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SEGMENT REPORTING
6 Months Ended
Jun. 30, 2020
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 3 – SEGMENT REPORTING

The Company’s two reportable segments are Trucking and USAT Logistics.  In determining its reportable segments, the Company’s chief operating decision maker 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.

Trucking. Trucking is comprised of one-way truckload and dedicated freight motor carrier services.  Truckload provides motor carrier services as a medium-haul common and contract carrier.  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.  Dedicated freight provides truckload motor carrier services to specific customers for movement of freight over particular routes at specified times.

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.  The Company provides these services to many 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 or other USAT Logistics 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.

A summary of operating revenue by segment is as follows:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2020

    

2019

    

2020

    

2019

    

Operating revenue

(in thousands)

Trucking revenue (1)

$

88,627

$

96,476

$

182,622

$

191,378

Trucking intersegment eliminations

 

(707)

 

(407)

 

(1,701)

 

(769)

Trucking operating revenue

 

87,920

 

96,069

 

180,921

 

190,609

USAT Logistics revenue

 

38,738

 

39,575

 

74,562

 

81,025

USAT Logistics intersegment eliminations

 

(2,921)

 

(2,022)

 

(4,973)

 

(4,038)

USAT Logistics operating revenue

 

35,817

 

37,553

 

69,589

 

76,987

Total operating revenue

$

123,737

$

133,622

$

250,510

$

267,596

1)Includes foreign revenue of $7.5 million and $9.4 million for the three months ended June 30, 2020 and 2019, respectively, and $16.1 million and $19.0 million for the six months ended June 30, 2020 and 2019, respectively.

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

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2020

    

2019

    

2020

    

2019

Operating income (loss)

(in thousands)

Trucking

$

1,176

$

837

$

(511)

$

2,445

USAT Logistics

 

(176)

 

1,146

 

(801)

 

3,459

Total operating income (loss)

$

1,000

$

1,983

$

(1,312)

$

5,904

A summary of depreciation and amortization by segment is as follows:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2020

    

2019

    

2020

    

2019

Depreciation and amortization

(in thousands)

Trucking

$

9,697

$

8,853

$

19,473

$

17,432

USAT Logistics

 

337

 

272

 

572

 

511

Total depreciation and amortization

$

10,034

$

9,125

$

20,045

$

17,943