SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 2. 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 truckload and dedicated freight service offerings.  Truckload service offerings provide motor carrier services as a medium-haul common and contract carrier, utilizing equipment owned or leased by the Company or independent contractors.  Dedicated freight service offerings provide 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.

Customer Concentration

Services provided to the Company’s largest customer generated approximately 11% and 12% of consolidated operating revenue for the years ended December 31, 2020 and 2019, respectively, and operating revenue generated by this customer is reported in both the Trucking and USAT Logistics operating segments.  One other customer accounted for 10% or more of operating revenue in the current reporting period, and they also were serviced by both the Trucking and USAT Logistics operating segments.

A summary of operating revenue by segment is as follows:

	Year Ended December 31,
	2020		2019
Operating revenue	(in thousands)
Trucking revenue (1)	$	384,256	$	377,093
Trucking intersegment eliminations		(2,667)		(1,436)
Trucking operating revenue		381,589		375,657
USAT Logistics revenue		191,951		154,011
USAT Logistics intersegment eliminations		(22,402)		(7,037)
USAT Logistics operating revenue		169,549		146,974
Total operating revenue	$	551,138	$	522,631

1) Includes foreign revenue of $33.6 million and $37.0 million for the years ended December 31, 2020 and 2019, respectively.  

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

	Year Ended December 31,
	2020		2019
Operating income	(in thousands)
Trucking	$	9,297	$	(447)
USAT Logistics		3,561		2,762
Total operating income	$	12,858	$	2,315

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

	Year Ended December 31,
	2020		2019
Depreciation and amortization	(in thousands)
Trucking	$	40,203	$	36,245
USAT Logistics		1,156		948
Total depreciation and amortization	$	41,359	$	37,193