Annual report pursuant to Section 13 and 15(d)

Segment Reporting (Notes)

v3.19.3.a.u2
Segment Reporting (Notes)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
 
Effective September 1, 2018, Thomas Schmitt was named the Company's President and Chief Executive Officer. Mr. Schmitt is the Company's Chief Operating Decision Maker ("CODM") and is primarily responsible for allocating resources to and assessing the performance of the Company's segments. As a result of this change in leadership, the Company revisited its strategy. Due to this change in leadership and the implementation of a new strategy, Management changed how it evaluates and manages the business effective in the fourth quarter of 2019 and classifies our services into three reportable segments: Expedited Freight, Intermodal and Pool Distribution. The results of our previous Expedited LTL and TLS segments have been consolidated into our Expedited Freight segment. This classification is consistent with how the CODM makes decisions about resource allocation and assesses the Company's performance. The Company has recast its financial information and disclosures for the prior period to reflect the segment disclosures as if the current presentation had been in effect throughout all periods presented. For financial information relating to each of our business segments, see Note 10, Segment Reporting to our Consolidated Financial Statements.

Expedited Freight operates a comprehensive national network to provide expedited regional, inter-regional and national LTL services. Expedited Freight offers customers local pick-up and delivery and other services including final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling. Included within the $988,757 of Expedited Freight revenue for the year end December 31, 2019 are defined services including Network revenue of $676,911, Truckload revenue of $184,663, Final Mile revenue of $100,555 and other revenue of $26,628. Intermodal provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. Pool 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. 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 disclosed in Note 1. However, any losses beyond our deductibles and any loss development factors applied to our outstanding claims as a result of actuary analysis are not passed to the segments, but recorded at the corporate level within Eliminations and Other.

Segment data includes intersegment revenues.  Costs of the corporate headquarters and shared services are allocated to the segments based on usage. The expense associated with shared operating assets, such as trailers, is allocated between operating segments based on usage. However, the carrying value of the asset's basis is not allocated. 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 years ended December 31, 2019, 2018 and 2017.

Year ended December 31, 2019
 
Expedited Freight
 
Intermodal

Pool Distribution

Eliminations & Other

Consolidated
External revenues
 
$
985,697

 
$
217,606


$
207,092


$
—


$
1,410,395

Intersegment revenues
 
3,060

 
105


297


(3,462
)

—

Depreciation
 
22,993

 
3,086


4,884


(67
)

30,896

Amortization
 
4,336

 
5,848

 
1,029

 
—

 
11,213

Share-based compensation expense
 
8,628

 
1,801


644


834


11,907

Interest expense
 
—

 
142


—


2,569


2,711

Income (loss) from operations
 
101,065

 
23,679


7,275


(13,196
)

118,823

Total assets
 
713,527

 
206,576


115,638


(44,863
)

990,878

Capital expenditures
 
22,179

 
717


5,313


—


28,209


Year ended December 31, 2018 (As Adjusted)
 
Expedited Freight
 
Intermodal

Pool Distribution

Eliminations & Other

Consolidated
External revenues
 
$
926,446

 
$
200,750


$
193,690


$
—


$
1,320,886

Intersegment revenues
 
4,678

 
256


427


(5,361
)

—

Depreciation
 
25,453

 
1,719


5,871


2


33,045

Amortization
 
3,499

 
4,610

 
1,029

 
—

 
9,138

Share-based compensation expense
 
8,457

 
984


453


655


10,549

Interest expense
 
(20
)
 
58


—


1,745


1,783

Income (loss) from operations
 
101,440

 
23,266


5,870


(8,545
)

122,031

Total assets
 
550,051

 
167,002


64,306


(21,144
)

760,215

Capital expenditures
 
38,710

 
854


2,729


—


42,293


Year ended December 31, 2017 (As Adjusted)
 
Expedited Freight
 
Intermodal

Pool Distribution

Eliminations & Other

Consolidated
External revenues
 
$
846,706

 
$
154,446


$
168,194


$
—


$
1,169,346

Intersegment revenues
 
3,701

 
238


289


(4,228
)

—

Depreciation
 
23,260

 
1,867


5,732


3


30,862

Amortization
 
5,171

 
3,981

 
1,041

 
—

 
10,193

Share-based compensation expense
 
7,154

 
562


387


—


8,103

Interest expense
 
5

 
48


—


1,156


1,209

Income (loss) from operations
 
91,184

 
12,963


6,378


(1,768
)

108,757

Total assets
 
506,652

 
149,150


55,970


(19,150
)

692,622

Capital expenditures
 
36,683

 
514


1,068


—


38,265