OPERATING SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2018

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2018		2017		2018		2017
	(in thousands)
REVENUES
Asset-Based	$	585,290	$	517,417	$	1,626,644	$	1,496,310
ArcBest		205,449		195,749		587,369		524,554
FleetNet		50,494		39,568		145,045		116,307
Other and eliminations		(15,075)		(8,454)		(39,549)		(21,435)
Total consolidated revenues	$	826,158	$	744,280	$	2,319,509	$	2,115,736
OPERATING EXPENSES(1)
Asset-Based
Salaries, wages, and benefits	$	292,082	$	287,270	$	848,611	$	853,554
Fuel, supplies, and expenses		64,133		57,395		191,366		174,326
Operating taxes and licenses		12,261		11,712		35,927		35,726
Insurance		9,448		8,348		24,055		23,068
Communications and utilities		4,308		4,575		12,964		13,260
Depreciation and amortization		22,200		20,543		64,492		61,777
Rents and purchased transportation		70,946		55,381		180,332		154,996
Shared services		58,354		47,608		160,786		137,712
Multiemployer pension fund withdrawal liability charge(2)		—		—		37,922		—
Gain on sale of property and equipment		(123)		(7)		(522)		(599)
Other		1,531		757		3,778		3,935
Restructuring costs(3)		—		95		—		268
Total Asset-Based		535,140		493,677		1,559,711		1,458,023
ArcBest
Purchased transportation		164,322		155,894		475,614		417,313
Supplies and expenses		3,522		3,853		10,290		11,265
Depreciation and amortization		3,558		3,015		10,563		9,511
Shared services		23,453		22,447		68,857		62,691
Other		2,546		2,854		6,973		8,192
Restructuring costs(3)		—		—		152		875
Gain on sale of subsidiaries(4)		(1,945)		(152)		(1,945)		(152)
Total ArcBest		195,456		187,911		570,504		509,695
FleetNet		49,406		38,646		141,407		113,617
Other and eliminations		(9,899)		(2,696)		(24,049)		(8,208)
Total consolidated operating expenses	$	770,103	$	717,538	$	2,247,573	$	2,073,127

⁽¹⁾ As previously discussed in this Note, the Company retrospectively adopted an amendment to ASC Topic 715, effective January 1, 2018, which requires the components of net periodic benefit cost other than service cost to be presented within other income (costs) in the consolidated financial statements and, therefore, these costs are no longer classified within operating expenses within this table. Certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation of segment expenses and the presentation of components of net periodic benefit cost in other income (costs).

⁽²⁾ ABF Freight recorded a one-time charge in second quarter 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note F).

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

⁽⁴⁾ Gains recognized in the 2018 and 2017 periods relate to the sale of the ArcBest segment’s military moving businesses in December 2017 and 2016, respectively.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2018		2017		2018		2017
	(in thousands)
OPERATING INCOME(1)
Asset-Based	$	50,150	$	23,740	$	66,933	$	38,287
ArcBest		9,993		7,838		16,865		14,859
FleetNet		1,088		922		3,638		2,690
Other and eliminations		(5,176)		(5,758)		(15,500)		(13,227)
Total consolidated operating income	$	56,055	$	26,742	$	71,936	$	42,609
OTHER INCOME (COSTS)
Interest and dividend income	$	1,120	$	346	$	2,360	$	905
Interest and other related financing costs		(2,470)		(1,706)		(6,542)		(4,410)
Other, net(1)(2)		(714)		(1,314)		(4,038)		(3,548)
Total other income (costs)		(2,064)		(2,674)		(8,220)		(7,053)
INCOME BEFORE INCOME TAXES	$	53,991	$	24,068	$	63,716	$	35,556

⁽¹⁾ As previously discussed in this Note, for the three and nine months ended September 30, 2018 and 2017, the components of net periodic benefit cost other than service cost are presented within other income (costs) rather than within operating income in accordance with an amendment to ASC Topic 715, which the Company adopted retrospectively effective January 1, 2018.

⁽²⁾ 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
	2018		2017		2018		2017
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	363,348	$	349,294	$	1,048,018	$	1,023,803
Rents, purchased transportation, and other costs of services		265,042		235,346		742,338		651,131
Fuel, supplies, and expenses		82,188		75,716		245,718		226,666
Depreciation and amortization(1)		28,026		25,497		81,699		76,821
Other		31,449		30,948		91,112		91,975
Multiemployer pension fund withdrawal liability charge(2)		—		—		37,922		—
Restructuring costs(3)		50		737		766		2,731
	$	770,103	$	717,538	$	2,247,573	$	2,073,127

⁽¹⁾ Includes amortization of intangible assets.

⁽²⁾ ABF Freight recorded a one-time charge in second quarter 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note F).

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