Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.8.0.1
Segment Reporting
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

The Company operates in four reportable segments based on information available to and used by the chief operating decision maker.  Expedited LTL operates a comprehensive national network that provides expedited regional, inter-regional and national LTL services.  The TLS segment provides expedited truckload brokerage, dedicated fleet services and high security and temperature-controlled logistics services. The Intermodal segment primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. Pool Distribution 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 of the Forward Air Corporation Annual Report on Form 10-K for the year ended December 31, 2017. 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. However, any losses beyond our deductibles and any loss development factors applied to our outstanding claims as a result of actuarial analysis are not passed to the segments, but reported at the corporate level.

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.  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 three months ended March 31, 2018 and 2017.
 
 
Three months ended March 31, 2018
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
168,363

 
$
43,161

 
$
42,607

 
$
48,477

 
$
—

 
$
302,608

Intersegment revenues
 
1,581

 
2,933

 
64

 
91

 
(4,669
)
 
—

Depreciation and amortization
 
5,528

 
1,757

 
1,804

 
1,601

 
—

 
10,690

Share-based compensation expense
 
1,675

 
180

 
116

 
290

 
—

 
2,261

Interest expense
 
—

 
1

 
—

 
13

 
357

 
371

Income from operations
 
20,773

 
(43
)
 
1,371

 
3,469

 
(1,335
)
 
24,235

Total assets
 
634,599

 
65,263

 
57,324

 
150,321

 
(217,300
)
 
690,207

Capital expenditures
 
6,058

 
4

 
78

 
81

 
—

 
6,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
 
 
(As Adjusted)
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
148,179

 
$
46,240

 
$
38,731

 
$
28,896

 
$
—

 
$
262,046

Intersegment revenues
 
586

 
848

 
70

 
11

 
(1,515
)
 
—

Depreciation and amortization
 
5,563

 
1,558

 
1,802

 
1,110

 
—

 
10,033

Share-based compensation expense
 
1,645

 
95

 
88

 
134

 
—

 
1,962

Interest expense
 
1

 
—

 
—

 
11

 
270

 
282

Income (loss) from operations
 
18,928

 
1,755

 
1,367

 
2,555

 
(862
)
 
23,743

Total assets
 
634,039

 
55,523

 
50,120

 
132,337

 
(232,535
)
 
639,484

Capital expenditures
 
2,511

 
6

 
83

 
52

 
—

 
2,652