | 
|                              |  | Total                            |         |              | 2005 |   |        | Years |  |   | 4-5 Years |         |  | Years |        
|                              |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |        
|Contractual Obligations       |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |         |  |  |   |         | 
|Long-Term Debt                |  | $                                | 250,087 |              |      | $ | 65     |       |  | $ | 22        |         |  | $     | 100,000 |  |  | $ | 150,000 | 
|Operating Leases              |  |                                  | 49,246  |              |      |   | 16,882 |       |  |   | 21,134    |         |  |       | 8,457   |  |  |   | 2,773   | 
|                              |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |        
|Total Contractual Obligations |  | $                                | 299,333 |              |      | $ | 16,947 |       |  | $ | 21,156    |         |  | $     | 108,457 |  |  | $ | 152,773 | 
|                              |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |        
|Other Commitments             |  |                                  |         |              |      |   |        |       |  |   |           |         |  |       |         |  |  |   |         | 
|Interest Commitments          |  | $                                | 96,826  |              |      | $ | 19,764 |       |  | $ | 39,194    |         |  | $     | 34,203  |  |  | $ | 3,665   | 
|Purchase Commitments(1)       |  |                                  | 17,870  |              |      |   | 17,870 |       |  |   |          |         |  |       |        |  |  |   |        | 






|    |                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | At December 31, 2004 our primary capital purchase
    commitments included $12,399 for land and improvements, $2,110
    for information technology related projects, and $2,885 for
    revenue equipment.

Sources and Uses of Cash






| |           
| | ----------
| | Operations









| |          
| | ---------
| | Investing



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(Thousands of dollars, except share and per share amounts)




| |          
| | ---------
| | Financing











| |                                                    
| | ---------------------------------------------------
| | Debt Instruments, Guarantees, and Related Covenants



DIVIDENDS AND STOCK REPURCHASE






|                       |      |       |   |             |        |  |   |             |  |  |        |             |  |      |   |             |  |  |   |             | 
|---------------------- | ---- | ----- | - | ----------- | ------ |  | - | ----------- |  |  | ------ | ----------- |  | ---- | - | ----------- |  |  | - | ----------- | 
|                       |      | First |   |             | Second |  |   | Third       |  |  | Fourth |             |  | Year |  
|                       |      |       |   |             |        |  |   |             |  |  |        |             |  |      |  
|Market price per share |      |       |   |             |        |  |   |             |  |  |        |             |  |      |   |             |  |  |   |            
|                       | 2004 |       | $ | 32.43-37.50 |        |  | $ | 27.92-36.16 |  |  | $      | 33.41-37.06 |  |      | $ | 32.99-38.39 |  |  | $ | 27.92-38.39 | 
|                       | 2003 |       | $ | 22.56-30.13 |        |  | $ | 25.59-31.22 |  |  | $      | 27.09-34.50 |  |      | $ | 31.92-35.45 |  |  | $ | 22.56-35.45 | 

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(Thousands of dollars, except share and per share amounts)


CRITICAL ACCOUNTING ESTIMATES


Revenue Recognition






Insurance and Claims




Allowance for Doubtful Accounts




Goodwill




19



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(Thousands of dollars, except share and per share amounts)




Income Taxes




Employee Benefit Plans








RECENT ACCOUNTING PRONOUNCEMENTS




20



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(Thousands of dollars, except share and per share amounts)





Item 7A  Quantitative and Qualitative
Disclosures About Market Risk






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|         |                                            
|-------- | -------------------------------------------
|Item 8  | Financial Statements and Supplementary Data

(Thousands of dollars, except share and per share amounts)


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















Internal Control 
Integrated Framework




|                              | 
|----------------------------- | 
|/s/ Deloitte & Touche
    LLP | 
|                              | 
|Deloitte & Touche LLP         | 





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USF CORPORATION


CONSOLIDATED BALANCE SHEETS


(Thousands of dollars, except share and per share amounts)


|                                                           |                                                                                                                                                                  |                   |           |          |      |   |           |          |  
|---------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | --------- | -------- | ---- | - | --------- | -------- | -
|                                                           |                                                                                                                                                                  | As of December 31 |          
|                                                           |                                                                                                                                                                  |                   |          
|                                                           |                                                                                                                                                                  | 2004              |           |          | 2003 |  
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|ASSETS                                                    
|Current assets:                                            |                                                                                                                                                                  |                   |           |          |      |   |           |         
|                                                           | Cash                                                                                                                                                             |                   | $         | 150,798  |      |   | $         | 121,659  |  
|                                                           | Accounts receivable, less allowances of $11,132 and $11,030,
    respectively                                                                                    |                   |           | 310,172  |      |   |           | 271,849  |  
|                                                           | Operating supplies and prepaid expenses                                                                                                                          |                   |           | 31,749   |      |   |           | 32,014   |  
|                                                           | Deferred income taxes                                                                                                                                            |                   |           | 37,724   |      |   |           | 33,717   |  
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total current assets                                       |                                                                                                                                                                  |                   | 530,443   |          |      |   | 459,239   |         
|Property and equipment:                                    |                                                                                                                                                                  |                   |           |          |      |   |           |         
|                                                           | Land                                                                                                                                                             |                   |           | 116,003  |      |   |           | 114,531  |  
|                                                           | Buildings and leasehold improvements                                                                                                                             |                   |           | 310,931  |      |   |           | 297,808  |  
|                                                           | Equipment                                                                                                                                                        |                   |           | 916,876  |      |   |           | 925,677  |  
|                                                           | Other                                                                                                                                                            |                   |           | 114,028  |      |   |           | 120,997  |  
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total property and equipment                               |                                                                                                                                                                  |                   | 1,457,838 |          |      |   | 1,459,013 |         
|                                                           | Less accumulated depreciation                                                                                                                                    |                   |           | (681,898 | )    |   |           | (705,111 | )
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total property and equipment less accumulated depreciation |                                                                                                                                                                  |                   | 775,940   |          |      |   | 753,902   |         
|Goodwill                                                   |                                                                                                                                                                  |                   | 100,813   |          |      |   | 100,813   |         
|Other assets                                               |                                                                                                                                                                  |                   | 33,999    |          |      |   | 44,134    |         
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total assets                                               |                                                                                                                                                                  | $                 | 1,441,195 |          |      | $ | 1,358,088 |         
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|                                                          
|LIABILITIES AND STOCKHOLDERS EQUITY                      
|Current liabilities:                                       |                                                                                                                                                                  |                   |           |          |      |   |           |         
|                                                           | Current debt                                                                                                                                                     |                   | $         | 65       |      |   | $         | 60       |  
|                                                           | Accounts payable                                                                                                                                                 |                   |           | 65,756   |      |   |           | 57,286   |  
|                                                           | Accrued salaries, wages and benefits                                                                                                                             |                   |           | 92,164   |      |   |           | 93,002   |  
|                                                           | Accrued insurance and claims                                                                                                                                     |                   |           | 63,320   |      |   |           | 52,772   |  
|                                                           | Other                                                                                                                                                            |                   |           | 54,701   |      |   |           | 49,347   |  
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total current liabilities                                  |                                                                                                                                                                  |                   | 276,006   |          |      |   | 252,467   |         
|Notes payable and long-term debt                           |                                                                                                                                                                  |                   | 250,022   |          |      |   | 250,087   |         
|Accrued insurance and claims                               |                                                                                                                                                                  |                   | 94,034    |          |      |   | 80,707    |         
|Other                                                      |                                                                                                                                                                  |                   | 17,517    |          |      |   | 14,377    |         
|Deferred income taxes                                      |                                                                                                                                                                  |                   | 100,638   |          |      |   | 95,661    |         
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total liabilities                                          |                                                                                                                                                                  |                   | 738,217   |          |      |   | 693,299   |         
|Commitments and contingencies (Note 10)                    |                                                                                                                                                                  |                   |           |          |      |   |           |         
|Stockholders equity:                                      |                                                                                                                                                                  |                   |           |          |      |   |           |         
|                                                           | Cumulative preferred stock, $0.01 par value per share:
    20,000,000 authorized, none issued                                                                    |                   |           |         |      |   |           |         |  
|                                                           | Common stock, $0.01 par value per share: 80,000,000 authorized,
    28,305,456 and 27,453,217 issued and 28,312,040 and 27,447,475
    outstanding, respectively |                   |           | 283      |      |   |           | 275      |  
|                                                           | Paid in capital                                                                                                                                                  |                   |           | 315,811  |      |   |           | 290,833  |  
|                                                           | Treasury stock, at cost                                                                                                                                          |                   |           | (172     | )    |   |           |         |  
|                                                           | Accumulated other comprehensive loss                                                                                                                             |                   |           | (10      | )    |   |           |         |  
|                                                           | Retained earnings                                                                                                                                                |                   |           | 387,066  |      |   |           | 373,681  |  
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total stockholders equity                                 |                                                                                                                                                                  |                   | 702,978   |          |      |   | 664,789   |         
|                                                           |                                                                                                                                                                  |                   |           |          |      |  
|Total liabilities and stockholders equity                 |                                                                                                                                                                  | $                 | 1,441,195 |          |      | $ | 1,358,088 |         
|                                                           |                                                                                                                                                                  |                   |           |          |      |  



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USF CORPORATION


CONSOLIDATED STATEMENTS OF OPERATIONS


(Thousands of dollars, except share and per share amounts)


