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

Quarterly report pursuant to Section 13 or 15(d)

Acquisitions and Long-Lived Assets (Tables)

Acquisitions and Long-Lived Assets (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

The initial weighted average assumptions used in the Monte Carlo simulation are summarized in the following table:



	FSA Earn-out

Risk-free rate	2.4%
Revenue discount rate	8.5%
Revenue volatility	9.0%

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table presents the allocations of the FSA and OST purchase price to the assets acquired and liabilities assumed based on their estimated fair values and resulting residual goodwill (in thousands):



	FSA		OST
	April 21, 2019		July 14, 2019
Tangible assets:
Cash	$	202	$	—
Other receivables	1,491		—
Property and equipment	40		10,604
Operating lease right-of-use assets	3,209		1,672
Total tangible assets	4,942		12,276
Intangible assets:
Non-compete agreements	900		850
Customer relationships	17,100		5,700
Goodwill	19,281		2,050
Total intangible assets	37,281		8,600
Total assets acquired	42,223		20,876

Liabilities assumed:
Current liabilities	7,664		—
Other liabilities	4,350		—
Debt and finance lease obligations	—		7,204
Operating lease obligations	3,209		1,672
Total liabilities assumed	15,223		8,876
Net assets acquired	$	27,000	$	12,000

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

The acquired definite-lived intangible assets have the following useful lives:



	Useful Lives
	FSA	OST
Non-compete agreements	5 years	3 years
Customer relationships	15 years	10 years

Schedule of Goodwill [Table Text Block]

The following is a summary of the Company's goodwill as of September 30, 2019. Approximately $141,279 of goodwill is deductible for tax purposes.



	Beginning balance, December 31, 2018			FSA Acquisition		OST Acquisition		Ending balance, September 30, 2019
Expedited LTL
Goodwill	$	97,593		$	19,281	$	—	$	116,874
Accumulated Impairment	—			—		—		—

Intermodal
Goodwill	76,615			—		2,050		78,665
Accumulated Impairment	—			—		—		—

TLS
Goodwill	45,164			—		—		45,164
Accumulated Impairment	(25,686		)	—		—		(25,686		)

Pool Distribution
Goodwill	12,359			—		—		12,359
Accumulated Impairment	(6,953		)	—		—		(6,953		)

Total	$	199,092		$	19,281	$	2,050	$	220,423