Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 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.  Beginning in the first quarter of 2017, a trailer expense 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 and six months ended June 30, 2017 and 2016.
 
 
Three months ended June 30, 2017
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
151,640

 
$
43,864

 
$
36,764

 
$
35,250

 
$
—

 
$
267,518

Intersegment revenues
 
630

 
1,322

 
71

 
20

 
(2,043
)
 
—

Depreciation and amortization
 
5,520

 
1,590

 
1,613

 
1,496

 
—

 
10,219

Share-based compensation expense
 
1,731

 
85

 
119

 
129

 
—

 
2,064

Interest expense
 
1

 
—

 
—

 
13

 
222

 
236

Income from operations
 
22,992

 
1,859

 
1,625

 
3,073

 
260

 
29,809

Total assets
 
625,717

 
57,933

 
51,214

 
144,142

 
(219,319
)
 
659,687

Capital expenditures
 
1,756

 
2

 
203

 
49

 
—

 
2,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2016
 
 
Expedited LTL
 
Truckload Premium
 
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 (loss) 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


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2017
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
291,652

 
$
84,801

 
$
74,516

 
$
63,530

 
$
—

 
$
514,499

Intersegment revenues
 
1,216

 
2,170

 
142

 
31

 
(3,559
)
 
—

Depreciation and amortization
 
11,084

 
3,147

 
3,415

 
2,606

 
—

 
20,252

Share-based compensation expense
 
3,377

 
180

 
207

 
262

 
—

 
4,026

Interest expense
 
2

 
—

 
—

 
24

 
492

 
518

Income (loss) from operations
 
41,392

 
3,563

 
2,991

 
5,652

 
(601
)
 
52,997

Total assets
 
625,717

 
57,933

 
51,214

 
144,142

 
(219,319
)
 
659,687

Capital expenditures
 
4,267

 
8

 
286

 
101

 
—

 
4,662

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2016
 
 
Expedited LTL
 
Truckload Premium
 
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 (loss) 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