Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
 3 Months Ended
Mar. 31, 2017
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, 2016. 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 actuary analysis are not passed to the segments, but kept 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 basis of shared assets are not allocated.  Beginning in the first quarter of 2017, a trailer allocation was included in Pool's 2017 results from operations. 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, 2017 and 2016.
 
 
Three months ended March 31, 2017
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
140,012

 
$
40,937

 
$
37,753

 
$
28,280

 
$
—

 
$
246,982

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
 
18,400

 
1,704

 
1,367

 
2,580

 
(862
)
 
23,189

Total assets
 
630,959

 
55,523

 
50,120

 
131,801

 
(232,535
)
 
635,868

Capital expenditures
 
2,511

 
6

 
83

 
52

 
—

 
2,652

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2016
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
133,524

 
$
38,415

 
$
33,057

 
$
24,553

 
$
—

 
$
229,549

Intersegment revenues
 
855

 
205

 
135

 
71

 
(1,266
)
 
—

Depreciation and amortization
 
5,531

 
1,749

 
1,497

 
891

 
—

 
9,668

Share-based compensation expense
 
1,724

 
51

 
81

 
96

 
—

 
1,952

Interest expense
 
—

 
—

 
—

 
36

 
517

 
553

Income (loss) from operations
 
17,084

 
1,565

 
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