Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Held for Sale (Notes)

v3.20.2
Discontinued Operations and Held for Sale (Notes)
6 Months Ended
Jun. 30, 2020
Discontinued Operations and Held for Sale [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Discontinued Operations and Held for Sale

On April 23, 2020, the Board approved a strategy to divest Pool within the next year. Accordingly, Pool met the criteria for assets held for sale as of June 30, 2020. Pool assets and liabilities are reflected as “Assets and liabilities held for sale” on the Consolidated Balance Sheets in this report. In addition, the results of operations for Pool have been presented in this report as discontinued operations.
Upon meeting the assets held for sale criteria and during its annual impairment analysis, the Company evaluated whether Pool's estimated fair value, less costs to sell, exceeded the carrying value of its assets and liabilities. As a result of that assessment, we determined that the fair value of Pool exceeded its carrying value by approximately 5%.
The results of Pool were previously included in its own segment. The Company will continue to have two reporting segments: Expedited Freight and Intermodal, which is consistent with the way the Chief Operating Decision Maker reviews operating results and makes resource decisions (See Note 14, Segment Reporting). Certain corporate overhead and other costs previously allocated to Pool for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations. These costs have been reclassified to the eliminations and other column in the segment reconciliation that appears in Note 14, Segment Reporting.
Summarized Held for Sale and Discontinued Operations Financial Information
 
The following table provides a reconciliation of the carrying amounts of major classes of assets and liabilities which are included in assets and liabilities held for sale in the accompanying Consolidated Balance Sheets as of each of the periods presented below:
 
June 30,
2020
 
December 31,
2019
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$

 
$

Accounts receivable, less allowance of $124 in 2020 and $49 in 2019
11,224

 
13,983

Other current assets
647

 
969

Total current assets held for sale
$
11,871

 
$
14,952

 
 
 
 
Property and equipment
$
52,046

 
$
53,166

Less accumulated depreciation and amortization
32,443

 
32,891

Total property and equipment, net
19,603

 
20,275

Operating lease right-of-use assets
44,110

 
46,487

Goodwill and other acquired intangibles:
 

 


Goodwill
5,406

 
5,406

Other acquired intangibles, net of accumulated amortization of $12,679 in 2020 and $12,359 in 2019
2,621

 
2,941

Total goodwill and other acquired intangibles, net
8,027

 
8,347

Other assets
2,853

 
1,595

Total noncurrent assets held for sale
$
74,593

 
$
76,704

 
 
 
 
Liabilities
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,732

 
$
4,575

Accrued expenses
5,163

 
5,668

Other current liabilities

 
2

Current portion of operating lease obligations
15,897

 
14,729

Total current liabilities held for sale
$
23,792

 
$
24,974

 
 
 
 
  Operating lease obligations, less current portion
$
28,385

 
$
31,847

  Other long-term liabilities
3,989

 
2,368

  Deferred income taxes
3,951

 
2,728

Total noncurrent liabilities held for sale
$
36,325

 
$
36,943


The following table summarizes the results of operations classified as discontinued operations, net of tax, in the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2020 and 2019:
 
Three months ended
 
Six months ended
 
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
Operating revenue
$
13,974

 
$
42,869

 
$
50,926

 
$
85,379

 
 
 
 
 
 
 

Operating expenses:
 
 
 
 
 
 

Purchased transportation
3,147

 
11,688

 
12,683

 
23,151

Salaries, wages and employee benefits
8,394

 
16,437

 
25,507

 
32,842

Operating leases
4,966

 
4,202

 
10,646

 
8,498

Depreciation and amortization
362

 
1,454

 
1,657

 
2,993

Insurance and claims
1,287

 
1,472

 
3,013

 
2,856

Fuel expense
413

 
1,462

 
1,740

 
2,955

Other operating expenses
3,495

 
4,674

 
7,841

 
9,572

Total operating expenses
22,064

 
41,389

 
63,087

 
82,867

(Loss) income from discontinued operations before income taxes
(8,090
)
 
1,480

 
(12,161
)
 
2,512

Income tax (benefit) expense
(2,019
)
 
394

 
(3,049
)
 
706

(Loss) income from discontinued operations, net of tax
$
(6,071
)
 
$
1,086

 
$
(9,112
)
 
$
1,806