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OPERATING SEGMENT DATA (Tables)

12 Months Ended

Dec. 31, 2019

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

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

​

​	​	​	​	​	​	​	​	​	​	​
​		2019			2018			2017
​	​	(in thousands)
REVENUES	​	​	​	​	​	​	​	​	​	​
Asset-Based	​	$	2,144,679	​	$	2,175,585	​	$	1,993,314	​
ArcBest	​		738,392	​		781,123	​		706,698	​
FleetNet	​		211,738	​		195,126	​		156,341	​
Other and eliminations	​		(106,499)	​		(58,046)	​		(29,896)	​
Total consolidated revenues	​	$	2,988,310	​	$	3,093,788	​	$	2,826,457	​
OPERATING EXPENSES	​	​	​	​	​	​	​	​	​	​
Asset-Based	​	​	​	​	​	​	​	​	​	​
Salaries, wages, and benefits	​	$	1,148,761	​	$	1,128,030	​	$	1,125,131	​
Fuel, supplies, and expenses(1)	​		257,133	​		255,655	​		234,006	​
Operating taxes and licenses	​		50,209	​		48,792	​		47,767	​
Insurance	​		32,516	​		32,887	​		30,761	​
Communications and utilities	​		18,614	​		16,983	​		17,373	​
Depreciation and amortization	​		89,798	​		85,951	​		82,507	​
Rents and purchased transportation(1)	​		221,479	​		242,247	​		206,457	​
Shared services(1)	​	​	212,773	​	​	215,302	​	​	182,568	​
Multiemployer pension fund withdrawal liability charge(2)	​	​	—	​	​	37,922	​	​	—	​
Gain on sale of property and equipment(3)	​		(5,892)	​		(410)	​		(695)	​
Innovative technology costs(1)(4)	​	​	13,739	​	​	3,810	​	​	2,966	​
Other(1)	​		3,488	​		4,554	​		6,248	​
Restructuring costs(5)	​		—	​		—	​		344	​
Total Asset-Based	​		2,042,618	​		2,071,723	​		1,935,433	​
ArcBest	​	​	​	​	​	​	​	​	​	​
Purchased transportation	​		606,113	​		631,501	​		563,497	​
Supplies and expenses	​		10,789	​		13,329	​		15,087	​
Depreciation and amortization	​		11,344	​		13,750	​		13,090	​
Shared services	​	​	93,961	​	​	91,266	​	​	83,660	​
Other	​	​	9,860	​		9,143	​		11,116	​
Asset impairment(6)	​	​	26,514	​	​	—	​	​	—	​
Restructuring costs(5)	​	​	—	​		491	​		875	​
Gain on sale of subsidiaries(7)	​	​	—	​	​	(1,945)	​	​	(152)	​
Total ArcBest	​		758,581	​		757,535	​		687,173	​
​	​	​	​	​	​	​	​	​	​	​
FleetNet	​		206,932	​		190,741	​		152,864	​
Other and eliminations	​		(83,591)	​		(35,309)	​		(10,361)	​
Total consolidated operating expenses	​	$	2,924,540	​	$	2,984,690	​	$	2,765,109	​
​	​	​	​	​	​	​	​	​	​	​

(1) As previously discussed in this Note, the presentation of Asset-Based segment expenses was modified in third quarter 2019 to present innovative technology costs as a separate operating expense line item. Certain reclassifications have been made to the prior period operating segment expenses to conform to the current year presentation.

(2) ABF Freight recorded a one-time charge in 2018 for the multiemployer pension fund withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note I).

(3) Includes a $4.0 million gain on sale of property previously used in Asset-Based segment service center operations following the transition to a new facility.

(4) Represents costs associated with the freight handling pilot test program at ABF Freight previously discussed in this Note.

(5) Restructuring costs relate to the realignment of the Company’s corporate structure (see Note N).

(6) The ArcBest segment recognized a noncash impairment charge in 2019 related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload and truckload-dedicated businesses within the segment (see Note D).

(7) Gains recognized in 2018 and 2017 relate to the sale of the ArcBest segment’s military moving businesses in December 2017 and 2016, respectively.

