OPERATING SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2017

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
REVENUES
Asset-Based	$	517,417	$	509,001	$	1,496,310	$	1,434,315
ArcBest(2)		195,749		170,991		524,554		467,735
FleetNet		39,568		39,073		116,307		124,417
Other and eliminations		(8,454)		(5,142)		(21,435)		(14,462)
Total consolidated revenues	$	744,280	$	713,923	$	2,115,736	$	2,012,005
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	286,918	$	284,240	$	853,474	$	829,312
Fuel, supplies, and expenses		57,395		55,017		174,326		160,532
Operating taxes and licenses		11,712		12,237		35,726		36,239
Insurance		8,348		8,464		23,068		22,492
Communications and utilities		4,575		4,114		13,260		11,847
Depreciation and amortization		20,543		19,950		61,777		59,614
Rents and purchased transportation		55,381		58,221		154,995		145,439
Shared services(3)		48,255		46,981		138,700		139,449
Gain on sale of property and equipment		(7)		(81)		(599)		(2,450)
Nonunion pension expense, including settlement(4)		1,676		545		3,474		1,929
Other		757		1,263		3,936		3,489
Restructuring costs(5)		95		—		268		—
Total Asset-Based		495,648		490,951		1,462,405		1,407,892
ArcBest(2)
Purchased transportation		155,894		132,860		417,313		366,346
Supplies and expenses		3,853		3,263		11,265		9,282
Depreciation and amortization		3,015		3,684		9,511		10,497
Shared services(3)		22,565		21,724		63,115		64,928
Other		2,817		3,191		8,155		8,232
Restructuring costs(5)		—		—		875		—
Total ArcBest		188,144		164,722		510,234		459,285
FleetNet		38,695		38,952		113,730		122,716
Other and eliminations(5)		(2,556)		(1,072)		(7,463)		(5,647)
Total consolidated operating expenses(4)	$	719,931	$	693,553	$	2,078,906	$	1,984,246

⁽¹⁾ Certain restatements have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure as previously discussed in this Note.

⁽²⁾ Includes the operations of LDS since the September 2, 2016 acquisition date.

⁽³⁾ Certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the modified presentation of segment expenses allocated from shared services as previously discussed in this Note.

⁽⁴⁾ For the three months ended September 30, 2017 and 2016, pre-tax nonunion pension expense, including settlement, on a consolidated basis totaled $2.0 million and $0.7 million, respectively, of which $1.7 million and $0.5 million, respectively, was reported by the Asset-Based segment. For the nine months ended September 30, 2017 and 2016, pre-tax nonunion pension expense, including settlement, totaled $4.5 million and $2.6 million, respectively, of which $3.5 million and $1.9 million, respectively, was reported by the Asset-Based segment.

⁽⁵⁾ Restructuring costs relate to the realignment of the Company’s corporate structure (see Note K). “Other and eliminations” includes $0.6 million and $1.6 million of restructuring costs for the three and nine months ended September 30, 2017, respectively.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
OPERATING INCOME
Asset-Based	$	21,769	$	18,050	$	33,905	$	26,423
ArcBest(2)		7,605		6,269		14,320		8,450
FleetNet		873		121		2,577		1,701
Other and eliminations		(5,898)		(4,070)		(13,972)		(8,815)
Total consolidated operating income	$	24,349	$	20,370	$	36,830	$	27,759
OTHER INCOME (COSTS)
Interest and dividend income	$	346	$	390	$	905	$	1,178
Interest and other related financing costs		(1,706)		(1,296)		(4,410)		(3,774)
Other, net(3)		1,079		1,091		2,231		2,028
Total other income (costs)		(281)		185		(1,274)		(568)
INCOME BEFORE INCOME TAXES	$	24,068	$	20,555	$	35,556	$	27,191

⁽¹⁾ Certain restatements have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure as previously discussed in this Note.

⁽²⁾ Includes the operations of LDS since the September 2, 2016 acquisition date.

⁽³⁾ Includes proceeds and changes in cash surrender value of life insurance policies.

The following table presents operating expenses by category on a consolidated basis:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	350,820	$	362,209	$	1,028,552	$	1,059,542
Rents, purchased transportation, and other costs of services		235,346		218,592		651,131		601,456
Fuel, supplies, and expenses		75,716		52,461		226,666		143,068
Depreciation and amortization(2)		25,497		25,793		76,821		76,692
Other		31,815		34,498		93,005		103,488
Restructuring(3)		737		—		2,731		—
	$	719,931	$	693,553	$	2,078,906	$	1,984,246

⁽¹⁾ Certain restatements and reclassifications have been made to the prior periods’ operating expense data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure and the modified presentation of segment expenses allocated from shared services, as previously discussed in this Note.

⁽²⁾ Includes amortization of intangible assets.

⁽³⁾ Restructuring costs relate to the realignment of the Company’s corporate structure.