|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |   |   |            |           |  
|----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------ | ----------------------- | ---------- | --------- | ---- | - | ---------- | --------- | - | - | ---------- | --------- | -
|                                                                                                      |                                                                                | Years Ended December 31 |           
|                                                                                                      |                                                                                |                         |           
|                                                                                                      |                                                                                | 2004                    |            |           | 2003 |   |            | 2002      |  
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Revenue:                                                                                              |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | LTL Trucking                                                                   |                         | $          | 2,005,330 |      |   | $          | 1,898,668 |   |   | $          | 1,866,892 |  
|                                                                                                      | TL Trucking                                                                    |                         |            | 133,725   |      |   |            | 128,093   |   |   |            | 114,151   |  
|                                                                                                      | Logistics                                                                      |                         |            | 269,378   |      |   |            | 276,441   |   |   |            | 278,161   |  
|                                                                                                      | Intercompany eliminations                                                      |                         |            | (13,854   | )    |   |            | (11,063   | ) |   |            | (8,678    | )
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|                                                                                                      |                                                                                |                         | 2,394,579  |           |      |   | 2,292,139  |           |   |   | 2,250,526  |          
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Operating expenses:                                                                                   |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | LTL Trucking                                                                   |                         |            | 1,911,982 |      |   |            | 1,788,113 |   |   |            | 1,761,720 |  
|                                                                                                      | TL Trucking                                                                    |                         |            | 130,357   |      |   |            | 123,430   |   |   |            | 108,840   |  
|                                                                                                      | Logistics                                                                      |                         |            | 259,613   |      |   |            | 267,171   |   |   |            | 265,558   |  
|                                                                                                      | Freight Forwarding  Asia exit costs                                           |                         |            |          |      |   |            |          |   |   |            | 12,760    |  
|                                                                                                      | Corporate and Other                                                            |                         |            | 42,736    |      |   |            | 28,896    |   |   |            | 29,472    |  
|                                                                                                      | Intercompany eliminations                                                      |                         |            | (13,854   | )    |   |            | (11,063   | ) |   |            | (8,678    | )
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|                                                                                                      |                                                                                |                         | 2,330,834  |           |      |   | 2,196,547  |           |   |   | 2,169,672  |          
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Income from operations                                                                                |                                                                                |                         | 63,745     |           |      |   | 95,592     |           |   |   | 80,854     |          
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Non-operating income (expense):                                                                       |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | Interest expense                                                               |                         |            | (20,917   | )    |   |            | (20,900   | ) |   |            | (20,516   | )
|                                                                                                      | Interest income                                                                |                         |            | 2,824     |      |   |            | 1,867     |   |   |            | 2,708     |  
|                                                                                                      | Other, net                                                                     |                         |            | (1,794    | )    |   |            | (1,274    | ) |   |            | (1,054    | )
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Total non-operating expense                                                                           |                                                                                |                         | (19,887    | )         |      |   | (20,307    | )         |   |   | (18,862    | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Income from continuing operations before income taxes and
    cumulative effect of accounting changes |                                                                                |                         | 43,858     |           |      |   | 75,285     |           |   |   | 61,992     |          
|Income tax expense                                                                                    |                                                                                |                         | (20,063    | )         |      |   | (31,184    | )         |   |   | (28,724    | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Income from continuing operations before cumulative effect of
    accounting changes                  |                                                                                |                         | 23,795     |           |      |   | 44,101     |           |   |   | 33,268     |          
|Discontinued operations (freight forwarding segment):                                                 |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | Loss from operations, net of tax benefits of $239 and $6,907,
    respectively |                         |            |          |      |   |            | (338      | ) |   |            | (16,978   | )
|                                                                                                      | Loss from disposal, net of tax benefit of $29,060                              |                         |            |          |      |   |            |          |   |   |            | (13,239   | )
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Loss from discontinued operations                                                                     |                                                                                |                         |           |           |      |   | (338       | )         |   |   | (30,217    | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Income before cumulative effect of accounting changes                                                 |                                                                                |                         | 23,795     |           |      |   | 43,763     |           |   |   | 3,051      |          
|Cumulative effect of change in accounting for revenue
    recognition, net of tax benefits of $1,064  |                                                                                |                         |           |           |      |   | (1,467     | )         |   |   |           |          
|Cumulative effect of change in accounting for goodwill                                                |                                                                                |                         |           |           |      |   |           |           |   |   | (70,022    | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Net income/(loss)                                                                                     |                                                                                | $                       | 23,795     |           |      | $ | 42,296     |           |   | $ | (66,971    | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Income per share from continuing operations:                                                          |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | Basic                                                                          |                         | $          | 0.86      |      |   | $          | 1.62      |   |   | $          | 1.23      |  
|                                                                                                      | Diluted                                                                        |                         |            | 0.85      |      |   |            | 1.61      |   |   |            | 1.22      |  
|Loss per share from discontinued operations:                                                          |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | Basic                                                                          |                         |            |          |      |   |            | (0.01     | ) |   |            | (1.12     | )
|                                                                                                      | Diluted                                                                        |                         |            |          |      |   |            | (0.01     | ) |   |            | (1.11     | )
|Loss per share  cumulative effect of accounting
    changes:                                         |                                                                                |                         |            |           |      |   |            |           |   |   |            |          
|                                                                                                      | Basic                                                                          |                         |            |          |      |   |            | (0.06     | ) |   |            | (2.60     | )
|                                                                                                      | Diluted                                                                        |                         |            |          |      |   |            | (0.05     | ) |   |            | (2.56     | )
|Net income/(loss) per share  basic                                                                   |                                                                                |                         | 0.86       |           |      |   | 1.55       |           |   |   | (2.49      | )        
|Net income/(loss) per share  diluted                                                                 |                                                                                |                         | 0.85       |           |      |   | 1.55       |           |   |   | (2.45      | )        
|                                                                                                      |                                                                                |                         |            |           |      |   |            |           |  
|Average shares outstanding  basic                                                                    |                                                                                |                         | 27,805,307 |           |      |   | 27,207,392 |           |   |   | 26,900,311 |          
|Average shares outstanding  diluted                                                                  |                                                                                |                         | 27,982,302 |           |      |   | 27,348,711 |           |   |   | 27,331,890 |          



24



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USF CORPORATION


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


(Thousands of dollars, except share and per share amounts)


|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |   |  |   |      |   |  |   |         |  
|------------------------------------------------------------------------------ |  | ------ | ------ |  | ------ | - | --- | ------- |  | - | -------- |  |  | -------- | -------- | - | ------------- | ----- | ------ | ----------- |  | - | ------------- | - |  | - | ---- | - |  | - | ------- | -
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  | Foreign  |          |   |              
|                                                                               |  | Number |        |  |        |   |     |         |  |   |          |  |  |          | Currency |   |               | Total |       
|                                                                               |  | of     |        |  | Common |   |     | Paid in |  |   | Retained |  |  | Treasury |          |   | Comprehensive |       |        | Translation |  |   | Stockholders |  
|                                                                               |  | Shares |        |  | Stock  |   |     | Capital |  |   | Earnings |  |  | Stock    |          |   | Income/(Loss) |       |        | Adjustment  |  |   | Equity        |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Balance January 1, 2002                                                        |  |        | 26,678 |  |        | $ | 267 |         |  | $ | 270,936  |  |  | $        | 418,585  |   |               | $     | (1,796 | )           |  |   |               |   |  | $ | (340 | ) |  | $ | 687,652 |  
|Net loss                                                                       |  |        |        |  |        |   |    |         |  |   |         |  |  |          | (66,971  | ) |               |       |       |             |  | $ | (66,971       | ) |  |   |      |   |  |   | (66,971 | )
|Recognition of previously unrealized loss on foreign currency
    transactions |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   | 340           |   |  |   | 340  |   |  |   | 340     |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Comprehensive loss                                                             |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  | $ | (66,631       | ) |  |   |      |   |  |   |         |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Dividends declared                                                             |  |        |        |  |        |   |    |         |  |   |         |  |  |          | (10,051  | ) |               |       |       |             |  |   |               |   |  |   |      |   |  |   | (10,051 | )
|Employee and director stock transactions                                       |  |        | 317    |  |        |   | 3   |         |  |   | 6,362    |  |  |          |         |   |               |       | 1,796  |             |  |   |               |   |  |   |      |   |  |   | 8,161   |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Balance December 31, 2002                                                      |  |        | 26,995 |  |        | $ | 270 |         |  | $ | 277,298  |  |  | $        | 341,563  |   |               | $     |       |             |  |   |               |   |  | $ |     |   |  | $ | 619,131 |  
|Net income                                                                     |  |        |        |  |        |   |     |         |  |   |          |  |  |          | 42,296   |   |               |       |        |             |  | $ | 42,296        |   |  |   |      |   |  |   | 42,296  |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Comprehensive income                                                           |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  | $ | 42,296        |   |  |   |      |   |  |   |         |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Dividends declared                                                             |  |        |        |  |        |   |     |         |  |   |          |  |  |          | (10,178  | ) |               |       |        |             |  |   |               |   |  |   |      |   |  |   | (10,178 | )
|Employee and director stock transactions                                       |  |        | 458    |  |        |   | 5   |         |  |   | 13,535   |  |  |          |         |   |               |       |       |             |  |   |               |   |  |   |      |   |  |   | 13,540  |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Balance December 31, 2003                                                      |  |        | 27,453 |  |        | $ | 275 |         |  | $ | 290,833  |  |  | $        | 373,681  |   |               | $     |       |             |  |   |               |   |  | $ |     |   |  | $ | 664,789 |  
|Net income                                                                     |  |        |        |  |        |   |     |         |  |   |          |  |  |          | 23,795   |   |               |       |        |             |  | $ | 23,795        |   |  |   |      |   |  |   | 23,795  |  
|Unrealized loss on foreign currency transactions                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   | (10           | ) |  |   | (10  | ) |  |   | (10     | )
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Comprehensive income                                                           |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  | $ | 23,785        |   |  |   |      |   |  |   |         |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Dividends declared                                                             |  |        |        |  |        |   |     |         |  |   |          |  |  |          | (10,410  | ) |               |       |        |             |  |   |               |   |  |   |      |   |  |   | (10,410 | )
|Employee and director stock transactions                                       |  |        | 859    |  |        |   | 8   |         |  |   | 24,978   |  |  |          |          |   |               |       | (172   | )           |  |   |               |   |  |   |      |   |  |   | 24,814  |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  
|Balance December 31, 2004                                                      |  |        | 28,312 |  |        | $ | 283 |         |  | $ | 315,811  |  |  | $        | 387,066  |   |               | $     | (172   | )           |  |   |               |   |  | $ | (10  | ) |  | $ | 702,978 |  
|                                                                               |  |        |        |  |        |   |     |         |  |   |          |  |  |          |          |   |               |       |        |             |  |   |               |  



25



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USF CORPORATION


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Thousands of dollars)


