Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.8.0.1
Segment Reporting
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

The Company operates in four reportable segments based on information available to and used by the chief operating decision maker.  Expedited LTL operates a comprehensive national network that provides expedited regional, inter-regional and national LTL services.  The TLS segment provides expedited truckload brokerage, dedicated fleet services and high security and temperature-controlled logistics services. The Intermodal segment primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. Pool Distribution provides high-frequency handling and distribution of time sensitive product to numerous destinations.

Except for certain insurance activity, the accounting policies of the segments are the same as those described in the summary of significant accounting policies disclosed in Note 1 of the Forward Air Corporation Annual Report on Form 10-K for the year ended December 31, 2016. For workers compensation and vehicle claims each segment is charged an insurance premium and is also charged a deductible that corresponds with our corporate deductibles. However, any losses beyond our deductibles and any loss development factors applied to our outstanding claims as a result of actuarial analysis are not passed to the segments, but reported at the corporate level.

Segment data includes intersegment revenues and shared costs.  Costs of the corporate headquarters, shared services and shared assets, such as trailers, are allocated to the segments based on usage. The cost basis of shared assets are not allocated.  Beginning in the first quarter of 2017, a trailer expense allocation was included in Pool's 2017 results from operations. The Company evaluates the performance of its segments based on income from operations.   The Company’s business is conducted in the U.S. and Canada.

The following tables summarize segment information about results from operations and assets used by the chief operating decision maker of the Company in making decisions regarding allocation of assets and resources as of and for the three and nine months ended September 30, 2017 and 2016.
 
 
Three months ended September 30, 2017
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
155,006

 
$
43,865

 
$
39,122

 
$
42,208

 
$
—

 
$
280,201

Intersegment revenues
 
697

 
2,076

 
58

 
84

 
(2,915
)
 
—

Depreciation and amortization
 
5,438

 
1,546

 
1,652

 
1,690

 
—

 
10,326

Share-based compensation expense
 
1,604

 
101

 
90

 
144

 
—

 
1,939

Interest expense
 
1

 
—

 
—

 
12

 
275

 
288

Income from operations
 
23,204

 
136

 
681

 
3,480

 
(603
)
 
26,898

Total assets
 
633,914

 
59,657

 
53,201

 
145,394

 
(222,998
)
 
669,168

Capital expenditures
 
8,372

 
7

 
239

 
330

 
—

 
8,948

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2016
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
143,753

 
$
41,927

 
$
36,305

 
$
27,567

 
$
—

 
$
249,552

Intersegment revenues
 
584

 
283

 
132

 
12

 
(1,011
)
 
—

Depreciation and amortization
 
5,470

 
1,470

 
1,472

 
987

 
—

 
9,399

Share-based compensation expense
 
1,792

 
98

 
84

 
119

 
—

 
2,093

Interest expense
 
385

 
—

 
—

 
12

 
(181
)
 
216

Income (loss) from operations
 
21,014

 
2,038

 
66

 
3,041

 
(1,459
)
 
24,700

Total assets
 
634,028

 
52,465

 
46,327

 
128,048

 
(219,355
)
 
641,513

Capital expenditures
 
11,915

 
36

 
722

 
11

 
—

 
12,684


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2017
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
446,658

 
$
128,666

 
$
113,639

 
$
105,737

 
$
—

 
$
794,700

Intersegment revenues
 
1,913

 
4,246

 
199

 
116

 
(6,474
)
 
—

Depreciation and amortization
 
16,521

 
4,694

 
5,067

 
4,296

 
—

 
30,578

Share-based compensation expense
 
4,980

 
281

 
297

 
407

 
—

 
5,965

Interest expense
 
2

 
—

 
—

 
36

 
768

 
806

Income (loss) from operations
 
64,596

 
3,699

 
3,672

 
9,133

 
(1,204
)
 
79,896

Total assets
 
633,914

 
59,657

 
53,201

 
145,394

 
(222,998
)
 
669,168

Capital expenditures
 
12,640

 
15

 
524

 
431

 
—

 
13,610

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2016
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
421,194

 
$
119,574

 
$
100,726

 
$
76,243

 
$
—

 
$
717,737

Intersegment revenues
 
2,216

 
696

 
427

 
148

 
(3,487
)
 
—

Depreciation and amortization
 
16,278

 
4,944

 
4,434

 
2,753

 
—

 
28,409

Share-based compensation expense
 
5,353

 
260

 
251

 
340

 
—

 
6,204

Interest expense
 
1,345

 
—

 
—

 
66

 
(181
)
 
1,230

Income (loss) from operations
 
63,026

 
(36,679
)
 
(191
)
 
8,170

 
(2,570
)
 
31,756

Total assets
 
634,028

 
52,465

 
46,327

 
128,048

 
(219,355
)
 
641,513

Capital expenditures
 
24,487

 
1,821

 
2,275

 
142

 
—

 
28,725