Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
6 Months Ended
Jun. 30, 2018
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, 2017. 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, 2018 and 2017.
 
 
Three months ended June 30, 2018
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
191,159

 
$
46,903

 
$
43,197

 
$
49,084

 
$

 
$
330,343

Intersegment revenues
 
1,732

 
2,044

 
108

 
78

 
(3,962
)
 

Depreciation and amortization
 
5,557

 
1,562

 
1,705

 
1,537

 
1

 
10,362

Share-based compensation expense
 
1,877

 
166

 
113

 
210

 
51

 
2,417

Interest expense
 

 
2

 

 
24

 
457

 
483

Income from operations
 
26,526

 
1,717

 
1,589

 
5,543

 
(2,505
)
 
32,870

Total assets
 
658,125

 
69,082

 
58,695

 
151,962

 
(226,572
)
 
711,292

Capital expenditures
 
10,648

 
36

 
576

 
125

 

 
11,385

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2017
 
 
(As Adjusted)
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
159,842

 
$
49,129

 
$
37,685

 
$
37,220

 
$

 
$
283,876

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 (loss) from operations
 
23,047

 
1,855

 
1,625

 
3,209

 
260

 
29,996

Total assets
 
629,098

 
57,933

 
51,214

 
145,343

 
(219,320
)
 
664,268

Capital expenditures
 
1,756

 
2

 
203

 
49

 

 
2,010

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

 
$
90,064

 
$
85,804

 
$
97,562

 
$

 
$
632,951

Intersegment revenues
 
3,314

 
4,976

 
172

 
169

 
(8,631
)
 

Depreciation and amortization
 
11,085

 
3,320

 
3,509

 
3,138

 

 
21,052

Share-based compensation expense
 
3,553

 
345

 
229

 
500

 
51

 
4,678

Interest expense
 
1

 
3

 

 
37

 
813

 
854

Income (loss) from operations
 
47,298

 
1,674

 
2,960

 
9,012

 
(3,839
)
 
57,105

Total assets
 
658,125

 
69,082

 
58,695

 
151,962

 
(226,572
)
 
711,292

Capital expenditures
 
16,705

 
40

 
654

 
207

 

 
17,606

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2017
 
 
(As Adjusted)
 
 
Expedited LTL
 
Truckload Premium
 
Pool Distribution
 
Intermodal
 
Eliminations & other
 
Consolidated
External revenues
 
$
308,021

 
$
95,368

 
$
76,416

 
$
66,116

 
$

 
$
545,921

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
 
41,975

 
3,610

 
2,991

 
5,763

 
(601
)
 
53,738

Total assets
 
629,098

 
57,933

 
51,214

 
145,343

 
(219,320
)
 
664,268

Capital expenditures
 
4,267

 
8

 
286

 
101

 

 
4,662