|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |        |   |          |          |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------- | --------------------------------------- | -------- | -------- | ------- | - | ------- | -------- | ------ | - | -------- | -------- | ------- | -
|                                                                                                                                                 |                                                     | Years Ended December 31                 |         
|                                                                                                                                                 |                                                     |                                         |         
|                                                                                                                                                 |                                                     | 2004                                    |          |          | 2003    |   |         | 2002     |       
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Cash flows from operating activities:                                                                                                            |                                                     |                                         |          |          |         |   |         |          |        |   |          |         
|Net income/(loss)                                                                                                                                |                                                     | $                                       | 23,795   |          |         | $ | 42,296  |          |        | $ | (66,971  | )       
|Net loss from discontinued operations                                                                                                            |                                                     |                                         |         |          |         |   | 338     |          |        |   | 30,217   |         
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Income/(loss) from continuing operations after cumulative effect
    of accounting changes                                                       |                                                     |                                         | 23,795   |          |         |   | 42,634  |          |        |   | (36,754  | )       
|Adjustments to reconcile income/(loss) from continuing
    operations after accounting changes to net cash provided by
    operating activities: |                                                     |                                         |          |          |         |   |         |          |        |   |          |         
|                                                                                                                                                 | Depreciation of property and equipment              |                                         |          | 104,345  |         |   |         | 100,770  |        |   |          | 99,873   |        
|                                                                                                                                                 | Cumulative effect of accounting changes, net of tax |                                         |          |         |         |   |         | 1,467    |        |   |          | 70,022   |        
|                                                                                                                                                 | Amortization of intangible assets                   |                                         |          | 2,033    |         |   |         | 2,369    |        |   |          | 1,235    |        
|                                                                                                                                                 | Deferred taxes                                      |                                         |          | 970      |         |   |         | 16,468   |        |   |          | (1,232   | )      
|                                                                                                                                                 | (Gain)/loss on sale of property and equipment       |                                         |          | 738      |         |   |         | (14,119  | )      |   |          | (1,350   | )      
|                                                                                                                                                 | Increase in non-current accrued claims and other    |                                         |          | 16,467   |         |   |         | 11,005   |        |   |          | 8,244    |        
|                                                                                                                                                 | Changes in working capital affecting operations:    |                                         |          |          |         |   |         |          |        |   |          |          |        
|                                                                                                                                                 |                                                     | Accounts receivable                     |          |          | (38,323 | ) |         |          | (329   | ) |          |          | (21,709 | )
|                                                                                                                                                 |                                                     | Operating supplies and prepaid expenses |          |          | 265     |   |         |          | 1,447  |   |          |          | (2,073  | )
|                                                                                                                                                 |                                                     | Accounts payable                        |          |          | 8,469   |   |         |          | 2,069  |   |          |          | (2,500  | )
|                                                                                                                                                 |                                                     | Accrued liabilities                     |          |          | 15,000  |   |         |          | 8,124  |   |          |          | 14,386  |  
|                                                                                                                                                 | Other non-current assets, net                       |                                         |          | 11,585   |         |   |         | (15,166  | )      |   |          | (1,238   | )      
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Net cash provided by operating activities                                                                                                        |                                                     |                                         | 145,344  |          |         |   | 156,739 |          |        |   | 126,904  |         
|Cash flows from investing activities:                                                                                                            |                                                     |                                         |          |          |         |   |         |          |        |   |          |         
|                                                                                                                                                 | Acquisitions                                        |                                         |          |         |         |   |         | (4,883   | )      |   |          |         |        
|                                                                                                                                                 | Mexico loan                                         |                                         |          | (3,495   | )       |   |         | (5,365   | )      |   |          |         |        
|                                                                                                                                                 | Capital expenditures                                |                                         |          | (145,159 | )       |   |         | (116,081 | )      |   |          | (141,322 | )      
|                                                                                                                                                 | Proceeds from sale of property and equipment        |                                         |          | 18,038   |         |   |         | 38,829   |        |   |          | 7,111    |        
|                                                                                                                                                 | Disposition of USF Asia                             |                                         |          |         |         |   |         |         |        |   |          | (6,000   | )      
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Net cash used in investing activities                                                                                                            |                                                     |                                         | (130,616 | )        |         |   | (87,500 | )        |        |   | (140,211 | )       
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Cash flows from financing activities:                                                                                                            |                                                     |                                         |          |          |         |   |         |          |        |   |          |         
|                                                                                                                                                 | Dividends paid                                      |                                         |          | (10,343  | )       |   |         | (10,135  | )      |   |          | (10,010  | )      
|                                                                                                                                                 | Proceeds from the issuance of common stock          |                                         |          | 24,978   |         |   |         | 13,540   |        |   |          | 8,161    |        
|                                                                                                                                                 | Repurchase of treasury stock                        |                                         |          | (172     | )       |   |         |         |        |   |          |         |        
|                                                                                                                                                 | Proceeds from short-term bank debt                  |                                         |          | 5        |         |   |         |         |        |   |          |         |        
|                                                                                                                                                 | Payments on long-term bank debt                     |                                         |          | (65      | )       |   |         | (5,143   | )      |   |          | (1,042   | )      
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Net cash provided by/(used in) financing activities                                                                                              |                                                     |                                         | 14,403   |          |         |   | (1,738  | )        |        |   | (2,891   | )       
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Net cash used in discontinued operations                                                                                                         |                                                     |                                         |         |          |         |   |        |          |        |   | (1,749   | )       
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Net increase/(decrease) in cash                                                                                                                  |                                                     |                                         | 29,139   |          |         |   | 67,501  |          |        |   | (17,947  | )       
|Cash at beginning of year                                                                                                                        |                                                     |                                         | 121,659  |          |         |   | 54,158  |          |        |   | 72,105   |         
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Cash at end of year                                                                                                                              |                                                     | $                                       | 150,798  |          |         | $ | 121,659 |          |        | $ | 54,158   |         
|                                                                                                                                                 |                                                     |                                         |          |          |         |   |         |          |       
|Supplemental disclosure of cash flow information:                                                                                                |                                                     |                                         |          |          |         |   |         |          |        |   |          |         
|                                                                                                                                                 | Cash paid during the year for:                      |                                         |          |          |         |   |         |          |        |   |          |          |        
|                                                                                                                                                 |                                                     | Interest                                |          | $        | 19,425  |   |         | $        | 19,566 |   |          | $        | 19,481  |  
|                                                                                                                                                 |                                                     | Income taxes                            |          |          | 8,147   |   |         |          | 7,389  |   |          |          | 11,437  |  



26



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Thousands of dollars, except share and per share amounts)




|    |                                           
|--- | ------------------------------------------
|(1) | Summary of Significant Accounting Policies



| |                      
| | ---------------------
| | Basis of Presentation





| |                    
| | -------------------
| | Revenue Recognition





|                                                                                                |                      |      |   |        |      |  |   |        |  |  |   |         |  
|----------------------------------------------------------------------------------------------- | -------------------- | ---- | - | ------ | ---- |  | - | ------ |  |  | - | ------- | -
|Year                                                                                            |                      | 2004 |   |        | 2003 |  |   | 2002   | 
|                                                                                                |                      |      |   |        |      |  |   |        | 
|Income from continuing operations before cumulative effect of
    accounting changes:           |                      |      |   |        |      |  |   |        |  |  |   |        
|                                                                                                | As reported          |      | $ | 23,795 |      |  | $ | 44,101 |  |  | $ | 33,268  |  
|                                                                                                | Pro forma            |      |   | 23,795 |      |  |   | 44,101 |  |  |   | 32,728  |  
|Net income/(loss):                                                                              |                      |      |   |        |      |  |   |        |  |  |   |        
|                                                                                                | As reported          |      | $ | 23,795 |      |  | $ | 42,296 |  |  | $ | (66,971 | )
|                                                                                                | Pro forma            |      |   | 23,795 |      |  |   | 43,763 |  |  |   | (67,511 | )
|Income per share from continuing operations before cumulative
    effect of accounting changes: |                      |      |   |        |      |  |   |        |  |  |   |        
|                                                                                                | As reported, basic   |      | $ | 0.86   |      |  | $ | 1.62   |  |  | $ | 1.23    |  
|                                                                                                | Pro forma, basic     |      |   | 0.86   |      |  |   | 1.62   |  |  |   | 1.22    |  
|                                                                                                | As reported, diluted |      |   | 0.85   |      |  |   | 1.61   |  |  |   | 1.22    |  
|                                                                                                | Pro forma, diluted   |      |   | 0.85   |      |  |   | 1.61   |  |  |   | 1.20    |  
|Net income/(loss) per share:                                                                    |                      |      |   |        |      |  |   |        |  |  |   |        
|                                                                                                | As reported, basic   |      | $ | 0.86   |      |  | $ | 1.55   |  |  | $ | (2.49   | )
|                                                                                                | Pro forma, basic     |      |   | 0.86   |      |  |   | 1.61   |  |  |   | (2.51   | )
|                                                                                                | As reported, diluted |      |   | 0.85   |      |  |   | 1.55   |  |  |   | (2.45   | )
|                                                                                                | Pro forma, diluted   |      |   | 0.85   |      |  |   | 1.60   |  |  |   | (2.47   | )





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(Thousands of dollars, except share and per share amounts)






| |     
| | ----
| | Cash





| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts





| |                
| | ---------------
| | Casualty Claims





| |             
| | ------------
| | Cargo Claims





| |                       
| | ----------------------
| | Property and Equipment





28



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(Thousands of dollars, except share and per share amounts)






| |         
| | --------
| | Goodwill





| |             
| | ------------
| | Income Taxes





| |              
| | -------------
| | Concentration





| |                          
| | -------------------------
| | Earnings/(Loss) Per Share





|                                                                       |  |      |            |  |      |  |            |      |  |  |            | 
|---------------------------------------------------------------------- |  | ---- | ---------- |  | ---- |  | ---------- | ---- |  |  | ---------- | 
|Year                                                                   |  | 2004 |            |  | 2003 |  |            | 2002 | 
|                                                                       |  |      |            |  |      |  |            |      | 
|Weighted-average shares outstanding  basic                            |  |      | 27,805,307 |  |      |  | 27,207,392 |      |  |  | 26,900,311 | 
|Common stock equivalents                                               |  |      | 176,995    |  |      |  | 141,319    |      |  |  | 431,579    | 
|                                                                       |  |      |            |  |      |  |            |      | 
|Weighted-average shares and equivalent  diluted                       |  |      | 27,982,302 |  |      |  | 27,348,711 |      |  |  | 27,331,890 | 
|                                                                       |  |      |            |  |      |  |            |      | 
|Anti-dilutive unexercised stock options excluded from
    calculations |  |      | 648,734    |  |      |  | 862,850    |      |  |  | 1,113,100  | 



| |                         
| | ------------------------
| | Stock-based Compensation



29



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(Thousands of dollars, except share and per share amounts)




|                                                                                                                                                  |  |      |        |  |      |   |        |      |  |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------- | -
|Year                                                                                                                                              |  | 2004 |        |  | 2003 |   |        | 2002 | 
|                                                                                                                                                  |  |      |        |  |      |   |        |      | 
|Net income/(loss)  as reported                                                                                                                   |  | $    | 23,795 |  |      | $ | 42,296 |      |  | $ | (66,971 | )
|Less: total stock-based employee compensation expense determined
    under fair value based method for all awards, net of related tax
    effects |  |      | 3,126  |  |      |   | 4,817  |      |  |   | 5,523   |  
|                                                                                                                                                  |  |      |        |  |      |   |        |      | 
|Net income/(loss)  pro forma                                                                                                                     |  | $    | 20,669 |  |      | $ | 37,479 |      |  | $ | (72,494 | )
|                                                                                                                                                  |  |      |        |  |      |   |        |      | 
|Basic earnings/(loss) per share  as reported                                                                                                     |  | $    | 0.86   |  |      | $ | 1.55   |      |  | $ | (2.49   | )
|Basic earnings/(loss) per share  pro forma                                                                                                       |  |      | 0.75   |  |      |   | 1.38   |      |  |   | (2.69   | )
|Diluted earnings/(loss) per share  as reported                                                                                                   |  |      | 0.85   |  |      |   | 1.55   |      |  |   | (2.45   | )
|Diluted earnings/(loss) per share  pro forma                                                                                                     |  |      | 0.74   |  |      |   | 1.37   |      |  |   | (2.65   | )



| |                             
| | ----------------------------
| | Foreign Currency Translation





| |                       
| | ----------------------
| | Employee Benefit Plans







| |                 
| | ----------------
| | Use of Estimates



30



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(Thousands of dollars, except share and per share amounts)




| |                  
| | -----------------
| | Reclassifications





| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements





|    |                        
|--- | -----------------------
|(2) | Discontinued Operations





|                                            |  |   |        | 
|------------------------------------------- |  | - | ------ | 
|Net assets transferred                      |  | $ | 14,556 | 
|Cash paid                                   |  |   | 20,000 | 
|Write-off of notes receivable               |  |   | 6,000  | 
|Transaction fees and expenses               |  |   | 1,743  | 
|                                            |  |   |       
|Loss on transfer before income tax benefits |  |   | 42,299 | 
|Income tax benefits                         |  |   | 29,060 | 
|                                            |  |   |       
|Loss, net of income tax benefits            |  | $ | 13,239 | 
|                                            |  |   |       



