Discontinued Operations and Held for Sale (Notes)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Held for Sale [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations and Held for Sale

On April 23, 2020, the Board approved a strategy to divest Pool within the next year. Accordingly, Pool has been classified as assets held for sale as of September 30, 2020 and for all prior periods presented. Pool assets and liabilities are reflected as “Assets and liabilities held for sale” on the Consolidated Balance Sheets in this report. In addition, the results of operations for Pool have been presented in this report as discontinued operations.

Upon meeting the assets held for sale criteria and during its annual goodwill impairment analysis, the Company evaluated whether Pool's estimated fair value, less costs to sell, exceeded the carrying value of its assets and liabilities. As a result of that assessment, we determined that the fair value of Pool exceeded its carrying value by approximately 5%. In addition, during the three months ended September 30, 2020, no indicators of goodwill impairment were identified, and the Company believes the fair value of Pool exceeds its carrying value.

The results of Pool were previously included in its own segment. The Company will continue to have two reporting segments: Expedited Freight and Intermodal, which is consistent with the way the CODM reviews operating results and makes resource decisions (See Note 14, Segment Reporting). Certain corporate overhead and other costs previously allocated to Pool for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations. These costs have been reclassified to the eliminations and other column in the segment reconciliation that appears in Note 14, Segment Reporting.

Summarized Held for Sale and Discontinued Operations Financial Information

The following table provides a reconciliation of the carrying amounts of major classes of assets and liabilities which are included in assets and liabilities held for sale in the accompanying Consolidated Balance Sheets as of each of the periods presented below:






	September 30, 2020		December 31, 2019
Assets
Current assets:

Accounts receivable, less allowance of $108 in 2020 and $49 in 2019	$	16,164	$	13,983
Other current assets	761		969

Total current assets held for sale	$	16,925	$	14,952

Property and equipment	$	51,199	$	53,166
Less accumulated depreciation and amortization	31,480		32,891
Total property and equipment, net	19,719		20,275
Operating lease right-of-use assets	47,568		46,487
Goodwill and other acquired intangibles:
Goodwill	5,406		5,406
Other acquired intangibles, net of accumulated amortization of $12,679 in 2020 and $12,359 in 2019	2,621		2,941
Total goodwill and other acquired intangibles, net	8,027		8,347
Other assets	2,749		1,595
Total noncurrent assets held for sale	$	78,063	$	76,704


Liabilities
Current liabilities:
Accounts payable	$	3,501	$	4,575
Accrued expenses	5,720		5,668
Other current liabilities	—		2

Current portion of operating lease obligations	16,785		14,729
Total current liabilities held for sale	$	26,006	$	24,974


Operating lease obligations, less current portion	$	30,851	$	31,847
Other long-term liabilities	4,192		2,368
Deferred income taxes	4,184		2,728
Total noncurrent liabilities held for sale	$	39,227	$	36,943

The following table summarizes the results of operations classified as discontinued operations, net of tax, in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and 2019:







	Three months ended				Nine months ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019






Operating revenue	$	37,521	$	47,980	$	88,447	$	133,359

Operating expenses:
Purchased transportation	8,700		13,310		21,383		36,461
Salaries, wages and employee benefits	17,012		18,727		42,519		51,569
Operating leases	5,304		4,661		15,950		13,159
Depreciation and amortization	—		1,512		1,657		4,505
Insurance and claims	1,525		1,398		4,538		4,254
Fuel expense	1,045		1,468		2,785		4,423
Other operating expenses	4,467		5,401		12,309		14,975

Total operating expenses	38,053		46,477		101,141		129,346
(Loss) income from discontinued operations before income taxes	(532)		1,503		(12,694)		4,013






Income tax (benefit) expense	(187)		362		(3,236)		1,068

(Loss) income from discontinued operations, net of tax	$	(345)	$	1,141	$	(9,458)	$	2,945