| 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 and final mile 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 these 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, 2019 and 2018.
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Three months ended September 30, 2019 |
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Expedited LTL |
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Intermodal |
|
Truckload Premium |
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Pool Distribution |
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Eliminations & other |
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Consolidated |
External revenues |
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$ |
207,423 |
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$ |
58,317 |
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$ |
44,999 |
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$ |
50,924 |
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$ |
— |
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$ |
361,663 |
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Intersegment revenues |
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2,638 |
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29 |
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|
459 |
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|
38 |
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(3,164 |
) |
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— |
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Depreciation |
|
4,006 |
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|
1,050 |
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|
1,182 |
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1,296 |
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— |
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7,534 |
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Amortization |
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1,174 |
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1,542 |
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21 |
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|
257 |
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— |
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2,994 |
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Share-based compensation expense |
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1,899 |
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|
340 |
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(4 |
) |
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135 |
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|
392 |
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2,762 |
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Interest expense |
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— |
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67 |
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2 |
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— |
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692 |
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|
761 |
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Income (loss) from operations |
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25,896 |
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6,900 |
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606 |
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1,867 |
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(4,580 |
) |
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30,689 |
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Total assets |
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626,946 |
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205,444 |
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75,622 |
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114,824 |
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(42,203 |
) |
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980,633 |
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Capital expenditures |
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8,658 |
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207 |
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|
160 |
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1,479 |
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— |
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10,504 |
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Three months ended September 30, 2018 |
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Expedited LTL |
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Intermodal |
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Truckload Premium |
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Pool Distribution |
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Eliminations & other |
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Consolidated |
External revenues |
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$ |
186,544 |
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$ |
50,496 |
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$ |
47,158 |
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$ |
47,177 |
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$ |
— |
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$ |
331,375 |
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Intersegment revenues |
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1,963 |
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49 |
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|
784 |
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|
103 |
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(2,899 |
) |
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— |
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Depreciation |
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4,773 |
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|
342 |
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1,522 |
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1,442 |
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— |
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8,079 |
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Amortization |
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825 |
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1,113 |
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21 |
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257 |
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— |
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2,216 |
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Share-based compensation expense |
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1,961 |
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|
262 |
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178 |
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114 |
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|
332 |
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2,847 |
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Interest expense |
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— |
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10 |
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2 |
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— |
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460 |
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|
472 |
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Income (loss) from operations |
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23,724 |
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7,321 |
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1,673 |
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735 |
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(3,574 |
) |
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29,879 |
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Total assets |
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480,389 |
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159,428 |
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70,841 |
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60,672 |
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(28,189 |
) |
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743,141 |
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Capital expenditures |
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15,253 |
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|
276 |
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30 |
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1,179 |
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— |
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16,738 |
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Nine months ended September 30, 2019 |
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Expedited LTL |
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Intermodal |
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Truckload Premium |
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Pool Distribution |
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Eliminations & other |
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Consolidated |
External revenues |
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$ |
588,766 |
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$ |
162,936 |
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$ |
135,467 |
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$ |
141,722 |
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$ |
— |
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$ |
1,028,891 |
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Intersegment revenues |
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5,570 |
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64 |
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1,772 |
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230 |
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(7,636 |
) |
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— |
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Depreciation |
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13,823 |
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1,983 |
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4,225 |
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3,834 |
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(1 |
) |
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23,864 |
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Amortization |
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3,058 |
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4,278 |
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64 |
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|
772 |
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— |
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8,172 |
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Share-based compensation expense |
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6,193 |
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1,313 |
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261 |
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|
470 |
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|
769 |
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9,006 |
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Interest expense |
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— |
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69 |
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6 |
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— |
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1,841 |
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|
1,916 |
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Income (loss) from operations |
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72,332 |
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18,326 |
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2,137 |
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4,685 |
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(11,507 |
) |
|
85,973 |
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Total assets |
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626,946 |
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205,444 |
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75,622 |
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114,824 |
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(42,203 |
) |
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980,633 |
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Capital expenditures |
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22,330 |
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|
422 |
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|
488 |
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3,862 |
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— |
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27,102 |
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Nine months ended September 30, 2018 |
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Expedited LTL |
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Intermodal |
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Truckload Premium |
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Pool Distribution |
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Eliminations & other |
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Consolidated |
External revenues |
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$ |
546,066 |
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$ |
148,058 |
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$ |
137,221 |
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$ |
132,980 |
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$ |
— |
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$ |
964,325 |
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Intersegment revenues |
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5,276 |
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|
217 |
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5,761 |
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|
276 |
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(11,530 |
) |
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— |
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Depreciation |
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14,127 |
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|
1,295 |
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4,765 |
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4,436 |
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— |
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24,623 |
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Amortization |
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2,555 |
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3,298 |
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|
98 |
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|
772 |
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— |
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6,723 |
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Share-based compensation expense |
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5,595 |
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|
776 |
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|
524 |
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|
342 |
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|
288 |
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|
7,525 |
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Interest expense |
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1 |
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47 |
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5 |
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— |
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1,274 |
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|
1,327 |
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Income (loss) from operations |
|
71,023 |
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|
16,333 |
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|
3,348 |
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3,695 |
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(7,415 |
) |
|
86,984 |
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Total assets |
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480,389 |
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159,428 |
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70,841 |
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60,672 |
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(28,189 |
) |
|
743,141 |
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Capital expenditures |
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31,960 |
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|
482 |
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|
70 |
|
|
1,832 |
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— |
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|
34,344 |
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