31



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(Thousands of dollars, except share and per share amounts)




|                                       |  |      |   |      |  |   |      |   |  |   |         |  
|-------------------------------------- |  | ---- | - | ---- |  | - | ---- | - |  | - | ------- | -
|Year                                   |  | 2004 |   | 2003 |  |   | 2002 |  
|                                       |  |      |   |      |  |   |      |  
|Revenue                                |  | $    |  |      |  | $ |     |   |  | $ | 187,638 |  
|Loss from operations                   |  |      |  |      |  |   | (577 | ) |  |   | (23,885 | )
|Income tax benefits                    |  |      |  |      |  |   | 239  |   |  |   | 6,907   |  
|                                       |  |      |   |      |  |   |      |   | 
|Loss from operations, net              |  |      |  |      |  |   | (338 | ) |  |   | (16,978 | )
|                                       |  |      |   |      |  |   |      |   | 
|Loss on disposal                       |  |      |  |      |  |   |     |   |  |   | (42,299 | )
|Income tax benefits on disposal        |  |      |  |      |  |   |     |   |  |   | 29,060  |  
|                                       |  |      |   |      |  |   |      |   | 
|Loss on disposal, net                  |  |      |  |      |  |   |     |   |  |   | (13,239 | )
|                                       |  |      |   |      |  |   |      |   | 
|Loss from discontinued operations, net |  | $    |  |      |  | $ | (338 | ) |  | $ | (30,217 | )
|                                       |  |      |   |      |  |   |      |   | 





|    |                                     
|--- | ------------------------------------
|(3) | Restructuring and Impairment Charges





32



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(Thousands of dollars, except share and per share amounts)




|                                          |                                                                            |                   |        |        | 
|----------------------------------------- | -------------------------------------------------------------------------- | ----------------- | ------ | ------ | 
|                                          |                                                                            | Year-to-Date      |       
|                                          |                                                                            | December 31, 2004 |       
|                                          |                                                                            |                   |       
|Shutdown costs:                           |                                                                            |                   |        |       
|                                          | Employee severance                                                         |                   | $      | 5,189  | 
|                                          | Write-off of assets and change in allowance for uncollectible
    accounts |                   |        | 3,332  | 
|                                          | Operating leases and property taxes                                        |                   |        | 906    | 
|                                          | MEPPA accrual                                                              |                   |        | 2,083  | 
|                                          | MEPPA payments                                                             |                   |        | 4,988  | 
|                                          |                                                                            |                   |       
|                                          |                                                                            |                   | 16,498 |       
|Operating losses:                         |                                                                            |                   |        |       
|                                          | Prior to shutdown                                                          |                   |        | 2,961  | 
|                                          | After shutdown                                                             |                   |        | 19,097 | 
|                                          |                                                                            |                   |       
|                                          |                                                                            |                   | 22,058 |       
|                                          |                                                                            |                   |       
|Total shutdown costs and operating losses |                                                                            | $                 | 38,556 |       
|                                          |                                                                            |                   |       



|                             |  |             |      |   |           |   |        |       |  |   |        |  
|---------------------------- |  | ----------- | ---- | - | --------- | - | ------ | ----- |  | - | ------ | -
|                             |  | Lease       |      |   | Severance |   |        |      
|                             |  | Obligations |      |   | Costs     |   |        | Total | 
|                             |  |             |      |   |           |   |        |       | 
|Balance at December 31, 2003 |  | $           |     |   |           | $ |       |       |  | $ |       |  
|Charges                      |  |             | 906  |   |           |   | 5,189  |       |  |   | 6,095  |  
|Payments                     |  |             | (591 | ) |           |   | (4,075 | )     |  |   | (4,666 | )
|                             |  |             |      |   |           |   |        |       | 
|Balance at December 31, 2004 |  | $           | 315  |   |           | $ | 1,114  |       |  | $ | 1,429  |  
|                             |  |             |      |   |           |   |        |       | 





|    |                 
|--- | ----------------
|(4) | Operating Leases





|                 |  |   |        | 
|---------------- |  | - | ------ | 
|Year             |  |  
|                 |  |  
|2005             |  | $ | 16,882 | 
|2006             |  |   | 13,462 | 
|2007             |  |   | 7,672  | 
|2008             |  |   | 4,900  | 
|2009             |  |   | 3,557  | 
|Subsequent years |  |   | 2,773  | 
|                 |  |   |       
|                 |  | $ | 49,246 | 
|                 |  |   |       

33



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(Thousands of dollars, except share and per share amounts)






|    |                                         
|--- | ----------------------------------------
|(5) | Short-Term Borrowings and Long-Term Debt



|                             |  |      |         |  |      |   |         | 
|---------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                             |  | 2004 |         |  | 2003 |  
|                             |  |      |         |  |      |  
|Unsecured notes(a)           |  | $    | 250,000 |  |      | $ | 250,000 | 
|Unsecured lines of credit(b) |  |      |        |  |      |   |        | 
|Secured lines of credit(c)   |  |      |         |  |      |   |         | 
|Other                        |  |      | 87      |  |      |   | 147     | 
|                             |  |      |         |  |      |  
|                             |  |      | 250,087 |  |      |   | 250,147 | 
|Less current maturities      |  |      | 65      |  |      |   | 60      | 
|                             |  |      |         |  |      |  
|                             |  | $    | 250,022 |  |      | $ | 250,087 | 
|                             |  |      |         |  |      |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | We issued guaranteed unsecured notes of $150,000 on
    April 25, 2000 that are due April 15, 2010 and bear
    interest at 8.5%. The notes are redeemable in whole or part any
    time before maturity and have no sinking-fund requirements. We
    also issued guaranteed unsecured notes of $100,000 on
    May 1, 1999 that are due May 1, 2009 and bear interest
    at 6.5 %. The notes are redeemable in whole or part any time
    before maturity and have no sinking-fund requirements. Based
    upon our incremental borrowing rates for similar types of
    borrowing arrangements, the fair value of the notes at
    December 31, 2004 was approximately $286,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|    |  | Our guaranteed notes are fully and unconditionally guaranteed,
    on a joint and several basis, on an unsecured senior basis, by
    substantially all of our direct and indirect domestic
    subsidiaries (the Subsidiary Guarantors). All of our
    assets were owned by the Subsidiary Guarantors and substantially
    all of our operations were conducted by the Subsidiary
    Guarantors. Accordingly, the aggregate assets, liabilities,
    earnings and equity of the Subsidiary Guarantors were
    substantially equivalent to the assets, liabilities, earnings
    and equity shown in our consolidated financial statements. Our
    subsidiaries, other than the Subsidiary Guarantors, are minor.
    There are no restrictions on our ability to obtain funds from
    our subsidiaries by dividend or loan. We, therefore, are not
    required to present separate financial statements of our
    Subsidiary Guarantors, and other disclosures relating to them.                                                                                                                                               
|   
|    |  | On January 31, 2000, we filed a Form S-3 shelf
    registration statement that allowed for the sale of up to
    $400,000 in additional guaranteed notes. As of December 31,
    2004, $250,000 of notes may be issued under this shelf
    registration statement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(b) |  | We have a $200,000 committed credit facility through a syndicate
    of commercial banks that expires in October 2005. The facility
    allows up to $125,000 for standby letters of credit to be
    utilized in our self-insurance program and other letter of
    credit requirements. The facility has an annual fee and contains
    customary financial covenants including maintenance of minimum
    net worth and funded debt to cash flow. At December 31,
    2004, we were in compliance with all covenants related to this
    credit facility. At December 31, 2004, we had no borrowings
    and had $117,442 in outstanding letters of credit under this
    facility. In addition to our committed credit facility, we
    maintained a $10,000 uncommitted line of credit that had no
    outstanding borrowings at December 31, 2004. This facility
    and line of credit are used in conjunction with a centralized
    cash management system to finance our short-term working capital
    needs thereby assisting us and managing our cash balances. We
    intend to renew this facility prior to its expiration.
|   
|(c) |  | On December 28, 2004, we and certain of our subsidiaries
    completed arrangements for a $100,000 3-year trade receivables
    securitization facility with ABN AMRO, Inc. As part of this
    arrangement, we formed a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

34



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | special-purpose, bankruptcy-remote subsidiary (USF Finance
    Company LLC) with two classes of stock. Class A
    shares, which have 100% of the voting rights but no beneficial
    interests, are held exclusively by an external independent
    entity and Class B shares, which have no voting rights but
    have 100% of the beneficial interests, are held exclusively by
    USF Corporation. The sole purpose of USF Finance Company LLC is
    to buy receivables from certain subsidiaries of ours and sell
    undivided interests in accounts receivable to certain commercial
    paper conduits of ABN AMRO Inc. and to USF Assurance Company Ltd
    (100% owned subsidiary of USF Corporation). The assets of USF
    Finance Company LLC are not available to pay our claims or any
    of its entities.
|
| |  | Sales of undivided interests in the pool of accounts receivables
    are accounted for as a secured borrowing whereby all receivables
    outstanding under the program and the corresponding debt will be
    recognized in our consolidated balance sheet, and as part of the
    LTL Group for segment reporting in Note 14. USF Finance
    Company LLC had $190,626 million of accounts receivable at
    December 31, 2004. There were no securitized borrowings
    outstanding at December 31, 2004.                                                                                                                                                                                                                                                                                                                  
|
| |  | The ongoing costs of this program were charged to interest
    expense in the Consolidated Statements of Operations. At
    December 31, 2004, we were in compliance with all covenants
    related to the securitization program.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



|                 |  |        |         | 
|---------------- |  | ------ | ------- | 
|Year             |  | Amount |        
|                 |  |        |        
|2005             |  | $      | 65      | 
|2006             |  |        | 22      | 
|2007             |  |        |        | 
|2008             |  |        |        | 
|2009             |  |        | 100,000 | 
|Subsequent years |  |        | 150,000 | 
|                 |  |        |        
|                 |  | $      | 250,087 | 
|                 |  |        |        



|    |             
|--- | ------------
|(6) | Income Taxes



|                                             |  |        |        |   |          |  |      |        |  |   |          |  |  |        |      |   |          |   |        |  |  |  |      |  
|-------------------------------------------- |  | ------ | ------ | - | -------- |  | ---- | ------ |  | - | -------- |  |  | ------ | ---- | - | -------- | - | ------ |  |  |  | ---- | -
|                                             |  | 2004   |        |   | 2003     |  |      | 2002   | 
|                                             |  |        |        |   |          |  |      |        | 
|Year                                         |  | Amount |        |   | Tax Rate |  |      | Amount |  |   | Tax Rate |  |  | Amount |      |   | Tax Rate |  
|                                             |  |        |        |   |          |  |      |        |  |   |          |  |  |        |      |   |          |  
|Federal income tax at statutory
    rate     |  | $      | 14,625 |   |          |  | 35.0 | %      |  | $ | 25,792   |  |  |        | 35.0 | % |          | $ | 21,665 |  |  |  | 35.0 | %
|State income tax, net of federal tax benefit |  |        | 4,880  |   |          |  | 11.1 | %      |  |   | 2,991    |  |  |        | 4.0  | % |          |   | 2,861  |  |  |  | 4.6  | %
|Foreign income taxes                         |  |        | 913    |   |          |  | 0.4  | %      |  |   | 642      |  |  |        | 0.1  | % |          |   | 16     |  |  |  |     |  
|Asia exit costs                              |  |        |       |   |          |  |     |        |  |   |         |  |  |        |     |   |          |   | 3,500  |  |  |  | 5.6  | %
|Other                                        |  |        | (355   | ) |          |  | -0.8 | %      |  |   | 1,759    |  |  |        | 2.3  | % |          |   | 682    |  |  |  | 1.1  | %
|                                             |  |        |        |   |          |  |      |        |  |   |          |  |  |        |      |   |          |  
|Total income tax expense                     |  | $      | 20,063 |   |          |  | 45.7 | %      |  | $ | 31,184   |  |  |        | 41.4 | % |          | $ | 28,724 |  |  |  | 46.3 | %
|                                             |  |        |        |   |          |  |      |        |  |   |          |  |  |        |      |   |          |  



