Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting

The Company operates in two reportable segments based on information available to and used by the chief operating decision maker ("CODM").  This classification is consistent with how the CODM makes decisions about resource allocation and assesses the Company's performance. 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.

Expedited Freight operates a comprehensive national network to provide expedited regional, inter-regional and national LTL services and offers customers local pick-up and delivery and other services including final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling. Intermodal primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads.

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, Description of Business and Basis of Presentation, to the Forward Air Corporation Annual Report on Form 10-K for the year ended December 31, 2019. 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 outstanding claims as a result of actuary analysis are not passed to the segments, but recorded 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. Instead, the cost basis for the majority of shared assets, such as trailers, are included in Expedited Freight.  

The following tables summarize segment information from continuing operations for the three and six months ended June 30, 2020 and 2019:
 
 
Three months ended June 30, 2020
 
 
Expedited Freight
 
Intermodal
 
Eliminations & other
 
Continuing Operations
External revenues
 
$
235,417

 
$
46,420

 
$
—

 
$
281,837

Intersegment revenues
 
241

 
8

 
(408
)
 
(159
)
Depreciation
 
5,009

 
1,081

 
25

 
6,115

Amortization
 
1,731

 
1,567

 
—

 
3,298

Share-based compensation expense
 
2,062

 
472

 
(105
)
 
2,429

Interest expense
 
3

 
59

 
1,136

 
1,198

Income (loss) from operations
 
11,753

 
4,413

 
(2,252
)
 
13,914

Total assets
 
912,814

 
212,923

 
(139,702
)
 
986,035

Capital expenditures
 
11,545

 
18

 
—

 
11,563

 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2019 (As Adjusted)
 
 
Expedited Freight
 
Intermodal
 
Eliminations & other
 
Continuing Operations
External revenues
 
$
252,468

 
$
50,522

 
$
—

 
$
302,990

Intersegment revenues
 
818

 
17

 
(938
)
 
(103
)
Depreciation
 
6,399

 
463

 
(46
)
 
6,816

Amortization
 
1,081

 
1,330

 
—

 
2,411

Share-based compensation expense
 
2,391

 
443

 
211

 
3,045

Interest expense
 
2

 
—

 
579

 
581

Income (loss) from operations
 
28,187

 
5,245

 
(4,362
)
 
29,070

Total assets
 
687,570

 
187,815

 
(20,530
)
 
854,855

Capital expenditures
 
11,761

 
142

 
—

 
11,903



 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2020
 
 
Expedited Freight
 
Intermodal
 
Eliminations & other
 
Continuing Operations
External revenues
 
$
488,560

 
$
98,875

 
$
—

 
$
587,435

Intersegment revenues
 
727

 
13

 
(940
)
 
(200
)
Depreciation
 
9,916

 
2,134

 
43

 
12,093

Amortization
 
3,519

 
3,135

 
—

 
6,654

Share-based compensation expense
 
4,729

 
861

 
(83
)
 
5,507

Interest expense
 
6

 
113

 
1,932

 
2,051

Income (loss) from operations
 
26,933

 
8,126

 
(5,372
)
 
29,687

Total assets
 
912,814

 
212,923

 
(139,702
)
 
986,035

Capital expenditures
 
13,950

 
264

 
—

 
14,214

 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2019 (As Adjusted)
 
 
Expedited Freight
 
Intermodal
 
Eliminations & other
 
Continuing Operations
External revenues
 
$
477,421

 
$
104,619

 
$
—

 
$
582,040

Intersegment revenues
 
1,523

 
35

 
(1,750
)
 
(192
)
Depreciation
 
13,005

 
932

 
(86
)
 
13,851

Amortization
 
1,927

 
2,737

 
—

 
4,664

Share-based compensation expense
 
4,560

 
974

 
376

 
5,910

Interest expense
 
4

 
2

 
1,150

 
1,156

Income (loss) from operations
 
49,093

 
11,426

 
(7,747
)
 
52,772

Total assets
 
687,570

 
187,815

 
(20,530
)
 
854,855

Capital expenditures
 
13,999

 
215

 
—

 
14,214


The following table summarizes revenue from the defined services included within Expedited Freight revenue for the three and six months ended June 30, 2020 and 2019:
 
 
Three months ended
 
Six months ended
 
 
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
 
 
 
 
 
 
 
 
 
Expedited freight revenue:
 
 
 
 
 
 
 
 
Network revenue
 
$
134,173

 
$
172,491

 
$
286,182

 
$
333,841

Truckload revenue
 
41,857

 
48,624

 
89,384

 
96,309

Final mile revenue
 
53,427

 
24,957

 
101,229

 
34,714

Other revenue
 
6,201

 
7,214

 
12,492

 
14,080

Total revenue
 
$
235,658

 
$
253,286

 
$
489,287

 
$
478,944