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OPERATING SEGMENT DATA (Tables)
 12 Months Ended
Dec. 31, 2017
OPERATING SEGMENT DATA  
Schedule of reportable operating segment information

The following table reflects reportable operating segment information for the years ended December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

2017

    

2016(1)

    

2015(1)

 

 

 

(in thousands)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

1,993,314

 

$

1,916,394

 

$

1,916,579

 

ArcBest(2)

 

 

706,698

 

 

640,734

 

 

590,436

 

FleetNet

 

 

156,341

 

 

162,629

 

 

174,952

 

Other and eliminations

 

 

(29,896)

 

 

(19,538)

 

 

(15,062)

 

Total consolidated revenues

 

$

2,826,457

 

$

2,700,219

 

$

2,666,905

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

1,125,186

 

$

1,103,883

 

$

1,063,016

 

Fuel, supplies, and expenses

 

 

234,006

 

 

216,263

 

 

244,772

 

Operating taxes and licenses

 

 

47,767

 

 

48,180

 

 

48,726

 

Insurance

 

 

30,761

 

 

29,178

 

 

28,591

 

Communications and utilities

 

 

17,373

 

 

16,181

 

 

14,158

 

Depreciation and amortization

 

 

82,507

 

 

80,331

 

 

71,320

 

Rents and purchased transportation

 

 

206,457

 

 

198,594

 

 

196,560

 

Shared services(1)

 

 

186,406

 

 

184,817

 

 

180,478

 

Gain on sale of property and equipment

 

 

(695)

 

 

(2,979)

 

 

(1,734)

 

Nonunion pension expense, including settlement(3)

 

 

4,799

 

 

2,313

 

 

1,832

 

Other

 

 

6,525

 

 

4,889

 

 

6,424

 

Restructuring costs(4)

 

 

344

 

 

1,173

 

 

 —

 

Total Asset-Based

 

 

1,941,436

 

 

1,882,823

 

 

1,854,143

 

ArcBest(2)

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

563,497

 

 

502,159

 

 

460,172

 

Supplies and expenses

 

 

15,087

 

 

13,145

 

 

11,689

 

Depreciation and amortization

 

 

13,090

 

 

13,612

 

 

12,886

 

Shared services(1)

 

 

84,159

 

 

85,238

 

 

73,890

 

Other

 

 

11,189

 

 

11,678

 

 

11,007

 

Restructuring costs(4)

 

 

875

 

 

8,038

 

 

 —

 

Total ArcBest

 

 

687,897

 

 

633,870

 

 

569,644

 

 

 

 

 

 

 

 

 

 

 

 

FleetNet

 

 

153,017

 

 

160,204

 

 

171,998

 

Other and eliminations

 

 

(9,403)

 

 

(5,648)

 

 

(4,376)

 

Total consolidated operating expenses(3)

 

$

2,772,947

 

$

2,671,249

 

$

2,591,409

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

51,878

 

$

33,571

 

$

62,436

 

ArcBest(2)

 

 

18,801

 

 

6,864

 

 

20,792

 

FleetNet

 

 

3,324

 

 

2,425

 

 

2,954

 

Other and eliminations

 

 

(20,493)

 

 

(13,890)

 

 

(10,686)

 

Total consolidated operating income

 

$

53,510

 

$

28,970

 

$

75,496

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

1,293

 

$

1,523

 

$

1,284

 

Interest and other related financing costs

 

 

(6,342)

 

 

(5,150)

 

 

(4,400)

 

Other, net(5)

 

 

3,115

 

 

2,944

 

 

354

 

Total other income (costs)

 

 

(1,934)

 

 

(683)

 

 

(2,762)

 

INCOME BEFORE INCOME TAXES

 

$

51,576

 

$

28,287

 

$

72,734

 

(1)

Certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the modified presentation of segment expenses allocated from shared services as previously discussed in this Note.

(2)

The 2016 and 2017 periods include the operations of LDS since the September 2, 2016 acquisition date and the operations of Bear, which was acquired in December 2015.

(3)

For the year ended December 31, 2017, 2016, and 2015, nonunion pension expense, including settlement, (pre-tax) totaled $6.1 million, $3.1 million, and $2.4 million, respectively, on a consolidated basis, of which $4.8 million, $2.3 million, and $1.8 million, respectively, was reported by the Asset-Based segment.

(4)

Restructuring costs relate to the realignment of the Company’s corporate structure previously discussed in this Note.

(5)

Includes proceeds and changes in cash surrender value of life insurance policies.

 

The following table provides capital expenditure and depreciation and amortization information by reportable operating segment: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31

 

    

2017

    

2016(1)

    

2015(1)

 

 

(in thousands)

CAPITAL EXPENDITURES, GROSS

 

 

 

 

 

 

 

 

 

Asset-Based(3)

 

$

112,751

 

$

110,170

 

$

122,542

ArcBest

 

 

9,823

 

 

6,154

 

 

24,219

FleetNet

 

 

1,089

 

 

403

 

 

1,007

Other and eliminations(2)

 

 

26,288

 

 

34,910

 

 

11,249

 

 

$

149,951

 

$

151,637

 

$

159,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31

 

    

2017

    

2016(1)

    

2015(1)

 

 

(in thousands)

DEPRECIATION AND AMORTIZATION EXPENSE(2)

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

82,507

 

$

80,331

 

$

71,320

ArcBest(4)

 

 

13,090

 

 

13,612

 

 

12,886

FleetNet(5)

 

 

1,089

 

 

1,210

 

 

1,119

Other and eliminations(2)

 

 

6,382

 

 

7,900

 

 

7,717

 

 

$

103,068

 

$

103,053

 

$

93,042

(1)

Certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the modified presentation of segment expenses allocated from shared services as previously discussed in this Note.

(2)

Other and eliminations includes certain assets held for the benefit of multiple segments, including information systems equipment. Depreciation and amortization associated with these assets is allocated to the reporting segments. Depreciation and amortization expense includes amortization of internally developed capitalized software which has not been included in gross capital expenditures presented in the table.

(3)

Includes assets acquired through notes payable and capital leases of $84.2 million in 2017, $83.4 million in 2016, and $80.6 million in 2015.

(4)

Includes amortization of intangibles of $4.3 million, $4.0 million, and $3.7 million in 2017, 2016, and 2015, respectively.

(5)

Includes amortization of intangibles which totaled $0.2 million, $0.3 million, and $0.3 million in 2017, 2016, and 2015, respectively.

 

A table of assets by reportable operating segment has not been presented as segment assets are not included in reports regularly provided to management nor does management consider segment assets for assessing segment operating performance or allocating resources.

 

The following table presents operating expenses by category on a consolidated basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31

 

 

 

2017

    

2016

    

2015

 

 

 

(in thousands)

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

1,367,433

 

$

1,345,672

 

$

1,297,129

 

Rents, purchased transportation, and other costs of services

 

 

869,584

 

 

823,683

 

 

790,612

 

Fuel, supplies, and expenses

 

 

304,126

 

 

270,138

 

 

292,039

 

Depreciation and amortization(1)

 

 

103,068

 

 

103,053

 

 

93,042

 

Other

 

 

125,773

 

 

118,390

 

 

118,587

 

Restructuring(2)

 

 

2,963

 

 

10,313

 

 

 —

 

 

 

$

2,772,947

 

$

2,671,249

 

$

2,591,409

 

(1)

Includes amortization of intangible assets.

(2)

Restructuring costs relate to the realignment of the Company’s corporate structure previously discussed in this Note.