35



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(Thousands of dollars, except share and per share amounts)




|                         |  |      |        |   |      |   |        |      |  |   |        |  
|------------------------ |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|Year                     |  | 2004 |        |   | 2003 |   |        | 2002 | 
|                         |  |      |        |   |      |   |        |      | 
|Current expense:         |  |      |        |   |      |   |        |      |  |   |        |  
|Federal                  |  | $    | 12,509 |   |      | $ | 9,421  |      |  | $ | 25,147 |  
|State                    |  |      | 5,671  |   |      |   | 4,653  |      |  |   | 4,793  |  
|Foreign                  |  |      | 913    |   |      |   | 642    |      |  |   | 16     |  
|                         |  |      |        |   |      |   |        |      | 
|                         |  |      | 19,093 |   |      |   | 14,716 |      |  |   | 29,956 |  
|                         |  |      |        |   |      |   |        |      | 
|Deferred expense:        |  |      |        |   |      |   |        |      |  |   |        |  
|Federal                  |  |      | (623   | ) |      |   | 16,519 |      |  |   | (841   | )
|State                    |  |      | 1,593  |   |      |   | (51    | )    |  |   | (391   | )
|                         |  |      |        |   |      |   |        |      | 
|                         |  |      | 970    |   |      |   | 16,468 |      |  |   | (1,232 | )
|                         |  |      |        |   |      |   |        |      | 
|Total income tax expense |  | $    | 20,063 |   |      | $ | 31,184 |      |  | $ | 28,724 |  
|                         |  |      |        |   |      |   |        |      | 



|                                                                        |  |      |         |  |      |   |         |  
|----------------------------------------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | -
|                                                                        |  | 2004 |         |  | 2003 |  
|                                                                        |  |      |         |  |      |  
|Deferred tax assets:                                                    |  |      |         |  |      |   |         |  
|Deferred compensation                                                   |  | $    | 8,150   |  |      | $ | 7,450   |  
|Insurance and claims                                                    |  |      | 59,309  |  |      |   | 50,840  |  
|Vacation pay                                                            |  |      | 10,182  |  |      |   | 10,941  |  
|Tax loss credit and carry forwards                                      |  |      | 4,529   |  |      |   | 3,459   |  
|Other                                                                   |  |      | 372     |  |      |   | (237    | )
|                                                                        |  |      |         |  |      |  
|                                                                        |  |      | 82,542  |  |      |   | 72,453  |  
|                                                                        |  |      |         |  |      |  
|Deferred tax liabilities:                                               |  |      |         |  |      |   |         |  
|Software development costs                                              |  |      | 12,856  |  |      |   | 12,221  |  
|Property and equipment, principally due to accelerated
    depreciation |  |      | 132,600 |  |      |   | 122,176 |  
|                                                                        |  |      |         |  |      |  
|Net deferred tax liabilities                                            |  | $    | 62,914  |  |      | $ | 61,944  |  
|                                                                        |  |      |         |  |      |  







36



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(Thousands of dollars, except share and per share amounts)




|    |                       
|--- | ----------------------
|(7) | Employee Benefit Plans











|    |             
|--- | ------------
|(8) | Common Stock





37



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(Thousands of dollars, except share and per share amounts)








|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |   |           |   |  |   |       | 
|-------------------------------------------------------------- |  | ------ | --------- | --------- | ----- | - | ----- | ------ | --------- | - | --------- | - |  | --------- | ----- |  | ----- | - | --------- | - |  | - | ----- | 
|Year                                                           |  | 2004   |           |           | 2003  |   |       | 2002   |          
|                                                               |  |        |           |           |       |   |       |        |          
|                                                               |  |        |           | Weighted- |       |   |       |        | Weighted- |   |           |   |  | Weighted- |      
|                                                               |  |        |           | Average   |       |   |       |        | Average   |   |           |   |  | Average   |      
|                                                               |  |        |           | Exercise  |       |   |       |        | Exercise  |   |           |   |  | Exercise  |      
|                                                               |  | Shares |           |           | Price |   |       | Shares |           |   | Price     |   |  | Shares    |       |  | Price |  
|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |  
|Outstanding at beginning of year                               |  |        | 2,516,843 |           |       | $ | 30.23 |        |           |   | 3,133,886 |   |  | $         | 29.82 |  |       |   | 2,659,113 |   |  | $ | 28.48 | 
|Granted                                                        |  |        | 75,000    |           |       |   | 33.27 |        |           |   | 366,200   |   |  |           | 29.80 |  |       |   | 928,110   |   |  |   | 32.45 | 
|Exercised                                                      |  |        | (761,200  | )         |       |   | 25.57 |        |           |   | (372,143  | ) |  |           | 24.83 |  |       |   | (228,721  | ) |  |   | 22.90 | 
|Forfeited                                                      |  |        | (445,730  | )         |       |   | 29.58 |        |           |   | (611,100  | ) |  |           | 30.54 |  |       |   | (224,616  | ) |  |   | 31.93 | 
|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |  
|Outstanding at end of
    year                                 |  |        | 1,384,913 |           |       |   | 31.71 |        |           |   | 2,516,843 |   |  |           | 30.23 |  |       |   | 3,133,886 |   |  |   | 29.82 | 
|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |  
|Options exercisable at year end                                |  |        | 953,033   |           |       |   | 31.85 |        |           |   | 1,594,386 |   |  |           | 29.22 |  |       |   | 1,424,497 |   |  |   | 28.03 | 
|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |  
|Weighted-average fair value of options granted during the year |  | $      | 8.87      |           |       |   |       |        |           | $ | 7.05      |   |  |           |       |  |       | $ | 11.81     |   |  |   |       | 
|                                                               |  |        |           |           |       |   |       |        |           |   |           |   |  |           |       |  |       |  



|                |  |                     |           |           |                  |  |      |                |                     |   |                |  |  |                |         |  |  |   |       | 
|--------------- |  | ------------------- | --------- | --------- | ---------------- |  | ---- | -------------- | ------------------- | - | -------------- |  |  | -------------- | ------- |  |  | - | ----- | 
|                |  | Outstanding Options |           |           |                  |  |     
|                |  |                     |           |           |                 
|                |  |                     |           | Weighted- |                  |  |      |                | Options Exercisable |  
|                |  |                     |           | Average   |                  |  |      |                |                     |  
|                |  | Number              |           |           | Remaining        |  |      | Weighted-      |                     |   | Number         |  |  | Weighted-      |        
|Range of        |  | Outstanding         |           |           | Contractual Life |  |      | Average        |                     |   | Exercisable at |  |  | Average        |        
|Exercise Prices |  | at 12/31/04         |           |           | (Years)          |  |      | Exercise Price |                     |   | 12/31/04       |  |  | Exercise Price |        
|                |  |                     |           |           |                  |  |      |                |                     |   |                |  |  |                |        
|$19.63-$24.06   |  |                     | 255,100   |           |                  |  | 5.57 |                |                     | $ | 23.17          |  |  |                | 180,600 |  |  | $ | 22.92 | 
|24.94-27.31     |  |                     | 190,500   |           |                  |  | 3.84 |                |                     |   | 25.00          |  |  |                | 190,500 |  |  |   | 25.00 | 
|28.92-33.42     |  |                     | 398,513   |           |                  |  | 6.61 |                |                     |   | 30.70          |  |  |                | 215,513 |  |  |   | 30.54 | 
|34.06-46.63     |  |                     | 540,800   |           |                  |  | 6.07 |                |                     |   | 38.84          |  |  |                | 366,420 |  |  |   | 40.59 | 
|                |  |                     |           |           |                  |  |      |                |                     |   |                |  |  |                |        
|                |  |                     | 1,384,913 |           |                  |  | 5.83 |                |                     | $ | 31.71          |  |  |                | 953,033 |  |  | $ | 31.85 | 
|                |  |                     |           |           |                  |  |      |                |                     |   |                |  |  |                |        

38



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(Thousands of dollars, except share and per share amounts)






|    |                                     
|--- | ------------------------------------
|(9) | Goodwill and Other Intangible Assets



|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |         |  |  |   |         |  
|----------------------------------------------------------------------- |  | ---------- | - | ----- | -------- | - | ------- | ------------ | ----- | - | -------- | - |  | ------------ | ------- |  |  | - | ------- | -
|Year                                                                    |  |            |   | 2004  |          |   | 2003    |             
|                                                                        |  |            |   |       |          |   |         |             
|                                                                        |  |            |   | Gross |          |   |         |              | Gross |   |          |  
|                                                                        |  | Average    |   |       | Carrying |   |         | Accumulated  |       |   | Carrying |   |  | Accumulated  |        
|                                                                        |  | Life (Yrs) |   |       | Amount   |   |         | Amortization |       |   | Amount   |   |  | Amortization |        
|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |        
|Amortized intangible assets:                                            |  |            |   |       |          |   |         |              |       |   |          |   |  |              |         |  |  |   |         |  
|Customer lists                                                          |  |            | 5 |       |          | $ | 270     |              |       | $ | (171     | ) |  | $            | 9,444   |  |  | $ | (7,411  | )
|Non-competes                                                            |  |            | 5 |       |          |   | 191     |              |       |   | (73      | ) |  |              | 5,347   |  |  |   | (5,184  | )
|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |        
|Total                                                                   |  |            |   |       |          | $ | 461     |              |       | $ | (244     | ) |  | $            | 14,791  |  |  | $ | (12,595 | )
|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |        
|Intangible assets not subject to amortization:                          |  |            |   |       |          |   |         |              |       |   |          |   |  |              |         |  |  |   |         |  
|Goodwill                                                                |  |            |   |       |          | $ | 100,813 |              |       | $ |         |   |  | $            | 100,813 |  |  | $ |        |  
|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |        
|Aggregate amortization expense for the year ended
    December 31, 2004 |  |            |   |       |          | $ | 2,033   |              |       |   |          |   |  |              |         |  |  |   |         |  
|                                                                        |  |            |   |       |          |   |         |              |       |   |          |   |  |              |        







|     |       |   |     |     | 
|---- | ----- | - | --- | --- | 
|Year |       |  
|     |       |  
|2005 |       | $ | 128 |    
|2006 |       |   | 89  |    
|     |       |   |    
|     | Total |   | $   | 217 | 
|     |       |   |    

