OPERATING SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2020

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Six Months Ended
	June 30				June 30
	2020		2019		2020		2019
	(in thousands)
REVENUES
Asset-Based	$	460,070	$	559,648	$	975,783	$	1,065,727
ArcBest		151,467		181,173		316,242		354,377
FleetNet		46,440		51,722		98,879		104,981
Other and eliminations		(30,607)		(21,053)		(62,135)		(41,756)
Total consolidated revenues	$	627,370	$	771,490	$	1,328,769	$	1,483,329
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	248,995	$	297,016	$	532,833	$	577,292
Fuel, supplies, and expenses(1)		45,675		65,791		106,900		129,764
Operating taxes and licenses		11,629		12,214		24,423		24,612
Insurance		8,247		7,598		16,071		15,589
Communications and utilities(1)		4,342		4,500		9,053		9,117
Depreciation and amortization(1)		23,327		21,633		46,597		42,594
Rents and purchased transportation(1)		46,152		56,826		101,922		106,132
Shared services(1)		45,605		55,338		94,490		105,633
Gain on sale of property and equipment		(1,175)		(1,587)		(3,339)		(1,621)
Innovative technology costs(1)(2)		4,789		2,735		9,322		4,536
Other(1)		1,448		1,406		3,235		2,286
Total Asset-Based		439,034		523,470		941,507		1,015,934
ArcBest
Purchased transportation		125,090		147,552		262,272		287,657
Supplies and expenses		1,989		2,858		4,269		5,632
Depreciation and amortization		2,449		3,055		4,919		6,206
Shared services		18,840		23,141		40,567		46,172
Other		1,796		2,445		4,321		4,858
Total ArcBest		150,164		179,051		316,348		350,525
FleetNet		45,658		50,696		97,057		102,467
Other and eliminations		(27,911)		(16,927)		(54,387)		(29,388)
Total consolidated operating expenses	$	606,945	$	736,290	$	1,300,525	$	1,439,538

(1) As previously discussed in this Note, the presentation of Asset-Based segment expenses was modified in third quarter 2019 to present innovative technology costs as a separate operating expense line item. Certain reclassifications have been made to the prior period operating segment expenses to conform to the current year presentation.

(2) Represents costs associated with the freight handling pilot test program at ABF Freight previously discussed in this Note.

	Three Months Ended				Six Months Ended
	June 30				June 30
	2020		2019		2020		2019
	(in thousands)
OPERATING INCOME (LOSS)
Asset-Based	$	21,036	$	36,178	$	34,276	$	49,793
ArcBest		1,303		2,122		(106)		3,852
FleetNet		782		1,026		1,822		2,514
Other and eliminations		(2,696)		(4,126)		(7,748)		(12,368)
Total consolidated operating income	$	20,425	$	35,200	$	28,244	$	43,791
OTHER INCOME (COSTS)
Interest and dividend income	$	991	$	1,616	$	2,366	$	3,094
Interest and other related financing costs		(3,378)		(2,811)		(6,325)		(5,693)
Other, net(1)		2,696		(445)		(1,166)		(1,036)
Total other income (costs)		309		(1,640)		(5,125)		(3,635)
INCOME BEFORE INCOME TAXES	$	20,734	$	33,560	$	23,119	$	40,156

(1) Includes the components of net periodic benefit cost other than service cost related to the Company’s nonunion pension, SBP, and postretirement plans (see Note G) and 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				Six Months Ended
	June 30				June 30
	2020		2019		2020		2019
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	305,220	$	361,116	$	650,166	$	704,784
Rents, purchased transportation, and other costs of services		187,914		236,053		404,942		457,078
Fuel, supplies, and expenses		54,838		80,700		126,611		160,036
Depreciation and amortization(1)		29,086		27,434		58,099		53,971
Other		29,887		30,987		60,707		63,669
	$	606,945	$	736,290	$	1,300,525	$	1,439,538

(1) Includes amortization of intangible assets.