Forward Air Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

Segment Reporting

3 Months Ended

Mar. 31, 2019

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 Intermodal segment primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. The TLS segment provides expedited truckload brokerage, dedicated fleet services and high security and temperature-controlled logistics services. 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, 2018. 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 months ended March 31, 2019 and 2018.



	Three months ended March 31, 2019
	Expedited LTL		Intermodal		Truckload Premium			Pool Distribution		Eliminations & other			Consolidated
External revenues	$	177,355	$	54,097	$	44,923		$	45,096	$	—		$	321,471
Intersegment revenues	1,198		18		744			89		(2,049		)	—
Depreciation	4,968		469		1,564			1,315		—			8,316
Amortization	825		1,407		22			257		—			2,511
Share-based compensation expense	2,021		531		148			182		165			3,047
Interest expense	—		13		1			—		561			575
Income (loss) from operations	19,547		6,181		841			1,251		(3,086		)	24,734
Total assets	566,887		182,489		74,638			102,678		(41,115		)	885,577
Capital expenditures	2,081		73		156			1,780		—			4,090

	Three months ended March 31, 2018
	Expedited LTL		Intermodal		Truckload Premium			Pool Distribution		Eliminations & other			Consolidated
External revenues	$	168,363	$	48,477	$	43,161		$	42,607	$	—		$	302,608
Intersegment revenues	1,581		91		2,933			64		(4,669		)	—
Depreciation	4,623		509		1,703			1,546		—			8,381
Amortization	905		1,092		55			257		—			2,309
Share-based compensation expense	1,675		290		180			116		—			2,261
Interest expense	—		13		1			—		357			371
Income (loss) from operations	20,773		3,469		(43		)	1,371		(1,335		)	24,235
Total assets	442,802		150,321		65,263			57,324		(25,503		)	690,207
Capital expenditures	6,058		81		4			78		—			6,221