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|                                |  |     |        |  |    |   |        |           |  |   |        |  |  |   |         | 
|------------------------------- |  | --- | ------ |  | -- | - | ------ | --------- |  | - | ------ |  |  | - | ------- | 
|                                |  | LTL |        |  | TL |   |        | Logistics |  |   | Total  | 
|                                |  |     |        |  |    |   |        |           |  |   |        | 
|Balance as of December 31, 2002 |  | $   | 57,273 |  |    | $ | 10,574 |           |  | $ | 32,662 |  |  | $ | 100,509 | 
|Additions                       |  |     |        |  |    |   | 304    |           |  |   |        |  |  |   | 304     | 
|                                |  |     |        |  |    |   |        |           |  |   |        | 
|Balance as of December 31, 2003 |  |     | 57,273 |  |    |   | 10,878 |           |  |   | 32,662 |  |  |   | 100,813 | 
|Additions                       |  |     |        |  |    |   |        |           |  |   |        |  |  |   |         | 
|                                |  |     |        |  |    |   |        |           |  |   |        | 
|Balance as of December 31, 2004 |  | $   | 57,273 |  |    | $ | 10,878 |           |  | $ | 32,662 |  |  | $ | 100,813 | 
|                                |  |     |        |  |    |   |        |           |  |   |        | 



|     |                              
|---- | -----------------------------
|(10) | Commitments and Contingencies









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|     |                
|---- | ---------------
|(11) | Related Parties



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|     |             
|---- | ------------
|(12) | Acquisitions





|     |              
|---- | -------------
|(13) | Joint Venture





|     |                  
|---- | -----------------
|(14) | Business Segments





|                                         |  |      |           |   |      |   |           |      |  |   |           |  
|---------------------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|Year                                     |  | 2004 |           |   | 2003 |   |           | 2002 | 
|                                         |  |      |           |   |      |   |           |      | 
|Revenue                                  |  |      |           |   |      |   |           |      |  |   |           |  
|LTL                                      |  | $    | 2,005,330 |   |      | $ | 1,898,668 |      |  | $ | 1,866,892 |  
|TL                                       |  |      | 133,725   |   |      |   | 128,093   |      |  |   | 114,151   |  
|Logistics                                |  |      | 269,378   |   |      |   | 276,441   |      |  |   | 278,161   |  
|Intercompany eliminations                |  |      | (13,854   | ) |      |   | (11,063   | )    |  |   | (8,678    | )
|Corporate and Other                      |  |      |          |   |      |   |          |      |  |   |          |  
|                                         |  |      |           |   |      |   |           |      | 
|Total Revenue from Continuing Operations |  | $    | 2,394,579 |   |      | $ | 2,292,139 |      |  | $ | 2,250,526 |  
|                                         |  |      |           |   |      |   |           |      | 

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|                                                                                                                         |  |      |           |   |      |   |           |      |  |   |           |  
|------------------------------------------------------------------------------------------------------------------------ |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|Year                                                                                                                     |  | 2004 |           |   | 2003 |   |           | 2002 | 
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Income From Operations                                                                                                   |  |      |           |   |      |   |           |      |  |   |           |  
|LTL                                                                                                                      |  | $    | 93,348    |   |      | $ | 110,555   |      |  | $ | 105,172   |  
|TL                                                                                                                       |  |      | 3,368     |   |      |   | 4,663     |      |  |   | 5,311     |  
|Logistics                                                                                                                |  |      | 9,765     |   |      |   | 9,270     |      |  |   | 12,603    |  
|Freight Forwarding  Asia exit costs                                                                                     |  |      |          |   |      |   |          |      |  |   | (12,760   | )
|Corporate and Other                                                                                                      |  |      | (40,703   | ) |      |   | (26,527   | )    |  |   | (28,237   | )
|Amortization of intangibles                                                                                              |  |      | (2,033    | ) |      |   | (2,369    | )    |  |   | (1,235    | )
|Interest expense                                                                                                         |  |      | (20,917   | ) |      |   | (20,900   | )    |  |   | (20,516   | )
|Interest income                                                                                                          |  |      | 2,824     |   |      |   | 1,867     |      |  |   | 2,708     |  
|Other, net                                                                                                               |  |      | (1,794    | ) |      |   | (1,274    | )    |  |   | (1,054    | )
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Income from continuing operations before income taxes,
    minority interest and cumulative effect of accounting changes |  | $    | 43,858    |   |      | $ | 75,285    |      |  | $ | 61,992    |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Assets                                                                                                                   |  |      |           |   |      |   |           |      |  |   |           |  
|LTL                                                                                                                      |  | $    | 1,004,288 |   |      | $ | 1,005,102 |      |  | $ | 952,309   |  
|TL                                                                                                                       |  |      | 92,346    |   |      |   | 93,523    |      |  |   | 87,336    |  
|Logistics                                                                                                                |  |      | 146,636   |   |      |   | 142,958   |      |  |   | 154,153   |  
|Corporate and Other                                                                                                      |  |      | 197,925   |   |      |   | 116,505   |      |  |   | 101,473   |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Total Assets                                                                                                             |  | $    | 1,441,195 |   |      | $ | 1,358,088 |      |  | $ | 1,295,271 |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Capital Expenditures                                                                                                     |  |      |           |   |      |   |           |      |  |   |           |  
|LTL                                                                                                                      |  | $    | 104,764   |   |      | $ | 72,000    |      |  | $ | 99,333    |  
|TL                                                                                                                       |  |      | 11,352    |   |      |   | 7,858     |      |  |   | 18,194    |  
|Logistics                                                                                                                |  |      | 7,803     |   |      |   | 6,197     |      |  |   | 15,324    |  
|Corporate and Other                                                                                                      |  |      | 21,240    |   |      |   | 30,026    |      |  |   | 8,471     |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Total Capital Expenditures                                                                                               |  | $    | 145,159   |   |      | $ | 116,081   |      |  | $ | 141,322   |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Depreciation Expense                                                                                                     |  |      |           |   |      |   |           |      |  |   |           |  
|LTL                                                                                                                      |  | $    | 72,369    |   |      | $ | 73,000    |      |  | $ | 72,726    |  
|TL                                                                                                                       |  |      | 11,494    |   |      |   | 10,985    |      |  |   | 10,900    |  
|Logistics                                                                                                                |  |      | 11,958    |   |      |   | 11,998    |      |  |   | 12,208    |  
|Corporate and Other                                                                                                      |  |      | 8,524     |   |      |   | 4,787     |      |  |   | 4,039     |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 
|Total Depreciation Expense                                                                                               |  | $    | 104,345   |   |      | $ | 100,770   |      |  | $ | 99,873    |  
|                                                                                                                         |  |      |           |   |      |   |           |      | 

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|     |                                            
|---- | -------------------------------------------
|(15) | Quarterly Financial Information (unaudited)

|                                         |  |       |         |  |        |   |         |       |  |   |         |  |  |       |         |  |  |   |           | 
|---------------------------------------- |  | ----- | ------- |  | ------ | - | ------- | ----- |  | - | ------- |  |  | ----- | ------- |  |  | - | --------- | 
|Quarters                                 |  | First |         |  | Second |   |         | Third |  |   | Fourth  |  |  | Total |        
|                                         |  |       |         |  |        |   |         |       |  |   |         |  |  |       |        
|2004                                     |  |       |         |  |        |   |         |       |  |   |         |  |  |       |         |  |  |   |           | 
|Revenue                                  |  | $     | 616,767 |  |        | $ | 611,860 |       |  | $ | 582,079 |  |  | $     | 583,873 |  |  | $ | 2,394,579 | 
|Income/(loss) from continuing operations |  |       | 7,116   |  |        |   | (2,017  | )     |  |   | 12,068  |  |  |       | 6,628   |  |  |   | 23,795    | 
|Net income/(loss)                        |  |       | 7,116   |  |        |   | (2,017  | )     |  |   | 12,068  |  |  |       | 6,628   |  |  |   | 23,795    | 
|Net income/(loss) per share  basic      |  |       | 0.26    |  |        |   | (0.07   | )     |  |   | 0.43    |  |  |       | 0.24    |  |  |   | 0.86      | 
|Net income/(loss) per share  diluted    |  |       | 0.26    |  |        |   | (0.07   | )     |  |   | 0.43    |  |  |       | 0.23    |  |  |   | 0.85      | 
|Dividends declared per share             |  |       | 0.0933  |  |        |   | 0.0933  |       |  |   | 0.0933  |  |  |       | 0.0933  |  |  |   | 0.37330   | 
|                                        
|2003                                     |  |       |         |  |        |   |         |       |  |   |         |  |  |       |         |  |  |   |           | 
|Revenue                                  |  | $     | 593,702 |  |        | $ | 567,085 |       |  | $ | 584,705 |  |  | $     | 546,647 |  |  | $ | 2,292,139 | 
|Income from continuing operations        |  |       | 4,240   |  |        |   | 8,114   |       |  |   | 13,091  |  |  |       | 18,656  |  |  |   | 44,101    | 
|Net income                               |  |       | 2,766   |  |        |   | 8,076   |       |  |   | 12,961  |  |  |       | 18,493  |  |  |   | 42,296    | 
|Net income per share  basic             |  |       | 0.10    |  |        |   | 0.30    |       |  |   | 0.47    |  |  |       | 0.67    |  |  |   | 1.55      | 
|Net income per share  diluted           |  |       | 0.10    |  |        |   | 0.30    |       |  |   | 0.47    |  |  |       | 0.67    |  |  |   | 1.55      | 
|Dividends declared per share             |  |       | 0.0933  |  |        |   | 0.0933  |       |  |   | 0.0933  |  |  |       | 0.0933  |  |  |   | 0.37330   | 



|     |                  
|---- | -----------------
|(16) | Subsequent Events










|          |                        
|--------- | -----------------------
|Item 9A  | Controls and Procedures



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Management Report on Internal Control Over Financial
Reporting






| |   |                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | pertain to the maintenance of records that in reasonable detail
    accurately and fairly reflect the transactions and dispositions
    of our assets;                                                                                                                                                                                                                   
|
| |  | provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with accounting principles generally accepted in the
    United States of America, and that our receipts and expenditures
    are being made only in accordance with authorizations of our
    management and directors; and
|
| |  | provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of our
    assets that could have a material effect on the financial
    statements.                                                                                                                                                           



Internal Control-Integrated Framework.






