Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
 9 Months Ended
Sep. 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 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 nine months ended September 30, 2020 and 2019:
  Three Months Ended September 30, 2020
  Expedited Freight Intermodal Eliminations & other Continuing Operations
External revenues $ 283,025  $ 48,940  $ 34  $ 331,999 
Intersegment revenues 489  8  (499) (2)
Depreciation 4,981  789  36  5,806 
Amortization 1,799  1,567  —  3,366 
Share-based compensation expense 2,208  415  (278) 2,345 
Interest expense 3  38  1,263  1,304 
Income (loss) from operations 23,461  4,837  (4,788) 23,510 
Total assets 882,214  217,813  (146,805) 953,222 
Capital expenditures 2,037  188  —  2,225 
  Three months ended September 30, 2019 (As Adjusted)
  Expedited Freight Intermodal Eliminations & other Continuing Operations
External revenues $ 255,404  $ 58,317  $ —  $ 313,721 
Intersegment revenues 711  29  (778) (38)
Depreciation 5,256  1,050  (27) 6,279 
Amortization 1,195  1,542  —  2,737 
Share-based compensation expense 1,895  340  392  2,627 
Interest expense 2  67  692  761 
Income (loss) from operations 27,131  6,900  (4,845) 29,186 
Total assets 706,632  205,444  (25,489) 886,587 
Capital expenditures 8,818  207  —  9,025 
                                                            
  Nine months ended September 30, 2020
  Expedited Freight Intermodal Eliminations & other Continuing Operations
External revenues $ 771,585  $ 147,815  $ 33  $ 919,433 
Intersegment revenues 1,216  21  (1,438) (201)
Depreciation 14,897  2,923  79  17,899 
Amortization 5,318  4,702  —  10,020 
Share-based compensation expense 6,937  1,276  (361) 7,852 
Interest expense 9  151  3,195  3,355 
Income (loss) from operations 50,394  12,963  (10,159) 53,198 
Total assets 882,214  217,813  (146,805) 953,222 
Capital expenditures 15,987  452  —  16,439 
  Nine months ended September 30, 2019 (As Adjusted)
  Expedited Freight Intermodal Eliminations & other Continuing Operations
External revenues $ 732,825  $ 162,936  $ —  $ 895,761 
Intersegment revenues 2,230  64  (2,524) (230)
Depreciation 18,261  1,983  (113) 20,131 
Amortization 3,122  4,278  —  7,400 
Share-based compensation expense 6,454  1,313  769  8,536 
Interest expense 7  69  1,841  1,917 
Income (loss) from operations 76,222  18,326  (12,588) 81,960 
Total assets 706,632  205,444  (25,489) 886,587 
Capital expenditures 22,818  422  —  23,240 

The following table summarizes revenue from the defined services included within Expedited Freight revenue 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
Expedited freight revenue:    
Network revenue $ 169,300  $ 169,337  $ 455,482  $ 503,178 
Truckload revenue 49,836  48,044  139,220  144,353 
Final mile revenue 56,994  31,619  158,223  66,333 
Other revenue 7,384  7,115  19,877  21,191 
Total revenue $ 283,514  $ 256,115  $ 772,802  $ 735,055