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Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting

NOTE 3. Segment Reporting

 

As we have continued to expand our service offerings and diversify our business, we have also made changes to the financial information that our CEO, who has been identified as our Chief Operating Decision Maker (CODM), uses to make operating and capital decisions. Beginning with the first quarter of 2023, we concluded that we had two reportable segments: Intermodal and Transportation Solutions (“ITS”) and Logistics which are based primarily on the services each segment provides. Results for the quarter ended March 31, 2022 have been recast below to conform with the current period presentation. Our ITS Segment includes our asset-light business lines: intermodal and dedicated trucking. Our Logistics Segment includes our non-asset business lines: managed transportation, truck brokerage, final mile, consolidation, warehousing and fulfillment.

 

Intermodal and Transportation Solutions. Our Intermodal and Transportation Solutions segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment also includes our trucking operations which provides drayage for our intermodal service offering and serves our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of March 31, 2023, our trucking transportation operation consisted of approximately 2,300 tractors, 3,300 employee drivers and 4,400 trailers. We also contract for services with approximately 650 independent owner-operators. We arrange for the movement of our customers’ freight in one of our approximately 48,000 containers.

 

Logistics. Our Logistics segment offers a full range of trucking transportation services, including dry van, expedited, less-than-truckload, refrigerated and flatbed, all of which is provided by third party carriers with whom we contract. This segment also offers a wide range of logistics services including transportation management, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, warehousing, fulfillment, cross-docking and consolidation services. We leverage proprietary technology along with collaborative relationships with third party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our intermodal and transportation solutions segment.

 

Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable or presented by segment. Our CEO uses consolidated asset information to make capital decisions.

 

The following tables summarize our financial and operating data by segment (in thousands):

 

 

Three Months Ended

 

Operating Revenue

March 31,

 

 

2023

 

 

2022

 

Intermodal and Transportation Solutions

$

709,249

 

 

$

776,570

 

Logistics

 

469,141

 

 

 

540,984

 

Inter-segment eliminations

 

(26,125

)

 

 

(19,431

)

Total operating revenue

$

1,152,265

 

 

$

1,298,123

 

 

 

 

Three Months Ended

 

Operating Income

March 31,

 

 

2023

 

 

2022

 

Intermodal and Transportation Solutions

$

49,379

 

 

$

85,696

 

Logistics

 

28,826

 

 

 

29,364

 

Total operating income

$

78,205

 

 

$

115,060

 

 

 

 

Three Months Ended

 

Depreciation and Amortization

March 31,

 

 

2023

 

 

2022

 

Intermodal and Transportation Solutions

$

27,142

 

 

$

24,375

 

Logistics

 

8,307

 

 

 

6,914

 

Total depreciation and amortization

$

35,449

 

 

$

31,289