Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.5.0.2
Segment Reporting
 9 Months Ended
Sep. 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 reportable 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, Expedited Truckload 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 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 and nine months ended September 30, 2016 and 2015.
 
 
Three months ended September 30, 2016
 
 
Expedited LTL
 
Expedited Truckload
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
143,753

 
$
41,927

 
$
36,305

 
$
27,567

 
$
—

 
$
249,552

Intersegment revenues
 
584

 
283

 
132

 
12

 
(1,011
)
 
—

Depreciation and amortization
 
5,470

 
1,470

 
1,472

 
987

 
—

 
9,399

Share-based compensation expense
 
1,792

 
98

 
84

 
119

 
—

 
2,093

Interest expense
 
385

 
—

 
—

 
12

 
(181
)
 
216

Income (loss) from operations
 
21,014

 
2,038

 
66

 
3,041

 
(1,459
)
 
24,700

Total assets
 
634,028

 
52,465

 
46,327

 
128,048

 
(219,355
)
 
641,513

Capital expenditures
 
11,915

 
36

 
722

 
11

 
—

 
12,684

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2015
 
 
Expedited LTL
 
Expedited Truckload
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
148,647

 
$
38,088

 
$
31,949

 
$
28,568

 
$
(159
)
 
$
247,093

Intersegment revenues
 
565

 
440

 
184

 
322

 
(1,511
)
 
—

Depreciation and amortization
 
5,403

 
1,590

 
1,451

 
939

 
16

 
9,399

Share-based compensation expense
 
1,514

 
219

 
69

 
84

 
—

 
1,886

Interest expense
 
535

 
—

 
—

 
19

 
—

 
554

Income (loss) from operations
 
21,594

 
3,170

 
555

 
3,536

 
(4,254
)
 
24,601

Total assets
 
652,946

 
89,659

 
45,017

 
118,035

 
(206,992
)
 
698,665

Capital expenditures
 
3,484

 
1,879

 
1,108

 
108

 
—

 
6,579


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2016
 
 
Expedited LTL
 
Expedited Truckload
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
421,194

 
$
119,574

 
$
100,726

 
$
76,243

 
$
—

 
$
717,737

Intersegment revenues
 
2,216

 
696

 
427

 
148

 
(3,487
)
 
—

Depreciation and amortization
 
16,278

 
4,944

 
4,434

 
2,753

 
—

 
28,409

Share-based compensation expense
 
5,353

 
260

 
251

 
340

 
—

 
6,204

Interest expense
 
1,345

 
—

 
—

 
66

 
(181
)
 
1,230

Income (loss) from operations
 
63,026

 
(36,679
)
 
(191
)
 
8,170

 
(2,570
)
 
31,756

Total assets
 
634,028

 
52,465

 
46,327

 
128,048

 
(219,355
)
 
641,513

Capital expenditures
 
24,487

 
1,821

 
2,275

 
142

 
—

 
28,725

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2015
 
 
Expedited LTL
 
Expedited Truckload
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
425,992

 
$
110,935

 
$
86,460

 
$
78,705

 
$
613

 
$
702,705

Intersegment revenues
 
1,285

 
1,460

 
580

 
707

 
(4,032
)
 
—

Depreciation and amortization
 
15,707

 
4,514

 
4,492

 
2,854

 
34

 
27,601

Share-based compensation expense
 
4,511

 
637

 
220

 
194

 
—

 
5,562

Interest expense
 
1,058

 
—

 
—

 
65

 
366

 
1,489

Income (loss) from operations
 
57,275

 
10,521

 
758

 
8,843

 
(24,639
)
 
52,758

Total assets
 
652,946

 
89,659

 
45,017

 
118,035

 
(206,992
)
 
698,665

Capital expenditures
 
8,834

 
5,968

 
3,344

 
395

 
—

 
18,541