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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





Internal Control 
Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated
Framework






|                              | 
|----------------------------- | 
|/s/ Deloitte & Touche
    LLP | 
|                              | 
|Deloitte & Touche LLP         | 





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PART III







|          |                                                   
|--------- | --------------------------------------------------
|Item 10  | Directors and Executive Officers of the Registrant



|                      |  |     |    |  |          |                                                                                             
|--------------------- |  | --- | -- |  | -------- | --------------------------------------------------------------------------------------------
|Name                  |  | Age |    |  | Position
|                      |  |     |    |  |         
|Directors             |  |     |    |  |          |                                                                                             
|Morley Koffman        |  |     | 75 |  |          | Director                                                                                    
|Stephen W. Lilienthal |  |     | 55 |  |          | Director                                                                                    
|Anthony J. Paoni      |  |     | 60 |  |          | Director                                                                                    
|Glenn R. Richter      |  |     | 43 |  |          | Director                                                                                    
|Neil A. Springer      |  |     | 66 |  |          | Director                                                                                    
|Michael L. Thompson   |  |     | 49 |  |          | Director                                                                                    
|Paul J. Liska         |  |     | 49 |  |          | Executive Chairman and Director                                                             
|Thomas E. Bergmann    |  |     | 38 |  |          | Interim Chief Executive Officer & Chief Financial
    Officer                               
|Steven Caddy          |  |     | 48 |  |          | President and CEO, USF Holland Inc.                                                         
|Edward R. Fitzgerald  |  |     | 46 |  |          | President and CEO, USF Reddaway Inc.                                                        
|Douglas R. Waggoner   |  |     | 46 |  |          | President and CEO, USF Bestway Inc., formerly Senior Vice
    President, Strategic Marketing











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Section 16(a) Beneficial Ownership Reporting
Compliance




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|          |                       
|--------- | ----------------------
|Item 11  | Executive Compensation








|          |                                                                   
|--------- | ------------------------------------------------------------------
|Item 12  | Security Ownership of Certain Beneficial Owners and
    Management



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|                                                             |                                                          |                         |           |     |            |  |       |  | 
|------------------------------------------------------------ | -------------------------------------------------------- | ----------------------- | --------- | --- | ---------- |  | ----- |  | 
|                                                             |                                                          | Amount of               |           |     | Percent of | 
|Name and Address of Beneficial Owner                         |                                                          | Beneficial Ownership(1) |           |     | Class(2)   | 
|                                                             |                                                          |                         |           |     |            | 
|Wellington Management Company, LLP                           |                                                          |                         | 3,236,342 |     |            |  | 11.6% | 
|                                                             | 75 State St.
    Boston, MA 02109                        |                         |           |     |            |  |       |  | 
|FMR Corp.                                                    |                                                          |                         | 3,059,666 |     |            |  | 10.9% | 
|                                                             | 82 Devonshire Street,
    Boston, Massachusetts 02109    |                         |           |     |            |  |       |  | 
|Dimensional Fund Advisors Inc.                               |                                                          |                         | 1,831,226 |     |            |  | 6.6%  | 
|                                                             | 1299 Ocean Avenue, 11th Floor
    Santa Monica, CA 90401 |                         |           |     |            |  |       |  | 
|AXA Financial, Inc. and affiliates                           |                                                          |                         | 1,733,346 |     |            |  | 6.2%  | 
|                                                             | 1290 Avenue of the Americas
    New York, New York 10104 |                         |           |     |            |  |       |  | 
|Mac-Per-Wolf Company                                         |                                                          |                         | 1,627,086 |     |            |  | 5.8%  | 
|                                                             | 310 S. Michigan Ave., Suite 2600
    Chicago, IL 60604   |                         |           |     |            |  |       |  | 
|HYMF Limited                                                 |                                                          |                         | 1,547,887 |     |            |  | 5.5%  | 
|                                                             | 45 Fremont St., 17th FL
    San Francisco, CA 94105      |                         |           |     |            |  |       |  | 
|Paul J. Liska                                                |                                                          |                         | 2,214     |     |            |  | *     | 
|Morley Koffman                                               |                                                          |                         | 1,780     | (3) |            |  | *     | 
|Stephen W. Lilienthal                                        |                                                          |                         | 845       |     |            |  | *     | 
|Anthony J. Paoni                                             |                                                          |                         | 2,085     |     |            |  | *     | 
|Michael L. Thompson                                          |                                                          |                         | 572       |     |            |  | *     | 
|Neil A. Springer                                             |                                                          |                         | 4,585     |     |            |  | *     | 
|Glenn R. Richter                                             |                                                          |                         | 0         |     |            |  | *     | 
|Thomas E. Bergmann                                           |                                                          |                         | 35,000    |     |            |  | *     | 
|Douglas R. Waggoner                                          |                                                          |                         | 8,500     |     |            |  | *     | 
|Edward R. Fitzgerald                                         |                                                          |                         | 8,824     |     |            |  | *     | 
|Steven Caddy                                                 |                                                          |                         | 10,000    |     |            |  | *     | 
|All directors and executive officers as a group (11 persons) |                                                          |                         | 74,405    |     |            |  | *     | 






| |   |              
| | - | -------------
| | * | Less than 1%.



|    |                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Unless otherwise indicated, the persons named below have sole
    voting and investment power with respect to the number of shares
    set forth opposite their names.
|   
|(2) | Calculated using 28,389,043 shares as the number of shares
    outstanding.                                                                                           
|   
|(3) | Includes 1,250 shares held indirectly through 1575 Holdings
    Ltd.                                                                                                  

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Equity Compensation Plan Table




|                                                                  |       |                      |           |           |                      |                      |                     |                       |  |  |           |           | 
|----------------------------------------------------------------- | ----- | -------------------- | --------- | --------- | -------------------- | -------------------- | ------------------- | --------------------- |  |  | --------- | --------- | 
|                                                                  |       |                      |           |           |                      | (c)                  |                    
|                                                                  |       |                      |           |           |                      | Number of securities |                    
|                                                                  |       |                      |           |           |                      | remaining available  |                    
|                                                                  |       | (a)                  |           |           |                      |                      | for future issuance |                      
|                                                                  |       | Number of securities |           |           | (b)                  |                      |                     | under equity          | 
|                                                                  |       | to be issued upon    |           |           | Weighted-average     |                      |                     | compensation plans    | 
|                                                                  |       | exercise of          |           |           | exercise price of    |                      |                     | (excluding securities | 
|                                                                  |       | outstanding options, |           |           | outstanding options, |                      |                     | reflected             | 
|Plan category                                                     |       | warrants and rights  |           |           | warrants and rights  |                      |                     | in column (a))        | 
|                                                                  |       |                      |           |           |                      |                      |                     |                       | 
|Equity compensation plans approved by security holders(1)         |       |                      | 1,384,913 |           |                      | $                    | 31.71               |                       |  |  | 1,836,335 | (3)      
|Equity compensation plans not approved by
    security holders(2) |       |                      | 0         |           |                      |                      | 0                   |                       |  |  | 140,910   | (4)      
|                                                                  |       |                      |           |           |                      |                      |                     |                       | 
|                                                                  | TOTAL |                      |           | 1,384,913 |                      |                      | $                   | 31.71                 |  |  |           | 1,977,245 | 
|                                                                  |       |                      |           |           |                      |                      |                     |                       | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Consists of the Long-Term Incentive Plan, the Employee Stock
    Purchase Plan, the Directors Option Plan, and the 1992
    Stock Option Plan. Under the Employee Stock Purchase Plan,
    purchases are made on or about the last day of each month and,
    accordingly, as of the close of business on December 31,
    2004, no purchase rights remain outstanding. The securities
    reflected in column (a) do not include 70,500 shares
    of restricted stock that have been issued, but are not yet
    vested.
|   
|(2) | Consists of the Directors Compensation Plan and the
    Non-Qualified Employee Stock Purchase Plan. Under the
    Non-Qualified Employee Stock Purchase Plan, purchases are made
    on the last day of each month and, accordingly, as of the close
    of business on December 31, 2004, no purchase rights
    remained outstanding.                                                                                                                                                                                   
|   
|(3) | 227,000 remaining shares may be issued as restricted stock
    awards under our Long-Term Incentive Plan and no shares remain
    available for issuance under our Employee Stock Purchase Plan.                                                                                                                                                                                                                                                                                                                           
|   
|(4) | Includes 128,901 shares available for issuance under our
    Non-Qualified Employee Stock Purchase Plan and
    12,009 shares available for grants under the Directors
    Compensation Plan.                                                                                                                                                                                                                                                                                                                              

Directors Compensation Plan


®


Non-Qualified Employee Stock Purchase Plan




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|          |                                               
|--------- | ----------------------------------------------
|Item 13  | Certain Relationships and Related Transactions








|          |                                       
|--------- | --------------------------------------
|Item 14  | Principal Accounting Fees and Services



|                                   |  |      |       |  |      |   |       | 
|---------------------------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                                   |  | 2004 |       |  | 2003 |  
|                                   |  |      |       |  |      |  
|Audit Fees                         |  | $    | 1,209 |  |      | $ | 529   | 
|Audit Related Fees(1)              |  |      | 43    |  |      |   | 113   | 
|                                   |  |      |       |  |      |  
|Total audit and audit-related fees |  |      | 1,252 |  |      |   | 642   | 
|                                   |  |      |       |  |      |  
|Tax fees(2)                        |  |      | 1,721 |  |      |   | 1,401 | 
|All other fees(3)                  |  |      | 45    |  |      |   |      | 
|                                   |  |      |       |  |      |  
|Total fees                         |  | $    | 3,018 |  |      | $ | 2,043 | 
|                                   |  |      |       |  |      |  






|    |                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit-related fees include benefit plan audits, accounting
    consultation, assistance with registration statements and
    consents.
|   
|(2) | Tax fees include those for compliance, planning and advice as
    discussed in more detail below:                                     



| |   |                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Fees for tax compliance were $1,065 and $803 in 2004 and 2003,
    respectively, and include Federal and state income tax return
    assistance, sales, use, and fuel tax assistance, and state and
    local tax incentive assistance.           
|
| |  | Fees for tax planning and advice were $656 and $598 in 2004 and
    2003, respectively, and include advice related to the royalty
    company and captive insurer, the disposition of our
    freight-forwarding segment and foreign tax planning.



|    |                                                                          
|--- | -------------------------------------------------------------------------
|(3) | All other fees are related to officer compensation advisory
    services.



| |                                                             
| | ------------------------------------------------------------
| | Pre-Approval Policy for Services of Independent
    Auditors



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(Thousands of dollars, except share and per share amounts)







PART IV







|          |                                                                     
|--------- | --------------------------------------------------------------------
|Item 15  | Exhibits, Financial Statements Schedules and Reports on
    Form 8-K





Schedule II  Valuation and Qualifying
Accounts


USF Corporation


Three Years ended December 31, 2004


|                                                                                 |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |   |       |  |  |   |        | 
|-------------------------------------------------------------------------------- |  | ---------------------------------------------------------- | ------ |  | ---------- | - | ----- | ---------- |  | ------------- | - | ------- | ------- | - | ----- |  |  | - | ------ | 
|                                                                                 |  | Additions                                                  |       
|                                                                                 |  |                                                            |       
|                                                                                 |  | Balance at                                                 |        |  | Charges to |   |       | Charged to |  |               |   | Balance |        
|                                                                                 |  | Beginning                                                  |        |  | Costs and  |   |       | Other      |  |               |   | at End  |        
|Description                                                                      |  | of Year                                                    |        |  | Expenses   |   |       | Accounts   |  | Deductions(1) |   |         | of Year |  
|                                                                                 |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |  
|                                                                                 |  | (Thousands of dollars, except share and per share amounts) |       
|Year ended December 31, 2002                                                     |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |   |       |  |  |   |        | 
|Accounts receivable allowances for revenue adjustments and
    doubtful accounts |  | $                                                          | 11,606 |  |            | $ | 9,373 |            |  | $             |  |         |         | $ | 7,393 |  |  | $ | 13,586 | 
|Year ended December 31, 2003                                                     |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |   |       |  |  |   |        | 
|Accounts receivable allowances for revenue adjustments and
    doubtful accounts |  | $                                                          | 13,586 |  |            | $ | 5,933 |            |  | $             |  |         |         | $ | 8,489 |  |  | $ | 11,030 | 
|Year ended December 31, 2004                                                     |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |   |       |  |  |   |        | 
|Accounts receivable allowances for revenue adjustments and
    doubtful accounts |  | $                                                          | 11,030 |  |            | $ | 5,680 |            |  | $             |  |         |         | $ | 5,578 |  |  | $ | 11,132 | 
|                                                                                 |  |                                                            |        |  |            |   |       |            |  |               |   |         |         |   |      






