Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.5.0.2
Segment Reporting
 6 Months Ended
Jun. 30, 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.  The 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, the Company changed its reporting segments to separate its truckload and intermodal businesses from our Expedited LTL service and to aggregate reporting for truckload services into a single segment. The Company previously reported three segments: Forward Air, Forward Air Solutions and Total Quality, Inc. Consequently, the Company now reports 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 (loss) 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 and six months ended June 30, 2016 and 2015.
 
 
Three months ended June 30, 2016
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
143,916

 
$
39,232

 
$
31,365

 
$
24,124

 
$
—

 
$
238,637

Intersegment revenues
 
778

 
208

 
160

 
65

 
(1,211
)
 
—

Depreciation and amortization
 
5,278

 
1,724

 
1,464

 
875

 
—

 
9,341

Share-based compensation expense
 
1,842

 
111

 
86

 
120

 
—

 
2,159

Interest expense
 
444

 
—

 
—

 
17

 


 
461

Income from operations
 
24,921

 
(40,282
)
 
(371
)
 
2,757

 
(1,373
)
 
(14,348
)
Total assets
 
634,305

 
50,289

 
46,675

 
122,724

 
(209,566
)
 
644,427

Capital expenditures
 
10,493

 
1,771

 
1,009

 
79

 
—

 
13,352

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2015
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
155,089

 
$
39,178

 
$
27,471

 
$
27,445

 
$
511

 
$
249,694

Intersegment revenues
 
769

 
217

 
213

 
49

 
(1,248
)
 
—

Depreciation and amortization
 
5,563

 
1,513

 
1,485

 
948

 
10

 
9,519

Share-based compensation expense
 
1,514

 
219

 
86

 
71

 
—

 
1,890

Interest expense
 
410

 
—

 
—

 
23

 
137

 
570

Income from operations
 
20,796

 
4,141

 
(13
)
 
3,318

 
(8,334
)
 
19,908

Total assets
 
660,473

 
89,930

 
45,334

 
113,216

 
(199,593
)
 
709,360

Capital expenditures
 
2,657

 
1,847

 
2,046

 
183

 
—

 
6,733


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2016
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
277,439

 
$
77,648

 
$
64,421

 
$
48,677

 
$
—

 
$
468,185

Intersegment revenues
 
1,633

 
412

 
295

 
136

 
(2,476
)
 
—

Depreciation and amortization
 
10,808

 
3,473

 
2,962

 
1,766

 
—

 
19,009

Share-based compensation expense
 
3,567

 
161

 
167

 
216

 
—

 
4,111

Interest expense
 
961

 
—

 
—

 
54

 
—

 
1,015

Income from operations
 
42,011

 
(38,717
)
 
(257
)
 
5,130

 
(1,110
)
 
7,057

Total assets
 
634,305

 
50,289

 
46,675

 
122,724

 
(209,566
)
 
644,427

Capital expenditures
 
12,571

 
1,784

 
1,554

 
131

 
—

 
16,040

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2015
 
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
276,488

 
$
73,433

 
$
54,512

 
$
50,407

 
$
772

 
$
455,612

Intersegment revenues
 
1,577

 
434

 
396

 
114

 
(2,521
)
 
—

Depreciation and amortization
 
10,304

 
2,923

 
3,042

 
1,915

 
18

 
18,202

Share-based compensation expense
 
2,998

 
418

 
136

 
124

 
—

 
3,676

Interest expense
 
523

 
—

 
—

 
45

 
366

 
934

Income from operations
 
35,681

 
7,351

 
203

 
5,307

 
(20,385
)
 
28,157

Total assets
 
660,473

 
89,930

 
45,334

 
113,216

 
(199,593
)
 
709,360

Capital expenditures
 
5,351

 
4,089

 
2,236

 
286

 
—

 
11,962