Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.1
Segment Reporting
3 Months Ended
Mar. 31, 2019
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 Intermodal segment primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. The TLS segment provides expedited truckload brokerage, dedicated fleet services and high security and temperature-controlled logistics services. 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, 2018. For workers compensation and vehicle claims, each segment is charged an insurance premium and is also charged a deductible that corresponds with each segment's individual self-retention limit. 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 ("Eliminations & other").

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. The basis for the majority of shared assets, such as trailers, are included in Expedited LTL.  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, 2019 and 2018.
 
 
Three months ended March 31, 2019
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
177,355

 
$
54,097

 
$
44,923

 
$
45,096

 
$

 
$
321,471

Intersegment revenues
 
1,198

 
18

 
744

 
89

 
(2,049
)
 

Depreciation
 
4,968

 
469

 
1,564

 
1,315

 

 
8,316

Amortization
 
825

 
1,407

 
22

 
257

 

 
2,511

Share-based compensation expense
 
2,021

 
531

 
148

 
182

 
165

 
3,047

Interest expense
 

 
13

 
1

 

 
561

 
575

Income (loss) from operations
 
19,547

 
6,181

 
841

 
1,251

 
(3,086
)
 
24,734

Total assets
 
566,887

 
182,489

 
74,638

 
102,678

 
(41,115
)
 
885,577

Capital expenditures
 
2,081

 
73

 
156

 
1,780

 

 
4,090

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
168,363

 
$
48,477

 
$
43,161

 
$
42,607

 
$

 
$
302,608

Intersegment revenues
 
1,581

 
91

 
2,933

 
64

 
(4,669
)
 

Depreciation
 
4,623

 
509

 
1,703

 
1,546

 

 
8,381

Amortization
 
905

 
1,092

 
55

 
257

 

 
2,309

Share-based compensation expense
 
1,675

 
290

 
180

 
116

 

 
2,261

Interest expense
 

 
13

 
1

 

 
357

 
371

Income (loss) from operations
 
20,773

 
3,469

 
(43
)
 
1,371

 
(1,335
)
 
24,235

Total assets
 
442,802

 
150,321

 
65,263

 
57,324

 
(25,503
)
 
690,207

Capital expenditures
 
6,058

 
81

 
4

 
78

 

 
6,221