Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.4.0.3
Segment Reporting
 3 Months Ended
Mar. 31, 2016
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 provides time-definite transportation and logistics services to the deferred air freight market.  TLX segment provides expedited truckload brokerage, dedicated fleet services and maximum security and temperature-controlled logistics services. Our Intermodal segment provides container and intermodal drayage services. Pool Distribution provides pool distribution services primarily to regional and national distributors and retailers.

During the first quarter of 2016, we changed our reporting segments to separate our truckload and intermodal businesses from our Expedited LTL service and to aggregate our reporting for truckload services into a single segment. We previously reported three segments: Forward Air, Forward Air Solutions and Total Quality, Inc. Consequently, we now report four segments: Expedited LTL, Truckload Expedited Services (“TLX”), Intermodal and Pool Distribution. All prior year segment amounts have been restated to reflect this new reporting structure.
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 to the Consolidated Financial Statements included in the Company’s 2015 Annual Report on Form 10-K. For workers compensation and vehicle claims each segment is charged an insurance premium and is also charged a deductible that corresponds with the our corporate deductibles disclosed in Note 1 to the Consolidated Financial Statements included in the Company’s 2015 Annual Report on Form 10-K. 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 kept at the corporate level.

Segment data includes intersegment revenues.  Assets and costs of the corporate headquarters are allocated to the segments based on usage.  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 net income 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, 2016 and 2015.
 
 
Three months ended March 31, 2016
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
133,522

 
$
38,417

 
$
33,057

 
$
24,553

 
$
—

 
$
229,549

Intersegment revenues
 
855

 
205

 
135

 
71

 
(1,266
)
 
—

Depreciation and amortization
 
5,548

 
1,740

 
1,485

 
895

 
—

 
9,668

Share-based compensation expense
 
1,574

 
155

 
150

 
73

 
—

 
1,952

Interest expense
 
509

 
—

 
—

 
36

 
8

 
553

Income from operations
 
17,179

 
1,470

 
114

 
2,372

 
270

 
21,405

Total assets
 
635,283

 
90,678

 
47,877

 
120,251

 
(205,036
)
 
689,053

Capital expenditures
 
2,078

 
13

 
545

 
52

 
—

 
2,688

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2015
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
121,477

 
$
34,266

 
$
27,045

 
$
22,963

 
$
167

 
$
205,918

Intersegment revenues
 
807

 
217

 
183

 
66

 
(1,273
)
 
—

Depreciation and amortization
 
4,576

 
1,373

 
1,539

 
969

 
227

 
8,684

Share-based compensation expense
 
1,548

 
169

 
32

 
37

 
—

 
1,786

Interest expense
 
112

 
—

 
—

 
23

 
229

 
364

Income from operations
 
14,885

 
3,211

 
216

 
1,989

 
(12,052
)
 
8,249

Total assets
 
682,247

 
86,565

 
44,439

 
108,309

 
(206,432
)
 
715,128

Capital expenditures
 
2,694

 
2,242

 
190

 
103

 
—

 
5,229