|    |                                                               
|--- | --------------------------------------------------------------
|(1) | Primarily uncollectible accounts written off net of recoveries



|        |     |                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------- | --- | -------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |                     
|Number  |     | Document Description
|        |     |                     
|        | 3.1 |                      |  | Amended and Restated Certificate of Incorporation of USF
    Corporation (incorporated by reference from Exhibit 3.1 to
    USF Corporation Transition Report on Form 10-K, from
    June 29, 1991 to December 28, 1991); Certificate of
    Designation for Series A Junior Participating Cumulative
    Preferred Stock (incorporated by reference from
    Exhibit 3(a) to USF Corporation Annual Report on
    Form 10-K for the year ended January 1, 1994);
    Certificate of Amendment of Restated Certificate of
    Incorporation of USF Corporation (incorporated by reference from
    Exhibit 3.1 to USF Corporation Annual Report on
    Form 10-K for the year ended December 31, 2003).
|        | 3.2 |                      |  | Bylaws of USF Corporation, as restated as of January 29,
    2004 (incorporated by reference from Exhibit 3.1 to USF
    Corporation Quarterly Report on Form 10-Q for the quarter
    ended April 3, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 4.1 |                      |  | Indenture, dated as of May 5, 1999 among USF Corporation,
    the Guarantors named therein and Bank One, Michigan, as Trustee
    (as the successor-in-interest to NBD Bank) (incorporated by
    reference from Exhibit 4.1 to USF Corporation Current
    Report on Form 8-K, filed on May 11, 1999).                                                                                                                                                                                                                                                                                                                                                                                                

53



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(Thousands of dollars, except share and per share amounts)


|        |       |  |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------- | ----- |  | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |                     
|Number  |       |  | Document Description
|        |       |  |                     
|        | 4.2   |  |                      | First Supplemental Indenture, dated as of January 31, 2000
    among USF Corporation, the Guarantors named therein and Bank
    One, Michigan, as Trustee (as the successor-in-interest to NBD
    Bank) (incorporated by reference from Exhibit to USF Corporation
    Registration Statement on Form S-3, filed on
    January 31, 2000, Registration No. 333-95777).                                                                                                                                                       
|        | 10.1  |  |                      | USF Corporation Stock Option Plan (incorporated by reference
    from Exhibit 10.18 to USF Corporation Transition Report on
    Form 10-K from June 29, 1991 to December 28,
    1991).                                                                                                                                                                                                                                                                                                                                       
|        | 10.2  |  |                      | Stock Option Plan for Non-Employee Directors amended and
    restated as of March 14, 2003 (incorporated by reference
    from Exhibit 10.1 to USF Corporation Quarterly Report on
    Form  10-Q for the quarter ended July 5, 2003).                                                                                                                                                                                                                                                                                        
|        | 10.3  |  |                      | Employment Agreement of Christopher L. Ellis dated
    December 16, 1991 (incorporated by reference from
    Exhibit 10(g) to USF Corporation Annual Report on
    Form 10-K for the year ended January 1, 1994).                                                                                                                                                                                                                                                                                                             
|        | 10.4  |  |                      | Form of Election of Deferral (incorporated by reference from
    Exhibit 10(h) to USF Corporation Annual Report on
    Form 10-K for the year ended December 31, 1994).                                                                                                                                                                                                                                                                                                                                                       
|        | 10.5  |  |                      | USF Long-Term Incentive Plan amended and restated as of
    May 2, 2003 (incorporated by reference from
    Exhibit 10.2 to USF Corporation Quarterly Report on
    Form 10-Q for the quarter ended July 5, 2003).                                                                                                                                                                                                                                                                                                            
|        | 10.6  |  |                      | $200,000 Credit Agreement dated as of October 24, 2002
    among USF Corporation, the banks named therein and Harris Trust
    and Savings Bank, as administrative agent (incorporated by
    reference from Exhibit 10.6 to USF Corporation Annual
    Report on Form 10-K for the year ended December 31,
    2002), and amended as of December 15, 2004 among USF
    Corporation, the banks named therein and Harris Trust and
    Savings Bank, as administrative agent (filed with this Annual
    Report on Form 10-K).
|        | 10.7  |  |                      | Form of Irrevocable Guaranty and Indemnity relating to the
    Credit Agreement described in Exhibit 10(m) (incorporated
    by reference from Exhibit 10(l) to USF Corporation Annual
    Report on Form 10-K for the year ended January 3,
    1998).                                                                                                                                                                                                                                                                       
|        | 10.8  |  |                      | USF Corporation Non-Qualified Deferred Compensation Plan
    (incorporated by reference from Exhibit 10(q) to USF
    Corporation Annual Report on Form 10-K for the year ended
    December 31, 1998).                                                                                                                                                                                                                                                                                                                       
|        | 10.9  |  |                      | Retirement Agreement of Samuel K. Skinner dated as of
    April 22, 2003 (incorporated by reference from
    Exhibit 10.4 to USF Corporation Quarterly Report on
    Form 10-Q for the quarter ended July 5, 2003).                                                                                                                                                                                                                                                                                                           
|        | 10.10 |  |                      | 61/2%
    Guaranteed Note due May 1, 2009 (incorporated by reference
    from Exhibit 4.2 to USF Corporation Current Report on
    Form 8-K, filed on May 11, 1999).                                                                                                                                                                                                                                                                                                                                                          
|        | 10.11 |  |                      | 81/2%
    Guaranteed Note due on April 15, 2010 (incorporated by
    reference from Exhibit 4.1 to USF Corporation Current
    Report on Form 8-K, filed on April 26, 2000).                                                                                                                                                                                                                                                                                                                                                  
|        | 10.12 |  |                      | Consulting Agreement and Release of John Campbell Carruth dated
    as of October 27, 2000 (incorporated by reference from
    Exhibit 10(o) to USF Corporation Annual Report on
    Form 10-K for the year ended December 31, 2000).                                                                                                                                                                                                                                                                                         
|        | 10.13 |  |                      | USF Corporation Supplemental Executive Retirement Plan
    (incorporated by reference from Exhibit 10(p) to USF
    Corporation Annual Report on Form 10-K for the year ended
    December 31, 2000).                                                                                                                                                                                                                                                                                                                         
|        | 10.14 |  |                      | Employment Agreement of Richard P. DiStasio dated as of
    September 15, 2003 (incorporated by reference from
    Exhibit 10.1 to USF Corporation Quarterly Report on
    Form 10-Q for the quarter ended October 4, 2003).                                                                                                                                                                                                                                                                                                  
|        | 10.15 |  |                      | USF Corporation Capital Accumulation Plan (incorporated by
    reference from Exhibit 10.15 to USF Corporation Annual
    Report on Form 10-K for the year ended December 31,
    2003).                                                                                                                                                                                                                                                                                                                                      

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(Thousands of dollars, except share and per share amounts)


|        |       |  |                      |                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------- | ----- |  | -------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |                     
|Number  |       |  | Document Description
|        |       |  |                     
|        | 10.16 |  |                      | Employment Agreement of Thomas E. Bergmann dated as of
    February 7, 20054 (incorporated by reference from
    Exhibit 10.1 to USF Corporation Quarterly Report on
    Form 10-Q for the quarter ended April 3, 2004), and
    amended under an Employment Letter Agreement dated as of
    February  7, 2005 (incorporated by reference from
    Exhibit 10.2 to USF Corporation Current Report on
    Form 8-K filed February 7, 2005).
|        | 10.17 |  |                      | Employment Letter Agreement of Paul J. Liska dated as of
    February 7, 2005 (incorporated by reference from
    Exhibit 10.1 to USF Corporation Current Report on
    Form 8-K filed February 7, 2005).                                                                                                                                                                                                                                  
|        | 10.18 |  |                      | USF Corporation Board of Directors Fee Schedule (filed with this
    Annual Report on Form 10-K).                                                                                                                                                                                                                                                                                                                                          
|        | 10.19 |  |                      | USF Corporation 1005 Annual Incentive Plan (filed with this
    Annual Report on Form 10-K).                                                                                                                                                                                                                                                                                                                                               
|        | 10.20 |  |                      | Separation Agreement and General Release Agreement between USF
    Corporation and Richard P. DiStasio dated as of November 2,
    2004 (incorporated by reference from Exhibit 10.1 to USF
    Corporation Current Report on Form 8-K filed
    November 2, 2004).                                                                                                                                                                        
|        | 21    |  |                      | Subsidiaries of USF Corporation (filed with this Annual Report
    on Form 10-K).                                                                                                                                                                                                                                                                                                                                                          
|        | 23    |  |                      | Consent of Deloitte & Touche LLP.                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 24    |  |                      | Power of Attorney.                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 31    |  |                      | Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002                                                                                                                                                                                                                                                                                                                                                                
|        | 32    |  |                      | Certification Pursuant to Section 906 of the Sarbanes-Oxley
    Act of 2002                                                                                                                                                                                                                                                                                                                                                                



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SIGNATURES






| |                
| | ---------------
| | USF Corporation



| |     |                       
| | --- | ----------------------
| | By: | /s/ Thomas E. Bergmann

| |                                
| | -------------------------------
| |                                
| | Thomas E. Bergmann             
| | Interim Chief Executive Officer
| | and Chief Financial Officer    



|                                                        |  |                                                                   |  |                |  | 
|------------------------------------------------------- |  | ----------------------------------------------------------------- |  | -------------- |  | 
|Signatures                                              |  | Title                                                             |  | Date          
|                                                        |  |                                                                   |  |               
|                                                       
|/s/ Paul J. Liska*Paul
    J. Liska                     |  | Executive Chairman of the Board of Directors and Director         |  | March 15, 2005
|                                                       
|/s/ Thomas E. BergmannThomas
    E. Bergmann            |  | Interim Chief Executive Officer
    (Principal Executive Officer) |  | March 15, 2005
|                                                       
|/s/ Stephen W.
    Lilienthal*Stephen
    W. Lilienthal |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Morley Koffman*Morley
    Koffman                   |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Neil A. Springer*Neil
    A. Springer               |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Michael L.
    Thompson*Michael
    L. Thompson     |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Glenn R. Richter*Glenn
    R. Richter               |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Anthony J. Paoni*Anthony
    J. Paoni               |  | Director                                                          |  | March 15, 2005
|                                                       
|/s/ Thomas E. BergmannThomas
    E. Bergmann            |  | Chief Financial Officer
    (Principal Financial Officer)         |  | March 15, 2005

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|                                                                            |  |                                               |  |                |  | 
|--------------------------------------------------------------------------- |  | --------------------------------------------- |  | -------------- |  | 
|Signatures                                                                  |  | Title                                         |  | Date          
|                                                                            |  |                                               |  |               
|                                                                           
|/s/ James T. CastroJames
    T. Castro                                      |  | Controller
    (Principal Accounting Officer) |  | March 15, 2005
|                                                                           
|/s/ Thomas E. Bergmann*By:
    Thomas E.
    Bergmann      Attorney-in-Fact |  |                                               |  |               

57