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Discontinued Operations | 9 Months Ended
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Sep. 30, 2019
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations |
NOTE 3. | Discontinued Operations
On August 31, 2018, Hub agreed to sell Mode Transportation, LCC (“Mode”), then a direct wholly-owned subsidiary of the Company (the “Disposition”). Total consideration received by the Company for the Disposition in the third quarter of 2018 was $238.5 million in cash, subject to customary purchase price adjustments. An additional $19.4 million consideration receivable was recorded in other receivables in the Consolidated Balance Sheet in the fourth quarter of 2018 due to the settlement of the net working capital and other contractual adjustments. The $19.4 million receivable was received in the first quarter of 2019. During the three months ended September 30, 2018, Mode had revenue of $10.6 million from Hub and Hub had revenue of $2.7 million from Mode. During the nine months ended September 30, 2018 Mode had revenue of $42.2 million from Hub and Hub had revenue of $17.9 million from Mode. These intercompany transactions were eliminated in our Consolidated Statements of Income. In connection with the Disposition, the Company and Mode have entered into a transition services agreement pursuant to which both the Company and Mode provided certain immaterial transition services to the other party. The agreement was completed during the second quarter of 2019. The 2018 results associated with Mode are classified as income from discontinued operations, net of income taxes, in our Consolidated Statements of Income. Income from discontinued operations is comprised of the following:
| Three Months Ended |  |  | Nine Months Ended |  |
| September 30, 2018 |  |  | September 30, 2018 |  |
Revenue | $ | 196,546 |  |  | $ | 739,534 |  |
Transportation costs |  | 172,949 |  |  |  | 648,986 |  |
Gross margin |  | 23,597 |  |  |  | 90,548 |  |
Costs and expenses: |  |  |  |  |  |  |  |
Salaries and benefits |  | 3,317 |  |  |  | 11,043 |  |
General and administrative |  | 16,827 |  |  |  | 62,426 |  |
Depreciation and amortization |  | 153 |  |  |  | 632 |  |
Total costs and expenses |  | 20,297 |  |  |  | 74,101 |  |
Operating income from discontinued operations |  | 3,300 |  |  |  | 16,447 |  |
Other income |  |  |  |  |  |  |  |
Interest income |  | 3 |  |  |  | 22 |  |
Other, net |  | (1 | ) |  |  | (15 | ) |
Gain on Disposition |  | 113,601 |  |  |  | 113,601 |  |
Total other income |  | 113,603 |  |  |  | 113,608 |  |
Income from discontinued operations before income taxes |  | 116,903 |  |  |  | 130,055 |  |
Provision for income taxes |  | 28,057 |  |  |  | 31,213 |  |
Income from discontinued operations | $ | 88,846 |  |  | $ | 98,842 |  |
Selling, general and administrative expenses recorded in discontinued operations include corporate costs incurred directly in support of Mode. Proceeds from the sale of Mode have been presented in the Consolidated Statements of Cash Flows under investing activities for the nine months ended September 30, 2019. Total operating and investing cash flows of discontinued operations for the nine months ended September 30, 2018 are comprised of the following, which exclude the effect of income taxes:
| Nine Months Ended |
(in thousands) | September 30, 2018 |
Net cash (used in) provided by operating activities |  | (4,184 | )
Net cash provided by investing activities |  | 226,358 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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