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Business Segments
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segments

NOTE 5. Business Segments

We report two distinct business segments. The first segment is Mode, which includes the Mode LLC business we acquired on April 1, 2011. The second segment is Hub, which is all business other than Mode.

Hub offers comprehensive intermodal, truck brokerage and logistics services. Our employees operate the freight through a network of operating centers located in the United States, Canada and Mexico. Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads. Hub has full time employees located throughout the United States, Canada and Mexico.

Mode LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC.

The following is a summary of operating results, which includes the results of operations of the Mode segment for the years ended December 31, 2015, 2014 and 2013, and certain other financial data for our business segments (in thousands):

 

 

Twelve Months

 

 

Twelve Months

 

 

Ended December  31, 2015

 

 

Ended December  31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

2,679,318

 

$

928,661

 

$

(82,384

)

$

3,525,595

 

 

$

2,722,799

 

$

931,131

 

$

(82,804

)

$

3,571,126

 

Transportation costs

 

2,385,197

 

 

810,087

 

 

(82,384

)

 

3,112,900

 

 

 

2,461,144

 

 

822,351

 

 

(82,804

)

 

3,200,691

 

Gross margin

 

294,121

 

 

118,574

 

 

-

 

 

412,695

 

 

 

261,655

 

 

108,780

 

 

-

 

 

370,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

143,993

 

 

14,945

 

 

-

 

 

158,938

 

 

 

122,097

 

 

14,383

 

 

-

 

 

136,480

 

Agent fees and commissions

 

56

 

 

68,668

 

 

-

 

 

68,724

 

 

 

45

 

 

61,996

 

 

-

 

 

62,041

 

General and administrative

 

53,023

 

 

6,992

 

 

-

 

 

60,015

 

 

 

51,108

 

 

6,906

 

 

-

 

 

58,014

 

Depreciation and amortization

 

6,688

 

 

1,300

 

 

-

 

 

7,988

 

 

 

6,238

 

 

1,561

 

 

-

 

 

7,799

 

Driver settlements and related costs

 

-

 

 

-

 

 

-

 

 

-

 

 

 

10,343

 

 

-

 

 

-

 

 

10,343

 

Impairment of software

 

-

 

 

-

 

 

-

 

 

-

 

 

 

11,881

 

 

-

 

 

-

 

 

11,881

 

Total costs and expenses

 

203,760

 

 

91,905

 

 

-

 

 

295,665

 

 

 

201,712

 

 

84,846

 

 

-

 

 

286,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

90,361

 

$

26,669

 

$

-

 

$

117,030

 

 

 

59,943

 

 

23,934

 

 

-

 

 

83,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

79,860

 

$

3,182

 

$

-

 

$

83,042

 

 

$

118,640

 

$

531

 

$

-

 

$

119,171

 

 

 

Twelve Months

 

 

Ended December  31, 2013

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

2,599,763

 

$

823,159

 

$

(49,024

)

$

3,373,898

 

Transportation costs

 

2,325,512

 

 

726,387

 

 

(49,024

)

 

3,002,875

 

Gross margin

 

274,251

 

 

96,772

 

 

-

 

 

371,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

120,478

 

 

14,863

 

 

-

 

 

135,341

 

Agent fees and commissions

 

1,372

 

 

54,417

 

 

-

 

 

55,789

 

General and administrative

 

50,484

 

 

6,288

 

 

-

 

 

56,772

 

Depreciation and amortization

 

4,326

 

 

2,144

 

 

-

 

 

6,470

 

Impairment of trade name

 

2,904

 

 

-

 

 

-

 

 

2,904

 

Total costs and expenses

 

179,564

 

 

77,712

 

 

-

 

 

257,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

94,687

 

$

19,060

 

$

-

 

$

113,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

109,412

 

$

1,505

 

$

-

 

$

110,917

 

 

 

 

The following tables summarize our revenue by segment and business line (in thousands):

 

 

As of December 31, 2015

 

 

As of December 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Total assets

$

1,127,042

 

$

181,514

 

$

(7,410

)

$

1,301,146

 

 

$

1,030,722

 

$

189,787

 

$

(8,382

)

$

1,212,127

 

Goodwill

 

233,205

 

 

29,389

 

 

-

 

 

262,594

 

 

 

233,424

 

 

29,389

 

 

-

 

 

262,813

 

 

 

Twelve Months

 

 

Twelve Months

 

 

Ended December 31, 2015

 

 

Ended December 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

1,792,046

 

$

483,910

 

$

(78,688

)

$

2,197,268

 

 

$

1,815,842

 

$

466,859

 

$

(79,406

)

$

2,203,295

 

Truck brokerage

 

355,402

 

 

314,498

 

 

(1,908

)

 

667,992

 

 

 

338,590

 

 

335,587

 

 

(946

)

 

673,231

 

Logistics

 

531,870

 

 

130,253

 

 

(1,788

)

 

660,335

 

 

 

568,367

 

 

128,685

 

 

(2,452

)

 

694,600

 

Total revenue

$

2,679,318

 

$

928,661

 

$

(82,384

)

$

3,525,595

 

 

$

2,722,799

 

$

931,131

 

$

(82,804

)

$

3,571,126

 

 

 

Twelve Months

 

 

Ended December 31, 2013

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

1,818,162

 

$

389,186

 

$

(46,401

)

$

2,160,947

 

Truck brokerage

 

333,027

 

 

311,930

 

 

(1,453

)

 

643,504

 

Logistics

 

448,574

 

 

122,043

 

 

(1,170

)

 

569,447

 

Total revenue

$

2,599,763

 

$

823,159

 

$

(49,024

)

$

3,373,898