Note 10 - Business Segments

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10. Business Segments

In March 2020, we changed the way we internally evaluate the operating performance of our business units and adopted a new segment reporting structure. As part of this new structure, we separated our Dedicated Contract Services® segment into two reportable segments: Dedicated Contract Services and Final Mile Services®. Accordingly, we reported five distinct business segments during the three and nine months ended September 30, 2020 and 2019. These segments included Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions™ (ICS), Final Mile Services (FMS) and Truckload (JBT) which are based primarily on the services each segment provides. The JBI segment includes freight that is transported by rail over at least some portion of the movement and also includes certain repositioning truck freight moved by JBI equipment or third-party carriers, when such highway movement is intended to direct JBI equipment back toward intermodal operations. DCS segment business includes company-owned and customer-owned, DCS-operated revenue equipment and employee drivers assigned to a specific customer, traffic lane, or service. DCS operations usually include formal, written longer-term agreements or contracts that govern services performed and applicable rates. ICS provides non-asset and asset-light transportation solutions to customers through relationships with third-party carriers and integration with company-owned equipment. ICS services include flatbed, refrigerated, and LTL, as well as a variety of dry-van and intermodal solutions. FMS provides final-mile delivery services to customers through a nationwide network of cross-dock and other delivery system network locations. FMS provides both asset and non-asset big and bulky delivery and installation services, as well as fulfilment and retail-pooling distributions services. JBT business includes full-load, dry-van freight that is transported utilizing company-owned revenue equipment or third-party carriers utilizing company-owned trailing equipment. This freight is typically transported over roads and highways and does not move by rail. All transactions between reporting segments are eliminated in consolidation. Our customers are geographically dispersed across the United States. A summary of certain segment information is presented below (in millions):

	Assets (Excludes intercompany accounts)
	September 2020		December 31, 2019
JBI	$	2,462	$	2,217
DCS		1,529		1,445
ICS		268		208
FMS		433		432
JBT		267		241
Other (includes corporate)		820		928
Total	$	5,779	$	5,471

	Operating Revenues
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
JBI	$	1,211		$	1,240		$	3,426		$	3,477
DCS		553			547			1,628			1,576
ICS		431			337			1,071			972
FMS		182			149			475			402
JBT		109			94			322			296
Subtotal		2,486			2,367			6,922			6,723
Inter-segment eliminations		(13	)		(3	)		(23	)		(8	)
Total	$	2,473		$	2,364		$	6,899		$	6,715

	Operating Income/(Loss)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
JBI	$	108.4		$	88.7		$	317.7		$	316.4
DCS		80.4			76.4			236.4			202.7
ICS		(18.3	)		(5.6	)		(50.3	)		0.8
FMS		2.1			1.9			(6.5	)		(13.7	)
JBT		2.9			6.6			8.2			22.7
Other (includes corporate)		-			(0.1	)		(0.1	)		(0.1	)
Total	$	175.5		$	167.9		$	505.4		$	528.8

	Depreciation and Amortization Expense
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
JBI	$	47.4	$	45.8	$	140.7	$	134.9
DCS		55.9		54.9		167.8		159.4
ICS		0.3		0.9		0.9		2.7
FMS		8.2		8.2		24.6		22.6
JBT		8.8		8.2		25.6		25.4
Other (includes corporate)		11.8		8.8		33.2		25.7
Total	$	132.4	$	126.8	$	392.8	$	370.7