XML 26 R10.htm IDEA: XBRL DOCUMENT v2.3.0.15
Note 3 - Segment Information
9 Months Ended
Sep. 30, 2011
Segment Reporting Disclosure [Text Block]
Note 3.
Segment Information

We have two reportable segments: Asset-Based Truckload Services ("Truckload") and our Brokerage Services, also known as Covenant Transport Solutions, Inc. ("Solutions").

The Truckload segment consists of three asset-based operating fleets that are aggregated because they have similar economic characteristics and meet the aggregation criteria.  The three operating fleets that comprise our Truckload segment are as follows: (i) Covenant Transport, Inc. ("Covenant Transport"), our historical flagship operation, which provides expedited long-haul, dedicated, and regional solo-driver service; (ii) Southern Refrigerated Transportation, Inc. ("SRT"), which provides primarily long-haul and regional temperature-controlled service; and (iii) Star Transportation, Inc. ("Star"), which provides regional solo-driver service. The Truckload segment results include an $11.5 million non-cash goodwill impairment for the three and nine months ended September 30, 2011. See Note 11 for more discussion of the impairment.

The Solutions segment provides freight brokerage services directly and through freight brokerage agents who are paid a commission for the freight they provide.  The brokerage operation has helped us continue to serve customers when we lacked capacity in a given area or when the load has not met the operating profile of our Truckload segment.

"Unallocated Corporate Overhead" includes expenses that are incidental to our activities and are not specifically allocated to one of the segments.

The following tables summarize our segment information:

(in thousands)
 
Three months ended
September 30,
   
Nine months ended
September 30,
 
   
2011
   
2010
   
2011
   
2010
 
Total Revenues:
                       
Asset-Based Truckload Services
  $ 154,646     $ 155,531     $ 469,990     $ 455,453  
Brokerage Services
    6,772       9,281       20,684       30,349  
                                 
Total
  $ 161,418     $ 164,812     $ 490,674     $ 485,802  
                                 
Operating Income (Loss):
                               
Asset-Based Truckload Services
  $ (8,978 )   $ 9,842     $ 6,296     $ 28,640  
Brokerage Services
    493       211       1,322       917  
Unallocated Corporate Overhead
    (1,269 )     (1,881 )     (9,838 )     (9,527 )
                                 
Total
  $ (9,754 )   $ 8,172     $ (2,220 )   $ 20,030