Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
 9 Months Ended
Sep. 30, 2018
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, 2017. For workers compensation and vehicle claims each segment is charged an insurance premium and is also charged a deductible that corresponds with each segment's individual self retention limit. 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 ("Eliminations & other").

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. The basis for the majority of shared assets, such as trailers, are included in Expedited LTL.  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, 2018 and 2017.
 
 
Three months ended September 30, 2018
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
186,544

 
$
47,158

 
$
47,177

 
$
50,496

 
$
—

 
$
331,375

Intersegment revenues
 
1,963

 
784

 
103

 
49

 
(2,899
)
 
—

Depreciation and amortization
 
5,598

 
1,543

 
1,699

 
1,455

 
—

 
10,295

Share-based compensation expense
 
1,961

 
178

 
114

 
262

 
332

 
2,847

Interest expense
 
—

 
2

 
—

 
10

 
460

 
472

Income from operations
 
23,724

 
1,673

 
735

 
7,321

 
(3,574
)
 
29,879

Total assets
 
672,186

 
70,841

 
60,672

 
159,428

 
(219,986
)
 
743,141

Capital expenditures
 
15,253

 
30

 
1,179

 
276

 
—

 
16,738

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2017
 
 
(As Adjusted)
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
164,702

 
$
49,385

 
$
40,125

 
$
44,077

 
$
—

 
$
298,289

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 (loss) from operations
 
23,189

 
124

 
681

 
3,785

 
(603
)
 
27,176

Total assets
 
638,704

 
59,657

 
53,201

 
146,836

 
(222,998
)
 
675,400

Capital expenditures
 
8,372

 
7

 
239

 
330

 
—

 
8,948

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
546,066

 
$
137,221

 
$
132,980

 
$
148,058

 
$
—

 
$
964,325

Intersegment revenues
 
5,276

 
5,761

 
276

 
217

 
(11,530
)
 
—

Depreciation and amortization
 
16,682

 
4,863

 
5,208

 
4,593

 
—

 
31,346

Share-based compensation expense
 
5,595

 
524

 
342

 
776

 
288

 
7,525

Interest expense
 
1

 
5

 
—

 
47

 
1,274

 
1,327

Income (loss) from operations
 
71,023

 
3,348

 
3,695

 
16,333

 
(7,415
)
 
86,984

Total assets
 
672,186

 
70,841

 
60,672

 
159,428

 
(219,986
)
 
743,141

Capital expenditures
 
31,960

 
70

 
1,832

 
482

 
—

 
34,344

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2017
 
 
(As Adjusted)
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
472,723

 
$
144,753

 
$
116,542

 
$
110,191

 
$
—

 
$
844,209

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
 
65,164

 
3,734

 
3,672

 
9,548

 
(1,204
)
 
80,914

Total assets
 
638,704

 
59,657

 
53,201

 
146,836

 
(222,998
)
 
675,400

Capital expenditures
 
12,640

 
15

 
524

 
431

 
—

 
13,610