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Note 12 - Business Segments
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
(
1
2
) Business Segments
 
We aggregate our
five
current operating segments into
four
reporting segments (Truckload, Dedicated, Intermodal and Brokerage) for financial reporting
purposes.
 
The primary source of our operating revenue is provided by our Truckload segment through a combination of regional short-haul and medium-to-long-haul ful
l-load transportation services. We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment, along with dry freight, across the United States and into and out of Mexico and Canada.
 
Our Dedicated segment provides customized transportation solutions tailored to meet individual customers
’ requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our agreements with customers range from
three
to
five
years and are subject to annual rate reviews.
 
Our Intermodal segment trans
ports our customers’ freight within the United States utilizing our temperature-controlled trailers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers.
 
Our Brokerage s
egment develops contractual relationships with and arranges for
third
-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in
2007
and operates pursuant to brokerage authority granted by the DOT. We retain the billing, collection and customer management responsibilities.
 
The following table sets forth for the periods indicated our operating r
evenue and operating income by segment. We do
not
prepare separate balance sheets by segment and, as a result, assets are
not
separately identifiable by segment.
 
   
Three Months
   
Nine
Months
 
   
Ended
September 30,
   
Ended
September 30,
 
(Dollars in thousands)
 
2017
   
2016
   
2017
   
2016
 
Operating revenue:
                               
Truckload revenue, net of fuel surcharge revenue
  $
81,836
    $
85,469
    $
251,127
    $
253,514
 
Truckload fuel surcharge
revenue
   
10,172
     
9,726
     
31,453
     
25,771
 
Total Truckload revenue
   
92,008
     
95,195
     
282,580
     
279,285
 
                                 
Dedicated revenue, net of fuel surcharge revenue
   
39,154
     
37,669
     
114,654
     
109,833
 
Dedicated fuel surcharge revenue
   
2,995
     
2,967
     
9,274
     
7,175
 
Total Dedic
ated revenue
   
42,149
     
40,636
     
123,928
     
117,008
 
                                 
Intermodal revenue, net of fuel surcharge revenue
   
17,423
     
16,381
     
51,111
     
48,353
 
Intermodal fuel surcharge revenue
   
2,472
     
1,979
     
7,085
     
4,990
 
Total Inter
modal revenue
   
19,895
     
18,360
     
58,196
     
53,343
 
                                 
Brokerage revenue
   
16,627
     
16,273
     
50,645
     
48,847
 
Total opera
ting revenue
  $
170,679
    $
170,464
    $
515,349
    $
498,483
 
                                 
Operating income:
                               
Truckload
  $
5,764
    $
6,509
    $
19,249
    $
20,400
 
Dedicated
   
4,514
     
5,505
     
14,075
     
14,963
 
Intermodal
   
1,588
     
1,645
     
5,777
     
5,396
 
Brokerage
   
1,156
     
1,210
     
3,428
     
3,011
 
Total operating income
  $
13,022
    $
14,869
    $
42,529
    $
43,770
 
 
 
In the
three
-month periods ended
September 30, 2017
and
2016,
Truckload segment depreciation expense was
$14.1
million in each period, Dedicated segment depreciation expense was
$5.6
million and
$5.2
million, Intermodal segment depreciation expense was
$1.2
million and
$995,000,
and Brokerage segment depreciation expense was
$328,000
and
$400,000,
respectively. Truckload segment depreciation expense was
$43.1
million and
$41.7
million, Dedicated segment depreciation expense was
$16.4
million and
$15.3
million, Intermodal segment depreciation expense was
$3.4
million and
$2.9
million, and Brokerage segment depreciation expense was
$1.0
million and
$1.3
million, in the
nine
-month periods ended
September 30, 2017
and
2016,
respectively.