​

​	​	​	​	​	​	​	​	​	​	​
​	​	For the year ended December 31								​
​		2019			2018			2017
​		(in thousands)
OPERATING INCOME	​	​	​	​	​	​	​	​	​	​
Asset-Based	​	$	102,061	​	$	103,862	​	$	57,881	​
ArcBest	​		(20,189)	​		23,588	​		19,525	​
FleetNet	​		4,806	​		4,385	​		3,477	​
Other and eliminations	​		(22,908)	​		(22,737)	​		(19,535)	​
Total consolidated operating income	​	$	63,770	​	$	109,098	​	$	61,348	​
​	​	​	​	​	​	​	​	​	​	​
OTHER INCOME (COSTS)	​	​	​	​	​	​	​	​	​	​
Interest and dividend income	​	$	6,453	​	$	3,914	​	$	1,293	​
Interest and other related financing costs	​		(11,467)	​		(9,468)	​		(6,342)	​
Other, net(1)	​		(7,285)	​		(19,158)	​		(4,723)	​
Total other income (costs)	​		(12,299)	​		(24,712)	​		(9,772)	​
INCOME BEFORE INCOME TAXES	​	$	51,471	​	$	84,386	​	$	51,576	​

(1) Includes the components of net periodic benefit cost other than service cost, including pension settlement and termination expense (see Note I), and 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								​
​		2019			2018			2017		​
​	​	(in thousands)								​
CAPITAL EXPENDITURES, GROSS	​	​	​	​	​	​	​	​	​	​
Asset-Based(1)	​	$	122,437	​	$	116,505	​	$	112,751	​
ArcBest	​	​	3,909	​	​	5,174	​	​	9,823	​
FleetNet	​		590	​		1,365	​		1,089	​
Other and eliminations(2)(3)	​		33,748	​		14,631	​		26,288	​
​	​	$	160,684	​	$	137,675	​	$	149,951	​

​

​

​	​	​	​	​	​	​	​	​	​	​
​	​	For the year ended December 31								​
​	​	2019			2018			2017		​
​	​	(in thousands)								​
DEPRECIATION AND AMORTIZATION EXPENSE(2)	​	​	​	​	​	​	​	​	​	​
Asset-Based	​	$	89,798	​	$	85,951	​	$	82,507	​
ArcBest(4)	​	​	11,344	​	​	13,750	​	​	13,090	​
FleetNet(5)	​		1,341	​		1,140	​		1,089	​
Other and eliminations(2)	​		9,983	​		7,794	​		6,382	​
​	​	$	112,466	​	$	108,635	​	$	103,068	​

(1) Includes assets acquired through notes payable and finance leases of $67.6 million in 2019, $86.8 million in 2018, and $84.2 million in 2017.

(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 of $23.2 million and $6.9 million in 2019 and 2018, respectively.

(4) Includes amortization of intangibles of $4.2 million in 2019, and $4.3 million in 2018 and 2017.

(5) Includes amortization of intangibles which totaled $0.2 million in 2019, 2018, and 2017.

​

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
​		2019			2018			2017
​	​	(in thousands)								​
OPERATING EXPENSES	​	​	​	​	​	​	​	​	​	​
Salaries, wages, and benefits	​	$	1,408,409	​	$	1,398,348	​	$	1,361,224	​
Rents, purchased transportation, and other costs of services	​		934,958	​		989,006	​		869,584	​
Fuel, supplies, and expenses	​		316,047	​		325,126	​		304,126	​
Depreciation and amortization(1)	​		112,466	​		108,635	​		103,068	​
Other	​		126,146	​		123,998	​		124,144	​
Asset impairment(2)	​	​	26,514	​	​	—	​	​	—	​
Multiemployer pension fund withdrawal liability charge(3)	​	​	—	​	​	37,922	​	​	—	​
Restructuring costs(4)	​		—	​		1,655	​		2,963	​
​	​	$	2,924,540	​	$	2,984,690	​	$	2,765,109	​

(1) Includes amortization of intangible assets.

(2) The ArcBest segment recognized a noncash impairment charge in 2019 related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload and truckload-dedicated businesses within the segment (see Note D).

(3) ABF Freight recorded a one-time charge in 2018 for the multiemployer pension fund withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note I).

(4) Restructuring costs relate to the realignment of the Company’s corporate structure (see Note N).

X

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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