Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.2
Segment Reporting
6 Months Ended
Jun. 30, 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 and six months ended June 30, 2019 and 2018.
 
 
Three months ended June 30, 2019
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
203,989

 
$
50,522

 
$
45,543

 
$
45,702

 
$

 
$
345,756

Intersegment revenues
 
1,733

 
17

 
570

 
103

 
(2,423
)
 

Depreciation
 
4,848

 
463

 
1,478

 
1,224

 

 
8,013

Amortization
 
1,060

 
1,330

 
21

 
257

 

 
2,668

Share-based compensation expense
 
2,272

 
443

 
118

 
153

 
211

 
3,197

Interest expense
 

 

 
2

 

 
579

 
581

Income (loss) from operations
 
26,889

 
5,245

 
689

 
1,567

 
(3,840
)
 
30,550

Total assets
 
608,716

 
187,815

 
74,822

 
103,720

 
(38,516
)
 
936,557

Capital expenditures
 
11,589

 
142

 
172

 
605

 

 
12,508

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2018
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
191,159

 
$
49,084

 
$
46,903

 
$
43,197

 
$

 
$
330,343

Intersegment revenues
 
1,732

 
78

 
2,044

 
108

 
(3,962
)
 

Depreciation
 
4,732

 
444

 
1,541

 
1,448

 
1

 
8,166

Amortization
 
825

 
1,093

 
21

 
257

 

 
2,196

Share-based compensation expense
 
1,877

 
210

 
166

 
113

 
51

 
2,417

Interest expense
 

 
24

 
2

 

 
457

 
483

Income (loss) from operations
 
26,526

 
5,543

 
1,717

 
1,589

 
(2,505
)
 
32,870

Total assets
 
466,329

 
151,962

 
69,082

 
58,695

 
(34,776
)
 
711,292

Capital expenditures
 
10,648

 
125

 
36

 
576

 

 
11,385

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2019
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
381,343

 
$
104,619

 
$
90,467

 
$
90,798

 
$

 
$
667,227

Intersegment revenues
 
2,932

 
35

 
1,313

 
192

 
(4,472
)
 

Depreciation
 
9,817

 
932

 
3,043

 
2,538

 
(1
)
 
16,329

Amortization
 
1,884

 
2,737

 
43

 
515

 

 
5,179

Share-based compensation expense
 
4,294

 
974

 
266

 
334

 
376

 
6,244

Interest expense
 

 
2

 
4

 

 
1,150

 
1,156

Income (loss) from operations
 
46,436

 
11,426

 
1,530

 
2,818

 
(6,926
)
 
55,284

Total assets
 
608,716

 
187,815

 
74,822

 
103,720

 
(38,516
)
 
936,557

Capital expenditures
 
13,670

 
215

 
328

 
2,385

 

 
16,598

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2018
 
 
Expedited LTL
 
Intermodal
 
Truckload Premium
 
Pool Distribution
 
Eliminations & other
 
Consolidated
External revenues
 
$
359,521

 
$
97,562

 
$
90,064

 
$
85,804

 
$

 
$
632,951

Intersegment revenues
 
3,314

 
169

 
4,976

 
172

 
(8,631
)
 

Depreciation
 
9,355

 
953

 
3,244

 
2,994

 

 
16,546

Amortization
 
1,730

 
2,185

 
76

 
515

 

 
4,506

Share-based compensation expense
 
3,553

 
500

 
345

 
229

 
51

 
4,678

Interest expense
 
1

 
37

 
3

 

 
813

 
854

Income (loss) from operations
 
47,298

 
9,012

 
1,674

 
2,960

 
(3,839
)
 
57,105

Total assets
 
466,329

 
151,962

 
69,082

 
58,695

 
(34,776
)
 
711,292

Capital expenditures
 
16,705

 
207

 
40

 
654

 

 
17,606