XML 33 R21.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Reporting
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company operates in two reportable segments based on information available to and used by the CODM.  This classification is consistent with how the CODM makes decisions about resource allocation and assesses the Company's performance. The Company evaluates the performance of its segments based on income from operations.  The Company’s business is conducted in the U.S. and Canada.

Expedited Freight operates a comprehensive national network to provide expedited regional, inter-regional and national LTL services and offers customers local pick-up and delivery and other services including final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling. Intermodal primarily provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads.

Except for certain insurance activity, the accounting policies of the segments are the same as those described in the summary of significant accounting policies disclosed in Note 1, Description of Business and Basis of Presentation, to the Forward Air Corporation Annual Report on Form 10-K for the year ended December 31, 2019. For workers compensation and vehicle claims, each segment is charged an insurance premium and is also charged a deductible that corresponds with each segment's individual self-retention limit. However, any losses beyond these deductibles and any loss development factors applied to outstanding claims as a result of actuary analysis are not passed to the segments, but recorded at the corporate level ("Eliminations & other").

Segment data includes intersegment revenues and shared costs.  Costs of the corporate headquarters, shared services and shared assets, such as trailers, are allocated to the segments based on usage. The cost basis of shared assets are not allocated. Instead, the cost basis for the majority of shared assets, such as trailers, are included in Expedited Freight.  

The following tables summarize segment information from continuing operations for the three and nine months ended September 30, 2020 and 2019:
 Three Months Ended September 30, 2020
 Expedited FreightIntermodalEliminations & otherContinuing Operations
External revenues$283,025 $48,940 $34 $331,999 
Intersegment revenues489 (499)(2)
Depreciation4,981 789 36 5,806 
Amortization1,799 1,567 — 3,366 
Share-based compensation expense2,208 415 (278)2,345 
Interest expense38 1,263 1,304 
Income (loss) from operations23,461 4,837 (4,788)23,510 
Total assets882,214 217,813 (146,805)953,222 
Capital expenditures2,037 188 — 2,225 
 Three months ended September 30, 2019 (As Adjusted)
 Expedited FreightIntermodalEliminations & otherContinuing Operations
External revenues$255,404 $58,317 $— $313,721 
Intersegment revenues711 29 (778)(38)
Depreciation5,256 1,050 (27)6,279 
Amortization1,195 1,542 — 2,737 
Share-based compensation expense1,895 340 392 2,627 
Interest expense67 692 761 
Income (loss) from operations27,131 6,900 (4,845)29,186 
Total assets706,632 205,444 (25,489)886,587 
Capital expenditures8,818 207 — 9,025 
                                                            
 Nine months ended September 30, 2020
 Expedited FreightIntermodalEliminations & otherContinuing Operations
External revenues$771,585 $147,815 $33 $919,433 
Intersegment revenues1,216 21 (1,438)(201)
Depreciation14,897 2,923 79 17,899 
Amortization5,318 4,702 — 10,020 
Share-based compensation expense6,937 1,276 (361)7,852 
Interest expense151 3,195 3,355 
Income (loss) from operations50,394 12,963 (10,159)53,198 
Total assets882,214 217,813 (146,805)953,222 
Capital expenditures15,987 452 — 16,439 
 Nine months ended September 30, 2019 (As Adjusted)
 Expedited FreightIntermodalEliminations & otherContinuing Operations
External revenues$732,825 $162,936 $— $895,761 
Intersegment revenues2,230 64 (2,524)(230)
Depreciation18,261 1,983 (113)20,131 
Amortization3,122 4,278 — 7,400 
Share-based compensation expense6,454 1,313 769 8,536 
Interest expense69 1,841 1,917 
Income (loss) from operations76,222 18,326 (12,588)81,960 
Total assets706,632 205,444 (25,489)886,587 
Capital expenditures22,818 422 — 23,240 

The following table summarizes revenue from the defined services included within Expedited Freight revenue for the three and nine months ended September 30, 2020 and 2019:
 Three months endedNine months ended
 September 30,
2020
September 30,
2019
September 30,
2020
September 30,
2019
Expedited freight revenue:  
Network revenue$169,300 $169,337 $455,482 $503,178 
Truckload revenue49,836 48,044 139,220 144,353 
Final mile revenue56,994 31,619 158,223 66,333 
Other revenue7,384 7,115 19,877 21,191 
Total revenue$283,514 $256,115 $772,802 $735,055