Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Held for Sale (Notes)

v3.20.2
Discontinued Operations and Held for Sale (Notes)
 9 Months Ended
Sep. 30, 2020
Discontinued Operations and Held for Sale [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Discontinued Operations and Held for Sale
On April 23, 2020, the Board approved a strategy to divest Pool within the next year. Accordingly, Pool has been classified as assets held for sale as of September 30, 2020 and for all prior periods presented. Pool assets and liabilities are reflected as “Assets and liabilities held for sale” on the Consolidated Balance Sheets in this report. In addition, the results of operations for Pool have been presented in this report as discontinued operations.
Upon meeting the assets held for sale criteria and during its annual goodwill impairment analysis, the Company evaluated whether Pool's estimated fair value, less costs to sell, exceeded the carrying value of its assets and liabilities. As a result of that assessment, we determined that the fair value of Pool exceeded its carrying value by approximately 5%. In addition, during the three months ended September 30, 2020, no indicators of goodwill impairment were identified, and the Company believes the fair value of Pool exceeds its carrying value.
The results of Pool were previously included in its own segment. The Company will continue to have two reporting segments: Expedited Freight and Intermodal, which is consistent with the way the CODM reviews operating results and makes resource decisions (See Note 14, Segment Reporting). Certain corporate overhead and other costs previously allocated to Pool for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations. These costs have been reclassified to the eliminations and other column in the segment reconciliation that appears in Note 14, Segment Reporting.
Summarized Held for Sale and Discontinued Operations Financial Information
 
The following table provides a reconciliation of the carrying amounts of major classes of assets and liabilities which are included in assets and liabilities held for sale in the accompanying Consolidated Balance Sheets as of each of the periods presented below:
  September 30,
2020		 December 31,
2019
Assets
Current assets:    
Accounts receivable, less allowance of $108 in 2020 and $49 in 2019 $ 16,164  $ 13,983 
Other current assets 761  969 
Total current assets held for sale $ 16,925  $ 14,952 
Property and equipment $ 51,199  $ 53,166 
Less accumulated depreciation and amortization 31,480  32,891 
Total property and equipment, net 19,719  20,275 
Operating lease right-of-use assets 47,568  46,487 
Goodwill and other acquired intangibles:  
Goodwill 5,406  5,406 
Other acquired intangibles, net of accumulated amortization of $12,679 in 2020 and $12,359 in 2019 2,621  2,941 
Total goodwill and other acquired intangibles, net 8,027  8,347 
Other assets 2,749  1,595 
Total noncurrent assets held for sale $ 78,063  $ 76,704 
Liabilities    
Current liabilities:    
Accounts payable $ 3,501  $ 4,575 
Accrued expenses 5,720  5,668 
Other current liabilities —  2 
Current portion of operating lease obligations 16,785  14,729 
Total current liabilities held for sale $ 26,006  $ 24,974 
  Operating lease obligations, less current portion $ 30,851  $ 31,847 
  Other long-term liabilities 4,192  2,368 
  Deferred income taxes 4,184  2,728 
Total noncurrent liabilities held for sale $ 39,227  $ 36,943 
The following table summarizes the results of operations classified as discontinued operations, net of tax, in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and 2019:
  Three months ended Nine months ended
  September 30,
2020		 September 30,
2019		 September 30,
2020		 September 30,
2019
Operating revenue $ 37,521  $ 47,980  $ 88,447  $ 133,359 
Operating expenses:    
Purchased transportation 8,700  13,310  21,383  36,461 
Salaries, wages and employee benefits 17,012  18,727  42,519  51,569 
Operating leases 5,304  4,661  15,950  13,159 
Depreciation and amortization —  1,512  1,657  4,505 
Insurance and claims 1,525  1,398  4,538  4,254 
Fuel expense 1,045  1,468  2,785  4,423 
Other operating expenses 4,467  5,401  12,309  14,975 
Total operating expenses 38,053  46,477  101,141  129,346 
(Loss) income from discontinued operations before income taxes (532) 1,503  (12,694) 4,013 
Income tax (benefit) expense (187) 362  (3,236) 1,068 
(Loss) income from discontinued operations, net of tax $ (345) $ 1,141  $ (9,458) $ 2,945