SEGMENT REPORTING

The Company’s two reportable segments are Trucking and USAT Logistics.

Trucking. Trucking is comprised of one-way truckload and dedicated freight motor carrier services. Truckload provides one-way motor carrier services as a common and contract carrier, in which volumes typically are not contractually committed, and dedicated contract motor carrier services, in which a combination of equipment and drivers is contractually committed to a particular customer, typically for a duration of at least one year, subject to certain cancellation rights. USA Truck has provided truckload motor carrier services since its inception, and continues to derive the largest portion of its gross revenue from these services.

USAT Logistics. USAT Logistics’ service offerings consist of freight brokerage, logistics, and rail intermodal services. Each of these service offerings match customer shipments with available equipment of authorized third-party motor carriers and other service providers and provide services that complement the Company’s Trucking operations. The Company provides these services primarily to existing Trucking customers, many of whom prefer to rely on a single service provider, or a small group of service providers, to provide all their transportation solutions.

Revenue equipment assets are not allocated to USAT Logistics as freight services for customers are brokered through arrangements with third-party motor carriers who utilize their own equipment. To the extent rail intermodal operations require the use of Company-owned assets, they are obtained from the Company’s Trucking segment on an as-needed basis. Depreciation and amortization expense is allocated to USAT Logistics based on the Company-owned assets specifically utilized to generate USAT Logistics revenue. All intercompany transactions between segments reflect rates similar to those that would be negotiated with independent third parties. All other expenses for USAT Logistics are specifically identifiable direct costs or are allocated to USAT Logistics based on relevant cost drivers, as determined by management.

In determining its reportable segments, the Company’s management focuses on financial information, such as operating revenue, operating expense categories, operating ratios and operating income, as well as on key operating statistics, to make operating decisions.

A summary of operating revenue by segment is as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
Operating revenue	2018			2017			2018			2017
Trucking revenue (1)	$	86,801		$	76,811		$	251,332		$	219,013
Trucking intersegment eliminations	(1,272		)	(361		)	(1,501		)	(738		)
Trucking operating revenue	85,529			76,450			249,831			218,275
USAT Logistics revenue	49,136			41,907			146,527			111,435
USAT Logistics intersegment eliminations	(2,082		)	(4,122		)	(3,381		)	(6,447		)
USAT Logistics operating revenue	47,054			37,785			143,146			104,988
Total operating revenue	$	132,583		$	114,235		$	392,977		$	323,263


(1)	Includes foreign revenue of $10.6 million and $31.6 million for the three and nine months ended September 30, 2018, respectively, and $9.6 million and $27.2 million for the three and nine months ended September 30, 2017, respectively. All foreign revenue is collected in U.S. dollars.

A summary of operating income (loss) by segment is as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
Operating income (loss)	2018		2017			2018		2017
Trucking	$	2,605	$	(1,194	)	$	4,294	$	(13,165	)
USAT Logistics	3,198		2,998			8,212		5,604
Total operating income (loss)	$	5,803	$	1,804		$	12,506	$	(7,561	)

A summary of depreciation and amortization by segment is as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
Depreciation and amortization	2018		2017		2018		2017
Trucking	$	6,562	$	6,659	$	20,887	$	20,982
USAT Logistics	173		131		505		331
Total depreciation and amortization	$	6,735	$	6,790	$	21,392	$	21,313